Grasshopper Bank SBA Lending Review

Pros

• Fast & easy application process
• Preapprovals in less than 10 minutes
• Good customer support
• High borrowing limits
• SBA Preferred Lender

Cons

• Not transparent with some rates and fees
• Not suitable for startups

What Is Grasshopper Bank?

Grasshopper Bank is a digital bank that is built for business and innovation. One of those innovations is simplifying the process of obtaining a Small Business Administration (SBA) loan. While popular for its low rates and long repayment terms, these government-backed loans have notoriously difficult application processes and long waiting times. Cue Grasshopper Bank.

Grasshopper boasts a digital application that allows businesses to quickly and easily apply for SBA loans. In addition to a fast application process, applicants can be preapproved in less than ten minutes. While loan approval and underwriting can be time-consuming, Grasshopper’s experienced team helps you navigate the process with ease.

In addition to SBA loans, Grasshopper Bank also offers traditional banking services for businesses. However, for this review, we will be looking solely at Grasshopper’s SBA loans.

Services Offered By Grasshopper Bank

Grasshopper Bank is an SBA Preferred Lender. Through Grasshopper Bank, businesses can easily apply for the popular 7(a) loan, which has high borrowing limits of $250,000 to $5 million and has long repayment terms (10 to 25 years) and competitive rates.

Grasshopper Bank also offers SBA 504 loans for commercial real estate purchases.

While this review focuses on SBA loans, Grasshopper Bank also has checking accounts and savings accounts.

You can check out our Grasshopper Bank review to learn more about these services.

Grasshopper Bank SBA Loan Borrower Qualifications

To qualify for an SBA loan through Grasshopper, you must be a US citizen or permanent resident who operates a for-profit business in the US.

Your business must have been in operation for at least two years to receive an SBA loan. Additionally, you must have a minimum FICO score of 660.

If we had one complaint in this area, it would be that Grasshopper should disclose these minimum requirements on its website.

Grasshopper SBA Loan Rates & Fees

Grasshopper’s rates and fees for its 7(a) loans are extremely competitive. Rates start at the Wall Street Journal prime rate plus 2%. Repayment terms of 10 to 25 years are available.

As with all SBA loans, a down payment, collateral, and additional fees may apply. Unfortunately, Grasshopper Bank does not disclose the specifics of these requirements upfront. However, SBA loans are generally known for having affordable fees.

Application Process

The application process for an SBA 7(a) loan through Grasshopper couldn’t be easier. A digital application is available that simplifies the SBA lending process.

You’ll start by providing basic information about yourself and your business. Next, you’ll add more specific information, such as the date your business was established, what industry your business operates in, and information about other owners. You’ll also provide your requested loan amount and the purpose of the loan. Finally, you’ll be able to review the information you added, check off legal notices, and submit your application.

This process only takes about ten minutes. Once you’ve submitted your application, Grasshopper can determine if you qualify for an SBA 7(a) loan in less than 10 minutes. A soft pull is performed on your credit at this stage and does not affect your credit score.

Of course, the underwriting and funding of your loan takes much longer (generally around 30-45+ days), and you may find that you’re disqualified at any point during the process. However, we appreciate the speed with which Grasshopper Bank prequalifies your application, as well as the breakdown of the entire loan process found on its website.

Sales & Advertising Transparency

Everything is by the book when it comes to sales and advertising transparency, earning Grasshopper a perfect 5-star rating in this area.

There are no red flags in terms of sales tactics, no gimmicks, and the website has the standard disclosures you would expect. There is plenty of information about Grasshopper Bank and its services (although you may have to click around a bit to find what you’re looking for).

Beyond its website, Grasshopper Bank can also be found online through its profiles on X/Twitter, Instagram, and LinkedIn.

Customer Service & Technical Support

Grasshopper offers numerous ways to get in touch, including by phone, online form, email, or chatbot (which can also transfer you to a member of the customer service team).

In addition to these support methods, Grasshopper Bank has a help center, a company blog that’s updated often, and active social media profiles.

In terms of the quality of support, customer reviews are mostly positive. While many customers praised support reps for the help they received, a few were dissatisfied with the quality of service. We took this into consideration when giving our rating of 3.2 out of 5 for customer support.

User Reviews

User reviews for Grasshopper Bank are mostly positive, although it is important to note that many reviews are for its business banking services and aren’t specific to SBA loans. While there are some negative reviews, Grasshopper Bank is quick to address its customers’ issues.

The company receives ratings of 4.1 out of 5 (based on 180+ reviews) on Trustpilot, 4.5 out of 5 (based on 210+ reviews) on the App Store, and 4.3 out of 5 (based on 95+ reviews) on the Google Play Store. Grasshopper is accredited by the Better Business Bureau, where it holds an A+ rating.

Negative Reviews & Complaints

Grasshopper’s negative reviews center around business banking services. Common complaints include sudden account closures, delays in posting transactions, and difficulties locating documentation and information on the website.

We were unable to find negative reviews about Grasshopper’s SBA loans.

Positive Reviews & Testimonials

As mentioned, most reviews surround Grasshopper’s banking services. In terms of SBA loans, the company receives praise for its excellent customer support and personalized service throughout the process.

Final Verdict: Are Grasshopper Bank SBA Loans Worth It?

Established businesses with a solid credit history can’t go wrong with SBA 7(a) loans. These loans have few limitations on how funds are spent, rates are competitive, and repayment terms are about as good as you can get. And if you qualify for an SBA loan, you won’t go wrong by choosing Grasshopper Bank as your lender.

If you don’t meet the credit score, time in business, or other requirements, you’ll want to look elsewhere for funding. Likewise, Grasshopper’s SBA loans start at $250K, so if you have smaller funding needs, another lender will be a better fit.

Grasshopper’s SBA lending earns a very respectable overall rating of 4.2 out of 5 stars. We love that it is an SBA Preferred Lender with a fast and easy application that can help you determine if you qualify for funding in just minutes. While the process is lengthy (as is typical for SBA loans), Grasshopper makes it as pain-free as possible by providing exceptional customer support along the way.

Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.

The Merchant Maverick Seal of Approval 🏆

Grasshopper Bank SBA Lending	Visit Site

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Grasshopper Bank SBA Lending for yourself.

The Merchant Maverick Seal of Approval 🏆

Grasshopper Bank SBA Lending	Visit Site

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Grasshopper Bank SBA Lending for yourself.