Small Business Administration (SBA) loans typically involve a heavy amount of documentation and getting approved can take between 45 and 90 days. Working with an experienced SBA lender, however, can help streamline the process and get you funded more quickly. The 7(a) program is the most popular type of SBA loan, so we’ve compiled a list of the best SBA lenders by funding volume.
Many of these lenders are also part of the SBA’s Preferred Lender Program, allowing them to make decisions on behalf of the SBA and reducing the time needed to get you approved and funded. If you want to get help with choosing a lender, you can work with a business loan broker like Lendio. It has a network of over 75 lenders and can pair you with a dedicated loan specialist to discuss your specific business needs.
Best SBA Lenders by Funding Volume for Fiscal Year 2023
Lender Name | Total Amount of SBA 7(a) Loans Funded | Number of SBA 7(a) Loans Approved | Average SBA 7(a) Loan Size | Primary Geographic Areas Served |
---|---|---|---|---|
$1,848,315,000 | 1,215 | $1,521,247 | Nationwide | |
$1,371,775,200 | 7,325 | $187,273 | Nationwide | |
$813,898,300 | 1,275 | $638,352 | Nationwide | |
$572,979,900 | 999 | $573,553 | Nationwide | |
$536,399,800 | 419 | $1,280,190 | Chicago | |
$509,991,100 | 722 | $706,359 | Utah | |
$495,181,900 | 2,694 | $183,809 | Florida | |
$484,461,600 | 3,811 | $127,122 | East Coast | |
$454,767,000 | 346 | $1,314,355 | Nationwide | |
$427,603,100 | 2,140 | $199,815 | Nationwide | |
Live Oak Bank
Amount of SBA 7(a) Loans Funded | $1,848,315,000 |
Number of SBA 7(a) Loans Approved | 1,215 |
Average Loan Amount | $1,521,247 |
SBA Preferred Lender? | Yes |
Common Loan Purposes |
|
Primary Geographic Areas Served | Nationwide |
Loan Amount | $5 million and up |
Repayment Term | Up to 25 years |
Who Should Consider Live Oak Bank & How to Apply
For fiscal year 2023, Live Oak Bank funded the largest dollar amount of SBA 7(a) loans. This provider works with for-profit businesses only, and a major advantage of going with it is its ability to offer more than $5 million in financing. It’s able to do this by combining an SBA loan with its other commercial loan products, making it an excellent option for businesses with large financing needs.
Live Oak Bank’s SBA 7(a) loans are offered with minimal collateral requirements, although a personal guarantee is required from all business owners who have 20% or more equity. Loans are fully amortized with no balloon payments and carry no prepayment penalties for loan terms under 15 years. Loans with a longer repayment term have a three-year prepayment penalty.
Business acquisition loans have a maximum loan term of 10 years, equipment loans carry a limit of 15 years, and real estate loans allow for a term of up to 25 years. Live Oak Bank states that businesses that are a good fit and have a higher chance of getting approved typically have a credit score of at least 650 and can show profitability.
To apply or learn more, you can visit the Live Oak Bank website.
Huntington National Bank
Amount of SBA 7(a) Loans Funded | $1,371,775,200 |
Number of SBA 7(a) Loans Approved | 7,325 |
Average Loan Amount | $187,273 |
SBA Preferred Lender? | Yes |
Common Loan Purposes |
|
Primary Geographic Areas Served | Nationwide |
Loan Amount | $5 million |
Repayment Term | Up to 25 years |
Who Should Consider Huntington National Bank & How to Apply
Huntington Bank is a full-service banking provider with physical locations in 11 different states. While it may have a limited physical presence, it does state that it can offer SBA loans nationwide and has consistently been a top SBA lender in prior years. This provider’s SBA 7(a) loans also carry no loan covenants, giving you even more flexibility in how you are allowed to use the funds.
With Huntington National Bank, loan proceeds from an SBA 7(a) loan can commonly be used for business acquisitions, start-up financing, construction, and more. It has a team of knowledgeable SBA underwriters and closers, as well as a dedicated construction team that can provide added support in monitoring your project to stay on track. Other loans offered include SBA Express loans and SBA 504 loans.
The bank does not provide an online application if you want to apply. Rather, you must fill out a short questionnaire online to request a callback from one of its SBA specialists. The initial phone call typically is done to gather basic information about your needs, verify that an SBA 7(a) loan is the best fit for you, and gather additional documents if it’s deemed to be the best choice.
To better prepare for the loan process, you can have the following documents ready to send:
- Business tax returns
- Personal tax returns
- Copies of business licenses
- Business lease
- Statement of personal history
- SBA borrower information form
- Personal financial statement
Newtek Small Business Finance
Amount of SBA 7(a) Loans Funded | $813,898,300 |
Number of SBA 7(a) Loans Approved | 1,275 |
Average Loan Amount | $638,352 |
SBA Preferred Lender? | Yes |
Notable Areas of Expertise |
|
Primary Geographic Areas Served | Nationwide |
Loan Amount | Up to $5 million |
Repayment Term | Up to 25 years |
Who Should Consider Newtek Small Business Finance & How to Apply
Out of the top providers that are not banks, Newtek funded the highest amount of SBA loans for fiscal year 2023. Newtek is also a provider of other business and financial solutions, such as payment processing, web design, insurance, and information technology.
Its lending products range in size from $1,000 to $15 million, although its SBA loans may vary. Its borrowers often use funds for business expansion, the purchase of real estate, conducting leasehold improvements, opening a new office, and other working capital needs.
To be eligible for financing, you’ll need to have an existing business with at least two years of operating history. Newtek works only with for-profit businesses that can make loan payments from business earnings.
As part of the application process, you’ll work with the same individual from start to finish. Newtek can also assist with the completion of many of the required SBA forms as part of the loan approval process. Like Live Oak Bank, Newtek can combine multiple financing products into a single solution depending on your company’s short- and long-term needs.
To learn more or to apply, you can visit the Newtek website. There, you can submit an online application or email the company with any questions you may have.
Ready Capital
Amount of SBA 7(a) Loans Funded | $572,979,900 |
Number of SBA 7(a) Loans Approved | 999 |
Average Loan Amount | $573,553 |
SBA Preferred Lender? | Yes |
Common Loan Purposes |
|
Primary Geographic Areas Served | Nationwide |
Loan Amount | $350,000 to $7 million |
Repayment Term | Up to 25 years |
Who Should Consider Ready Capital & How to Apply
Ready Capital is another non-bank lender that funded one of the most SBA 7(a) loans for this fiscal year. Its loans can be used for commercial real estate purposes and business operating uses.
Its commercial real estate loans, for instance, can be used to finance owner-occupied properties, land, construction, and renovation costs and to conduct leasehold improvements. Its business operating loans, on the other hand, can typically be used for business acquisitions, equipment purchases, and other working capital needs.
A unique aspect of Ready Capital is the fact that it can issue more than the SBA-insured amount of $5 million. You can get up to $7 million in financing, which is made possible through the provider’s partnership with Pari Passu loans.
Ready Capital states that it can work with a wider range of credit scores than most other lenders. This is contrary to the fact that most SBA lenders require fair to good credit scores of 680 and above. Ready Capital, on the other hand, goes as far as reiterating that there is technically no minimum credit score requirement.
When you apply with Ready Capital, you’ll be able to work with a dedicated representative to streamline the process. To get started, you can complete an online form in less than 3 minutes with no negative impact on your credit score.
Byline Bank
Amount of SBA 7(a) Loans Funded | $536,399,800 |
Number of SBA 7(a) Loans Approved | 419 |
Average Loan Amount | $1,280,190 |
SBA Preferred Lender? | Yes |
Notable Areas of Expertise |
|
Primary Geographic Areas Served | Chicago |
Loan Amount | $350,000 to $5 million |
Repayment Term | Up to 25 years |
Who Should Consider Byline Bank & How to Apply
With Byline Bank, non-collateral dependent loan options are available, despite the provider’s minimum loan amount of $350,000. You can choose between a variable- and fixed-rate loan, and you could also qualify for a low down payment. For example, machinery acquisitions and refinancing can be financed at up to 100%. Other types of loans, such as real estate and construction, offer up to 90% financing.
Since this provider is an SBA Preferred lender and has the authority to make decisions in-house, you can get loan decisions more quickly as you won’t have to wait for a response from the SBA. Borrowers typically receive term sheets within 24 to 48 hours of providing all required documents, with a target closing date within 50 days.
Rates can vary depending on the strength of your business credit and finances but start as low as 2% above the current U.S. Prime rate. Up to $5 million in financing is available, although additional conventional financing can be used if you need more funds. Real estate loans carry maximum repayment terms of 25 years while most others will have a limit of 10 years.
To get started, you can visit the Byline Bank website and complete a short questionnaire form to receive a callback.
Celtic Bank
Amount of SBA 7(a) Loans Funded | $509,991,100 |
Number of SBA 7(a) Loans Approved | 722 |
Average Loan Amount | $706,359 |
SBA Preferred Lender? | Yes |
Notable Areas of Expertise |
|
Primary Geographic Areas Served | Utah |
Loan Amount | Up to $5 million |
Repayment Term | Up to 25 years |
Who Should Consider Celtic Bank & How to Apply
Celtic Bank is headquartered in Salt Lake City, Utah. It has consistently been a high-volume SBA lender, having been in the top 10 each year going back to 2013.
Its SBA 7(a) loans carry rates as low as prime plus 2.75%. Compared to some other lenders on our list, its loans don’t carry any unique or notable features. Rather, you’ll find that it offers many of the standard SBA 7(a) loan characteristics, including a maximum loan amount of $5 million and a limit of a 90% loan-to-value ratio.
Other products offered by Celtic Bank include equipment financing, commercial solar financing, and asset-based lending solutions. If you’re interested in these other loan products, we recommend checking out our tips on how to get a small business loan to improve your approval odds.
If you decide to work with Celtic Bank, be aware of the fact that it does not have 24/7 customer service. Available hours, as published on its website, are currently Monday through Friday during normal business hours.
To apply or learn more about its lending products, visit the Celtic Bank website. There, you’ll be able to find the company’s phone and email contact information. You can also complete a loan application to get prequalified in just a matter of minutes.
BayFirst National Bank
Amount of SBA 7(a) Loans Funded | $495,181,900 |
Number of SBA 7(a) Loans Approved | 2,694 |
Average Loan Amount | $183,809 |
SBA Preferred Lender? | Yes |
Common Loan Purposes |
|
Primary Geographic Areas Served | Primarily Florida |
Loan Amount | $50,000 to $5 million |
Repayment Term | 25 years |
Who Should Consider BayFirst National Bank & How to Apply
BayFirst National Bank is primarily located in the Tampa Bay, Florida, region. As a result, borrowers interested in getting an SBA 7(a) loan with this lender should be comfortable with conducting business online if visiting a local branch is not an option.
Its SBA lending division operates under the name, CreditBench. While it can take advantage of BayFirst’s Preferred Lender status, it offers much of the standard SBA 7(a) terms. For example, while other lenders in our guide can offer more than $5 million in funding by combining it with another loan product, BayFirst offers the standard maximum loan amount of $5 million.
SBA 7(a) loans obtained through BayFirst are fully amortizing, so you won’t have to worry about making any balloon payments. Prepayment penalties apply to loans that have a repayment term of less than 15 years. Longer repayment terms of up to 25 years typically are reserved for real estate loans.
BayFirst National Bank does not provide information about specific rates or terms on its website. Rather, you’ll have to submit a loan application to get this information. To do so, you’ll need to contact the bank to let it know you’re interested in getting an SBA 7(a) loan. Online applications are unavailable. You will then be given instructions on how to get the process started and can be given an initial approval in as little as 10 days.
TD Bank
Amount of SBA 7(a) Loans Funded | $484,461,600 |
Number of SBA 7(a) Loans Approved | 3,811 |
Average Loan Amount | $127,122 |
SBA Preferred Lender? | Yes |
Common Loan Purposes |
|
Primary Geographic Areas Served | East coast |
Loan Amount | Up to $5 million |
Repayment Term | Up to 25 years |
Who Should Consider TD Bank & How to Apply
TD Bank’s SBA 7(a) loan program had the smallest average loan size on our list, making it a good option if you don’t have large funding needs. It offers the standard maximum loan amount of $5 million, with repayment terms varying depending on your intended use of the loan proceeds.
If your loan is to be used to finance commercial real estate, a maximum term of 25 years can be selected. For equipment financing, you can spread payments over the lesser of 15 years or the useful life of the equipment. Finally, working capital loans have a limit of 10 years.
Other notable loan terms include a maximum advance rate of 100% for machinery and equipment. Real estate loans require a minimum down payment of 10% but business acquisitions allow for no more than an 85% advance rate.
The process of getting an SBA loan with TD Bank can vary depending on the loan amount you need. If you are applying for a loan amount of $250,000 or less, you can submit an application from the TD Bank website. Otherwise, loan requests greater than $250,000 will require you to work with a TD Business Banker. You can schedule an appointment with a banker online to get a callback within one business day.
First Internet Bank of Indiana
Amount of SBA 7(a) Loans Funded | $454,767,000 |
Number of SBA 7(a) Loans Approved | 346 |
Average Loan Amount | $1,314,355 |
SBA Preferred Lender? | Yes |
Common Loan Purposes |
|
Primary Geographic Areas Served | Nationwide |
Loan Amount | Up to $5 million |
Repayment Term | Up to 25 years |
Who Should Consider First Internet Bank of Indiana & How to Apply
First Internet Bank of Indiana was founded in 1999 and was the first state-chartered, federally insured institution to operate entirely online. It has since grown to offer a wide range of personal and business products, including SBA loans.
SBA financing with this lender is meant to be faster and easier thanks to its status as a Preferred Lender with the SBA, allowing it to issue approvals with less documentation and without needing to wait for a separate approval from the SBA itself. Its SBA 7(a) loan program offers the standard repayment terms of up to 10 years for business acquisitions, working capital, equipment financing, and tenant improvements. Real estate loans allow for a maximum of 25 years.
If an SBA 7(a) loan is not right for you, the provider also offers SBA Express and SBA 504 loans. Express loans offer up to $350,000 in financing, can be approved within 48 hours, and are offered in the form of a term loan or line of credit. Its SBA 504 loans can be used for long-term fixed-rate financing needs of up to 25 years.
The application process for this lender involves several steps, outlined as follows on the company’s website:
- Contact a Business Development Officer to start the process
- Provide requested documents
- Review and accept your loan proposal
- Underwriting process begins and additional credit documentation is requested
- Review your loan closing checklist and schedule closing
Wells Fargo Bank
Amount of SBA 7(a) Loans Funded | $427,603,100 |
Number of SBA 7(a) Loans Approved | 2,140 |
Average Loan Amount | $199,815 |
SBA Preferred Lender? | Yes |
Notable Areas of Expertise |
|
Primary Geographic Areas Served | Nationwide |
Loan Amount | Up to $5 million |
Repayment Term | Up to 25 years |
Who Should Consider Wells Fargo Bank & How to Apply
Wells Fargo’s SBA 7(a) loan program allows for up to $5 million in funding. Loan proceeds can be used for nearly any business purpose, such as acquiring another company, buying out business owners, purchasing equipment, or financing real estate. Most loans have a maximum repayment period of 10 years, although 25 years is allowed if you’ll be using funds for real estate construction or acquisition.
The bank does not disclose its rates but you can expect rates to start as low as the current Prime rate and go as high as 2.75% above Prime depending on your business qualifications. Companies can also choose between a fixed or variable-rate loan.
If the SBA 7(a) program is not a good fit, you can also consider the lender’s SBA 504 loan program, which is designed to help finance fixed assets expected to promote business growth and the creation of jobs. Some examples can include the financing of buildings, land, and equipment.
Wells Fargo provides a limited amount of information on its website. If you’re interested in learning more or applying, you’ll need to call or visit one of its branches.
How We Chose the Top SBA Lenders
The best SBA lenders listed in our guide were selected based on the dollar amount of approved SBA 7(a) loans for the 2023 fiscal year. Selections were based on information provided by the SBA’s lender reports as of Nov. 19, 2023. The number of approved loans and average loan amounts, while available, were not considered in our process of selecting the top 10 SBA lenders.
Who Should Consider SBA Loans
SBA loans can offer competitive interest rates. However, loans can take a long time to get approved and funded, making it a more ideal fit for business owners who can afford to wait between 45 and 90 days to get funds. These loans also tend to have strict eligibility criteria with many lenders requiring good credit scores to qualify.
Our guide on the different types of SBA loans covers the typical rates, terms, and qualification requirements you’ll run into.
How To Apply for an SBA Loan
Getting an SBA loan generally involves four main steps. You’ll need to first understand your options so that you know the type of SBA loan best suited for your needs. You’ll then need to verify your eligibility and find a lender. Once those steps have been completed, you’ll need to submit a formal loan application and provide documents requested by your lender.
For more details on each of these steps, check out our guide on how to apply for an SBA loan.
Frequently Asked Questions (FAQs)
An SBA loan is a type of loan that is insured by the SBA, allowing lenders to offer lower rates because of the decreased risk of lending. SBA loans are designed to make it easier for certain companies to get funding and increase small business access to financing options.
An SBA loan could be right for you if you have good credit, have strong business finances, and are looking to get a low interest rate loan. Since SBA loans typically take between one and three months to get, you’ll also want to ensure you’re not in any immediate need of funding.
An SBA loan can be difficult to get, as it often requires a credit score above 660 and a history of strong business finances. SBA loans also tend to require a significant amount of documentation, which can add to the length of time needed to get approved and funded.
Bottom Line
Getting an SBA loan can be a complex and time-consuming process. However, choosing one of the top SBA lenders can help you get approved and funded more quickly. The lenders on our list have a significant amount of experience with SBA loans, and you should be able to find one that services your geographic location.