Between 2010 and 2018, based on data we obtained from the Small Business Administration (SBA), lenders collectively issued 493,843 SBA 7(a) loans to small businesses. Of these loans, 57% were for amounts of $150,000 or less. We’ve compiled a list of the 100 top SBA lenders for loans under $150K.
100 Top SBA Lenders for Loans Under $150K
We used data provided by the SBA for loans made between 2010 and 2018 to derive the information provided in this table.
Top 5 SBA Lenders for Loans Under $150K
We ranked the top 100 SBA lenders for loans under $150,000 by the number of SBA loans made between 2010 and 2018. While the list above reflects the 100 top SBA lenders for loans under $150,000, choosing the best SBA lender to work with for your loan will depend on many factors. It’s important to find a lender that is making loans in your geographic area and is familiar with your industry.
The top five SBA lenders for loans under $150,000 are:
Huntington National Bank
Huntington National Bank made 25,465 SBA loans under $150,000 between 2010 and 2018. This accounted for over 9% of all of the loans of this size. Huntington National Bank is a regional bank serving the Midwest. Huntington National Bank does not have an online application, so you will need to visit a branch or contact a loan specialist to apply.
Wells Fargo Bank
Wells Fargo Bank, a national lender, made 24,925 loans to small businesses in amounts under $150,000 between 2010 and 2018. Wells Fargo Bank was the top SBA lender nationally in 2018. To apply for an SBA loan from Wells Fargo you will need to visit a branch location and talk to a business banker.
Chase Bank operates approximately 5,100 branches in 23 states. Between 2010 and 2018, Chase Bank made 24,074 SBA loans to small businesses in amounts under $150,000. To apply for Chase SBA loans, you’ll need to meet with a business banker at your local Chase Bank branch.
US Bank offers SBA loans to small businesses nationwide. With 16,485 SBA loans under $150,000 to small businesses from 2010 to 2018, U.S. Bank made the fourth highest amount of loans of this size nationally. To get the SBA loan process started with US Bank, you can contact an SBA specialist online, or speak with a business banker in a branch.
Between 2010 and 2018, TD Bank made 10,763 loans to small businesses for amounts under $150,000. TD Bank offers SBA loans in the Northeast region plus South Carolina and Florida. For SBA loans under $100,000, you can apply in a TD Bank branch or online. For all other SBA loans, you’ll complete a paper application and bring it to your nearest TD Bank location.
5 Tips for Getting an SBA Loan from a Top SBA Lender
While it can be difficult to get an SBA loan, the list above shows that many lenders are willing to provide SBA loans under $150,000. These loans are highly advantageous because of the low SBA loan rates and long repayment terms. To prepare for getting an SBA loan, start by finding an SBA loan provider, review the requirements, gather necessary documents, review your application, and, if necessary, improve your credit score.
Here are a few steps you can take to increase the chances of getting a smaller loan for your business:
1. Find an SBA Loan Provider
With thousands of lenders offering SBA loans, it can be intimidating trying to determine which one to apply with. There are three primary choices when selecting a lender. You can use an SBA loan broker, a traditional bank, a credit union, or a community development financial institution. Each lender type offers different advantages that may suit your needs as the borrower.
Three types of SBA loan providers are:
- SBA loan broker: Loan brokers, like SmartBiz, work with banks to get your SBA loan funded quickly and easily. SmartBiz has streamlined the application process, but you won’t see them on the list above because they are not an SBA lender. While it typically takes 45 to 90 days to receive SBA loan funds, SmartBiz has reduced that down to 30 days.
- Traditional bank: If you already have a great bank for your business, consider approaching them about an SBA loan. For example, if you already have a small business checking account with your local bank, ask it about an SBA loan. It may be willing to consider a smaller than usual loan request to retain your business.
- Credit union: There are some credit unions on our list of top SBA lenders. Unlike banks, which are for-profit institutions, credit unions are nonprofit cooperatives. They are focused less on maximizing profits and more on retaining their membership and serving the community. As a result, they are often more willing to make smaller loans.
- Community development financial institution (CDFI): A CDFI is a small private sector financial institution (like a community bank, credit union, or community development fund) that aims to provide financial services to disadvantaged populations or specific locations. SBA loans are often among the financing options offered by CDFIs.
2. Review the Qualification Requirements
The typical SBA loan qualification requirements include having a credit score of 680 or better, a debt service coverage ratio of 1.25x or greater, and at least two years of business operations. Startup businesses can qualify, however, they have additional requirements. Additionally, you will need to have sufficient collateral to back the loan, as well as a down payment of at least 10%.
The primary SBA loan qualifications are:
- Credit score: At least 680 (check your score for free).
- Down payment: At least 10%
- Collateral: SBA loans don’t need to be 100% collateralized, but the more collateral you have, the easier it will be to get approved
- Repayment ability: A debt service coverage ratio (DSCR) of 1.25x
- Time in business: At least two years; startups can get SBA 7(a) loans, but it is more difficult
3. Have All Your Paperwork Ready to Go
Having all your loan paperwork ready to go when you approach a lender reduces the amount of work they have to do. As such, they will be more likely to want to work with you even if you want a smaller size loan. Be prepared to show the lender the latest copy of your business plan with financial projections. You should also have any required SBA loan documents and SBA forms filled out and ready to go.
4. Review Your SBA Loan Application Before Submitting It
There is a lot of paperwork and documentation required for an SBA loan application. Before submitting your application to your lender you should review your application package to ensure that you have completed everything. Ensuring that you have completed all of the forms, and included all of the required documentation initially can save a lot of time, as your lender will not have to wait for information to be provided.
5. Improve Your Credit Score
The higher your credit score, the more attractive you are as a borrower. If you have good credit, a bank will be more willing to work with you, even if you want a smaller loan. You can improve your credit with simple changes, such as paying bills on time and paying down outstanding debt.
Knowing your credit score can be helpful as you start navigating loan applications, and fortunately, you can check your credit score for free. If your credit score is too low to get an SBA loan, but your business needs a loan, there are bad credit business loans available outside of SBA loans.
We’ve provided you with a list of the 100 top SBA lenders for loans under $150,000. With all of these lenders available to you, you will want to select a provider that best matches your business’s needs. Whether you choose a loan broker, a traditional bank, or a credit union, there are steps you can take to increase your chances of getting an SBA loan.