SBA Loan Lenders

How to Find the Best SBA Loan Lender

If you’re a small business owner looking for financing, an SBA loan can be one of the best options available. The U.S. Small Business Administration (SBA) partners with banks and lenders to offer low-interest loans with favorable terms. However, finding the right SBA lender can be challenging, as not all lenders offer the same rates, terms, or service quality. In this guide, we’ll explore how to find the best SBA loan lender, compare different options, and review the top lenders in the U.S.

List of Approved SBA Lenders

The SBA works with numerous banks, credit unions, and non-bank lenders to provide funding to small businesses. Not all lenders are equally active in issuing SBA loans, so it’s essential to know which institutions are most involved in SBA lending. The SBA maintains a list of approved lenders, but here are some of the most prominent ones:

1. Live Oak Bank – Consistently one of the top SBA 7(a) lenders, specializing in industries like healthcare, self-storage, and professional services.

2. Wells Fargo – A national bank with strong SBA loan offerings and a broad network of branches.

3. Huntington National Bank – A major SBA lender known for its high loan approval volume.

4. U.S. Bank – Offers competitive SBA loans with a focus on small businesses and startups.

5. Celtic Bank – A non-traditional lender known for quick SBA loan approvals and an efficient process.

6. TD Bank – Provides SBA loans in the Eastern U.S., particularly for small businesses.

7. Newtek Small Business Finance – A non-bank SBA lender with flexible loan programs.

8. Bank of America – A leading financial institution with a strong SBA lending program.

9. KeyBank – Offers a variety of SBA loan products with competitive terms.

10. Fundera (by NerdWallet) – A marketplace lender that connects borrowers with multiple SBA-approved lenders.

To find the most up-to-date list of approved SBA lenders, visit the SBA’s Lender Match Tool on their website or check the SBA 7(a) and 504 Loan Program lender rankings published annually.

How to Compare SBA Loan Lenders

When selecting an SBA loan lender, you’ll want to compare several key factors to ensure you’re getting the best deal. Here’s what to consider:

1. Loan Programs Offered

Some lenders specialize in SBA 7(a) loans, while others focus on 504 loans or microloans. Determine which type of SBA loan you need and ensure your lender provides it.

2. Interest Rates and Fees

SBA loan interest rates are typically tied to the prime rate plus a lender’s markup. Compare the total APR (Annual Percentage Rate) to ensure you’re getting the lowest cost over the loan term. Also, check for any origination fees, closing costs, or prepayment penalties.

3. Loan Amounts and Terms

Different lenders have different minimum and maximum loan amounts. Some lenders may have a loan cap of $350,000, while others offer SBA loans up to $5 million. Also, check the loan term, as longer repayment periods can make monthly payments more manageable.

4. Approval Speed and Funding Time

Some lenders process SBA loans faster than others. Banks may take weeks to approve and fund an SBA loan, whereas non-bank lenders like Celtic Bank or Newtek may provide funds more quickly.

5. Customer Service and Support

Good customer service is essential, especially when dealing with SBA loans, which can be complex. Read customer reviews to see if borrowers had a smooth experience with the lender.

6. Lender’s SBA Loan Volume

A lender’s experience with SBA loans can impact their efficiency in processing applications. The SBA publishes a list of the most active SBA 7(a) lenders based on the number of loans issued.

7. Eligibility Requirements

Some lenders have stricter requirements than others regarding credit scores, business history, and revenue. Make sure you meet a lender’s qualifications before applying to avoid wasting time.

Top SBA Lenders in the U.S.

Here are some of the top-performing SBA lenders based on loan volume and borrower reviews:

1. Live Oak Bank – Best for industry-specific expertise.

2. Wells Fargo – Best for businesses needing a nationwide lender.

3. Huntington National Bank – Best for loan volume and approval rate.

4. Celtic Bank – Best for fast approvals and funding.

5. Newtek Small Business Finance – Best for non-bank lending flexibility.

These lenders have consistently ranked among the best in the U.S. due to their experience, loan volume, and customer satisfaction.

Leading SBA Loan Providers

1. Live Oak Bank

Pros:

• Specializes in SBA loans for niche industries.

• High loan approval rate.

• Strong customer support.

Cons:

• Industry-specific focus may not suit all businesses.

2. Wells Fargo

Pros:

• Large nationwide presence.

• Competitive interest rates.

• Various SBA loan programs available.

Cons:

• Longer processing times.

3. Huntington National Bank

Pros:

• High SBA loan approval volume.

• Strong support for small businesses.

Cons:

• Limited to certain regions in the U.S.

4. Celtic Bank

Pros:

• Fast loan approvals.

• No traditional banking relationship required.

Cons:

• Higher fees compared to traditional banks.

5. Newtek Small Business Finance

Pros:

• Non-bank lender with flexible loan programs.

• Higher approval odds for borrowers with lower credit scores.

Cons:

• Interest rates can be higher than traditional banks.

Reviews of SBA Lenders

Before choosing an SBA lender, it’s a good idea to read customer reviews. Here are a few sources where you can check ratings and feedback:

• Trustpilot – Reviews from real borrowers on various SBA lenders.

• Better Business Bureau (BBB) – Provides business ratings and customer complaints.

• Google Reviews – Lender ratings and user experiences.

• NerdWallet and Fundera – Expert reviews and rankings of SBA loan providers.

Common complaints about SBA lenders include slow processing times, high fees, and strict eligibility requirements. However, many lenders also receive praise for their helpful customer service and competitive loan terms. Researching customer feedback can help you avoid potential issues and select the best SBA lender for your needs.

Conclusion

Finding the best SBA loan lender involves researching approved lenders, comparing loan terms, and reading customer reviews. Whether you go with a national bank like Wells Fargo, a specialized lender like Live Oak Bank, or a fast-approving lender like Celtic Bank, the key is to choose one that aligns with your business needs. Use the SBA Lender Match tool to find potential lenders, and compare offers to secure the best financing for your small business.