Best SBA Lenders of 2023
The U.S. Small Business Administration (SBA) partners with lenders to offer attractive loan terms and affordable interest rates for small business owners.
Although the SBA guarantees a portion of the loan, it doesn’t issue the loans directly. Instead, the SBA authorizes intermediary financial institutions to facilitate the loan process. Here are the best SBA lenders, along with tips for securing funds for your business needs.
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Best SBA Lenders
Here are our top picks for the best SBA loan lenders.
| Lender | Best for | Average loan amount* |
|---|---|---|
| Live Oak Bank | Best overall | $1,466,291 |
| Huntington National Bank | Express loans | $175,818 |
| Newtek Finance | Non-bank loans | $604,028 |
| Celtic Bank | Equipment purchases | $913,808 |
| Wells Fargo | Traditional bank | $204,823 |
| SmartBiz | Veterans | Facilitates loans with SBA preferred lenders |
| Funding Circle | Easy application process | Facilitates loans with SBA preferred lenders |
*Based on 100 most active SBA 7(a) lenders for fiscal year 2022.
Learn more about how we chose our picks.
Live Oak Bank: Best overall
| Pros | Cons |
|---|---|
Offers a variety of loan types Available in all 50 states Loaned the most SBA 7(a) funds in fiscal year 2022 | No physical branches Doesn’t lend to every type of industry |
- The country’s largest SBA lender (by dollar amount)
- SBA 7(a) loans up to $5,000,000
- SBA 504 loans up to $15,000,000
- Financing options to buy a franchise
- Up to 90% bank financing
- No prepayment penalties for terms under 15 years
- Terms up to 300 months
Live Oak offers SBA 7(a) and 504 loans for your business. For the fiscal year 2022, Live Oak processed $1,696,498,500 in SBA loans.As the leading SBA lender and a Preferred Lender Program (PLP) member, Live Oak provides competitive rates, longer repayment terms and lower payments. Furthermore, it typically makes a lending decision a few weeks faster than non-PLP lenders.
Huntington National Bank: Best for express loans
| Pros | Cons |
|---|---|
Offers SBA express loans Provides a specialized team to keep you on track Supports minority-, veteran- and women-owned small businesses | Limited full-service branches Website doesn’t list loan terms |
- The country’s lead SBA lender (by approval rate)
- The top SBA lender in the region for the past 14 years
- Down payments as low as 10%
- Loan amounts up to $5,000,000
- Offers SBA 7(a), Express and 504 loans
Huntington offers an expedited review process to help you access funds quickly with an SBA Express Loan. Although loan amounts are lower — capped at $350,000 per SBA guidelines — an SBA Express Loan is an excellent choice if your business needs an immediate financial infusion.As a Preferred SBA Lender, Huntington funded $997,766,500 in SBA loans in the fiscal year 2022.
Newtek Finance: Best for non-bank loans
| Pros | Cons |
|---|---|
Offers a variety of financial products Prequalify in 48 hours or less Completes all application paperwork for you | No physical branches Website doesn’t list eligibility requirements Must present at least two years of tax returns |
- Loan amounts between $1,000 to $15,000,000
- Offers assistance in expanding or acquiring a new business
- Terms from 84 to 300 months
- Provides a dedicated lending specialist to guide you through the whole process
Newtek is an alternative lender that has helped more than 100,000 business owners find funding. As a direct lender, Newtek funded $560.6 million in SBA 7(a) loans in 2021 and also offers term loans, lines of credit, insurance, payroll services and employee benefit solutions.Newtek is our top pick for an online bank due to its proven track record, streamlined application process and stellar customer support.
Celtic Bank: Best for equipment purchases
| Pros | Cons |
|---|---|
Offers 504 loans for equipment and real estate Online calculator helps estimate monthly payments Prequalification results in minutes | No physical branches Website doesn’t list eligibility requirements |
- Ranked in the top 10 SBA lenders since 2013
- Up to $5,000,000 in funding (can receive more with a 504 loan)
- Offers SBA 7(a), Celtic Express and SBA 504 loans
- Terms up to 300 months
- Rates starting at prime +2.75%
- Up to 90% loan-to-value
Celtic Bank is a virtual financial institution offering a range of financial services. In addition to SBA 7(a) loans, you can choose an SBA 504 loan with long-term fixed rates, ideal for purchasing equipment or machinery. Celtic Bank is an SBA Preferred Lender and funded $646,062,500 in SBA loans in fiscal year 2022.With Celtic bank, you can apply for equipment leasing and financing, renewable energy loans, construction loans, partner buyout programs, commercial real estate financing and more. If you need to upgrade or replace your business’s equipment, Celtic Bank’s conventional equipment loans can provide up to 100% financing.
Wells Fargo: Best for traditional bank
| Pros | Cons |
|---|---|
Multiple options for small business financing Over 7,000 physical branches Competitive interest rates and rewards | Can be hard to qualify for the most attractive rates and terms Website doesn’t list eligibility requirements Businesses must be in operation for at least two years to qualify for certain products |
- An SBA Preferred Lender
- SBA 7(a) loans up to $5,000,000
- SBA 504 loans up to $5 million, plus an additional $15,000,000 million for the Wells Fargo portion
- Interest rates are fixed or variable
- Terms up to 120 months for general purposes; 300 months for commercial real estate
- Lower down payments and longer repayment terms
With branches in almost every state, Wells Fargo is a solid choice for traditional lending with personalized in-person support. It approved 1,933 SBA loans in the fiscal year 2022, totaling $395,921,900. With a Wells Fargo SBA loan, you can receive resources and guidance to help your business grow to new levels. In addition to SBA loans, Wells Fargo offers business lines of credit, term loans, merchant services and business credit cards.Although Wells Fargo doesn’t publicly disclose eligibility requirements, it’s advised to have an established business with a strong credit profile before applying.
SmartBiz: Best for veterans
| Pros | Cons |
|---|---|
Quick prequalification process Low minimum revenue requirement Offers grants for women-, minority- and veteran-owned businesses in the U.S. | You may get a lower rate by applying directly through SmartBiz’s partner lenders Personal credit score must be above 650 (or 675 for real estate loans) Doesn’t offer 504 loans |
- Online lending network for SBA loans
- SBA 7(a) loans from $30,000 to $5,000,000
- Time in business requirement of two years or more
- Extra packaging and referral fees, which typically range from 2% to 3%
- Terms up to 120 months
- Variable interest rates based on prime + 1.5% to 3.75%
SmartBiz has a strong history of funding veteran-owned businesses — over 60% of loans funded through SmartBiz’s network have assisted veterans and underserved communities with financing. In addition, more than 10% of the nation’s volume of traditional SBA 7(a) loans under $500,000 have been processed through SmartBiz.However, unlike the banks mentioned above, SmartBiz doesn’t facilitate the loans directly — rather, SmartBiz connects business owners with SBA approved banks and preferred lenders that best fit their needs.
Funding Circle: Best for easy application process
| Pros | Cons |
|---|---|
A quick, six-minute application connects you to a wide network of lenders A dedicated loan specialist helps complete your application Flat fixed rate with fixed monthly payments | High minimum annual revenue ($400,000+) Minimum 650 FICO score Business in operation for at least two years |
- SBA 7(a) loans from $50,000 to $5,000,000 or more
- Loan terms up to 120 months
- Fixed rate of Prime +2.75%
- Competitive down payment requirement of 5% to 10%
650 or higher to qualify.
What is an SBA loan?
An SBA loan is a small business loan backed by the U.S. government. SBA loans reduce lender risk since a portion is guaranteed if the borrower defaults. Because of this, it makes funding for small businesses more accessible. The U.S. Small Business Administration sets maximum interest rate limits to ensure SBA loans remain attractive and affordable, even with a required down payment of 10% to 30%.
While SBA loans are popular, time to funding is one of the few downsides to SBA funding. Where online lenders can fund within 24 hours, time to funding on an SBA loan may take over two months. Working with a Preferred Lender, like the ones mentioned above, could shorten this wait to two weeks.
Types of SBA loans
The SBA works with multiple lenders to offer financing solutions through various SBA loan programs. Here are the most common SBA loan programs:
- SBA 7(a): This is the most popular type of SBA loan due to its versatility. You can use funds for general purposes, such as inventory, payroll, working capital, renovations, startup costs and refinancing debt.
- SBA 504: Ideal for larger purchases or fixed assets, such as equipment or real estate.
- SBA microloan: A finance solution for underserved markets, such as women, low-income and minority communities. Loans are typically under $50,000 with shorter terms — usually up to six years, compared to 25 years for 7(a) and 504 loans.
How to Choose an SBA lender
Since partner lenders issue SBA loans, you’ll need to choose a lender who offers the type of SBA loan you need. The SBA’s free online Lender Match tool can help narrow down options by your business’s needs and location. You can also consult your local SBA District Office for recommendations.
While there are specific SBA regulations, such as interest rate caps, the requirements for qualifying can vary by the lender. Some 7(a) lenders, for example, may require applicants to have a personal credit score of 650 or higher, two years in business and at least $400,000 in annual revenue. On the other hand, an SBA microlender may not enforce a minimum credit score and will consider funding startups, but also require strong cash flow projections.
After choosing a lender, compile the necessary documents for your application package.
The required documents vary by lender, but may include the following:
- Your SBA loan application form (Form 1919)
- Business financial statements, such as profit and loss statements, tax returns and cash flow projections
- Business application history
- Personal documents, such as tax returns, resume, financial statements and background statements
How we chose our picks
Our top SBA loan lenders have track records of issuing SBA loans in high volumes and total amounts. Moreover, these lenders are part of the Preferred Lender Program — lenders that have met certain performance criteria and have the authority to close and liquidate SBA loans, allowing borrowers to receive funding more quickly.
To appear on our list of top SBA lenders, the lenders had to meet the following criteria:
- Be an SBA Preferred Lender or facilitates loans with Preferred Lenders
- Highest loan processing volume
- Highest approvals
Frequently asked questions
The best lenders will depend on your specific needs and qualifications — a microlending institution may be a suitable option if you have bad credit and only need a $15,000 loan, for instance. Seeking a Preferred Lender is recommended if you want to work with an experienced SBA-approved lender and need access to capital quickly.
An SBA microloan tends to have more lenient eligibility requirements, making it easier to get than a 7(a) or 504 loan. A microloan generally offers funds between $500 and $50,000 for small businesses and not-for-profit childcare centers. The SBA reports the average microloan is $13,000.
Lenders with Preferred Lender status have the authority to close SBA-guaranteed loans awaiting approval from the SBA. Typically, SBA loan applications undergo a first approval from the lending institution and then a second approval from the SBA itself. When SBA lenders use their delegated authority they can receive SBA approval instantly, allowing borrowers to receive funding more quickly.
Banks with Preferred Lender status include Live Oak Bank, Huntington National Bank, Celtic Bank, Newtekk and Wells Fargo Bank. For more options, visit the SBA’s index of the most active SBA 7(a) lenders.