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Best SBA Lenders For Small Businesses

If you’re considering taking out a business loan, look into loans backed by the Small Business Administration (SBA). Not only do they have some of the lowest interest rates around, but they also can have long repayment periods if you qualify.

Best Unsecured Business Loans

Related Loan Picks

Susan Guillory — Written by:Susan Guillory
Intuitive Business Coach and Content Magic Maker

Sometimes a business has the opportunity to grow, maybe by acquiring another company, but it lacks the working capital to take advantage of the opportunity. That’s where an SBA loan can be useful.

SBA loans can be used for a variety of purposes, including to purchase commercial property, hire employees, invest in marketing, or buy inventory.

There are many lenders to choose from when it comes to SBA loans. Our team of financial experts reviewed and ranked the top online lenders to help you get funded.

Our Top Picks for Best SBA Lenders

credibly

3.7

Apply Now Read Review

Simple application process
As soon as same day funding
Open to high-risk industries

Credit Score — Min. Credit Score 500+

Loan Amount — Loan Amount $5K-$400K

Loan Repayment — Loan Repayment 6-18 months

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fundera

3.9

Apply Now Read Review

Connections to multiple lenders
Competitive rates
Soft credit check

Credit Score — Min. Credit Score 550+

Loan Amount — Loan Amount $5K-$5M

Loan Repayment — Loan Repayment Up to 30 years

Apply Now Read Review

lendio

4

Apply Now Read Review

Easy to apply
Product & lender choice
Competitive offers

Min. Credit Score — Min. Credit Score 560+

Loan Amount — Loan Amount Up to $500,000

Loan Repayment — Loan Repayment 1-2 years

Apply Now Read Review

How to Choose the Best SBA Lenders?

We’ll cover a few of the best SBA lenders around in a minute, but first let’s talk about what you should consider when choosing the right lender for your business. The lenders we cover here are all great, but how do you narrow it down to just one? You’ll have to decide which is the best fit for your specific needs.

Here are a few of the factors that our experts used to rank lenders.

Loan Features: SBA lenders offer different types of SBA loans, each with its own borrowing limit and requirements.

Application process: SBA loan applications can be complex, and application processing can take weeks or months, in some cases.

Interest rates and fees: Some lenders will charge origination fees on top of the interest set by the SBA. Consider whether the interest rate charged is worth being able to, for example, acquire another business.

Qualification process: Though the SBA sets some of the criteria to qualify, lenders can add their own qualifications for things like credit score and time in business.

Customer support: Being able to reach your lender’s customer service team any time, and through a variety of channels, is important.

Online user reviews: It’s wise to read lender reviews on independent review sites like Trustpilot to see what it’s like to work with them.

Perks and Bonuses: Look for extra service offerings like payment flexibility, advertising transparency, and advanced technology when considering SBA lenders.

Best SBA Lenders of 2022 - Full Overview

Ready to get to know the SBA lenders we’ve hand-picked just for you? Let’s dive in.

1. Credibly - Best for Fast Funding

Credibly offers a variety of different business lending products, including SBA loans: the 7(a), 504, and microloans are all options worth exploring with this lender. Credibly prides itself on getting you your money fast; once you’re approved for a loan, you can see funds hit your account the same business day. You can also get approved quickly; where other SBA lenders can take two to three months to process your application, an SBA Preferred Lender like Credibly can process your app much faster.

Pros

Fast application process

Same-day funding

Transparent criteria to qualify

Cons

Collateral may be required

You may need to make a down payment

Credibly SBA loans can be used for a variety of purposes, from working capital to debt consolidation and equipment purchases. You can borrow less than $150,000 up to $20 million, depending on the SBA loan. Fixed interest rates start at 6.99%.

Here’s what you need to qualify for an SBA loan through Credibly:

Qualifications for Credibly SBA Loans

620+ personal credit score

2+ years in business

Business owner must be a U.S. citizen or legal permanent resident

Must not have outstanding tax liens

No bankruptcies or foreclosures in the last 3 years

The Bottom Line

If you want an SBA loan but don’t have months to wait for your application to be processed, Credibly could be a good fit. In addition to its speedy processing and funding times, Credibly has a stellar reputation when it comes to customer service.

Read the full Credibly review for more details.

2. Fundera - Best for Comparing Loan Offers

While Fundera does offer some loans directly, it also has a loan marketplace that connects borrowers with the best financing options, including SBA loans. Once you input a few details about your business, you will be shown offers from SBA and other lenders, including the rates and terms you qualify for. If you choose one of these options, Fundera gets a referral fee and you get the SBA loan you are looking for.

Pros

Multiple offers with one application

Competitive rates

Soft credit check

Cons

Application process may take several weeks

Currently only offers two SBA lenders

SBA loans offered by Fundera partners, like all SBA loans, can be used for a variety of purposes, from buying equipment to investing in marketing. With the 7(a) and CDC/504 loans, you can borrow up to $5 million, and with SBA microloans, up to $50,000.

Here’s what you need to qualify for an SBA loan through Fundera:

Qualifications for Fundera SBA Loans

680+ personal credit score

4+ years in business

Annual revenue of $180k or more

The Bottom Line

If you like the idea of getting multiple offers from different SBA lenders (and other lenders, as well), Fundera provides a one-stop shop for your financing needs. Qualifications are a little higher than with other SBA lenders, but rates are reasonable.

Read the full Fundera review for more details.

3. Lendio - Best for a Quick Application

Lendio is a financing platform that connects lenders and borrowers. In addition to offering a wide range of loan products, from lines of credit to merchant cash advances, Lendio also offers SBA 7(a), 504, and Express loans. Lendio is known for its fast loan application. In just 15 minutes or so, you’ll be able to see what types of loans you qualify for, just by providing a few bits of information about your business, credit score range, and revenue. From there, you can compare offers from SBA and other lenders and choose what’s best for you.

pros

Multiple offers with one application

Fast application

Access to more than 75 lenders

Cons

Qualifications may vary with lender

Rates and terms vary

Lendio is a business loan marketplace that matches you to SBA providers right across the country. It currently has more than 300 partner organizations which greatly increases your chances of being approved.

To apply for an SBA loan through Lendio, you’ll need:

2 years of business tax returns
YTD P&L statement
YTD balance sheet
Debt schedule

Here’s what you need to qualify for an SBA loan through Lendio:

Qualifications for Lendio SBA Loans

550+ personal credit score

6+ months in business

Monthly revenue of $10k or more

The Bottom Line

Though there are many SBA lenders out there, they all may vary slightly in the terms and interest rates they offer. Lendio lets you see what you qualify for with multiple lenders so you can compare them.

Read more in the full Lendio review.

4. Kapitus - Best for Hands-On Help

As an SBA lender, Kapitus stands out in that it has Financing Specialists that will work with you to ensure you fill out your SBA loan application correctly and find the best financing for your needs. Having a guide to assist you in the process can ensure you have the necessary paperwork and information for your SBA loan application. These Financing Specialists can help you secure a 7(a) or Express loan for working capital, real estate, business expenses, or payroll.

Pros

Financial Specialists help with application

Other loan options besides SBA loans

Highly rated by customers

Cons

Higher qualification requirements

May include high origination fees

Kapitus offers both SBA 7(a) and Express loans. The 7(a) loans range from $100,000 to $5 million, with repayment terms up to 25 years. Its interest rate is Prime plus 2.7% to 3.7%. With the Express program, you can borrow up to $350,000, and the loan can be closed and funded in just 14 days.

Here’s what you need to qualify for an SBA loan through Kapitus:

Qualifications for Kapitus SBA Loans

680+ personal credit score

U.S.-based, for-profit business

Must have established business credit

In operation for 2+ years

Must be able to show profitability

The Bottom Line

If the idea of applying for an SBA loan on your own is daunting, consider Kapitus. Its Financing Specialists are there to help you through the process so you can get approved for the best SBA loan for your needs.

Read the full Kapitus review for more details.

5. SmartBiz - Best for Debt Refinancing

It’s not always easy to understand how much you’ll pay in interest for an SBA loan, but SmartBiz puts its pricing up front so you can easily calculate what it might cost to borrow money from the lender. In addition to transparent pricing, SmartBiz has financial professionals who can guide you through the streamlined application process, helping you get your loan funds faster. And SmartBiz is a lending platform, so you won’t get just one loan offer, but multiple offers from different lenders to choose from.

pros

Clearly communicated interest rates

Streamlined SBA loan application process

Financial professionals to help

Cons

Higher requirements to qualify

May be additional applications with lender

SmartBiz lenders offer 7(a) loans of $30,000 to $350,000, as well as commercial real estate loans of $500,000 to $5 million. The interest rate for the 7(a) loans is the Prime Rate plus 2.75% to 3.75%, which currently makes that range 6.25-7.25%. The rate for the commercial real estate loans is Prime plus 1.5% to 2.75%, so currently 5-6.25%.

Here’s what you need to qualify for an SBA loan through SmartBiz:

Qualifications for SmartBiz SBA Loans

650+ personal credit score

U.S.-based, for-profit business

Must have enough business and personal cash flow to service all debt payments

In operation for 2+ years

No bankruptcies or foreclosures within 3 years

No outstanding tax liens or delinquencies and/or default on government loans

The Bottom Line

The interest rate you pay on your SBA loan matters, and if you can understand what that looks like before going through the application process, you can budget for your loan payments. SmartBiz makes it easy to understand what you’ll pay, and its application process is easy.

Read the full SmartBiz review for more details.

6. Funding Circle - Best for a Flawless Application

Some SBA loan applications can be daunting. They ask for a lot of details about your business, and you might worry you’re not filling them out accurately, and that you might not be approved as a result. Funding Circle has dedicated loan specialists who will help you fill out the application correctly, increasing your chances of being approved for an SBA loan. The lending platform has a network of lenders that can provide in-house approvals in a matter of weeks.

Pros

Loan specialists aid with application

Competitive rates

Fast funding

Cons

High annual revenue requirements

Closing cost, loan guarantee, and broker fee

Some SBA loan applications can be daunting. They ask for a lot of details about your business, and you might worry you’re not filling them out accurately, and that you might not be approved as a result.

Funding Circle has dedicated loan specialists who will help you fill out the application correctly, increasing your chances of being approved for an SBA loan. The lending platform has a network of lenders that can provide in-house approvals in a matter of weeks.

Here’s what you need to qualify for an SBA loan through Funding Circle:

Qualifications for Funding Circle SBA Loans

650+ personal credit score

Annual revenue of $400,000

In operation for 2+ years

Must be in SBA eligible industry

No outstanding tax liens

The Bottom Line

If you’re nervous about filling out the SBA loan application, Funding Circle can provide the expert help you need to ensure your application is perfect. That won’t guarantee approval, but it can help.

Try Funding Circle

Read the full Funding Circle review for more details.

7.Rapid Finance - Best for Long Repayment Periods

While there are many companies that offer SBA loans, they don’t all have the same repayment periods. If you’re borrowing upwards of $1 million, you might like to have 30 years to repay the money, and you can find it at Rapid Finance.

Pros

Repayment up to 30 years

Other types of loans available

Cons

Qualifications for SBA loans unclear

Fees not disclosed

In general, Torro has more lenient qualifying requirements than some of its competitors. At 680, their credit score is slightly higher. However, companies only have to show a business history of six months and an annual revenue of $120,000 to secure a working capital loan worth up to $575,000. Those opting for its lower-limit startup funding will face even fewer requirements.

While Rapid Finance doesn’t list the qualifications to get an SBA loan, it does list the following as requirements to apply:

Requirements for Rapid Finance SBA Loans
Valid form of identity
Business bank account number and routing number for deposit
Last three months of business bank statements
Schedule of debts

The Bottom Line

Fora Financial is a top means of funding if you have sufficient monthly revenue to make the repayments and to meet their application criteria.

Try Rapid Finance

Read the full Rapid Finance review for more details.

Best SBA Lenders Features Comparisons

Company	Min. Credit Score	Min. Time in Business	Min. Annual Revenue	Loan Amount	Interest Rate
Credibly	620	2 years	unknown	Up to $20 million	Starts at 6.99%
Fundera	680	4 years	$180k	Up to $5 million	Prime rate + 2.25% - 4.75%
Lendio	550	6 months	$120k	Up to $5 million	Prime +
Kapitus	680	2 years	unknown	Up to $5 million	Prime plus 2.7% to 3.7%
SmartBiz	650	2 years	unknown	Up to $5 million	2.75% - 6.25%
Funding Circle	650	2 years	$400k	Up to $500k	6%
Rapid Finance	unknown	unknown	unknown	Up to $5.5 million	unknown

What is SBA Lending?

Small Business Administration (SBA) loans are a type of small business funding that will be funded by a bank, alternate lender, or a group of lenders. Each loan is partially backed, up to 85%, by the Federal Government. This means less risk for the financial institution providing the loan, so you get lower rates. There are around 14 types of SBA loans available at any one time, each one fulfilling a specific business need.

What Are the Different SBA Loan Types?

SBA Loan Program	Max loan amount	Terms	Interest Rates	Best for
SBA 7 (a) Loans	$30,000 - $5 million	Usually between 5 - 25 years	Between 2.25% - 4.75% plus base rate	A wide range of operational expenses like business expansion, inventory, staff wages, and debt consolidation
SBA 504 Loans	Up to $5 million	10 - 25 years	2.75% - 6%	For purchase of specific assets
SBA Microloans	Up to $50,000	Up to six years	<