Finimpact

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
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
  • 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
fundera
  • 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
lendio
  • 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

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.

    Try Credibly

    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.

    Try Fundera

    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.

    Try Lendio

    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.

    Try Kapitus

    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.

    Try SmartBiz

    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.

    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.

    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

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