The U.S. Small Business Administration (SBA) partners with lenders to offer attractive loan terms and affordable interest rates for small business owners. Here are the best SBA loan lenders to help your business succeed.
| Loan amounts | Up to $15,000,000 |
| Starting interest rate | Varies by loan type |
| Term length | Up to 300 months |
| Minimum credit score | 680 |
| Minimum time in business | 36 months |
No physical branches
Lack of transparency on interest ranges
Doesn’t lend to every type of industry
As the leading SBA lender and part of the SBA Preferred Lender Program (PLP), Live Oak Bank offers a range of small business loans with up to 90% financing, competitive rates and flexible repayment terms. Options include SBA 7(a) and 504 loans, as well as USDA government loans, commercial loans and SBA loans to buy a franchise. For the fiscal year 2023, Live Oak processed $1,848,315,000 in SBA loans. Live Oak typically makes lending decisions a few weeks faster than non-PLP lenders and provides lending options to eligible small business owners in all 50 states.
Read our Live Oak Bank review.
| Loan amounts | Up to $500,000 |
| Starting interest rate | Negotiable, but can’t exceed SBA maximum |
| Term length | Up to 120 months |
| Minimum credit score | 680 (recommended) |
| Minimum time in business | 24 months (recommended) |
Limited full-service branches
Doesn’t disclose starting interest rates
Lack of information regarding eligibility criteria
Using an expedited review process, Huntington National Bank offers quick access to capital with its SBA Express Loan. Although loan amounts are capped at $500,000 per SBA guidelines, processing times are within 36 hours instead of the typical SBA turnaround time of five to 10 business days.As the country’s leading SBA lender by approval rate and a Preferred SBA Lender, Huntington funded $1,371,775,200 in SBA loans in the fiscal year 2023. Women-owned businesses, veterans and minority entrepreneurs can receive extra support in achieving their business goals with Huntington’s Lift Local Business program.
| Loan amounts | $1,000 to $15,000,000 |
| Starting interest rate | Not disclosed |
| Term length | 60 to 300 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | 24 months |
No physical branches
Doesn’t list eligibility requirements
Lack of transparency around rates
Newtek is an alternative lender with over 24 years of experience serving 2.2 million businesses, providing term loans, revolving lines of credit, payroll services, insurance, processing solutions and more. As a direct lender, Newtek funded $813,898,300 in SBA 7(a) loans in 2023.Established businesses in all 50 states can access up to $15,000,000 with long repayment terms. A dedicated lending specialist will work with you from the start, guiding you through the loan application process.
Read our NewtekOne review.
| Loan amounts | $25,000 to $5,000,000 |
| Starting interest rate | Prime + 2.75% |
| Term length | Up to 300 months |
| Minimum credit score | 700 (preferred) |
| Minimum time in business | 24 months |
No physical branches
Slightly higher minimum credit score requirement compared to other lenders
SBA loans typically require at least a 10% down payment
With an equipment loan from Celtic Bank, businesses can finance up to 100% of new and used equipment purchases with low rates and flexible terms. Additionally, you can use Celtic’s SBA 7(a) or 504 loans to cover equipment expenses up to $5,000,000 with long-term fixed rates and no balloon payments.Celtic Bank is an SBA Preferred Lender and funded $509,991,100 in SBA loans in fiscal year 2023. In addition to equipment financing and SBA loans, Celtic Bank also offers renewable energy loans, construction loans, partner buyout programs, working capital loans, commercial real estate financing and more.
| Loan amounts | Up to $5,000,000 |
| Starting interest rate | Rates vary, subject to SBA maximums |
| Term length | Up to 300 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
Can be hard to qualify for the most attractive rates and terms
Doesn’t list eligibility requirements
Collateral may be required
With branches in nearly every state, Wells Fargo is one of the best banks for SBA loans for those wanting personalized in-person support and access to various small business solutions. As an SBA Preferred Lender, Wells Fargo approved 2,140 SBA loans totaling $427,603,100 in the fiscal year 2023. In addition to SBA loans, Wells Fargo provides lines of credit, term loans, merchant services, business bank accounts and more.Although Wells Fargo doesn’t publicly disclose eligibility requirements, having an established business with a strong credit profile can help improve your chances of approval.
Read our Wells Fargo review.
| Loan amounts | $350,000 to $7,000,000 |
| Starting interest rate | Rates vary, subject to SBA maximums |
| Term length | Up to 300 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
No physical branches
Doesn’t list interest ranges
Lack of information regarding eligibility criteria
Ready Capital, through its subsidiary Readycap Lending, lives up to its name by readily helping small and mid-sized businesses grow and expand to new levels. With funds going up to $7,000,000, you can tackle a range of working capital expenses like payroll, inventory, hiring staff or covering seasonal fluctuations in revenue.Ranked in the top 1% of SBA 7(a) lenders, ReadyCap approved 999 SBA loans in 2023, totaling $572,979,900. As a nonbank utilizing advanced underwriting software, Ready Capital thinks outside the box to approve more loans and assist a range of diverse business owners.
| Loan amounts | $200,000 to $5,000,000 |
| Starting interest rate | Rates vary, subject to SBA maximums |
| Term length | Up to 300 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | 24 months |
Doesn’t list minimum credit score requirements
Lack of information on interest rate ranges
Must be a for-profit business to qualify
Bank of America offers SBA loans with longer repayment terms and lower payments to help businesses address essential needs without going broke. Veteran-owned businesses can take advantage of a 25% discount on administration and origination fees. Funds can be used for working capital, equipment, business acquisition, owner-occupied commercial real estate and more.As a traditional brick-and-mortar bank and a leading SBA Preferred Lender, Bank of America approved 1,046 SBA loans in 2023, totaling $419,800,700. Lending options include SBA 7(a), SBA 504 and SBA Express Loans, as well as secured and unsecured business loans, lines of credit, business credit cards and investing options.
Read our Bank of America review.
While SBA lending can help many business owners get funded, it’s not the best fit for everyone. Consider the following pros and cons of SBA loans before proceeding.
| Pros | Cons |
|---|---|
Broad eligibility requirements: Capped interest rates: Access to SBA resource centers: Wide range of funding amounts: | Down payment typically required: Collateral and/or personal guarantee could be required: Slow approval process: Not ideal for low-credit borrowers: |
SBA business loans tend to be competitive due to their capped interest rates and longer repayment terms. Because of this, many lenders impose strict eligibility criteria to keep applications under control.
While low-credit borrowers and startups might struggle to qualify for traditional SBA financing, the following alternative lenders offer bad credit business loans that include SBA options.
| Lender | Max. loan amount | Min. credit score | Annual revenue | Time in business | |
|---|---|---|---|---|---|
 | $500,000 | 650 | $400,000 | 24 months | Get business loan offers |
 | $500,000 | 650 | $50,000 | 24 months | Get business loan offers |
 | $10,000,000 | 500 | $96,000 | 6 months | Get business loan offers |
 | $5,000,000 | 640 | $100,000 | 24 months | Get business loan offers |
Based on loan amounts, Live Oak Bank took the lead for fiscal year 2023 by providing $1.85 billion worth of SBA funding to small business owners nationwide. If looking at the number of approvals, Huntington Bank was the winner — approving 7,325 loans in 2023. Another high-performing SBA lender was Newtek Financing, with approval amounts surpassing $8 million.
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 about $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.
To find an SBA Preferred Lender, visit the SBA’s index of the most active SBA 7(a) lenders.
