According to some research, 20% of small businesses close within the first year they’re opened.
If you want to avoid becoming part of that statistic, you might need to get a loan from a lender.
But what are the best lenders to get a small business loan from? Keep reading to find out!
1. Live Oak Banking Company
Live Oak Banking Company is a top SBA lender in terms of how much money they loan out. In 2020 alone, they approved millions of dollars in loans for small businesses.
They are based in North Carolina, but you can be anywhere to get a loan from them. They offer an online application process to anyone that is part of an SBA PLP.
They offer SBA 7(a) loans that you can take out for up to $5 million. You’ll only have to put down a 10% down payment and have the rest financed. You’ll need a minimum credit score of 650 to get one.
However, they are also an approved SBA 504 lender, which means that they can also approve loans up to $15 million.
2. Newtek Small Business Finance
Newtek Small Business Finance nicknamed itself the “Your Business Solutions Company.” So if you’re looking for funding for your small business, they’re a good lender to turn to.
They don’t specify what type of loan they specialize in, but they’ve loaned millions out to companies to use for various business reasons. They even give you as much as twenty-five years to pay back the loan.
They also have a program that is helping businesses affected by COVID-19 by offering Economic Injury Disaster Loans.
To apply, you’ll have to have an existing business that you’re using for profit. You’ll also need to provide years of tax returns. You can talk about additional requirements with one of their financial specialists.
If you’re interested, you can visit their website and get a prequalification before even talking to them!
3. Celtic Bank Corporation
The Celtic Bank is one of the best SBA lenders, but they’re a little bit different than traditional banks.
They’re branchless, and their processes and loan applications are all online. This will help you get a loan faster, and you won’t have to visit any bank in person.
4. Huntington National Bank
Huntington National Bank has approved a lot of 7(a) loans of almost any SBA lender. They’re a regional bank, and they offer loans to businesses in states like West Virginia, Florida, Wisconsin, Indiana, Illinois, Michigan, Ohio, Pennsylvania, Tennessee, Kentucky, and Michigan.
This bank offers loans ranging from $5,000 to $5 million. They have local small business specialists that will work directly with a borrower and help them complete their application.
They also offer express loans, which have smaller amounts, but they have a faster turnaround.
5. Wells Fargo Bank
Wells Fargo Bank is one of the most well-known banks in the world because it’s been around since the 1850s.
They’ve grown to have millions of customers, and now they’re offering two SBA loan options. You can either get a 7(a) or a 504 loan.
A 7(a) loan will let you borrow up to $5 million, and you have twenty-five years to pay it back if you’re using it for commercial real estate. If you’re using it for other purposes, you have ten years to pay it back.
A 504 loan is more for construction, commercial real estate, or equipment purchases. Wells Fargo will give you up to $6.5 million, and you can also get an extra $5 million from a Certified Development Company.
Wells Fargo has also participated in loans to help out businesses that are affected by COVID-19.
There are requirements you’ll have to meet, like having a tangible net worth. You’ll also need to meet an average net income over the past two years. In addition to that, they’ll also check your credit score and how long you’ve been in business.
6. Readycap Lending
Readycap is one of the best SBA lenders, and its headquarters is in New York City.
They specialize in offering loans for all kinds of financing products, and that includes SBA loans.
7. Byline Bank
Byline Bank is a lender that services Milwaukee and the Chicago metro area through their branches.
You don’t have to live in the area to get a loan through them. They offer them across the nation. If you’re in the area, you can visit one of their branch locations to apply. But if you’re across the country, you can fill out an application on their website.
You can get loans of up to $5 million, and you’ll have 15 to 25 years to repay the loan back.
You’ll even be able to apply for flexible options, like getting a line of credit. For this, you have between one to ten years to repay everything back.
As with other companies, they also participate in a PPP program. That means that you’re if you’ve been affected by COVID-19, you can apply for these loans.
Discover More of the Best SBA Approved Lenders
These are only a few of the best SBA-approved lenders, but there are many more out there.
We know that running a small business can be overwhelming, but we’re here to help you out.
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