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Compare Best SBA Lenders February 2024

Looking for funding for your small business? An SBA loan may in fact be the right loan for you. Check out some of our recommended lenders and markets below and compare the terms to find the right funding for your business.

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Key Facts

  • Credit Score: 550
  • Age of business: 12+ months
  • Monthly revenue: Varies
  • US citizenship: Required for all owners
  • Term length: Varies

Pros

pros iconMultiple financing options designed to help businesses grow and succeed

pros iconConvenient shop and comparison tool

pros iconFree service

pros iconMatched with experienced Funding Advisor who helps every step of the way

Cons

cons iconLoan terms and conditions not disclosed until after completing an application

cons iconOnce deciding upon a product, you’ll work with the lender instead of Fundera

cons iconMust have been in business for at least 1 to 4 years to qualify for funding

cons iconPotentially high interest rates and eligibility requirements

LIMITATION OF LIABILITY AND WARRANTY DISCLAIMER. 10.1 Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL FUNDERA (OR OUR SUPPLIERS) BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY LOST PROFITS, LOST DATA, COSTS OF PROCUREMENT OF SUBSTITUTE PRODUCTS, OR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES ARISING FROM OR RELATING TO THESE TERMS OR YOUR USE OF, OR INABILITY TO USE, THE SITES OR SERVICE, EVEN IF FUNDERA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ACCESS TO, AND USE OF, THE SITES OR SERVICE IS AT YOUR OWN DISCRETION AND RISK, AND YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR DEVICE OR COMPUTER SYSTEM, OR LOSS OF DATA RESULTING THEREFROM. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, OUR LIABILITY TO YOU FOR ANY DAMAGES ARISING FROM OR RELATED TO THE SERVICE OR THESE TERMS OF SERVICE (FOR ANY CAUSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, DAMAGES ARISING FROM YOUR FAILURE TO PROVIDE FUNDERA WITH ACCURATE INFORMATION OR TO CORRECT INACCURATE VERIFIED DATA, OR A THIRD PARTY’S FAILURE TO CORRECTLY VERIFY SUCH INFORMATION, AND REGARDLESS OF THE FORM OF THE ACTION), WILL AT ALL TIMES BE LIMITED TO A MAXIMUM OF ONE HUNDRED US DOLLARS (U.S. $100). THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT ENLARGE THIS LIMIT. YOU AGREE THAT OUR SUPPLIERS WILL HAVE NO LIABILITY OF ANY KIND ARISING FROM OR RELATING TO THESE TERMS OF SERVICE. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 10.2 No Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THESE TERMS OF SERVICE, THE SITES AND THE SERVICE PROVIDED HEREUNDER BY FUNDERA IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, AND FUNDERA (AND OUR SUPPLIERS) EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES AND CONDITIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, QUIET ENJOYMENT, ACCURACY OR NON-INFRINGEMENT. WE (AND OUR SUPPLIERS) MAKE NO WARRANTY THAT THE SITES AND THE SERVICE WILL MEET YOUR REQUIREMENTS, WILL BE AVAILABLE ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS, OR WILL BE ACCURATE, RELIABLE, AND/OR FREE OF VIRUSES OR OTHER HARMFUL CODE, COMPLETE, LEGAL, OR SAFE. IF APPLICABLE LAW REQUIRES ANY WARRANTIES WITH RESPECT TO THE SITE AND THE SERVICE, ALL SUCH WARRANTIES ARE LIMITED IN DURATION TO NINETY (90) DAYS FROM THE DATE OF FIRST USE. NO ADVICE OR INFORMATION PROVIDED BY FUNDERA SHALL CONSTITUTE ANY WARRANTY WITH RESPECT TO YOUR USE OF THE SERVICE. FUNDERA DOES NOT GUARANTEE OR ASSUME ANY RESPONSIBILITY FOR ANY SERVICE ADVERTISED OR OFFERED BY ANY THIRD-PARTY SERVICE RELATING TO EITHER FUNDERA OR ANY FUNDING PROVIDER. FUNDERA MAKES NO GUARANTEE AS TO THE NUMBER OF FUNDING PROVIDERS WITH WHOM YOU MAY BE MATCHED USING THE SERVICE, NOR DOES FUNDERA GUARANTEE THAT YOU WILL BE ABLE TO OBTAIN BUSINESS FUNDING IN ANY AMOUNT USING THE SERVICE, INCLUDING FROM ANY FUNDING PROVIDER FOR WHOM YOUR VERIFIED INFORMATION PROVISIONALLY PREQUALIFIES YOU FOR SUCH FUNDING. YOU UNDERSTAND AND AGREE THAT FUNDERA IS NEITHER A FUNDING PROVIDER NOR A FINANCIAL ADVISOR, AND NOTHING ON THE SITES IS INTENDED TO BE A SUBSTITUTE FOR PROFESSIONAL FINANCIAL ADVICE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. SOME JURISDICTIONS DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 10.3 Not a financial planner, investment adviser or tax advisor. NEITHER FUNDERA NOR THE SERVICES ARE INTENDED TO PROVIDE LEGAL, TAX, INVESTMENT OR FINANCIAL ADVICE. FUNDERA IS NOT A FINANCIAL OR TAX PLANNER, AND DOES NOT OFFER LEGAL ADVICE TO ANY USER OF THE SERVICE. ALTHOUGH THE SERVICE MAY PROVIDE DATA, INFORMATION, OR CONTENT RELATING TO INFORMATIONAL SERVICES FOR U.S. BASED SMALL BUSINESS OWNERS INCLUDING INFORMATION AND REFERRALS FOR CERTAIN FINANCIAL SERVICES, YOU SHOULD NOT CONSTRUE ANY SUCH CONTENT AS TAX, LEGAL, FINANCIAL, OR INVESTMENT ADVICE.

  • $5K-$5M Loan Amount
  • 550 Min Credit
  • 7-30% APR
  • 12+ Months Time in Business
Easy Application
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Key Facts

  • Eligibility: Businesses with less than 500 employees
  • Max loan amount: $10 million
  • Interest rate: 0.5%
  • Loan forgiveness for: payroll, mortgage interest, rent, utilities

Pros

pros iconFlexible on credit score. Getting approved is based more on strong balances and revenue.

pros iconVariety of loan types available

pros iconSoft credit check for the initial application

pros iconSave time with offers from multiple lenders

Cons

cons iconApplication process is a bit long for a marketplace because it requires 3 bank statements

cons iconSince Lendio is not a direct lender, the terms only become clear after applying for a loan

  • $1K-$5M Loan Amount
  • 500 Min Credit
  • 6+ Months Time in Business
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Key Facts

  • Multiple types of funding, nationwide
  • Get help from a loan representative
  • Highly rated customer support

Pros

pros iconEasy way to compare business loans from over 35 lenders

pros iconPartners with large, established lenders such as Bluevine, OnDeck, and Funding Circle

pros iconLoan decisions are made quickly after an easy application process

Cons

cons iconNo transparency of loan terms readily available

cons iconLoan funding can take up to one week, which is longer than competitors

cons iconCollateral is required from some of BusinessLoans.com’s lending partners

BusinessLoans.com allows users to obtain information about certain loans, financial products, and services offered through third-party service providers and advertisers. BusinessLoans.com is not an agent or advisor to you or any other third party.

You acknowledge and agree that our website is solely an intermediary to connect users with service providers to obtain information about certain financial products and services. You acknowledge and agree that we are not a financial institution, credit card issuer, or other financial service provider and that any information or advice made available through the Services is for informational purposes only.

We do not, and will not, create any coverage or credit decision with any service provider that may be referred to you through our Services. We do not (i) validate the licensing, certification, or other qualifications of Service Providers that you may encounter through our Services, (ii) guarantee the terms or rates offered by any third party through or on our Services, or (iii) issue credit cards or any other financial products.

We are not responsible for the conduct or policies of the service providers. The terms and rates provided by any service provider will be subject to the applicable terms and conditions of the products and services offered by the service providers.

  • $5K-$3M Loan Amount
  • 640 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Credit Score: 650
  • Age of business: 1 Year
  • Monthly revenue: $25,000
  • Origination fee: 0-2%

Pros

pros iconQuick approval time

pros iconFast time to funding

pros iconGood track record

pros iconFlexible repayment options

Cons

cons iconNo transparency on rates

cons iconAdditional fees sometimes necessary

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

  • $10K-$500K Loan Amount
  • 650 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Credit score: 625
  • Age of business: 12+ months
  • Monthly revenue: $8,000
  • Personal guarantee: Required
  • US citizenship: required, or permitted residency
  • Term length: 3-24 months

Pros

pros iconMore straightforward to obtain a loan than with conventional banks

pros iconVery quick funding available

pros iconFull fee transparency

Cons

cons iconLonger initial application process than competitors – 10 minutes

cons iconOrigination fees applied of up to 4%

cons iconLines of credit incur a $20 monthly charge

cons iconExpensive APRs

Same Day Funding is only available in certain states for term loans up to $100K. The eligibility window is Monday-Friday before 10:30am EST. If checkout completes before 10:30am EST, funds will be available by 5pm local time the same day. If checkout occurs after 10:30am EST or on a weekend or bank holiday, it will not qualify for Same Day Funding, and funds will be deposited within 2-3 business days. Eligibility rules around creditworthiness and length of term loan apply.
Eligibility for the lowest rates is limited, available only to businesses with the strongest creditworthiness and cash flows, and typically companies that have shown an excellent payment history on prior loan products with OnDeck. The average rate for term loans is 62.1% APR, and the average rate for lines of credit is 48.9% APR. Averages are based on loans originated in the half-year ending March 31, 2022.

  • $5K-$250K Loan Amount
  • 625 Min Credit
  • 12+ Months Time in Business
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Key Facts

  • Minimum credit score: 640
  • In business for a minimum of 24 months
  • Monthly revenue of at least $25,000
  • At least 18 years of age
  • U.S. citizen or permanent resident

Pros

pros iconLarge loan amounts available

pros iconFlexible repayment terms

pros iconFast funding and approval times

pros iconSimple application process and somewhat lenient eligibility requirements

Cons

cons iconTypical APRs not listed online

cons icon3% fee on working capital loans

cons iconFinancing not available for business in certain industries

THE CONTENT AND ALL OTHER INFORMATION AND MATERIALS CONTAINED IN THE WEBSITE ARE PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. Backd DOES NOT WARRANT THE ACCURACY, ADEQUACY, OR COMPLETENESS OF THIS INFORMATION AND MATERIALS AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN THIS INFORMATION AND MATERIALS. THE DOCUMENTS AND RELATED GRAPHICS PUBLISHED ON THE WEBSITE COULD CONTAIN TECHNICAL INACCURACIES OR TYPOGRAPHICAL ERRORS. NO WARRANTY OF ANY KIND, IMPLIED, EXPRESSED OR STATUTORY, INCLUDING BUT NOT LIMITED TO, THE WARRANTIES OF NON-INFRINGEMENT OF THIRD-PARTY RIGHTS, TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND FREEDOM FROM COMPUTER VIRUS, IS GIVEN IN CONJUNCTION WITH THE INFORMATION AND MATERIALS. Backd SHALL HAVE NO LIABILITY OR RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS IN THE CONTENT ON THE WEBSITE. Backd DOES NOT WARRANT THAT THE WEBSITE IS COMPATIBLE WITH YOUR EQUIPMENT OR THAT THE CONTENT IS FREE FROM ERRORS, VIRUSES, WORMS, TROJAN HORSES, OR ANY OTHER HARMFUL, INVASIVE, OR CORRUPTED FILES, OR THAT THE WEBSITE WILL BE UNINTERRUPTED, SECURE, OR ERROR-FREE. Backd IS NOT LIABLE FOR ANY DAMAGES YOU MAY SUFFER AS A RESULT OF SUCH DESTRUCTIVE FEATURES. SHOULD APPLICABLE LAW NOT PERMIT THE FOREGOING EXCLUSION OF EXPRESS OR IMPLIED WARRANTIES, THEN Backd HEREBY GRANTS THE MINIMUM EXPRESS OR IMPLIED WARRANTY REQUIRED BY SUCH APPLICABLE LAW. NO ADVICE OR INFORMATION, WHETHER ORAL OR WRITTEN, OBTAINED BY YOU FROM Backd, ITS EMPLOYEES, AGENTS, SUPPLIERS, OR ANY OTHER PERSONS SHALL CREATE ANY WARRANTY, REPRESENTATION, OR GUARANTEE NOT EXPRESSLY STATED IN THIS SECTION.

  • $10K-$2M Loan Amount
  • 640 Min Credit
  • 24+ Months Time in Business

Top SBA Loan Providers

Fundera Logo
Fundera

Get funded faster than at your bank

550

Min Credit Score

Min 7%

APR. Fixed Rate

7-30%

APR. Variable Rate

$5K-$5M

Loan Amount

1-10 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

24 Hours

Funding Time

$130K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Multiple financing options designed to help businesses grow and succeed
  • con-icon Convenient shop and comparison tool
  • con-icon Free service
  • con-icon Matched with experienced Funding Advisor who helps every step of the way
  • con-icon Loan terms and conditions not disclosed until after completing an application
  • con-icon Once deciding upon a product, you’ll work with the lender instead of Fundera
  • con-icon Must have been in business for at least 1 to 4 years to qualify for funding
  • con-icon Potentially high interest rates and eligibility requirements

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Invoice Financing
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
  • Startup Loans

640

Min Credit Score

Min 9%

APR. Fixed Rate

$5K-$3M

Loan Amount

1-20 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

24 Hours

Funding Time

$240K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Easy way to compare business loans from over 35 lenders
  • con-icon Partners with large, established lenders such as Bluevine, OnDeck, and Funding Circle
  • con-icon Loan decisions are made quickly after an easy application process
  • con-icon No transparency of loan terms readily available
  • con-icon Loan funding can take up to one week, which is longer than competitors
  • con-icon Collateral is required from some of BusinessLoans.com’s lending partners

Business Loan Types

drop-down-btn
  • Business Line of Credit
  • Business Term Loan
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
lendio_logo
Lendio

Buying, Building, or Renovating Your Business

500

Min Credit Score

Min 6%

APR. Fixed Rate

$1K-$5M

Loan Amount

1-30

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

$96K

Annual Revenue

6+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Flexible on credit score. Getting approved is based more on strong balances and revenue.
  • con-icon Variety of loan types available
  • con-icon Soft credit check for the initial application
  • con-icon Save time with offers from multiple lenders
  • con-icon Application process is a bit long for a marketplace because it requires 3 bank statements
  • con-icon Since Lendio is not a direct lender, the terms only become clear after applying for a loan

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Startup Loans

SBA Loans Explained

Small businesses play a crucial role in our economic landscape and make up a big bulk of the market, which is why the federal government has employed an agency—the U.S. Small Business Administration (SBA)—that is dedicated to bringing capital to businesses.

It’s a loan designed for small businesses provided by lending institutions and not the SBA itself. SBA loans are an attractive funding prospect because of their advantages, like low-interest rates, access to quick capital, longer repayment terms, flexibility, and more.

How it works is the lender partners with the SBA, who partially guarantees (up to 85%) the loan. This removes some of the risks for the lender, making it much easier for small businesses to get funding.

Guaranteeing the loan essentially means that the SBA is prepared to back up the loan and pay for the guaranteed portion of the loan if the borrower defaults or cannot pay it back.

Types of SBA Loans

  • 7(a) Loan Program
  • CDC/504 Loan Program
  • Microloan Program
  • Disaster Assistance Loan Program
  • SBA Express Loan Program

7(a) Loan Program:

This is the most common type of SBA loan, designed to support small businesses in various ways. The loan can be used for a wide range of purposes, including purchasing equipment or inventory, refinancing existing debt, or expanding business operations. The maximum loan amount is $5 million, and the interest rates typically range from 7% to 9.25%. The repayment term can be up to 10 years for working capital loans and up to 25 years for loans used to purchase real estate.

CDC/504 Loan Program:

This type of SBA loan is specifically designed for businesses that need to purchase real estate, equipment, or other fixed assets. The loan is structured in two parts: a loan from a Certified Development Company (CDC) and a loan from a private sector lender. The CDC loan covers up to 40% of the project cost, while the private sector lender covers 50%, and the borrower provides the remaining 10%. The maximum loan amount is $5.5 million, and the repayment term can be up to 20 years for real estate loans and up to 10 years for equipment loans.

Microloan Program:

This type of SBA loan is aimed at small businesses that need smaller loan amounts, typically up to $50,000. The funds can be used for a wide range of purposes, including purchasing equipment, inventory, or supplies or covering operating expenses. Nonprofit organizations generally provide microloans; repayment terms and interest rates vary depending on the lender.

Disaster Assistance Loan Program:

This type of SBA loan provides low-interest loans to small businesses that have been affected by a declared disaster, such as a hurricane, earthquake, or wildfire. The loan can be used to repair or replace damaged property or to cover operating expenses while the business is recovering from the disaster. The maximum loan amount is $2 million, and the interest rates are generally lower than those of other SBA loans.

SBA Express Loan Program:

This type of SBA loan is designed for businesses that need a smaller loan amount, typically up to $350,000, and need quick access to funds. The loan application process is streamlined, with 36 hours or less turnaround time. The interest rates for SBA Express loans are higher than those of other SBA loans, ranging from 7.75% to 10.25%, and the repayment term can be up to 10 years.

Is an SBA loan right for your business?

Every growing business should take time to understand what an SBA loan is and consider it as an option when looking for funding, but how do you know if it’s the right option for you?

Eligibility

First thing’s first. Before moving forward, is your business eligible for an SBA loan? While lenders typically have their own requirements when issuing loans, like a credit score minimum, years in business, and annual revenue, the SBA has its own set of minimum requirements businesses must meet.

Here is a quick glimpse of some basic requirements by the SBA for an SBA loan:

  • Must be a for-profit business
  • Must be located and conducting business in the United States
  • The business owner must have invested equity
  • The business must not acquire funds from another financial lender

Can a business loan affect my personal credit?

Taking out an SBA loan may affect your credit, but it depends on how well you manage the loan and pay it back. Credit scores can be improved by making your payments on time and in full, but they can be hurt by missing payments or defaulting.

What are the typical SBA loan terms?

Unlike other types of loans, SBA loan terms depend on how you’ll be using the money and are set by the SBA, not the lender. They also come with some of the longest-term lengths out there, making it appealing to business owners who care about smaller monthly payments. Just remember that a longer loan term means paying more in interest on the loan in the long run.

Term length based on the purpose for the most common—7(a)—loans:

  • 10 years – equipment, inventory, working capital
  • 25 years – real estate
  • Paid on a monthly basis

Since microloans are much smaller, they come with shorter-term lengths.

How is an SBA loan different from a traditional business loan?

Now that you’re more familiar with SBA loans, you can probably start to see the differences between them and traditional business loans, but let’s go ahead and highlight them.

Unlike an SBA loan, traditional business loans are not backed by the government, meaning they’re harder to qualify for. Since there’s more risk on the lender, you can expect them to place a heavy emphasis on factors like your credit score, cash flow, and annual revenue.

Since SBA loans are less risky for the lender, you can expect lower interest rates than conventional loans.

Other key differences are the loan amount as well as the loan term. SBA loans offer longer loan terms, spanning from 5-25 years, whereas business loans are shorter. The loan amount on an SBA loan is up to $5 million, unlike business loans which often range from $25,000 to $250,000.

Conclusion

SBA loans entice small business owners with low-interest rates, access to capital, longer terms, and flexibility so businesses have the capacity—and funding—to grow.

So, is an SBA loan the right fit for your burgeoning business? Hopefully, by now you have a better idea of what SBA loans are, what they can do for you, and what they can’t do for you.