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This list of the top SBA lenders, plus our tips for how to choose the SBA 7(a) lender that's best for your business, will help you identify and narrow down your loan options.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Chelsea KrauseChelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
SBA-approved banks and lenders are critical for small business owners seeking an SBA loan. The SBA does not directly provide loans — instead, the SBA partners with approved banks, credit unions, and other lenders to guarantee a significant percentage of each loan to protect the lender in case of borrower default.
In this post, we’ll highlight some of the top SBA-approved lenders that can help you score the low-cost, long-term funding your business needs. We’ll also discuss how to select an SBA lender and how to apply for an SBA loan.
If, after weighing the pros and cons of SBA loans, you decide to shop for traditional small business loans instead, we’ve got you covered there as well.
The top SBA lenders range from local financial institutions to large national banks to online lenders. However, narrowing down the available options can be tough. Start your search with these lenders.
As an SBA Preferred Lender and the #1 provider of SBA 7(a) loans in 2023 according to the SBA's figures, Live Oak Bank helps borrowers receive SBA-backed loans faster than other lenders.
Live Oak Bank's track record of working with SBA borrowers is second to none. Live Oak Bank is distinguished by its teams of experts, with each team focusing on a specific industry to help small businesses receive loans while providing guidance throughout the life of the loan.
Live Oak Bank Features
Live Oak Bank’s most popular option for SBA funding is the 7(a) loan, which provides small business owners with up to $5 million with repayment terms of up to 25 years. If you’re interested in pursuing a 7(a) loan, our guide to the terms, rates, and eligibility of the SBA’s 7(a) loan program is essential reading.
Live Oak Bank offers SBA 504 loans as well. These loans are exclusively used to purchase real estate and other related purposes.
Live Oak Bank Eligibility Requirements
To qualify for an SBA loan with Live Oak Bank, borrowers need a minimum personal credit score of 680 and a business history of at least 3 years. Revenue requirements vary. Businesses in all 50 states + DC can apply online.
Choose Live Oak Bank If...
You’re seeking an SBA loan, and you want to work with the one of the nation’s top providers of SBA loans
You have 3 years of business history and a personal credit score of 680+
Little information on SBA loans is provided online
Company gets mixed reviews online
Why Newtek Is Great For Growing Businesses
Newtek provides funding for small businesses, and this includes SBA loans. As one of the SBA's top 7(a) lenders, Newtek is a good place to seek an SBA 7(a) loan (reportedly, it also offers SBA 504 loans).
In addition to SBA loans with quick prequalifications, Newtek offers a host of other business services that may be beneficial to you. This includes insurance, banking, POS, payment processing, and more. These features make Newtek a great one-stop-shop for growing businesses that want to take advantage of SBA and other business solutions.
Newtek Features
Newtek currently states that borrowers can receive as much as $15 million for various business purposes (SBA loans are generally capped at $5 million, though) and that repayment terms are as long as 25 years.
Newtek Eligibility Requirements
All applicants must have an existing for-profit business with at least two years of tax returns. You can discuss additional requirements with a Newtek financial specialist. Interested borrowers can get prequalified by visiting Newtek’s website.
Choose Newtek If...
You want to quickly and easily be prequalifed for an SBA loan
You want access to other business products, such as POS and insurance
Why Grasshopper Bank Is Great For Getting Prequalified Quickly
Grasshopper Bank is a digital bank that offers SBA 7(a) and 504 loans. Grasshopper Bank offers a digital application that makes it easy to apply for a 7(a) loan.
Not only is the application easy to fill out, but you can be prequalified in less than 10 minutes. While you'll still have to submit documentation, provide additional information, and meet all requirements to receive the loan, this quick prequalification process makes it easy to determine if you should pursue an SBA loan or look elsewhere for funding.
Grasshopper Bank Features
Grasshopper offers 7(a) loans from $250,000 to $5 million with repayment terms of 10 to 25 years.
For commercial real estate purchases, businesses can apply for 504 loans, although Grasshopper provides little information on its website about these loans.
Grasshopper Bank Eligibility Requirements
To qualify for an SBA loan through Grasshopper Bank, you must own a US-based business that has been in operation for at least 2 years . A minimum FICO score of 660 is also required.
Choose Grasshopper Bank If...
You want to prequalify for an SBA 7(a) loan in less than ten minutes
Ready Capital is a non-bank SBA lender. Because it's an SBA Preferred Lender, the application and funding process is especially efficient.
Besides being an SBA 7(a) lender that has topped the SBA's list of prolific lenders, Ready Capital's policies appeal to veterans, who will have packaging fees on 7(a) loans waived.
Ready Capital Features
Through Ready Capital, you can receive up to $7 million through the 7(a) program with repayment terms of up to 25 years.
Ready Capital also offers preferred pricing to veteran business owners, waiving packaging fees for veterans who are receiving a 7(a) loan.
Ready Capital Eligibility Requirements
To qualify for any Ready Capital’s SBA loans, you must have a credit score of at least 680 and a debt service coverage ratio (DSCR) of 1.15 to 1.30. Other requirements may apply.
Choose Ready Capital If...
You’re a veteran business owner looking for favorable terms on a 7(a) loan
Quick SBA-backed Celtic Express loans available as well as 7(a) & 504 loans
SBA loans available in all 50 states
Cons
Nontransparent terms & fees for some loan products
Why Celtic Bank Is Great For Express Loans
Celtic Bank offers a variety of SBA loans to meet the needs of most businesses. In addition to 7(a) and 504 loans, Celtic Bank also has Celtic Express loans, which have fast approval times and can provide up to $150,000.
Celtic Bank is an SBA Preferred Lender, so processing times may be shorter than working with other lenders.
Celtic Bank Features
Celtic Bank offers 7(a) loans with limits of up to $5 million and repayment terms of up to 25 years. A Celtic Advantage loan, which provides $150,000 to $350,000 with repayment terms up to 25 years is also available.
Celtic Bank also offers SBA 504 loans. Qualified business owners may receive more than $5 million in funding with repayment terms of up to 20 years.
SBA Express loans of up to $150K are offered as well. These are referred to as “Celtic Express” loans and come with faster approval times.
Celtic Bank Eligibility Requirements
Celtic Bank generally requires a credit score of at least 640 from its applicants. Unfortunately, Celtic Bank is not forthcoming about its particular loan requirements on its website.
Why First Internet Bank Is Great For Online SBA Loans
As its name suggests, First Internet Bank Of Indiana (known primarily as First Internet Bank) is an online-only bank with no physical branches. Nonetheless, the bank is an SBA Preferred Lender and offers several options for SBA loans.
If you're comfortable conducting your application process entirely online, First Internet Bank offers three different SBA-backed loans and is accredited by the BBB with an A+ rating.
First Internet Bank Features
First Internet Bank offers SBA 7(a) loans of up to $5 million. Terms run up to 10 years when you use your loan for business acquisition, working capital/inventory, equipment, or tenant improvement. Terms run up to 25 years when you use your loan for real estate.
First Internet Bank also offers SBA Express loans of up to $350,000. These are offered in the form of term loans or lines of credit, and you can get approved in as little as 48 hours.
The bank also offers SBA 504 real estate loans of up to $5 million. This is a relatively low maximum amount for 504 loans.
First Internet Bank Eligibility Requirements
First Internet Bank doesn’t specify any particular requirements for SBA funding on its website. You’ll need to contact FIB to ask if it has any requirements that go beyond the SBA’s guidelines.
Choose First Internet Bank If...
You’re looking for an SBA Preferred Lender that offers multiple SBA loan types, and you don’t mind an application and support process that is entirely online
Wells Fargo has had a number of scandals in recent years
Why Wells Fargo Is Great As A Large SBA-Approved Bank
Wells Fargo Bank has thousands of US branches and is one of the most well-known banks in the world. If you'd rather deal with a large, established bank than a smaller online lender when seeking an SBA loan, consider Wells Fargo.
Wells Fargo has consistently been on the SBA's list of most prolific 7(a) lenders. Additionally, the bank offers a wealth of other personal and business lending and banking options that may benefit you.
Wells Fargo Features
Wells Fargo offers two SBA loan options for small businesses: 7(a) loans and 504 loans. The 7(a) loan provides borrowers up to $5 million. Repayment terms are up to 25 years for commercial real estate purchases or up to 10 years for other business purposes.
For the 504 loans, Wells Fargo will lend up to $10 million, while the borrower may also receive up to $5 million from a Certified Development Company (CDC). Repayment terms are up to 25 years for commercial real estate purchases or up to 10 years for machinery or equipment purchases.
Wells Fargo Eligibility Requirements
The only eligibility requirement Wells Fargo lists for SBA loans is that applicants must have a net worth under $15 million and an average net income under $5 million.
Choose Wells Fargo If...
You’re looking for an SBA loan from a large bank with numerous physical branches
Business Loan & Funding Products Review Methodology
We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
Weighted Rating Breakdown
Rates & Fees 20%
Services 20%
Eligibility Requirements 20%
Application 15%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.
Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.
The SBA publicly discloses information about its loans, including its most prolific lenders. Here’s a breakdown of the top SBA lenders (based on SBA data), which includes options found above, as well as a few other lenders to consider in your search for funding.
It is entirely possible to secure an SBA loan online. Just know that the online process can still take time and requires you to complete specific tasks, such as uploading financial reports, filling out applications, and signing documents. Communicating with your lender and completing steps in a timely manner are critical steps to securing an SBA loan.
Check with lenders that you have an existing relationship with to see if they offer online loans. You could also apply for an SBA loan through an online marketplace like Fundera, Lendio, or SmartBiz. These platforms clearly outline requirements, rates, and terms and allow you to apply for and receive funding right from your home or office.
5 Tips For Choosing The Best SBA Approved Banks For Your Business
Still not sure which SBA participating lender is right for your business? These five tips can help you narrow down your options.
Talk To Lenders You've Worked With In The Past
Rather than blindly choosing a lender you have no experience with, talk to banks, credit unions, and other lenders with which you have a pre-existing relationship. This may cut down on the amount of paperwork you have to submit (e.g., bank statements).
If these lenders don’t offer SBA funding, they might point you in the right direction.
Make Sure You Meet All Requirements
Few things are more disappointing in business than having your loan application denied. To avoid this problem, make sure that you (and your business) meet all requirements for receiving an SBA loan. Most lenders require at least two years in business, along with the tax returns to back it up.
You should also have a solid credit score. In most cases, this is around 680, but some lenders may consider lower scores. You should also have enough revenue to pay back the loan and enough money to cover a down payment if required.
You must also meet the requirements of a small business as set by the SBA. This limits the number of employees you have, as well as your annual revenue.
Determine Which SBA Loan Type Is Best For Your Business
The SBA 7(a) loan offers high limits for most borrowers and can be used for nearly any purpose, making it a solid choice for many businesses. However, there may be other loan options that better suit your needs.
For example, an SBA line of credit might be more appropriate than a loan that comes in one lump sum. Perhaps your business has smaller needs that could be met with an SBA microloan.
Every business situation is unique, so every business has different financial needs. Make sure to explore all SBA funding options and choose a lender that offers the right product for you.
Choose An SBA Preferred Lender
While many lenders offer SBA loans, not all lenders have the experience to help you through the process efficiently. Choose an SBA Preferred Lender with experience in these types of loans to ensure you get your funding as quickly and easily as possible. You may even want to take it a step further and choose a lender that has experience with your specific industry.
Look For Lenders With Multiple Product Offerings
Work with a lender that offers SBA loans, lines of credit, equipment financing, or other financial products. If you don’t qualify for an SBA loan, you may qualify for other financing.
Or, if you need capital now and don’t have weeks (or longer) to wait for SBA funding, make sure that your lender has other options or can at least refer you to other institutions that can provide you with what you need.
Before you get started, note that this can be a drawn-out process, so make sure you’re ready to invest the time needed to close your loan efficiently. Your lender could reach out during the process for more information or documentation at any time, so be ready to respond.
Which Of The Top SBA Lenders Is Right For Your Business?
With this list of reputable SBA lenders, your search for an SBA loan may be easier. Before applying, however, make sure that you’re familiar with the SBA’s small business guidelines to make sure you qualify.
These are just a few tips to get you started. The process can be daunting, but if you can ultimately secure one of these low-cost loans, the work you put forth will be worth it several times over!
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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