Harvest Small Business Finance Review
- High borrowing amounts
- Rates tend to be inexpensive
- Monthly repayments
- Long-term financing options available
- Customers have an assigned account manager
- Some additional fees charged
- Collateral is required
- The application process is slow and involved
- Funds can take a while to disburse
Harvest Small Business Finance Overview
Harvest Small Business Finance is a direct lender of Small Business Administration 7(a) loans. Founded in 2015, this affiliate of Medalist Partners, LP, specializes in providing affordable loan solutions for small business owners who don’t qualify for commercial mortgages through banks or credit unions.
Through Harvest Small Business Finance, you can apply for a commercial mortgage through the SBA 7(a) program. This non-bank lender provides between $200,000 to $5 million to eligible borrowers, even when they’ve been turned down for other financing options.
SBA loans are notoriously slow, but Harvest Small Business Finance does everything it can to expedite the process, stating that it can give approvals within two to four days. The lender also strives to close each loan within 30 days. Funds received through Harvest Small Business Finance can be used to purchase or refinance multipurpose owner-user real estate, including but not limited to office buildings, industrial, retail, hotels, self-storage, and more.
Table of Contents
- SBA 7(a) Loans: These are loans issued by a lending institution and guaranteed by the Small Business Administration for up to 85% of the loan’s value. That guarantee allows borrowers to access rates and terms that normally wouldn’t be available to someone with their profile. SBA 7(a) loans can be used for business startups, cash flow for an existing business, and many other purposes.
The SBA has put borrower requirements in place that make it easier for small business owners to qualify for affordable funding, even if they’ve been turned down by banks, credit unions, or other lenders. To be eligible for an SBA 7(a) loan through Harvest Small Business Finance, businesses must:
- Be based in the US
- Meet the size standards set by the SBA
- Be a for-profit business
- Have equity to invest
Additionally, businesses must also demonstrate a need for funding, exhaust all other financial resources before applying, and use loan proceeds only for business purposes.
Although the SBA doesn’t set minimum credit scores, business and personal credit will be considered during the underwriting process. Intermediary lenders set their own requirements surrounding credit scores. Harvest Small Business Finance does not specify its minimum credit score requirement. Generally, though, borrowers should have a credit score of at least 640 to qualify for the 7(a) loan program.
For some loans, collateral may be required. If the loan-to-value ratio is at or below 85%, the commercial property serves as the collateral, and no additional collateral is needed. If the LTV is higher than 85%, additional collateral in the form of business or personal assets is required.
Terms & Fees
|Loan Amount||Less Than Seven Years||More Than 7 Years|
Up to $25,000
Base rate + 4.25%
Base rate + 4.75%
Base rate + 3.25%
Base rate + 3.75%
$50,000 or more
Base rate + 2.25%
Base rate + 2.75%
One of the advantages of the 7(a) program is that the SBA sets the rates, keeping these loans affordable for small business owners. SBA 7(a) loan interest rates are based on the prime rate plus a maximum markup by the intermediary lender. For Harvest Small Business Finance’s loans, a maximum markup of 2.75% over the prime rate is allowed. Head over to our article on current SBA loan rates to learn about up-to-date rates for 7(a) loans.
Harvest Small Business Finance does not specify the fees associated with receiving an SBA 7(a) loan. However, some common fees to expect include:
- Guarantee fee of 3% on loans of $150,000 to $700,000
- Guarantee fee of 3.5% on loans of $700,000 to $1 million, plus an additional 0.25% on the amount exceeding $1 million
- Late fees
- Service fees
- Origination fees
- Packaging fees
- Broker fees
- Closing costs
Maximum repayment terms for real estate purchases through the 7(a) program are set at 25 years. Loans with terms of 15 years or longer are also subject to prepayment penalties during the first three years.
To start the application process with Harvest Small Business Finance, you must connect with a Business Development Officer, who will walk you through the process.
Harvest’s application is available online and will need to be completed to qualify for a loan. It’s a standard loan application that requires personal and business information, including:
- Personal name and contact information
- Business name and contact information
- Education and work experience
- Personal and business declarations
- Personal assets and liabilities
- Business history
- A/R and A/P aging summaries
- Business ownership
- Debt summary
- Amount and purpose of loan
- Information on real estate to be financed
The SBA 1919 form is also available on the website; this must be completed by an authorized representative of the business applying to receive the 7(a) loan. All co-applicants are required to complete this form. IRS form 4506-T is also available to request transcripts of tax returns.
Your Business Development Officer can walk you through additional requirements and can offer assistance with filling out any required paperwork. The company will provide you with a checklist to simplify the process. Inquiries for new loans can be made by phone or email.
Sales & Advertising Transparency
Harvest Small Business Finance offers very little information about the 7(a) loan program on its website. Rates, terms, and fees are not available directly on the website. However, since the SBA sets rates, terms, fees, and basic borrower requirements, this information can be obtained through the SBA’s website. The company does also post the current prime rate under Products –> Interest Rates, just keep in mind that your rate will probably be higher than this, up to a maximum of 2.75%.
Customer Service & Technical Support
Business owners inquiring about new loans can contact Harvest Small Business Finance through a dedicated email address and phone number. Current borrowers also have a dedicated email address and phone number that can be used for service questions. The lender also has a fax number for submitting documentation.
Current and prospective borrowers can send messages and keep up to date on the lender’s latest news through the Harvest Small Business Finance Facebook page.
Negative Reviews & Complaints
There are virtually no negative reviews or complaints about Harvest Small Business Finance online on such sites as Trustpilot or the Better Business Bureau. The company’s Facebook page is also empty of complaints or reviews. While this may certainly speak about the quality of the company, there are also no positive reviews online outside of video testimonials posted on the company’s website. The lender isn’t accredited with the BBB but has an A+ rating due to a lack of complaints.
Positive Reviews & Testimonials
As mentioned, Harvest Small Business Finance does not have consumer reviews available online through websites, such as Trustpilot, the Better Business Bureau, or Google. Harvest does, however, have testimonial videos posted on its website. In these videos, borrowers praise the company for the following reasons:
- Creative financial solutions
- The easy and efficient loan process
- Professional team
- Excellent communication
Harvest Small Business Finance offers an alternative solution to bank loans, giving small business owners more access to affordable funding options. SBA 7(a) loans come with extremely competitive rates and terms that make purchasing or refinancing commercial real estate very affordable.
However, business owners with no prior experience or knowledge of SBA loans won’t find the information they need on Harvest Small Business Finance’s website. Information about this loan program on the company website is scarce, and business owners will need to seek out resources on the SBA website or connect with a Business Development Officer to learn more. There is also a lack of details surrounding the application process, documentation, and other requirements.
However, the lender does promote solution-oriented lending designed for borrowers that are ignored by traditional lenders. With a focus on simplifying and expediting the loan process and no negative reviews or complaints online, this could be a lender worth considering if you’re in the market for an SBA 7(a) commercial real estate loan.