Live Oak Bank SBA Loans & Small Business Loans Review

Pros

• High borrowing amounts
• Rates tend to be inexpensive
• Long-term financing options available
• Financing is suited for business growth needs

Cons

• Borrower qualifications may be hard to meet
• Collateral is required (in some cases)
• The application process is slow and involved
• Website advertising is not informative

Live Oak Bank Business Loans Overview

Live Oak Bank is an FDIC-insured bank offering term loans and SBA loans to small businesses. Live Oak Bank was also a participant in the PPP COVID-relief small business lending program and specializes in US Department of Agriculture (USDA) Loans.

Live Oak also emphasizes its SBA loans and is, in fact, one of the biggest originators of that type of loan in the country. As an SBA Preferred Lending Partner, it’s able to process those loans more quickly than your typical lender (don’t expect blazing speeds, though; it’s still an SBA loan).

As a relatively young bank, Live Oak is less traditional than many of its competitors, offering speed and convenience to prospective lenders in all 50 states. However, the convenience comes with some trade-offs, including limited borrowing amounts and more stringent borrower requirements. Let’s dive right in to see how Live Oak Bank stacks up as a small business lender.

Loan Services Offered By Live Oak Bank

Live Oak Bank scores a 4.4/5 for our services rating. This score is determined by Live Oak’s good selection of lending options but lower available borrowing amounts.

• SBA Loans: When it comes to SBA loans, Live Oak Bank offers SBA 7(a) and SBA 504 loans to small businesses. The bank has Preferred Lender Status and was ranked #1 SBA 7(A) Lender by dollar amount for FY 2021.
• USDA Loans: U.S. Department of Agriculture loans are government-backed loans for agricultural businesses. In 2021, Live Oak Bank was named the leading USDA lender by volume for its Business & Industry (B&I) guaranteed loan program. Live Oak Bank also participates in the Community Facilities (CF) loan program, the Water and Environmental (WEP) loan program, and others.
• Term Loans: Live Bank also offers conventional (non-government-backed) commercial business term loans for various purposes, including business acquisition loans, franchise loans, and others.

Live Oak Bank Borrower Requirements

Live Oak is fairly transparent about its borrower requirements. Unfortunately, those requirements are difficult for some businesses to meet, which is why Live Oak Bank only gets 2.1/5 stars for this section rating. To qualify for a Live Oak loan, you’ll need to be an established business with a good to excellent credit score.

Here are the borrower qualifications for getting a loan from Live Oak Bank:

Live Oak does not lend to businesses that:

• Are highly cyclical
• Depend on discretionary spending
• Have customer or revenue concentrations
• Have unreliable or poor historic cash flow

A down payment may be required depending on the type of financing you are applying for.

Live Oak lends to all 50 states and is willing to work with all types of businesses, but it specializes in lending to the above sectors.

Live Oak Bank Interest Rates & Fees

Live Oak Bank does not disclose rates and fees readily, which results in a 2.1/5 star rating for this section.

Here are some rate and term details for the main loan types Live Oak Bank offers to small businesses.

Term Loans

Live Oak breaks its loan products down by industry, with variations in terms depending on the type of business it’s lending to. Here are the terms for Live Oak’s business term loans, broadly speaking:

Live Oak offers term loans for a variety of business purposes. The bank doesn’t disclose too many specifics about its loans beyond term lengths and borrowing limits. Instead, it stresses flexibility catered to the borrower’s industry and speed.

There are no prepayment penalty fees for loans with terms shorter than 15 years.

SBA Loans

These are the terms and fees for Live Oak Bank’s SBA loans:

Live Oak Bank is an SBA Preferred Lender, a designation that allows the lender to process SBA loans more quickly. The bank has developed a reputation for being an unusually fast SBA lender, with turnaround times of under two months being possible.

The two most popular SBA loans are the SBA 7(a) and SBA 504 loans. The Small Business Administration partially guarantees these loans, which allows the borrower to access better rates and terms than they would otherwise be able to.

Live Oak Bank Loan Application Process

You can start your application online with or without an existing business account or submit a form requesting contact from a loan specialist. Estimates for Live Oak’s small business loan decisions run as short as ten days, which is pretty slow compared to other online lenders. While the bank has taken great pains to speed up the SBA loan approval process, be prepared to wait a month (at minimum) for processing, with 45 days being the typical turnaround. You should also be prepared to submit the extensive documentation the SBA requires.

Sales & Advertising Transparency

Live Oak presents a minimal amount of product information on its website. The small business loans section is broken down by industry but, with a few exceptions, doesn’t present much unique information in any of those subheadings. The most information you’ll be able to find is about Live Oak’s SBA loan offerings, but even that is still lacking transparency around APR ranges and what “minimal equity injection required” means exactly. However, positive customer reviews regarding sales practices and an active social media presence save Live Oak Bank in this rating section giving it a 4.6/5.

Customer Service & Technical Support

You can reach Live Oak Bank primarily through phone support. Since our last review, Live Oak Bank has removed email and support ticket options from their website. While Live Oak Bank has fewer customer support options than we like to see, customers overwhelmingly report positive customer service experiences.

Live Oak Bank Reviews, Complaints, & Testimonials

Live Oak Bank has relatively positive customer reviews across multiple third-party review sites, resulting in a 3.9/5 star rating for this section.

Negative Reviews & Complaints

Some of the more common complaints we’ve found in Live Oak Bank reviews include:

• Issues with online account access
• Limited lending information online
• Some industries don’t qualify for lending

Positive Reviews & Testimonials

Most positive reviews are regarding Live Oak Bank’s checking and savings account services, but there are some reviews specific to Live Oak’s lending. Borrowers note several positives about Live Oak Bank:

• Good customer support
• Great interest rates
• Fast & smooth loan application process

Final Verdict: Is Live Oak A Good Bank For Your Business Loan Needs?

Live Oak’s overall 2.9/5 star rating leaves users wanting for higher borrower requirements, faster application processing times, more flexible time in business and credit score eligibility, and more transparent fees. However, Live Oak does get a large amount of positive customer reviews and customer support experiences. The company also offers good Live Oak business banking services, so if you’re an existing Live Bank customer, this might be a good option for you. Companies seeking SBA loans, in particular, should give Live Oak a closer look, as the lender seems to have honed the application process down to a science.

If you’re looking for lines of credit or are in an industry that doesn’t fall within Live Oak’s specialty portfolio, there’s not much here for you.

Need alternatives? Compare small business loans or check out our comprehensive reviews of business credit cards.

Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.

Find Funding for Any Credit Level

BusinessLoans.com	Visit Site Read our Review

Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.

Let Us Help You Save On Credit Card Processing