SmartBiz Review
While the application process might be lengthy, SmartBiz is a fantastic resource for eligible merchants looking for a low-cost, long-term loan.
SmartBiz

Total Rating | 5.0 |
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Rates & Fees | Excellent |
Application Process | Good |
Sales & Advertising Transparency | Excellent |
Customer Service | Excellent |
User Reviews | Excellent |
Pros
- Rates tend to be inexpensive
- No prepayment penalties
- Website advertising is clear and informative
- Customer service is helpful
Cons
- The application process can be slow
- Some additional fees are charged
SmartBiz Overview
SmartBiz has streamlined and simplified SBA lending. SmartBiz does not directly issue loans — instead, it uses technology to match eligible applicants up with a lender in its network of preferred SBA bank lenders. SmartBiz can determine whether you will likely qualify for an SBA loan from one of its partners within a few minutes.
SmartBiz and its partner banks participate in the SBA’s most popular loan program: the 7(a) business loan program.
While SmartBiz eliminates some of the undesirable elements of SBA loans, it can’t remove them all. Because the government backs SBA loans, SmartBiz still requires a fair amount of paperwork. Additionally, startups and businesses with poor credit are not eligible for borrowing. Despite the long process, SmartBiz is an excellent resource for merchants who want an SBA loan or even a non-SBA bank loan, which SmartBiz also offers.
SmartBiz reviews from users of the service are overwhelmingly positive; if your business is eligible and you’re looking for a low-cost business loan, SmartBiz loans may be just the ticket.
Table of Contents
Services Offered
SBA Loans
SmartBiz offers two main types of SBA-guaranteed installment loans through its bank partners: SBA Working Capital & Debt Refinancing Loans, aka 7(a) loans, and SBA Commercial Construction Loans.
Non-SBA Bank Term Loans
In addition to SBA loans, SmartBiz also offers non-SBA bank term loans to small businesses through some of its partnered banks. Though these loans have somewhat higher costs than SBA loans, they could be suitable for businesses that don’t qualify for an SBA loan or businesses that need their loan faster. Non-SBA SmartBiz loans are typically deposited within three to seven days compared to two to six weeks with SBA loans.
Custom Financing
If you don’t qualify for an SBA loan or a non-SBA bank term loan, SmartBiz also offers custom financing. This type of funding is ideal for startup businesses, businesses that don’t meet the requirements of SmartBiz’s other funding options, or businesses that need cash fast.
The SmartBiz team will work with you to find the right funding type, with options such as equipment loans, invoice factoring, business credit cards, lines of credit, and merchant cash advances.
Borrower Qualifications
Eligibility varies depending on the loan you’re interested in. You need at least two years in business and fair to good credit for SBA loans and non-SBA bank term loans. If you don’t meet these minimum requirements, you can reach out to SmartBiz to learn more about custom financing options.
Working Capital & Debt Refinancing Loans
To be eligible for working capital or debt refinancing loans, you must have a for-profit business. All business owners must be US citizens or legal permanent residents without criminal backgrounds or defaults on government-backed loans. Also, your business must not have open tax liens or any bankruptcies or foreclosures in the past three years.
In terms of credit score and time in business, your business needs to meet these requirements:
Time In Business | 2 years |
Business Revenue | Sufficient cash flow to support repayments |
Personal Credit Score |
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Business Credit Score (E-Tran) | 140 (for SBA loans) |
SmartBiz does not state specific revenue requirements, only that you must prove you have “sufficient cash flow to support loan payments.” Not sure if you do? Use the debt service coverage ratio (DSCR) to learn whether your cash flow can support debt payments. To give you a general idea, SmartBiz says most of its approved businesses have annual revenues of $100,000 or higher.
For smaller SBA 7(a) loans, you’ll also need to pay attention to something called an E-Tran Score. E-Tran is the SBA’s scoring system used to calculate business creditworthiness for loans up to $350,000, and all SmartBiz SBA bank partners must also run applicants through this scoring system. The system uses your FICO business credit score as part of its process but does not disclose everything that goes into your E-Tran score.
If your E-Tran score isn’t high enough (scores range from 1-300, but you only need a 140 to pass), you may still qualify for a non-SBA bank loan through SmartBiz, provided that your personal credit score is at least 660.
Commercial Real Estate Loans
For a SmartBiz commercial real estate loan, you must meet these requirements:
Time In Business | 2 years |
Business Revenue | Sufficient cash flow to support repayments |
Credit Score | 675 |
Additionally, the real estate in question must be at least 51% owner-occupied, and you must not have any prior defaults on government-backed loans.
Rates & Fees
SmartBiz terms and fees vary depending on the product. This lender’s terms and fees are both reasonable and transparent, though some additional fees apply. Repayments for all SmartBiz loans, including SBA loans and bank loans, are due monthly.
SBA Working Capital & Debt Refinancing Loans
These are the terms and fees for SmartBiz SBA loans for working capital and debt refinancing:
Borrowing Amount | $30,000-$350,000 |
Term Length | 10 years |
Interest Rate | Loans Up To $50,000: Prime rate + 3.75% Loans Over $50,000: Prime rate + 2.75% |
Other Fees | Referral Fee: 2% Packaging Fee: 2% Guarantee Fee: 0%-3.5% (depending on loan amount) Bank Closing Costs: Around $450 |
APR | 7.25%-10.29% |
Collateral |
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SmartBiz SBA loans have variable interest rates; the rate is calculated using the prime rate. If the prime rate changes, so will your interest rate.
Aside from the interest rate, SmartBiz and its partner banks charge a few additional fees:
- SmartBiz charges a one-time referral fee and a one-time packaging fee, both of which are a maximum of 2% of the borrowing amount
- Loans have a guarantee fee between 0% and 3.5%, depending on the size of the loan
- Bank closing costs, which include standard bank fees, typically add up to about $450, but additional third-party report charges may also apply
SBA working capital and debt refinancing loans through SmartBiz have no prepayment penalties.
SBA Commercial Real Estate Loans
These are the rates and fees for SmartBiz SBA loans for commercial real estate:
Borrowing Amount | $500,000-$5 million |
Term Length | 25 years |
Interest Rate | Prime rate + 1.5%-2.75% |
Other Fees | Referral Fee: 0.5% Packaging Fee: 0.5% Guarantee Fee: 2.77%-3.75% (depending on loan amount) Bank Closing Costs: Around $5,000 |
APR | 5.04%-5.09% |
Collateral |
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Like the working capital and debt refinance loans, commercial real estate loans have variable interest rates. Additionally, real estate loans carry these fees:
- SmartBiz charges a one-time referral fee and a one-time packaging fee, both of which are a maximum of 0.5% of the loan amount
- Loans up to $5 million necessitate a guarantee fee, paid to the SBA, between 2.77% and 3.75% depending on the loan amount
- Bank closing costs typically add up to about $5,000 and include standard bank fees, appraisal, and title fees; additional third-party report charges may also apply
Real estate loans also carry prepayment penalties for the first three years:
- If you repay in the first year, there is a 5% prepayment penalty
- If you repay in the second year, the fee is 3%
- If you repay in the third year, the fee is 1%
After the third year, there are no prepayment penalties.
Bank Term Loans
Below are the interest rates and fees for SmartBiz’s non-SBA bank term loans for working capital, debt refinance, and new equipment purchases. These loans have shorter term lengths than SBA loans, and unlike SmartBiz SBA loans, the interest on these loans is fixed, not variable.
Borrowing Amount | $30,000-$500,000 |
Term Length | 2-5 years |
Interest Rate | Fixed interest rate from 7.99% to 24.99% |
Other Fees | Referral Fee: 3% Packaging Fee: 3% Bank Closing Costs: $200-$300 |
Prepayment Penalty | None* |
Collateral | Personal guarantee |
*Note: Though SmartBiz doesn’t penalize early repayment on its bank term loans, customers may have the option to reduce their term loan interest rate by 2% if they choose a prepayment penalty of 5% of their total outstanding balance.
Application Process
SmartBiz has an excellent, streamlined application process that can be kind of slow-going, particularly for SBA loans.
Fortunately, SmartBiz can determine whether you have a good chance of qualifying for a loan in a few minutes via a questionnaire on its website. In contrast, with regular SBA loans, you might not know if you’re eligible until you’ve put together the whole application and sent it in.
Loan Borrower Requirements
To determine whether you meet the minimum borrower requirements, SmartBiz will ask you some basic questions about your business. At this stage, the company performs an initial soft pull on your credit, which does not impact your credit score.
SmartBiz and its lenders request a hard pull on your credit when your loan application proceeds to the funding stage. A hard pull appears as an inquiry on your credit report and may have a small impact on your score. However, this only happens after your application is in the funding process and matched with a lender that’s likely to fund your loan.
If approved to continue the process, you are assigned a personal “relationship manager” to help with your application. This person can explain the process, answer any questions you might have, and generally be a consistent point of contact and help.
Borrower Documentation
Then, you’ll need to gather and send in documents (such as two years of personal and business tax returns). The larger your loan is, the more documents you’ll be required to provide. This step may take a few weeks, depending on the number of documents needed and how fast you can collect and send in the information.
After you’ve submitted everything necessary, the next step will vary depending on the type of loan you’re borrowing.
Working Capital Or Debt Refinancing Loans
If you are borrowing a working capital or debt refinancing loan, you will be able to accept the offer and receive your funds.
Commercial Real Estate Loan
If you are borrowing a commercial real estate loan, you will receive a letter of intent so that you can negotiate terms with the property seller and other parties involved in the deal. The property you are interested in will also have to be valued before you can access the funds.
When negotiations and the valuation are done, you can accept the offer and receive your funds.
Time To Funding
The time from application to funding can take between three days and three months, depending on the loan product, the speed at which you provide the necessary documents, and other factors.
Sales & Advertising Transparency
SmartBiz provides everything you need to know to make an informed borrowing decision on its website. If you poke around a little bit and do your research, you won’t be surprised by anything during the application and loan process.
Customer Service & Technical Support
SmartBiz Support | Availability |
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Phone Support | |
Email Support | |
Support Tickets | |
Live Chat | |
Dedicated Support Representative | |
Knowledge Base or Help Center | |
Videos & Tutorials | |
Company Blog | |
Social Media |
SmartBiz has an excellent FAQ section on its website, which is capable of answering most of the questions you’ll have about the loan process. Customer service is also available via email or phone if you need answers to more specific questions. A live chat option is available on the website. You can also check out SmartBiz’s YouTube videos, social media profiles, or company blog.
After you’ve begun the loan application process, you will be assigned a dedicated “relationship manager” who will help you through the application process, answer any questions you might have, and generally be available if you need anything.
User Reviews
SmartBiz is accredited by the Better Business Bureau with a B rating. The lender also has over 16,000 reviews on Trustpilot (with an aggregated rating of 4.6 out of 5), among a few other places on the web.
Negative Reviews & Complaints
Although SmartBiz reviews are mostly positive, here are the complaints that some customers voiced about the service:
- Endless Paperwork: Even though it’s more efficient in some ways, SmartBiz is still facilitating the SBA’s loan program. That means it has to adhere to all of the SBA’s paperwork requirements. You will have to provide a lot of business and financial documents (such as three years of business and personal income tax returns, a profit and loss statement, and a balance sheet) during the application process.
- Additional Fees: Some people claimed they didn’t know about the additional fees or felt that the fees were too high. However, they are clearly disclosed on the website, and SmartBiz’s fees are competitive with others in the industry.
- Rejections: Some customers were disappointed to learn that they did not qualify for a SmartBiz loan, even if they were initially deemed eligible, due to information discovered during the application process.
- Customer Service: A few customers reported difficulty getting in touch with their account representatives.
SmartBiz is very active in responding to negative reviews wherever they crop up. Although SBA loans can be frustrating, it’s evident that SmartBiz is doing everything it can to streamline the process and keep merchants in the loop regarding the status of their applications.
Positive Reviews & Testimonials
SmartBiz has overwhelmingly positive reviews, especially compared to other online small business lenders. Most customers like:
- Easy Application Process: A majority of SmartBiz reviews say the application process is fast, easy, and streamlined.
- Customer Service: Many SmartBiz reviews praise the company’s personal relationship managers as being helpful, knowledgable, and professional.
- Speed Of Funding: Relative to other SBA loans, SmartBiz is a much faster way to go, and many SmartBiz customers note this as a benefit of using the service.
- Advertising Transparency: For the most part, customers feel that SmartBiz’s terms and fees are clear and transparent, with no hidden or surprise charges.
- Excellent Loan Terms: Many SmartBiz reviews point out that SmartBiz rates are lower than those of other online lenders, with fair and reasonable terms.
We want to hear from you, though! Have you applied for a SmartBiz loan? What was your experience like? Leave a message in the comments!
Final Verdict
SmartBiz loans are a fantastic resource for any eligible merchant that needs low-cost financing that’s either long-term or medium-term in length. Although SBA loan applicants will still have to submit a fair amount of paperwork, SmartBiz has significantly streamlined the SBA loan application process and expanded its offerings to include non-SBA bank loans and custom financing options.
The process may take a while, but a significant perk of SmartBiz is that you have a dedicated account manager who will keep you in the loop and let you know what’s happening with your loan application. This service doesn’t completely simplify the SBA loan process, but with SmartBiz, you don’t have to navigate the application by yourself.
Besides its easy SBA loan application, perhaps the most significant thing to know about this lender is that SmartBiz reviews from small business borrowers praise it as being honest and trustworthy. These traits are hard to come by for online business lenders.
The Merchant Maverick Seal of Approval 🏆
SmartBiz ![]() |
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After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see SmartBiz for yourself.
The Merchant Maverick Seal of Approval 🏆
SmartBiz ![]() |
---|
After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see SmartBiz for yourself.