Top 10 SBA Lenders
The Small Business Administration (SBA) collaborates with certified development companies (CDCs) to provide long-term financing to small businesses through the SBA 504 loan program. Businesses can put the money toward fixed assets to help them expand or update their operations.
One of the most common misconceptions about SBA loans is who does the lending. The Small Business Administration does not make loans. Instead, this government agency guarantees a substantial portion of each loan. In other words, the lender will be protected in the event of a default by the borrower. This creates an incentive for banks, credit unions, nonprofits, and other lenders to make low-interest loans with favorable terms to small business owners who would not otherwise qualify for other low-cost financing options.
If you've decided that an SBA loan is what you need to take your company to the next level, congratulations! The next step is to determine which types of SBA loans are best suited to your requirements. Once you've determined which type of SBA loan is best for your company, it's time to find a lender. Of course, you can always begin with your current financial institution where you have an account. However, as with any other financial product, it's a good idea to look into your options. And there is no better place to begin than with reputable lenders who have experience obtaining SBA loans for their clients.
The good news is that there are many SBA lenders to choose from, ranging from local financial institutions to online options. The bad news is that It can be difficult to narrow down your options in order to find the best lender for your company. Fortunately, we're here to assist you by directing you to the top 10 SBA lenders.
This is not an endorsement for these companies so please perform your own due diligence before working with them.
Live Oak Bank
Live Oak Bank has had the honor of assisting thousands of passionate, driven individuals in making their dreams a reality. These unsung heroes aren't in it for the money or the fame. They want to make a difference just as much as Live Oak does.
As one of the last banks to obtain a charter before the Great Recession began, Live Oak emerged from the ruins of 2008 as the first bank to keep the customer at the center of the business model. They redefined banking by putting a new spin on it and focusing on service and technology.
The 7(a) loan is Live Oak Bank's most popular SBA funding option, providing small business owners with up to $5 million with repayment terms of up to 25 years. This lender provides funding for business acquisition, expansion, and refinancing.