Most SBA loans are issued by banks, credit unions and other financial institutions, not the government. The best lenders have substantial experience with these small-business loans, so you get effective help during the application process and hopefully increase your chances of approval.
Here are the best SBA lenders by loan program, as well as tips on how to find the right SBA lender for your business.
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Many national, regional and local banks are SBA 7(a) lenders, including big-name institutions like Bank of America, Chase and Wells Fargo. You’ll want to find an SBA 7(a) lender that works with small businesses in your area and offers competitive interest rates and loan terms.
The best SBA 7(a) lenders will have an established history of issuing these loans with the streamlined application process and dedicated loan specialists to show for it. These lenders are often members of the preferred lenders program, or PLP.
SBA preferred lenders can make final credit decisions without sending applications to the SBA, allowing them to speed up the loan approval timeline. As an example, SBA preferred lender Citizens Bank approves and closes SBA loans in about 45 days, which is much faster than the typical 60- to 90-day timeline.
In the 2021 fiscal year, preferred lenders approved 55.6% of all SBA 7(a) loans, worth $29.4 billion — 80.6% of the total amount of loans approved.
Here are some of the best SBA 7(a) lenders based on their loan processing volume, loan approvals and availability.
Live Oak Banking Company
Live Oak Banking Company was the most active SBA 7(a) lender by dollar amount in fiscal year 2022, approving nearly $1.7 billion in loans.
Based in Wilmington, North Carolina, Live Oak Bank offers an online-based, streamlined application to small businesses across the U.S. and is part of the SBA PLP.
Live Oak offers SBA 7(a) loans of up to $5 million with up to 90% bank financing and typically a 10% down payment. The bank accepts a minimum credit score of 650.
Additionally, Live Oak is an SBA 504 lender, providing loans of up to $15 million. You can work with a Live Oak specialist to get started creating a loan package since SBA 504 loans (also known as CDC/504 loans) require that you work with a Certified Development Company, or CDC, as well as a private lender.
Huntington National Bank
Huntington National Bank approved the most 7(a) loans of any SBA lender in fiscal year 2022, with 5,675 loans for a total of over $997 million.
As a regional bank, Huntington offers SBA 7(a) loans to small businesses in Colorado, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Tennessee, West Virginia and Wisconsin. The bank offers loans of up to $5 million, and local SBA specialists work directly with borrowers to help them start and complete the application process.
Huntington Bank is also an SBA Express loan lender. A subset of the SBA 7(a) loan program, SBA Express loans offer a faster turnaround time but smaller loan amounts.
Moreover, like Live Oak, Huntington can provide the bank portion of SBA 504 loans, and its SBA specialists can likely help you find a participating CDC in your area.
Wells Fargo
Among traditional national banks, Wells Fargo approved 1,933 SBA 7(a) loans in fiscal year 2022, second only to TD Bank.
Wells Fargo offers a wide range of services to small businesses across the U.S., which includes its SBA lending program. The bank offers SBA 7(a) loans up to $5 million with fixed or variable interest rates.
In addition, Wells Fargo offers SBA 504 loans, with loan amounts up to $6.5 million for the bank portion and up to $5 million for the CDC portion. Like the bank’s 7(a) loans, interest rates can be fixed or variable.
Wells Fargo is an SBA preferred lender, meaning it can make final credit decisions without requiring approval from the SBA, streamlining the application process compared to non-preferred lenders.
You can learn more about Wells Fargo’s SBA loans and find out how to submit an application by making an appointment at your local branch location or calling the National Business Banking Center customer service line.
Celtic Bank Corporation
Celtic Bank processed $646,062,500 in SBA 7(a) loans in fiscal year 2022, the fourth-highest institution in loan volume. In fact, Celtic Bank specializes in small-business loans, offering a range of products in addition to SBA financing.
This bank is headquartered in Salt Lake City but operates completely digitally with no branch network. Therefore, unlike many SBA lenders, Celtic allows you to get started and manage your SBA loan application online.
Celtic Bank is an SBA preferred lender, offering standard 7(a) loans in amounts up to $5 million with fixed or variable interest rates and terms up to 25 years.
In addition, the bank offers its Celtic Express loan, designed to finance working capital needs or equipment purchases, with amounts up to $150,000 and terms up to 10 years. With these loans, Celtic provides a simpler, streamlined application process for SBA-secured loans in smaller amounts.
Celtic Bank is also an SBA 504 lender, offering this long-term financing for real estate purchases or construction, as well as machinery or equipment purchases.
Newtek Small Business Finance
Newtek is one of the most active non-bank SBA lenders. In the 2022 fiscal year, Newtek issued 1,677 7(a) loans for a total of over $1 billion. The company markets itself as a business and financial solution provider, offering business loans, payment systems, web solutions, insurance and more.
Through the SBA 7(a) program, Newtek lends to for-profit, U.S.-based businesses with two to three years of tax returns. In addition, when applying for one of these government small-business loans through Newtek, you’ll work with the same lending specialist throughout the process and Newtek will complete all required documents and forms for you.
Moreover, Newtek claims it can help you maximize funding by finding areas to grow your business, cut costs and minimize risk. To learn more about the Newtek SBA loan program, you can call customer service directly, or submit an online inquiry form to prequalify.
Unlike SBA 7(a) loans, SBA 504 loans are funded in three parts. Typically, 40% is funded by a CDC, 50% is funded by a bank or credit union and the final 10% is funded as a down payment by the business owner.
Many banks, credit unions, and other private financial institutions that offer SBA 7(a) loans are also SBA 504 lenders. Again, like 7(a) loans, some of the biggest national banks offer 504 loans, including Chase, Bank of America, Wells Fargo and U.S. Bank.
These institutions provide the “bank” portion of the loan and can often help you find a local CDC in your area to fund that portion of the loan.
In the 2021 fiscal year, 186 CDCs in the U.S. provided at least one SBA CDC/504 loan. If you want to find a CDC to work with first, you can use the search tool on the SBA website to find a CDC lender near you.
You might also be able to find a list of CDCs ranked and published by your local SBA office or released in a local business publication.
SBA microloans are distributed by non-bank, intermediary lenders —nonprofit community-based organizations that have been approved by the SBA.
Unlike other SBA lenders, microloan intermediaries receive funds directly from the SBA. Then, these lenders manage their own programs and issue SBA microloans to eligible borrowers.
The best SBA microloan lenders largely vary based on region similar to the way CDC lenders work. As of March 2022, there are 140 active microloan intermediaries serving 49 states, Washington, D.C., and Puerto Rico. You can find an intermediary in your state using the microloan list of lenders search tool on the SBA website.
Follow these tips to find and choose the best SBA lender for your needs.
Start with a financial institution you know
Banks and credit unions often prioritize borrowers they have an existing relationship with, so contacting a financial institution where you have a business account (or have worked with before) can be a great place to begin your search.
If you’re a customer at your local bank, even better. According to a 2022 report from the U.S Federal Reserve, although the majority of growth in small-business lending has come from larger banks, smaller banks lend a higher share of their assets to small businesses.
Similarly, Biz2Credit’s monthly Small Business Lending Index report consistently shows that small banks approve business loans at a higher rate than their larger competitors, 21.2% compared to 14.7% as of October 2022.
Connect with lenders through the SBA lender match system
Through the SBA website, you’ll answer a few brief questions about your business and in two business days you’ll receive an email with possible lender matches. Then, you can contact the lenders for more information, or the lenders may reach out to you directly.
Make sure it’s a good fit
Before choosing a lender, ask about interest rates, loan amounts, repayment terms and prepayment penalties, as well as its SBA loan requirements, such as minimum credit score and time in business criteria.
It can also be helpful to ask about how the application process works. Does the lender assign a loan specialist to assist you throughout the process? What is the timeline for applications and approvals — is it faster than the typical 60 to 90 days? Is the lender an SBA preferred lender?
This information can help you get a better sense of whether a particular SBA lender is right for your business.
» MORE: How to apply for an SBA loan
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
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Frequently Asked Questions
An SBA lender is a financial institution, often a bank or credit union, that works with the SBA to offer loans to small businesses. SBA lenders issue and service the loans — and then the SBA provides a partial guarantee on the financing.
In the 2022 fiscal year, Live Oak Bank was the top SBA lender based on loan approval amount. The bank approved almost $1.7 billion in 7(a) loans. The top lender based on the number of loans approved, however, was Huntington Bank, which approved a total of 5,675 7(a) loans.
A wide range of banks work with the SBA and offer SBA loans. Based on data from the 2022 fiscal year, some of the top bank lenders that issue 7(a) loans include Live Oak Bank, Huntington National Bank, Celtic Bank, Wells Fargo and TD Bank.