The best SBA lenders that meet your business needs is difficult to find as there are more than 3,000 banks and credit unions spread across the nation that offer SBA loans. Choosing the right SBA lender is absolutely critical as it not only saves time but also increases your chances of being funded.
The U.S. Small Business Administration (SBA) is a federal agency whose objective is to contribute to the growth and development of small businesses. One way that it does this is by providing a loan guarantee to businesses made through lending partners all across the country. SBA does not on its own lend money directly to any companies. They instead set a number of guidelines and guarantee a percentage of the loan, thereby increasing the likelihood of the business receiving funds that they require.
Listed below are the top 5 best SBA lenders:
Wells Fargo is undoubtedly the leading one in the pack, boasting of making more than 8,000 loans, which is worth $2 billion and more. It amounts to 20 percent of all loans among the top 100.
When you plan to make big business moves, applying for SBA backed loan from Wells Fargo might just be the solution you are looking for. Both the SBA 7(a) and SBA 504 loan are available on Wells Fargo. The SBA backed loans are more at an advantage as compared to conventional loans. The long repayment terms mean lower monthly payments. Similarly, they usually have lower down payments.
JP Morgan Chase
JP Morgan Chase is one of the best SBA lenders. It offers three different loan solutions and has made more than 4,040 loans which are worth more than $753 million. The three loan solutions include:
SBA 7(a) Loan Program and SBA Express Term Loan
Both these programs are best for lenders who want to expand their business, purchase another business or manage cash flow.
SBA 504 Loan Program
This works well for lenders who plan to expand their business through building and land acquisition, equipment finance, and construction.
Huntington National Bank
Huntington National Bank has made more than 4,337 loans amounting to more than $672 million.
The Huntington National Bank offers three loan programs:
Basic 7(a) loans: This is undoubtedly one of the broadest and popular loan programs, and is best suited for borrowers looking to acquire, start or expand a small business.
SBA Express Loans: This loan program makes it easy for the borrower to acquire funds by speeding up the review process.
504 Loans: This loan program offers long-term fixed-rate financing which is used to fund the equipment required to expand a small business.
U.S. Bank National Association
U.S. Bank National Association is a subsidiary of US Bancorp and has made more than 3,997 loans worth more than $776 million.
All businesses must essentially meet specific criteria in order to qualify for an SBA loan apart from meeting the credit qualifications of the lending partner. The U.S. Bank National Association differentiates SBA loans depending on the business owner’s requirement and needs.
The bank offers two options based on the business’s financial needs:
SBA Loans below $250,000
• The loan process here is quicker, with less paperwork
• Unsecured credit option line
• Collateral options, which includes equipment, inventory, and vehicles
SBA Loans above $250,000
• Acquisition of businesses
• Real estate purchase
• Financing of franchise
Celtic Bank Corporation
Celtic Bank Corporation has made more than 1,586 loans, worth more than $500 million. It offers SBA 7 (A) Loans.
Celtic Bank Corporation offers SBA backed loans for business acquisition, refinance, R/E purchase and construction, purchase equipment and inventory.
You can pick from one of the five best SBA lenders mentioned above. If you are on the lookout for a business loan, you take a look at the Small Business Administration‘s ranking of the top 100 financial lenders for its 7(a) loans. If you observe the list carefully, you will notice that the top 10 lenders are accountable for more loans than the remaining 90 combined. You will also see that many leading banks are listed far down. This goes to prove that they are almost out of the business of making loans to entrepreneurs.