Best SBA Loan Lenders

What separates the best SBA loan lenders on this page?

Three routes, three different trade-offs. Funding Circle scores 8.5 and starts at 7.49% annual interest, with monthly repayments, no prepayment penalty and terms up to seven years. Lendio scores 8.3 and is free to use, sending one application to a panel of 75+ lenders. SBA 7(a) Loans score 8.2 at Prime + 3–6.5%, with rates capped by statute relative to prime.

The scoring criteria put true cost of borrowing at 30 points and who can qualify at 25. That is where these picks split. SBA 7(a) is the cheapest money here, but 30 to 90 days from application to funds and heavy documentation — tax returns, projections, debt schedule, collateral — stand in the way. Funding Circle needs two years of trading and a 660 score, and its origination fee runs up to 8.99% taken off the top. Lendio asks for one form and one soft credit pull, then hands you offers from 75+ lenders.

What should you check before you apply?

Work out what the money actually costs once fees are in. An origination fee up to 8.99% changes the maths on a Funding Circle loan, and Lendio is a broker, so the commission is priced into the loan somewhere. SBA 7(a) caps rates by statute, which is why it lands roughly half what online lenders charge.

Then match the product to the job:

• Speed: Lendio is the fastest way to see what the market will offer. SBA 7(a) takes 30 to 90 days.
• Term length: SBA 7(a) runs up to 10 years for working capital and 25 for real estate. Funding Circle goes to seven years.
• Repayment rhythm: Funding Circle uses monthly repayments rather than daily or weekly, and charges no prepayment penalty. SBA 7(a) has no balloon payments and no prepayment penalty under 15-year terms.
• Qualification: Funding Circle wants two years of trading and a 660 score. SBA 7(a) wants the full document set.

Funding Circle

For an established business with two years of trading and a 660 score that wants bank-like rates without the bank timetable, and values monthly repayments and no prepayment penalty.

Lendio

For a borrower who wants to compare the market in one sitting — one form, one soft credit pull, offers from a panel of 75+ lenders, covering term loans, lines of credit, equipment finance and SBA.

SBA 7(a) Loans

For a borrower who can produce tax returns, projections, a debt schedule and collateral, and can wait 30 to 90 days for the cheapest rate available.

Funding Circle suits an established business that wants monthly repayments and no prepayment penalty at 7.49% annual interest and up. Lendio suits anyone who wants one form and one soft credit pull sent to 75+ lenders before deciding. SBA 7(a) Loans suit a borrower with the paperwork and the patience to wait 30 to 90 days for a rate capped by statute.