Newtek business loans review

How much will this loan cost me?

Newtek term loans come with rates starting at the prime rate + 2.75% — or around 6% APR. You can borrow between $10,000 and $10,000,000 with terms from seven and 25 years.

You may also have to make a down payment on the business expense you want to fund — though that’s not always the case. For example, startups are required to make a 30% down payment. And business acquisitions require a 10% down payment.

Use the calculator below to find out how much your loan might cost you.

How it works

The rates, loan amounts and terms depend on the loan program. The SBA caps interest rates on its 7(a) loans at 8% and the bank portion of 504 loans at 9.75% — though this doesn’t include the SBA guarantee fee. The lowest rates go to borrowers with loans over $50,000 who opt for the shortest seven-year term.

Other factors like your personal credit score, time in business and revenue can affect the rate, term and loan amount you qualify for.

What do I need to qualify?

You and your business must meet the following requirements for a Newtek term loan:

• Personal credits core of 650 or higher
• At least two years of tax returns
• Based in the US
• Cash flow to repay the loan

While Newtek prefers to work with business owners that have a 650 credit score, it can be flexible.

What information do I need to apply?

SBA loans typically come with a laundry list of documents and forms. This can include:

• Personal financial statements for all owners
• Two or three years of business tax returns
• Business bank statements
• Profit and loss statements
• Financial projections
• Business plan

You’ll likely need to provide additional documents, though it varies depending on the loan and business.

What industries does Newtek work with?

Newtek doesn’t list any restricted industries, but businesses in what are typically considered high-risk industries can qualify. This includes wholesalers, construction, retail, manufacturing and the service industry.

But you’ll need to meet SBA requirements, which can restrict businesses involved in gambling, adult entertainment, political activity and life insurance.

What other business financing does Newtek offer?

In addition to term loans, Newtek also offers business lines of credit. These are secured by either your business’s accounts receivables or inventory.

Credit limits range from $50,000 to $1.5 million — or up to 80% of the value of your accounts receivable. Credit lines backed by inventory range from $50,000 to $500,000 — or 50% of your inventory’s value. Both come with renewable one-year terms.

Pros and cons

Newtek can be a great option for businesses that have struggled to get an SBA loan through a bank or credit union. But it’s not right for all business needs.

See other top business loan options

Select your time in business and annual revenue to find even more lenders that might be able to finance your business.

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Name	Product	Filter Values	Loan amount	APR	Requirements
First Down Funding business loans			$5,000 – $300,000	Fee Based	At least 1 year in business, an annual revenue of $100,000+, and a minimum credit score of 400	Alternative financing up to $300K with highly competitive rates.	Check eligibility More Info		loading Fetching your data...
Lendio business loans			$500 – $5,000,000	Starting at 6%	Operate business in US or Canada, have a business bank account, 560+ personal credit score	Submit one simple application to potentially get offers from a network of over 300 legit business lenders.	Check eligibility More Info		loading Fetching your data...
ROK Financial business loans			$10,000 – $5,000,000	Varies	Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales	A connection service for all types of businesses — even startups.	Check eligibility More Info		loading Fetching your data...
OnDeck small business loans			$5,000 – $250,000	As low as 9.99%	600+ personal credit score, 1 year in business, $100,000+ annual revenue	A leading online business lender offering flexible financing at competitive fixed rates.	Check eligibility More Info		loading Fetching your data...
Rapid Finance small business loans			$5,000 – $1,000,000	Fee based	Steady flow of credit card sales, bad credit OK	Check eligibility More Info		loading Fetching your data...
Fundbox business loans			$1,000 – $100,000	4.99	You must have an established business.	Get flat rate, short-term financing based on the financial health of your business, not your credit score.	Check eligibility More Info		loading Fetching your data...
Kickpay e-commerce business loans			$20,000 – $1,000,000	Not applicable	At least $250,000 in the past 12 months of revenue, e-commerce business, use a 3rd party fulfillment center for storing and shipping inventory, at least one US location.	Get a loan for your e-commerce business based on your sales history.	Check eligibility More Info		loading Fetching your data...
Fundera business loans			$2,500 – $5,000,000	7% to 30%	$300,000+ of annual revenue, 680+ personal credit score, in business for 3+ years	Get connected with short-term funding, SBA loans, lines of credit and more.	Check eligibility More Info		loading Fetching your data...
LendingClub business loans			$5,000 – $500,000	12.15% to 29.97%	12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better	With loan terms that vary from 12 to 60 months, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.	Check eligibility More Info		loading Fetching your data...
Monevo business loans			$500 – $100,000	3.99% to 35.99%	Credit score of 500+, legal US resident and ages 18+.	Use this connection service to get paired with a loan you can use for business.	Check eligibility More Info		loading Fetching your data...

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Is Newtek legit?

Yes, Newtek is a legitimate lender. It’s an SBA-preferred lender, which means the government has authorized it to process SBA applications itself. This can save on turnaround time. While there isn’t a lot of information online, its customer service team is ready to answer questions at any time.

It takes steps to protect your information from hackers by providing a secure website and storing information in password-protected servers. But like with any other website, there’s no way to guarantee the information you submit online is 100% secure.

Does Newtek get good customer reviews?

Newtek only has a handful of negative reviews on the Better Business Bureau and none on Trustpilot. Most are from customers who felt misled by the terms that Newtek originally offered or were surprised by SBA loan fees.

But these likely don’t tell the whole story, since Newtek is one of the most active 7(a) lenders, it appears that most borrowers don’t feel the need to leave a review.

How do I apply?

You can most easily apply for a Newtek loan online:

1. Go to Newtek’s site, hover over Solutions and select the type of loan you’d like to apply for.
2. Scroll until you see a Get prequalified button. Click it.
3. Complete the form your contact information and required company basics before clicking Submit.
4. Wait 24 to 48 hours for a loan specialist to get in touch to find out loan amounts and rates you prequalify for.

What happens after I get started?

Your loan specialist guides you through the rest of the application process, including submitting documents and providing additional information about your business. Lines of credit typically take less time — two to three weeks — while term loans can take six to eight weeks from start to finish.

How do repayments work?

SBA term loans come with fixed monthly repayments, based on your loan amount, term and rate. Go over your repayment options with your account manager to find one that meets your business’s needs.

If it’s an option, consider signing up for automatic repayments. That way, you won’t have to remember to make monthly payments. If you have any questions, reach out to your account manager or call Newtek’s general customer service line at 855-763-9835.

Read our comprehensive guide to business loans to weigh the benefits of other lenders and learn more about the process.

Frequently asked questions

• Does Newtek charge prepayment penalties?

  Not always, but it ultimately depends on your loan application. Complete the preapplication form and ask your account manager if your business qualifies to avoid prepayment penalties.

  Many business owners can pay off their loan early at no cost.

• Does Newtek have any revenue requirements?

  No. But your business must prove it’s able to afford its repayments.

• Does Newtek conduct a hard pull of my credit history?

  No. Instead, it relies on a soft credit pull, which doesn’t affect your credit score.