Get funding for your business up to $5,000,000 with extended repayment terms.
It works with multiple lenders to offer loans for customers who may not qualify for traditional bank loans. And the rates are tough to beat, offering interest as low as 7% to 9.25%% long repayment terms.
|Product Name||SmartBiz SBA Loans|
|Min Loan Amount||$30,000|
|Max. Loan Amount||$5,000,000|
|APR||7% to 9.25%|
|Interest Rate Type||Variable|
|Minimum Loan Term||10 years|
|Maximum Loan Term||25 years|
|Requirements||650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years|
- Business is 2+ years old
- Annual revenue of $50,000 or more
- You're a US citizen or permanent resident
- No outstanding tax liens and no bankruptcies or foreclosures in the past 3 years
- Business owner’s personal credit score 650+
Do I qualify?
SmartBiz has different requirements depending on which type of loan you’re applying for. Generally, business owners need to have strong personal credit and be a US citizen or permanent resident. Businesses must have strong revenue.
Small Business Administration (SBA) loans typically come with more requirements than traditional business loans.
What are SmartBiz SBA loans?
SmartBiz SBA loans are government-backed business term loans for owners who’ve had difficulty qualifying for other types of financing. While SBA loans typically take a lot of time and paperwork, SmartBiz speeds up that process and makes it less painless.
How does it do this? SmartBiz uses an automated lending marketplace of SBA–preferred banks, it can cut the process time from months to weeks. All it takes is a simple online application.
Loans of $30,000 to $5,000,000 come with variable APRs starting at 7% to 9.25%% and repayment terms of 10 to 25 years.
Through SmartBiz, you can get three different types of SBA loans: Commercial Real Estate, Debt Refinance and Working Capital. All three are technically SBA 7(a) loans but can be used for different purposes. Click on the accordions below to for more information on each.
What is an SBA loan?An SBA loan is a government-guaranteed small business loan that comes with longer repayment terms and lower interest rates than many other business lenders offer. With an SBA loan, the government agency agrees to pay the lender back a portion of the amount borrowed if you default. Founded in 1953, the Small Business Administration partially guarantees these types of loans to support small business owners across the nation.
What are SmartBiz non-SBA loans?
While best known for connecting borrowers with SBA loans, SmartBiz also recently launched a non-SBA loan program with its bank partners. This program is designed for small businesses that might not qualify for an SBA loan or need funds faster.
Through the non-SBA program, your business can borrow between $30,000 and $350,000 with repayment terms of two to five years. Loans of $200,000 to $350,000 are only available to business owners with the strongest credit profiles, however.
Fixed interest rates run from 7.99% to 24.99%, depending on your loan term, credit rating and personal finances. You can apply for both SBA and non-SBA loans with the same application: just indicate that you’re interested in non-SBA funding.
Compare SmartBiz to other online business lenders
What are the benefits of a SmartBiz loan?
SmartBiz offers loans of up to $5,000,000 with long repayment terms.
- Pre-qualify in minutes. Quickly learn whether you qualify without affecting your credit score.
- Quick turnaround for smaller loans. SmartBiz can deposit funds of up to $350,000 in your business’s bank account in as little as a week.
- Long repayment terms. Loan amounts determine repayment terms of either 10 or 25 years, which is longer than most commercial bank loans.
- Connects you with options. SmartBiz work with you to find loan option for your specific small business need.
What to watch out for
While SmartBiz can help you find funding your small business, you’ll want to consider a few factors before applying:
- Longer turnaround for large loans. For loans of $350,000 or more, you may have to wait up to 30 days after your credit is approved.
- Good credit required. SmartBiz’s typical borrower has an excellent credit score, is a seasoned business owner and can prove annual revenue of $50,000 or more. If you have a new business, consider applying for a startup loan.
- Limited use. Commercial real estate loans aren’t available to developers or landlords that aren’t occupying the space, funding for constructions or for investment property.
- Prepayment fees. If you’re able to repay your loan within three years of approval, you might want to wait or you’ll pay fees of up to 5% of your original loan amount.
- Documentation required. SmartBiz requires many supporting documents, from photo ID to tax returns and mortgage statements. Make sure you understand the required documents before you begin your application.
Watch out for SBA loan fees
SBA loans might have low APRs, but they tend to come with several fees. How much you pay vary depending on the type of loan you’re applying for, but tend to be lower than most bank closing costs that could amount to hundreds or thousands of dollars.
For working capital and debt refinancing:
- One-time referral fee of no more than 2% of the loan amount.
- One-time packaging fee of no more than 2% of the loan amount.
- For loans $150,001 to $700,000, there is an SBA guarantee fee of 3% of the guaranteed portion or 2.5% of the loan balance.
- For loans $700,000 to $1 million, here is an SBA guarantee fee of 3.5% of the guaranteed portionn up to $1 million and 3.75% for any amount over $1 million.
- Bank closing fee, typically $450.
- Additional third-party report charges may apply.
For commercial real estate:
- One-time referral fee of no more than 0.5% of the loan amount.
- One-time packaging fee of no more than 0.5% of the loan amount.
- For loans $500,000 to $700,000, there is an SBA guarantee fee of 3% of the guaranteed amount or 2.25% of the loan balance.
- For loans $700,001 to $5 million, there is an SBA guarantee fee of 3.5% of the guaranteed amount portion up to $1 million and 3.75% on any amount over $1 million.
- Bank closing costs, typically around $5,000.
- Additional third-party report charges may apply.
SmartBiz fees are usually deducted from loan proceeds so you get the net amount when your loan is funded.
What do customers say about SmartBiz?
SmartBiz is well-liked among its borrowers. The Trustpilot reviews are hard to beat: It gets five out of five stars and a rating of 9.5 of 10 based on nearly 450 reviews. It does similarly well with the Better Business Bureau (BBB), getting an A+ rating, which the BBB bases on several factors like how it handles customer complaints and transparency.
Customers were pleased with how seamless the process was. Many had been frustrated with the hassle of applying to borrowing directly from a bank or other lender, and found SmartBiz to be a breath of fresh air.
Am I eligible for a SmartBiz SBA loan?
It depends on what type of loan you’re applying for and how much your business needs to borrow.
What do I need to apply?
To apply for an SBA loan with SmartBiz, you’ll need to provide:
- Income tax returns. Personal and business income returns will need to go back three years.
- Personal financial statements. Statements are required for those who own 20% or more of the company.
- Profit and loss statement. You’ll also need to provide your company’s balance sheet.
- Business debt schedule. SmartBiz needs a list of your business’s debt obligations to evaluate your application.
- Proof of collateral. Depending on your loan amount, collateral is the lien on either your business or real estate.
Tip: Want to speed up your application? Have your documents ready before you apply.
How do I apply?
- If you’re approved, continue to complete application by providing information about you and your business’s finances, and upload any required documents. You have 10 days to complete this step.
- If you’re applying for a commercial real estate loan, accept a letter of intent so that you can start negotiate the terms of your real estate deal with your property seller or current lender.
- For commercial real estate loans, coordinate with your SmartBiz Relationship Manager to set up a valuation of the property.
- Carefully read your loan’s terms carefully before singing the promissory note.
- Wait for your funds to be disbursed.
- It can take as little as seven days to get your funds after you’ve been approved for a debt refinance or working capital loan, and as little as 30 days for a commercial real estate loan.
Sam's Club members get a 20% discount
Is your business a Sam’s Club member? You could stand to save even more on these already competitively-priced loans: Sam’s Club and SmartBiz have a deal that allows members to save up to $2,800 on referral and packaging fees. SmartBiz applies the discount when you close your loan. How much you save depends on your loan amount.
I got the SmartBiz loan. Now what?
With the funding you need for your business, it’s important to stay on top of your payments to avoid late penalties or excessive interest. You’ll receive information on how to make your loan payments each month after you’re approved.
Have any questions? Reach out to your lender as soon as possible by contacting customer service.
SmartBiz offers a range of SBA and non-SBA loans for most of your small business financial needs, including low interest rates and long repayment terms, so you can spend less of your business finances on debt.