SmartBiz SBA loans review December 2018 | finder.com

SmartBiz SBA loans review

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Get funding for your business up to $5,000,000 with extended repayment terms.

If you’re looking to grow your business, SmartBiz can help you get a loan backed by the Small Business Administration (SBA) in addition to non-SBA loans from its partner bank lenders. SmartBiz is one of the first online marketplaces for small business lenders that streamlines the application process for SBA and bank loans compared to applying directly with a bank.

SmartBiz 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 6.75% long repayment terms.

Product NameSmartBiz SBA Loans
Min Loan Amount$30,000
Max. Loan Amount$5,000,000
APR6.75% to 9%
Interest Rate TypeVariable
Minimum Loan Term10 years
Maximum Loan Term25 years
Requirements650+ 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 requires applicants to meet the following requirements for its SBA loans:

  • 650+ personal credit score
  • Business is two years or older
  • Annual revenue of $50,000 or more
  • US citizen or permanent resident
  • No outstanding tax liens and no bankruptcies or foreclosures in the past three years

Don’t want an SBA loan? SmartBiz recently introduced a non-SBA program with similar requirements — only business owners must have a credit score of at least 640. Keep in mind that SmartBiz loans might come with additional requirements, depending on the nature of your business, your personal and business financials or other factors.

What are SmartBiz SBA loans?

SmartBiz Small Business Administration (SBA) loans are government-backed business term loans for business 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 6.75% 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 $200,000 with repayment terms of two to five years. 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.

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 your funds of up to $350,000 as soon as a week.
  • Long repayment terms. Loan amounts determine repayment terms of either 10 year(s) or 25 year(s), 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

Other fees

Be careful for other fees for SBA loans. The fees vary depending on the loan amount, but tend to be lower than most bank closing costs that could amount to hundreds or thousands of dollars.

For SBA loans up to $350,000:

  • 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 $151,000–$350,000, there is a 2.25% guarantee fee paid to the SBA.
  • Additional third-party report charges may apply.

For SBA loans between $350,000 to $5,000,000:

  • 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 between $350,000–$700,000, there’s a 2.25% guarantee fee paid to the SBA.
  • For loans between $700,000–$1,000,000, there’s a 2.625% guarantee fee paid to the SBA.
  • For loans over $1,000,000, there’s a 2.8125% guarantee fee paid to SBA.
  • 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.

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.

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.

Compare SmartBiz to other online business lenders

Rates last updated December 15th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
$5,000
$250,000
500+ personal credit score, 6+ months in business, $15,000+ average monthly deposits
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
National Funding Small Business Loans
Working capital loans and equipment financing, some high-risk industries may be eligible.
$5,000
$500,000
Be in business at least one year and make at least $100,000 in annual sales. Other loan types have additional requirements.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
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
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
500+ personal credit score, 1+ years in business, $100,000+ annual revenue
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.

Compare up to 4 providers

Am I eligible for a SmartBiz SBA loan?

SmartBiz SBA loan eligibility varies by loan amount. In general, you’ll need to have been in business for at least two years.

For loans of $30,000 to $350,000, you’ll need to prove that your business is owned by a US citizen or a permanent resident who’s at least 21 years old. Other requirements include proof of the following:

  • A credit score of 650 or higher.
  • No outstanding tax liens.
  • No bankruptcies or foreclosures in the past three years.
  • No recent charge-offs or settlements.
  • Current on government-related loans.

For loans of $350,000 to $5 million, the majority of your real estate must be owner occupied. You’ll also need to prove:

  • Credit scores of 660 or higher.
  • Sufficient business and personal cash flow to service all debt payments with by three years of tax returns and interim financial data.
  • No delinquencies or default on government loans.

Note that the 100% financing option requires a loan payment that does not exceed the current monthly lease expense on a commercial loan.

Am I eligible for a SmartBiz non-SBA loan?

Eligibility is slightly more flexible for a non-SBA loan. Generally, you must have:

  • At least two years in business
  • Enough demonstrable cash flow to cover loan repayments
  • Credit score of 640 or higher
  • No bankruptcies or foreclosures in the past three years
  • No outstanding tax liens
  • US citizenship or permanent residency

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?

  1. 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.
  2. 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.
  3. For commercial real estate loans, coordinate with your SmartBiz Relationship Manager to set up a valuation of the property.
  4. Carefully read your loan’s terms carefully before singing the promissory note.
  5. Wait for your funds to be disbursed.
  6. 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

Sam's Club logo
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.

Bottom line

SmartBiz offers a range of SBA and non-SBA loans for most of your small business financial needs. The lender offers low interest rates and long repayment terms, so you can spend less of your business finances on debt.

But before you sign your loan agreement, make sure to compare your business loan options.

Frequently asked questions about SmartBiz

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2 Responses

  1. Default Gravatar
    winzdaySeptember 24, 2018

    when applying for loans, is LIMITED credit pretty much in the same category as having BAD credit? (I have 1 thing on my report TOTAL. & THAT is being disputed rn bc I NEVER received the item(s) I ordered)

    • finder Customer Care
      AshSeptember 25, 2018Staff

      Hi Winzday,

      Thank you for reachong out to finder.

      No Limited and Bad Credit are different from each other. Limited Credit is having few account/ information listed under your name which does not cover all the major categories. You may try requesting for a loan though you need to meet the eligibility requirements of the Lender before submitting your application.

      Before applying for a loan, please ensure that you have read the relevant PDS/ T&Cs before making a decision. After which, consider whether the product or option is right for you and your needs.

      I hope this helps.

      Please do not hesitate to reach out again to us if you have additional questions.

      Cheers,
      Ash

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