SmartBiz is a service that helps small businesses apply for loans and connects them with lenders within the SmartBiz network.

SBA loans are guaranteed by the U.S. Small Business Administration. The money is still borrowed from a bank or private lender, but the eligibility requirements are set by the SBA. They often come with competitive rates and longer repayment periods compared with term loans.

SmartBiz Small Business Loans: 2024 Review

Q: Is SmartBiz a legitimate lender?

SmartBiz is a legitimate business, but it is not a direct lender. The company has a team of professionals who work to streamline the application process for your business and match you with the type of loan and lender suited for your needs and financial profile.

Q: How do SBA loans work?

SBA loans are supplied by individual lenders but guaranteed by the SBA. This means the SBA backs a portion of the amount borrowed, which creates less risk for the lender and potentially better terms and rates for the borrower. SBA loans come with monthly installment payments. Term lengths on an SBA loan can vary depending on the loan purpose, but terms generally run up to 25 years for real estate and up to 10 years for other fixed assets and working capital.

Q: Are SBA loans hard to get?

SBA loans can be hard to get if you have bad credit or insufficient time in business. Eligible small business owners generally need to meet a lender’s underwriting standards to qualify for an SBA loan.

Q: Who is eligible for an SBA loan?

Adult U.S. small business owners operating in eligible industries with good credit may be eligible for SBA loans. Large businesses and small employers in certain industries may not qualify for SBA loans, including casino owners and hard money lenders .

Q: How long does SBA underwriting take?

The underwriting process for an SBA loan varies depending on factors like the current demand and the supporting documents provided with the application. It can take a few months to complete the process and receive your funds.

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

Lauren WardUpdated January 2, 2024

Overview of SmartBiz

SmartBiz is a loan matching service that helps you with the loan application process and matches you with small business lenders. Available financing options include U.S. Small Business Administration (SBA) loans, bank term loans, and business lines of credit.

Pros and cons

Pros

One application used for multiple types of loans
Online prequalification in under five minutes
Step-by-step assistance through application process

Cons

SmartBiz charges fees on non-SBA term loans
Lines of credit can have steep closing costs
Higher minimum credit score required compared with other lenders

SmartBiz Small Business Loan Rates, Terms, and Fees

Loan amounts: $30K to $350K for term loans; $30K to $500K for SBA loansAPR range: 12.99% to 26.99% fixed interest rates plus fees on term loansMinimum credit score: 650 for SBA 7(a) loans; 675 for commercial real estate loansTime to funding: Applicants may receive SBA loan proceeds seven days after loan approvalCo-borrower needed: NoAbove information accurate as of Jan. 2, 2024.

Other Lenders

As a small business loan platform, SmartBiz represents a network of lenders rather than lending directly. In some instances, you may prefer to apply directly to an actual lender, such as the following:

Kabbage Funding™(now American Express® Business Line of Credit)
OnDeck
U.S. Bank

What Types of Loans Does SmartBiz Offer?

Lenders in the SmartBiz network offer a variety of SBA loans and more. With SmartBiz, potential borrowers can apply for business loans and other financial products including:

The popular SBA 7(a) loans are designed to be used for working capital or debt refinancing. Loan amounts range from $30K to $500K, and borrowers may be required to provide a personal guarantee.Bank term loans come with fixed interest rates and shorter repayment periods — typically between two and five years. Lenders in the SmartBiz network offer financing between $30,000 and $350,000. Like the SBA 7(a) loan program, bank term loans can be used for a variety of purposes, like refinancing debt, working capital, or purchasing new equipment. Borrowers may be required to provide a personal guarantee for a bank term loan.If you don’t meet the requirements for an SBA loan or term loan because your credit score is too low or your business is too new, SmartBiz can help you explore other financing options for your business through its lender network.

Important to Keep in Mind

Fees can add up when borrowing money for your business. On SBA loans, SmartBiz lenders typically charge a one-time packaging fee of up to $3,500.Bank term loans from the SmartBiz network may also come with closing fees. SmartBiz could charge fees as high as 6% of the loan amount for non-SBA term loans. Fees for all types of loans are generally deducted from your loan amount, which means borrowers receive slightly less than the actual approved amount.SBA loans also come with restrictions on the types of businesses that may apply. The SBA, for example, may not approve loans for a company that is:

Primarily involved in lending
Located in a foreign country
Using pyramid or multilevel sales distribution plans
Deriving more than ⅓ of gross annual revenue from legal gambling
Involved in illegal activity
A government-owned entity (except for businesses owned or controlled by a Native American tribe)
Primarily engaged in political or lobbying activities
A speculative business engaging in risky endeavors
Located within the Coastal Barrier Resource System
Otherwise in an ineligible category

Applying for a SmartBiz Small Business Loan

The initial prequalification typically takes just a few minutes to complete online. SmartBiz then works with you to submit a full application to lenders in its network. There are several types of documentation you may need to supply, such as:

Articles of incorporation
Balance sheet
Business licenses
Business tax returns and personal tax returns
Personal financial statements
Profit and loss statement

Eligibility Requirements

Businesses may need to meet the following requirements:

At least two years in business
Owner is U.S. citizen or legal resident at least 21 years old
650+ credit score
No outstanding tax liens
No bankruptcies or foreclosures within last three years
No recent charge-offs or settlements
Up-to-date on government-related loans

Steps to Apply

The application process starts with getting prequalified. SmartBiz estimates it takes just five minutes to complete the prequalification process. At this point, SmartBiz suggests it only conducts a soft credit pull so your credit score isn’t affected.Once you receive prequalification status, a SmartBiz rep can guide you through the application process for different financing options based on your business and credit profile. The SmartBiz platform will match you with lenders in its network based on the information in your application. A hard credit pull will be performed on your credit report by the lender you choose when you officially submit your application. Hard inquiries can cause your credit score to drop several points.

Repayment Options

Repayment varies depending on the type of loan you take out as well as the lender you choose to work with. SBA 7(a) loans are typically repaid over 10 years.Bank term loans typically involve monthly repayments. Term lengths last between two and five years with lenders in the SmartBiz network. Prepayment penalties in some cases may apply.

The Takeaway

SmartBiz could be ideal for small business owners who want guidance through the loan application process. If you’re not sure where to start, working with SmartBiz can help you figure out the financing that’s right for your specific needs. Borrowing a loan within the SmartBiz network may come with additional costs in the form of packaging fees and other potential closing costs.If you need funding to grow your business, Lantern by SoFi can help. Just fill out a simple form and find the right financing for your business.Lantern can help you find fast funding for your small or medium-sized enterprise.

Frequently Asked Questions

What is SmartBiz?

Is SmartBiz a legitimate lender?

What are SBA loans?

How do SBA loans work?

Are SBA loans hard to get?

Who is eligible for an SBA loan?

How long does SBA underwriting take?

About the Author

Lauren WardLauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.

Small Business: ^SB1Reference to “same day funding” or “funding within 24 hours” describes a general capability of many lenders you can reach through Lantern. This funding timing is not guaranteed. Your experience with any lender will vary based on requirements of the lender and the loan you apply for. To determine the timing of funds availability, you must inquire directly with any lender. In addition, your access to any funds from a loan may be dependent on your bank's ability to clear a transfer and make funds available.

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