Starting a small business is like planting a seed—you need the right conditions to make it grow. For many entrepreneurs, that means securing a loan to cover startup costs, expand operations, or weather unexpected challenges. But with so many lenders out there, how do you choose the one that’s the perfect fit? I’ve spent hours digging into the data and comparing options, and I’m excited to share the top SBA lenders for 2025 that can help turn your business dreams into reality.
Why SBA Loans Are a Game-Changer for Small Businesses
SBA loans, backed by the Small Business Administration, are designed to give entrepreneurs a leg up. They offer competitive interest rates, flexible terms, and access to funds that might otherwise be out of reach. What makes them stand out? The SBA guarantees a portion of the loan, reducing the risk for lenders and making it easier for small businesses—even startups—to qualify. Whether you’re launching a coffee shop or scaling a tech startup, these loans can be a lifeline.
SBA loans level the playing field for small businesses, offering access to capital with terms that work for growth.
– Small business financing expert
But not all lenders are created equal. Some excel at fast funding, others offer rock-bottom rates, and a few specialize in helping new businesses get off the ground. Let’s dive into the best SBA lenders for 2025, based on real-world data from thousands of loans issued last year.
Live Oak Bank: The All-Around Champion
When it comes to SBA lending, Live Oak Bank is like the MVP of the league. It’s consistently at the top for loan volume and shines in nearly every category, from rates to customer experience. If you’re looking for a lender that does it all, this is your go-to.
In 2024, Live Oak funded loans ranging from $20,000 to $5 million, with an average loan size of $1.38 million. That’s the highest among the lenders I reviewed, making it ideal for businesses ready to make big moves, like acquiring an existing company. Their average APR? A competitive 9.52%, which is on the lower side for SBA loans.
- Why it stands out: Strong performance across all metrics, competitive rates, and a wide range of loan sizes.
- Drawbacks: No physical branches, and the high average loan amount might not suit smaller needs.
- Best for: Established businesses or entrepreneurs making significant investments.
Live Oak is an online-only bank, so you’ll start with an email inquiry rather than a slick online application. Customer support is solid, reachable by phone or email, but I wish they’d add a live chat option. Still, their expertise in SBA lending makes them a powerhouse.
Huntington National Bank: Startup Superstar
Starting a business from scratch? Huntington National Bank has your back. They funded more SBA loans for startups in 2024 than any other lender I looked at, making them a beacon of hope for new entrepreneurs.
Their loans range from as little as $1,500 to a whopping $4.9 million, with an average of $201,935. Repayment terms stretch from 12 to 312 months, giving you flexibility. The catch? Their average APR of 10.22% is a bit higher than some competitors.
For startups, finding a lender who believes in your vision is half the battle.
– Entrepreneurship consultant
H Huntington funded over 2,775 startup loans last year, which is huge. You can pre-qualify to compare offers, and the application starts with a simple email form. Unfortunately, their online reviews aren’t great, and branches are limited to 13 states. Still, their startup focus makes them a top pick.
Bank of America: Lowest Rates, Big Presence
If saving on interest is your priority, Bank of America is hard to beat. With an average APR of just 7.76%, they offer the lowest rates among the lenders I analyzed. As one of the nation’s largest banks, they’ve got the muscle to support growing businesses.
Their SBA loans range from $25,000 to $5 million, with an average of $512,248. Most of their loans go to businesses at least two years old, so startups might need to look elsewhere. Repayment terms are less flexible, ranging from 60 to 324 months.
- Why it stands out: Lowest average APR, nationwide presence, and deep experience with mature businesses.
- Drawbacks: High loan minimums and fewer options for startups.
- Best for: Established businesses looking to minimize interest costs.
You’ll need to visit a branch or schedule a phone call to apply, which feels a bit old-school. Online reviews are mediocre, but their website is user-friendly, earning a 4/5 from my team for the online experience. If you value low rates and stability, Bank of America is a solid bet.
U.S. Bank: Speedy Funding for Quick Needs
Need cash fast? U.S. Bank delivers with an average funding time of just 20 days, outpacing most competitors. They’re perfect for businesses that can’t afford to wait around.
Their loans range from $5,000 to $5 million, with an average of $227,069. The average APR of 8.50% is among the lowest, and repayment terms span 12 to 312 months. However, they funded very few startup loans last year, focusing mostly on businesses over two years old.
Applying involves filling out an online form or visiting a branch in one of the 27 states they serve. Customer service is phone-only, which is a bummer. Still, their speed and competitive rates make them a fantastic choice for established businesses in a hurry.
TD Bank: Small Loans, Big Support
For businesses needing smaller loans, TD Bank is a standout. Their average loan size in 2024 was just $142,568, one of the lowest in my dataset. Plus, their website is a treasure trove of helpful resources for navigating the SBA loan process.
Loans range from $10,000 to $5 million, with repayment terms of 12 to 312 months. The average APR is 9.96%, which is middle-of-the-road. Like U.S. Bank, they focus on established businesses, with 70% of their loans going to companies over two years old.
- Why it stands out: Low average loan amounts, great educational resources, and competitive rates.
- Drawbacks: Slower funding (33 days) and few startup loans.
- Best for: Small businesses needing modest funding with clear guidance.
You’ll need to call to apply, which isn’t ideal, but their website’s clarity earns a 4/5 for user experience. If you’re a small business owner looking for a manageable loan, TD Bank is worth a look.
Comparing the Best SBA Lenders
Choosing the right lender depends on your business’s needs. Here’s a quick snapshot to help you compare:
| Lender | Average Loan Amount | Average APR | Average Funding Time |
| Live Oak Bank | $1,377,745 | 9.52% | 27 days |
| Huntington National Bank | $201,935 | 10.22% | 32 days |
| Bank of America | $512,248 | 7.76% | 30 days |
| U.S. Bank | $227,069 | 8.50% | 20 days |
| TD Bank | $142,568 | 9.96% | 33 days |
This table sums up the key differences, but don’t just go by numbers. Think about your business’s stage, funding needs, and how quickly you need the cash.
What Makes a Great SBA Lender?
In my experience, the best SBA lenders share a few key traits. They’re part of the SBA’s Preferred Lender Program, which means they can approve loans faster without jumping through extra hoops. They also offer:
- Competitive rates: Lower APRs save you money over time.
- Flexible terms: Longer repayment periods or smaller loan amounts to fit your needs.
- Strong customer support: Clear communication and accessible resources.
- Specialization: Some lenders focus on startups, others on larger loans or faster funding.
Perhaps the most interesting aspect is how these lenders balance speed, cost, and accessibility. For example, U.S. Bank’s quick funding is a lifesaver for urgent needs, while Bank of America’s low rates are a long-term win.
Tips for Choosing Your SBA Lender
Before you apply, take a moment to assess your needs. Here are some tips to guide you:
- Know your business stage: Startups should prioritize lenders like Huntington, while established businesses might lean toward Bank of America.
- Compare rates and terms: A lower APR can save thousands, but don’t ignore repayment flexibility.
- Check funding speed: If time is tight, U.S. Bank’s 20-day average is hard to beat.
- Look at loan size: Need a small loan? TD Bank’s low average amount is ideal.
- Research customer experience: Online reviews and website usability matter, especially for first-time borrowers.
One thing I’ve learned is that preparation is key. Gather your financial documents, business plan, and credit history before applying—it’ll make the process smoother.
Final Thoughts: Your Path to Business Growth
Choosing the right SBA lender is like picking a business partner—you want someone who gets your vision and has the tools to make it happen. Whether you need a small loan to get started or a million-dollar boost to expand, there’s a lender on this list for you. Live Oak Bank leads the pack for its all-around excellence, but don’t overlook Huntington for startups, Bank of America for low rates, U.S. Bank for speed, or TD Bank for smaller loans.
What’s the next step? Take a hard look at your business goals, crunch the numbers, and reach out to the lender that feels right. The road to success isn’t always smooth, but with the right financing, you’re one step closer to building something amazing.
The right loan can be the spark that turns a small business into a big success.
– Financial advisor
Got a favorite lender or a success story with an SBA loan? I’d love to hear about it in the comments. Let’s keep the conversation going!
