Product Overview of SmartBiz Loans
SmartBiz Loans is a platform that connects small businesses with a network of preferred lenders, specializing in facilitating the application and approval process for various types of business loans, particularly those guaranteed by the U.S. Small Business Administration (SBA).
What SmartBiz Does
SmartBiz acts as an intermediary between small businesses and banks, streamlining the loan application process. It matches businesses with the most suitable lenders from its network, increasing the likelihood of loan approval. This approach makes applying for SBA loans faster and more efficient by reducing the complexity and documentation required in traditional lending processes.
Key Products and Features
SBA 7(a) Loans
- Loan Amounts: $50,000 to $500,000.
- Repayment Terms: Up to 120 months.
- Interest Rates: Variable rates ranging from 10.25% to 14.00%.
- Usage: Can be used for working capital, new equipment purchases, and refinancing existing business debt not secured by real estate.
- Fees: May include packaging fees up to $2,500 and closing fees around $450, which can be financed as part of the loan.
Term Loans
- Loan Amounts: $50,000 to $300,000.
- Repayment Terms: 24 to 60 months.
- Interest Rates: Fixed rates starting at 10.99%.
- Fees: Include packaging and referral fees of 3.00% each, and potential closing costs from partner lenders.
- Prepayment Option: An option to reduce the interest rate by 2% if a 5% prepayment penalty is accepted.
Lines of Credit
- Credit Limits: $50,000 to $100,000.
- Repayment Terms: 12 months.
- Interest Rates: Based on the Secured Overnight Financing Rate (SOFR) plus 12.99% to 28.99%, with interest only on used amounts.
- Fees: Include a one-time 6.00% origination fee, a $750 flat-rate for closing costs, and standard wire fees.
Custom Financing
- Loan Amounts: $30,000 to $50,000 for custom financing options.
- Repayment Terms: 24 or 36 months.
- Interest Rates: Starting at 6.99%, dependent on credit and business strength.
- Usage: Can be used for various business needs, including purchasing real estate (though with different minimums and terms).
Key Functionality
- Streamlined Application Process: SmartBiz simplifies the application process by determining eligibility in minutes and matching businesses with the most likely lenders to approve their loan.
- Multiple Lender Options: SmartBiz acts as a one-to-many marketplace, allowing businesses to compare offers from various lenders and choose the best terms.
- Transparent Fees: While SmartBiz charges packaging and referral fees, these are clearly outlined, and the platform helps businesses understand all associated costs.
- Personalized Support: The SmartBiz Advisor tool helps clients assess their eligibility and guides them on how to improve their chances of approval and secure better interest rates.
Eligibility and Requirements
- Credit Score: Minimum personal credit scores range from 640 for non-SBA loans to 675 for commercial real estate SBA loans.
- Annual Revenue: Minimum annual revenue requirements are relatively low, such as $50,000 for SBA loans.
- Business History: Typically requires at least three years in business for certain loan types.
Overall, SmartBiz Loans offers a comprehensive platform for small businesses to access a variety of loan products with competitive terms, streamlined application processes, and personalized support.