Key Takeaways:
- Hero Product: Newity Growth Term Loan up to $200,000 (Non-SBA).
- Best Use: Consolidating up to 2 Merchant Cash Advances (MCAs) or accessing working capital.
- SBA Option: Also offers expedited, tech-enabled SBA 7(a) working capital loans up to $350,000.
- Speed: Both programs are designed to close in days or weeks, not months.
For small business owners, finding affordable capital often feels like a trap. You are usually stuck between the slow, paperwork-heavy process of traditional banks and the lightning-fast but costly world of Merchant Cash Advances (MCAs). Historically, there has been no middle ground—until now.
Newity has introduced a market-leading financial suite to fill this gap. Their flagship Growth Term Loan offers a lifeline for debt consolidation, while their Tech-Enabled SBA Financing modernizes government-backed lending.
The Hero Solution: Newity Growth Term Loan (Non-SBA)
The Newity Growth Term Loan is a direct financing option for small businesses that need capital quickly but refuse to pay triple-digit interest rates.
Unlike Small Business Administration (SBA) loans, this is not government-guaranteed financing. It is a private term loan provided by Newity and their exclusive capital source, Northeast Bank. Because it bypasses federal red tape, it requires only a small handful of documents for approval.
The “Winning Feature”: Consolidating Merchant Cash Advances
The most critical advantage of this program is its ability to fix broken cash flow. The Growth Term Loan allows borrowers to consolidate up to two Merchant Cash Advances.
This is a massive differentiator because:
- SBA Restrictions: The SBA currently prohibits the consolidation of Merchant Cash Advances or factoring agreements.
- Lack of Options: There are virtually no other affordable loan options available to refinance MCA debt.
By moving high-cost, daily-payment debt into a Newity loan, you are restructuring your business’s financial health with a 10-year term and monthly payments.
- Competitive Interest Rates: Starting as low as 15.4%.
- Versus Credit Cards: This is significantly lower than the average business credit card rate.
- Versus MCAs: Compared to MCAs (which often have APRs over 80%), this rate can save a business thousands of dollars.
- Versus SBA Express: These rates are on par with what SBA Express financing can cost, but without the government hurdles.
- Monthly Payments: No more daily or weekly draws on your account.
Many alternative lenders demand daily or weekly payments that strangle cash flow. Newity stretches the principal over a 10-year term with a single monthly payment. This long amortization schedule drastically lowers your monthly obligation, instantly freeing up cash for operations.
Another Option: Expedited SBA Working Capital
If you do not have Merchant Cash Advances to consolidate, Newity offers another powerful tool: Tech-Enabled SBA 7(a) Working Capital.
While traditional banks are notorious for SBA processes that drag on for months, Newity is a technology company first. They have applied their digital streamlining to the SBA process.
Why Newity’s SBA Option is Different:
- Speed: By digitizing the application and underwriting process, Newity can close SBA working capital loans in days or a few weeks, rather than the industry standard of 2–3 months.
- Low Rates: Borrowers get access to prime-based SBA interest rates, which are generally the lowest cost of capital available to small businesses.
- Simplicity: The platform guides you through the specific SBA document requirements, removing the confusion usually associated with government loans.
Which Path is Right for You?
Newity provides a “fork in the road” solution depending on your current financial situation:
- Choose the Growth Term Loan (Non-SBA) if: You need to consolidate existing Merchant Cash Advances or high-cost debt, or if you simply prefer a light-documentation working capital loan with a fixed rate and no government hurdles.
- Choose the SBA Working Capital Loan if: You have a clean balance sheet (no MCAs), you want the lowest possible rate or need more than $200,000, and you want the security of a government-backed loan but don’t want to wait months for a bank to process it.
The Newity Advantage: Tech Speed with Human Support
Whether you choose the Growth Term Loan or the SBA option, the experience is the same. Newity allows for pre-qualification in as little as 10 minutes with no upfront fees.
Despite the digital efficiency, Newity understands the value of personal support. Borrowers are assigned a dedicated human representative to guide them through the process, ensuring you have a partner, not just a portal.
Frequently Asked Questions (FAQs)
Is the Newity Growth Term Loan an SBA loan? No. The Growth Term Loan is a commercial term loan. However, Newity does offer a separate SBA 7(a) working capital product if you prefer government-backed financing.
Can I use the Growth Term Loan to pay off existing MCAs? Yes. You can consolidate up to two Merchant Cash Advances. Note that you cannot use the SBA loan option for this purpose; you must use the Growth Term Loan.
How fast is the funding for the SBA option? Unlike traditional banks, Newity’s tech-enabled SBA process is designed to close in days or weeks, making it one of the fastest ways to access 7(a) capital.
What are the payment terms for the Growth Term Loan? It features a 10-year term with monthly payments. This is distinct from MCAs, which typically require daily or weekly remittances.
Are there upfront fees? No. There are no upfront fees to apply for either program.
Where can I apply? You can find more information and apply directly at Newity.