SmartBiz

About SmartBiz

From its website:

SmartBiz grew out of the 2008 financial crisis when the banks that were supposedly “too big to fail” were not equipped to provide the funding small businesses needed for growth. This left a funding gap of hundreds of billions of dollars which banks left on the side-lines, hampering small business from investing in their businesses and putting people back to work.

So-called “Alternative lenders” offered to fill the funding gap at sky-high APRs up to 150%. Because banks could not efficiently fund small business loans, the small business owner paid the price — literally!

…The founders of SmartBiz knew there had to be a better way. A better way meant enabling banks to efficiently fund great businesses by using technology and good old American ingenuity.

Enter SmartBiz! We knew we could reduce those high-cost APRs for small businesses with the right product and the right technology. We built SmartBiz around SBA loans—with low interest rates, affordable monthly payments and long repayment terms. Next, we built a platform with advanced technology and underwriting to streamline the old cumbersome SBA application process, making it easier and more cost effective for banks to provide loans to small businesses. The result was a win-win: innovative banks are able to offer one of the best small business credit products (SBA loans) and businesses are given fast access with higher approval rates to the low-cost funds they need to grow and flourish.

Loan Programs

SmartBiz offers an SBA working capital and debt refinance loan, an SBA commercial real estate loan and a bank term loan. Although SmartBiz is not a direct lender and does not claim to be (in fact it is proud to be the #1 online marketplace for SBA loans); the firm’s experience, customer service and technology create the most efficient financing option for full documentation small business owners seeking working capital.

SBA Working Capital and Debt Refinance Highlights / Guidelines

SmartBiz’s small SBA loans can be used for working capital (such as operational expenses, marketing, hiring, etc.), new equipment purchases, and refinancing existing business debt not secured by real estate (such as cash advances, business loans, and equipment leases).

  • Loan sizes from $30,000 to $350,000 nationwide
  • Rates from Prime + 2.75% to Prime + 3.75%
  • Quarterly adjustable loan terms amortized over 10 years
  • No prepayment penalty
  • SBA guarantee fees of roughly 1.7% to 2.25% of the loan amount
  • SmartBiz packaging fee of 2% of the loan amount
  • Funding in as little as 3 to 4 weeks
  • Time in business must be greater than 2 years
  • Minimum personal credit score of 650
  • Your business must be U.S. based and owned by a US citizen or legal permanent resident who is at least 21 years old
  • No outstanding tax liens
  • No bankruptcies or foreclosures in the past 3 years
  • No recent charge-offs or settlements
  • On-time payment history on government-related loans

Bank Term Loan Highlights / Guidelines

SmartBiz’s bank term loans are a viable short-term financing option for those business owners looking for capital, but who need funds quickly or do not yet meet the eligibility requirements for a longer term SBA loan. Loan proceeds can be used for working capital, debt refinance or equipment purchase.

  • Loan sizes from $30,000 to $200,000 nationwide
  • 2 to 5 year loan terms
  • Fixed interest rates from 6.99% to 26.99%
  • No prepayment penalty
  • Monthly loan payments
  • Funding in as little as 2 business days
  • Time in business must be greater than 2 years
  • Business owners must be US citizens or legal permanent residents
  • Minimum personal credit score of 620
  • No bankruptcies or foreclosures in the last 3 years
  • No outstanding tax liens

SBA Commercial Real Estate Loan Highlights / Guidelines

These loans are used for the purchase or refinance of commercial real estate occupied 51% or more by your business.

  • Loan sizes from $500,000 to $5 million nationwide
  • Rates from Prime + 1.75% to Prime + 2.75%
  • Quarterly adjustable terms amortized over 25 years
  • 5%, 3%, 1% prepayment penalty
  • SBA guarantee fees of roughly 2.25% to 2.812% of the loan amount
  • SmartBiz packaging fee of 0.5% of the loan amount
  • Funding in as little as 30 to 60 days
  • Time in business must be greater than 2 years
  • Minimum personal credit score of 675
  • Sufficient business and personal cash flow to service all debt payments, demonstrated by 3 years of tax returns and interim financial data
  • No delinquencies and/or defaults on government loans
Visit SmartBiz

The Loan Process

LendVer did not shadow the application or loan process for SmartBiz but its website offers general steps required for approval. It is important to note that SBA loans do require additional government paperwork so you will be asked for a variety of documents to be completed, signed and returned. Additionally, SBA commercial real estate loans may require an environmental report in addition to an appraisal.

SBA and Bank Term Working Capital and Debt Refinance Loans

From the SmartBiz website:

  1. Pre-qualify Without Impacting Your Credit
    • Pre-qualify in as little as 5 minutes without impacting your credit score. Simply provide basic information online and we’ll automatically tell you if you pre-qualify for an SBA loan from $30,000 to $350,000. If you don’t pre-qualify, you may be offered the opportunity to opt in for our bank partners’ Bank Term loan option without re-submitting any information.
  2. Provide Financial Information
    • Tell us how you plan to use your funds and provide financial information about your business and its owners. Your SmartBiz Loans Relationship Manager is here to assist you at any point in the process.
  3. Get Funded
    • Upload requested documents to complete your application. We’ll review your financials to confirm your business has the cash flow to afford the monthly loan payments. Funds can then be in your bank account in as fast as 7 days (2 days for a bank term loan) after your application is complete.

SBA Commercial Real Estate Loans

From the SmartBiz website:

  1. Pre-qualify for an SBA 7(a) Commercial Real Estate Loan
    • Pre-qualify in as little as 5 minutes without impacting your credit score. Simply provide basic information online and we’ll automatically tell you if you pre-qualify for an SBA commercial real estate loan from $500,000 to $5 million.
  2. Provide Financial Information
    • Provide financial information about your business and its owners. Your dedicated Relationship Manager can help with any questions.
  3. Accept Your Letter of Intent
    • You will receive a non-binding letter of intent (LOI) outlining details of the SBA commercial real estate loan so you can negotiate terms with the property seller or your existing lender.
  4. Conduct Property Valuation
    • During the SBA commercial real estate application process, the property you’re interested in will be valued. Your dedicated Relationship Manager helps facilitate this step.
  5. Get Funded
    • Upload requested documents to complete your application. We’ll work with you through the loan closing process. Funds can be wired for closing in as fast as 30 days after credit approval.

Pros

  • SmartBiz is the #1 online marketplace for SBA loans and has facilitated over $1 billion of funding to small businesses, so you are working with an experienced industry leader.
  • SmartBiz uses cutting edge technology and has dozens of staff members devoted to assisting you in all aspects of your loan process.
  • Using SmartBiz will save you significant time and money locating the right SBA or bank term lender yourself.
  • The rates and terms offered through SmartBiz are significantly lower than those available through alternative and non-bank lenders.
  • The SBA loan process can be daunting for a small business owner and the experience, customer support and technology SmartBiz offers significantly eases and expedites the process.

Cons

  • Not all businesses are eligible for financing as the SBA excludes the industries of gambling, life insurance, religious teaching, political and lobbying activities, oil wildcatting, mining, mortgage servicing, real estate development, bail bonds, pawn shops, private or adult clubs and other business types may be ineligible.
  • SmartBiz is not the lender so it does not have any direct decision making ability when it comes to the terms or approval of your loan.
  • SmartBiz only offers loans for conforming borrowers with credit scores over 650 or in some cases over 675. If you want an SBA loan but have low credit, SmartBiz may not have an option for you.

Why SmartBiz is the Best

SmartBiz is the industry leader in facilitating SBA loans and has provided over $1 billion of financing to small business owners. The firm has the experience, technology, staff and infrastructure in place to make SBA and bank term financing much more accessible than it otherwise would be to a small business owner. Although SBA financing is low cost and affordable, its stigma of having a cumbersome process prevents many small business owners from pursuing it; SmartBiz is single-handedly changing that perception one loan at a time.

Visit SmartBiz

Tags: