Overview
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Selecting the right business loan can be a crucial decision for small business owners, as it can significantly impact the growth and success of their venture. Live Oak Bank is a lender that understands the unique needs of small businesses and offers a variety of loan options designed to support their growth. Live Oak Bank offers competitive business loan options tailored to the needs of small businesses, including SBA 7(a) loans, SBA 504 loans, USDA Rural Development loans and customizable commercial loans.
Understanding Live Oak Bank’s Offerings
As a financial institution specializing in small business loans, Live Oak Bank caters to the diverse needs of entrepreneurs across various industries. With a range of loan options, such as SBA 7(a) loans, SBA 504 loans, USDA Rural Development loans, and customizable commercial loans, Live Oak Bank is dedicated to working with business owners to turn obstacles into opportunities.
In the following sections, we will delve into the details of each type of loan offered by Live Oak Bank.
SBA 7(a) Loans
The SBA 7(a) loan is the leading business loan option in terms of dollar volume at Live Oak Bank. These loans cater to a wide range of business purposes, from purchasing real estate to refinancing debt. With loan amounts ranging from $150,000 to $5 million, and a maximum loan term of 25 years for real estate investments, the SBA 7(a) loans offer flexibility and affordability for business owners.
Loans with terms of 15 years or less do not include prepayment penalties. There are no additional fees associated with these loans. As an SBA Preferred Lender, Live Oak Bank can make credit decisions internally, accelerating the approval process by three to four weeks.
SBA 504 Loans
SBA 504 loans are designed for the purchase of commercial real estate, large equipment, and renovations of existing facilities. These loans offer a competitive advantage for businesses looking to expand or invest in fixed assets. Typically, the down payment requirement for SBA 504 loans is 10 percent, and the financed asset serves as collateral.
As an SBA Preferred Lender, Live Oak Bank’s expertise in this loan program can help businesses secure favorable terms and interest rates.
USDA Rural Development Loans
USDA Rural Development loans are offered by the United States Department of Agriculture to facilitate rural development and enhance the economy and quality of life in rural regions. These loans can be utilized for various objectives, such as purchasing or improving land, constructing or renovating homes, and financing businesses.
Although Live Oak Bank’s website offers limited information on its commercial USDA loan offerings, their status as a leading USDA lender showcases their commitment to supporting businesses in rural areas.
Customizable Commercial Loans
Customizable commercial loans offer tailored business loans designed to meet the specific needs and goals of the borrower. Lending experts collaborate with the borrower to create a loan package that meets their financial requirements, providing flexibility in terms, rates, and repayment options.
To obtain a customizable commercial loan, inquiring with Live Oak Bank is the first step. A loan specialist will work with the borrower to create a loan package that meets their needs and then review the package before submitting it to the bank for approval.
Live Oak Bank is our #1 ranked SBA lender based on SBA loan volume from last year. The company only targets 17 industries that it knows best, which allows it to move quickly for customers in its wheelhouse. Live Oak consistently ranks in the top 3 SBA banks nationwide.
Live Oak Bank has been a leading provider of Small Business Administration (SBA) loans for more than a decade. The bank’s SBA loan program offers a range of financing options for small businesses, including 7(a) loans, which are the most commonly used type of SBA loan.
Live Oak Bank’s 7(a) loan program provides businesses with flexible financing options and competitive rates. The loans can be used for a variety of purposes, including working capital, equipment purchases, and real estate acquisitions. Live Oak Bank’s 7(a) loans are available in amounts ranging from $50,000 to $5 million, and the bank’s experienced lending team is dedicated to providing personalized service to each borrower.
One of the key advantages of Live Oak Bank’s 7(a) loan program is its focus on serving niche industries. The bank has a deep understanding of the unique financing needs of small businesses in industries such as veterinary medicine, farming, and dental care, and is able to offer specialized lending solutions to meet those needs.
Live Oak is a competitive lender that historically has charged interest rates below the national average for similar small business loans:
States where Live Oak has done traditional 7(a) SBA loans in the past year:
Live Oak is focused on specific verticals…
| Live Oak Bank Industry Verticals | ||
|---|---|---|
| M&A - All industries | Entertainment Centers | Investment Advisory |
| Accounting & Tax | Fitness Centers | Pharmacy |
| Agriculture | Franchise Restaurants | Restoration |
| Auto Dealerships | Funeral Home & Cemetery | Self-Storage |
| Automotive Care | Government Contracting | Service Contractors |
| Broadband | Healthcare | Senior Care |
| Educational Services | Hotels | Veterianary |
| Energy & Infrastructure | Insurance | Wine & Craft Beverage |
… which allows the bank to provide a business with a banker who knows its specific industry very well and facilitates Live Oak playing a unique consultative role with the client. Since your Live Oak banker will know your industry well and has seen many transactions with similar businesses, your banker will be able to cut through the noise and let you know quickly what the borrowing capacity is for your business or acquisition target.
Recent averages for Live Oak for some of its top industries…
| Industry | Avg Loan $ | Avg Int |
|---|---|---|
| Dental Practice | $1,388,702 | 5.8% |
| Wealth Management | $723,693 | 6.7% |
| Veterinarian | $1,302,762 | 5.7% |
| Poultry | $2,037,618 | 6.2% |
| Pharmacy Loans | $1,305,833 | 6.4% |
| Self Storage | $2,503,857 | 6.1% |
| Insurance Agency | $891,614 | 6.8% |
| Funeral Home | $1,489,175 | 6.3% |
| Brewery | $825,709 | 7.1% |
Live Oak SBA loans
Want to connect with a Live Oak banker for an SBA loan or other top SBA lenders? Complete our inquiry form and we will make a connection within 8 business hours.
Live Oak Bank FAQs
Is Live Oak Bank a reputable bank?
Yes, Live Oak is a reputable FDIC-insured SBA lender. In fact, Live Oak has been the #1 SBA lender in America the last few years.
Does Live Oak Bank lend everywhere in America?
Yes
Will Live Oak lend to any small business?
No, only businesses in the industry verticals noted above.
What credit score is needed for this SBA lender?
A minimum credit score of 640 is required for Live Oak bank SBA loans. A score of 680 or better is ideal.
Any Live Oak reviews available?
Live Oak Bank’s commitment to customer success is evident in their high customer satisfaction rating, with an average rating of 4.5 stars out of 5 according to customer reviews. They provide tailored loan solutions and personalized customer service to ensure that each borrower receives the necessary support to achieve their financial goals.
