The past nearly two years has proven to be an extremely trying time for small businesses. Despite these challenges, thousands of new businesses have continued to take flight during this time.
But with already difficult timing, raising capital to fund the new business can prove to be one of the most inhibitive challenges to date. Luckily, top SBA lenders in each state are here to help with funding for equipment, overhead, and various other business expenses.
The Small Business Administration (SBA) is a government agency that aims to help in this pursuit. This organization guarantees a portion of the loan, which then takes some of the risks off lenders.
From there, SBA lenders can offer loans with flexible terms and lower interest rates. In turn, small business owners can confidently get their operations off the ground and build momentum to eventually become self-sufficient.
For information on the top SBA lenders in Florida, specifically, keep reading!
SBA Business Loan Types
There are three main types of these loans, each with its own SBA loan qualifications.
The first is the 7(a) loan—which is the most common type of the bunch. These loans provide anywhere from $30,000 to $5 million in funding.
Examples of uses for these funds include:
- Purchasing or leasing equipment
- Purchasing or leasing land/building space
- Repairing older assets
- Refinancing existing debt
Borrowers typically need good credit, and sometimes need collateral to qualify for the loan.
SBA 504 loans are another option for small businesses. This is generally used for purchasing long-term assets, like land or buildings.
These loans can also reach up to $5 million, though borrowers typically have to put forth a down payment of 20%. However, these loans have terms of up to 25 years, making it easier for small businesses to pay it back over time as they grow.
Additionally, there are income requirements and limitations for 504 loans—only businesses within a certain income range can qualify. There are other requirements to consider, including the required creation of a job per $65,000 of financing.
Finally, SBA microloans are designed to support businesses owned by minorities, women, and veterans with smaller loans to get their businesses off the ground. These loans range between $500 to $50,000 each.
SBA microloans tend to have shorter terms and lower interest rates for underserved communities.
Top SBA Lenders in Florida
Although the Small Business Administration makes these loans possible by securing part of the funding, they do not actually give out the funds. Instead, a network of lenders within each state work with the government to provide businesses with these loans.
There are also SBA-backed opportunities for small businesses to receive financial assistance as related to the COVID-19 pandemic. This includes the Paycheck Protection Program, as well as others. Your SBA lender may be able to assist you in securing this funding, as well.
Read on below for the top SBA lenders in Florida.
TD Bank is headquartered in Wilmington, Delaware, though it has hundreds of locations across Florida.
In 2020, TD Bank issued 280 SBA loans in Florida, with an average interest rate of 7.72%. The average loan amount in the state was $189,855.
Wells Fargo is another popular SBA lender in the state of Florida, even though its headquarters are in Sioux Falls, South Dakota. The company currently operates hundreds of branches throughout Florida.
Wells Fargo funded 155 SBA loans in Florida in 2020. These averaged an interest rate of 8.30%, with an average funding amount of $233,934.
United Midwest Savings Bank
United Midwest Savings Bank is headquartered in De Graff, OH. Though it does not have any physical locations in Florida, it continues to remain one of the most active SBA lenders in the state.
In 2020, UMSB funded 138 SBA loans in Florida. These averaged at 6.25% interest, with an average loan of $260,826.
Live Oak is another large player in the SBA loan industry in Florida, with its own headquarters in Wilmington, NC. The bank does not appear to staff any in-person locations.
Though Live Oak only funded 69 loans in 2020, it proved to be one of the best values for larger loans. Live Oak’s funding averaged an interest rate of 5.62%, with an average loan amount of $1,553,993.
First Home Bank
First Home Bank is another great, in-state choice for SBA loans in Florida. This bank is headquartered in Saint Petersburg—with six mortgage office locations within the state.
First Home Bank issued 65 loans last year, with an average interest rate of 6.55%. The average funding level was $342,568 for these SBA loans.
The Huntington National Bank
This bank is headquartered in Columbus, Ohio. Though it only contains physical locations in Ohio, this lender continued to serve many businesses in Florida.
In 2020, Huntington doled out 60 SBA loans, with an average interest rate of 5.87%. The average loan amount was $361,242, as well—making them a major player in this industry.
JP Morgan Chase
Most business professionals are familiar with the JP Morgan Chase name. Also headquartered in Columbus, Ohio, JPMC represents one of the most powerful banks in the country—with some of the highest resources.
For this reason, JPMC may be a good choice for your company’s SBA loan. Throughout Florida in 2020, their average interest rate was 7.52%, and the average loan funding amount was $162,937.
Is an SBA Loan Right for Your Small Business?
With this brief guide on the top SBA lenders in Florida, you can begin to get your feet wet in locating the right funding match for your small business. From there, you can begin the SBA loan approval process to get your company off the ground as soon as possible.
For more information on the SBA loan grant and funding options in Florida, get matched with a lender today!