Top Lenders for SBA Wealth Management Loans

Last update: May 29, 2024

RankSBA Lender# of Loans Avg LoanAvg Rate
1BayFirst National Bank3 $129,60012.4%
2TD Bank3 $108,33312.0%

  find me a Wealth Management lender

Wealth management is a massive financial industry in the United States. People rely on these services to invest their savings, plan for retirement, and to grow wealth. Recent statistics show that the wealth management industry is worth over $29 trillion. The assets under management of North American wealth managers are expected to surge to $73.3 trillion by 2025, up 26.4% from 2020.

Digital transformation is playing a major role in the growth of this industry. Millennials particularly prefer wealth management firms that provide an enhanced digital platform. The pandemic has also forced people to reconsider their spending habits and focus more on building a nest egg for uncertain times.

Thus the demand for these services has grown and those in this industry are now seeking out wealth management loans to expand their footprint.

Benefits of owning a wealth management business

The biggest benefit of owning a wealth management business is that there’s always going to be a demand for this crucial financial service. When times are good and people have more disposable income, they’re likely going to invest more so that they remain protected when times aren’t so good.

Even when there’s a downturn in the market people will continue to prioritize savings, particularly in less risky asset classes, to ensure that their money goes a long way. With the plethora of financial products on offer, most people neither have the time nor the experience to figure out where they should invest their money, how to effectively manage risk, and when to rebalance their portfolios.

Wealth management service providers help clients with all of this. They can even offer them a customized plan to meet their financial goals. If you’re able to provide a good service to your clients, chances are they will refer more people to you, enabling you to expand your business through word of mouth.

How to get wealth management loans

Setting up an independent wealth management business is not an easy task. There are complex regulatory requirements that you’ll need to meet before you can start to manage money for your clients. The biggest initial expense involves setting up your client brochures and obtaining the necessary licenses.

There may be other costs including office expenses, insurance costs, staff expenses, development of a digital platform, and more. By opting for wealth management loans, you can raise the funds needed to get your business off the ground. However, these loans can often be difficult to obtain, particularly if you don’t already have the required licenses.

Banks are often apprehensive about investing in these endeavors if the business owner doesn’t already have a track record. They want to see that the independent financial advisor has a clientele and can demonstrate the returns they have generated. Since fees tend to be tied to a percentage of the returns, someone who’s new to the industry will not have much of a track record to rely on.


SBA wealth management loans

That’s one of the main reasons why you should consider getting SBA wealth management loans. These will lower the barrier of entry to this industry by enabling you to access up to $5 million in financing, even if you don’t have an established wealth management business.

All of the costs that you will incur in setting up a wealth management business can be met with the funds you obtain through an SBA loan. The funds can also be used to purchase an existing wealth management business if you’re looking to expand your footprint in the market.

SBA 7(a) wealth management loans

The Small Business Administration’s 7(a) loan program is the best option for those in the wealth management industry. The use cases for which these funds may be spent are far greater than any other SBA loan program. This versatility will enable you to utilize these loans to meet almost all expenses incurred in setting up a wealth management business.

The maximum loan amount is $5 million which will be disbursed at an interest rate negotiated between you and the lender. The rates are subject to a cap by the SBA which is the market prime rate + 2.75%. Repayment terms can be spread over 10 years and further over 25 years if there is a real estate component. The entire loan can be used to acquire real estate, fixtures, furnishings, and equipment.

You can also use it to fund short and long-term working capital needs and to refinance existing debt. If you have a partner in your current wealth management business, you can use these funds to buy them out.

The maximum repayment term is six years with the interest rate ranging from 8-13%. You can use these funds to purchase furniture and fixtures as well as to meet working capital needs. It’s a great option if you’re looking to inject some cash into your business for renovations or improvements.

SBA Express loans

If your business needs will be met by a loan of up to $500,000, opt for an SBA Express loan. These are provided under the 7(a) program with the added benefit of being approved quickly, as long as you qualify.

These funds can be utilized for working capital requirements, purchasing equipment, and merchandise. The repayment period can be stretched to 10 years while the interest rates are generally a combination of the primate rate with a spread of up to 6%.


How to get SBA wealth management loans can help you secure the right loan for your wealth management business. Our partners include leading nationwide banks, credit unions, and other financial institutions that are ready and willing to approve SBA loan applications quickly for business owners in this industry. We also work with SBA Preferred Lenders that specialize in quick approvals for wealth management loans. Connect with us here so we can put you in touch with a perfect lender for your opportunity.

  find me a Wealth Management lender