Top SBA Lenders for small businesses: A Deep Dive into Business Loan Segmentation

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SBA loans play a crucial role in supporting small businesses across the United States. Analyzing the recent data on top SBA lenders reveals interesting patterns and insights into how different segments of businesses are funded. The data segregates businesses into three categories based on their employee count: businesses with 1 to 10 employees, businesses with 11 to 25 employees, and businesses with over 25 employees. Here’s a detailed look at the performance and lending habits of top SBA lenders within these segments.

Businesses with 1 to 10 Employees

RankSBA Lender Total Loan $$$ # Loans Avg LoansAvg Rate
1Huntington Bank $582,200,400 3,671 $158,59410.5%
2BayFirst National Bank $341,146,000 2,390 $142,73912.6%
3TD Bank $267,337,400 2,388 $111,95012.1%
4U.S. Bank $184,667,700 1,456 $126,8329.7%
5Wells Fargo $219,135,800 1,350 $162,32312.8%
6JPMorgan Chase Bank $205,858,500 1,101 $186,97412.3%
7Readycap Lending, LLC $315,651,500 1,061 $297,50413.1%
8Newtek Bank $261,705,000 988 $264,88412.2%
9M&T $82,058,600 869 $94,42912.5%
10BancorpSouth Bank $178,179,600 567 $314,25011.1%
11United Midwest Savings Bank $134,865,300 541 $249,28911.1%
12Northeast Bank $37,228,500 519 $71,73111.1%
13Live Oak $637,319,500 469 $1,358,8909.7%
14Celtic Bank $177,049,300 467 $379,12111.1%
15Bank of America $202,969,800 449 $452,0498.2%
16KeyBank $79,181,200 444 $178,33612.3%
17PNC Bank $73,875,700 404 $182,86112.0%
18SouthState Bank $68,202,100 278 $245,33111.1%
19Colony Bank $38,545,600 238 $161,95612.7%
20Zions Bank $50,035,400 220 $227,43411.7%
  1. Huntington Bank leads the pack with a total loan amount of $582.2 million, spread across 3,671 loans, averaging $158,594 per loan at an interest rate of 10.5%.
  2. BayFirst National Bank follows with $341.1 million in total loans from 2,390 loans, averaging $142,739 per loan and a rate of 12.6%.
  3. TD Bank is third, providing $267.3 million over 2,388 loans, averaging $111,950 at a 12.1% rate.
  4. U.S. Bank and Wells Fargo round out the top five, with $184.7 million and $219.1 million in total loans, respectively, showcasing average loan amounts around $126,832 and $162,323, and rates of 9.7% and 12.8%.

Other notable lenders include JPMorgan Chase Bank, Readycap Lending, LLC, Newtek Bank, M&T, and BancorpSouth Bank, all providing significant loan amounts with varying average loan sizes and interest rates.

Businesses with 11 to 25 Employees

RankSBA Lender Total Loan $$$ # Loans Avg LoansAvg Rate
1Huntington Bank $294,783,200 705 $418,13210.6%
2Newtek Bank $210,517,800 356 $591,34211.6%
3BayFirst National Bank $70,889,300 268 $264,51212.3%
4Live Oak $370,735,300 211 $1,757,0399.7%
5Readycap Lending, LLC $86,408,900 186 $464,56412.3%
6JPMorgan Chase Bank $46,868,600 165 $284,05211.7%
7TD Bank $53,626,700 142 $377,65310.8%
8M&T $29,937,700 138 $216,94011.8%
9Bank of America $70,190,200 137 $512,3378.1%
10U.S. Bank $75,059,100 128 $586,3999.3%
11First Bank of the Lake $111,904,200 106 $1,055,70010.9%
12Celtic Bank $120,008,100 101 $1,188,19910.9%
13BancorpSouth Bank $46,817,800 99 $472,90711.0%
14Wells Fargo $74,570,600 95 $784,9549.0%
15Northeast Bank $8,461,900 89 $95,07811.1%
16Byline Bank $102,113,000 80 $1,276,41311.0%
17KeyBank $24,986,600 77 $324,50111.6%
18First Internet Bank of Indiana $102,120,000 73 $1,398,90411.0%
19Colony Bank $34,851,200 59 $590,69811.7%
20Lendistry SBLC $15,486,200 57 $271,68812.5%

In this segment, Huntington Bank continues its dominance with $294.8 million in total loans, 705 loans averaging $418,132 at an interest rate of 10.6%.

Newtek Bank and BayFirst National Bank are strong contenders with $210.5 million and $70.9 million in total loans, respectively, each having higher average loan amounts of $591,342 and $264,512.

Live Oak and Readycap also show substantial lending, with total loans of $370.7 million and $86.4 million, reflecting their significant involvement in supporting mid-sized small businesses.

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Businesses with Over 25 Employees

RankSBA Lender Total Loan $$$ # Loans Avg LoansAvg Rate
1Huntington Bank $185,334,700 304 $609,65410.5%
2Newtek Bank $217,501,000 218 $997,71111.5%
3Live Oak $395,546,500 183 $2,161,4569.6%
4BayFirst National Bank $34,311,500 93 $368,94112.3%
5Bank of America $60,032,000 79 $759,8998.3%
6Byline Bank $129,497,000 75 $1,726,62710.9%
7Readycap Lending, LLC $85,471,000 70 $1,221,01411.7%
8M&T $30,772,500 66 $466,25011.4%
9TD Bank $54,777,600 62 $883,5109.8%
10JPMorgan Chase Bank $20,651,500 60 $344,19211.4%
11U.S. Bank $46,245,700 56 $825,8169.2%
12First Internet Bank of Indiana $89,855,000 55 $1,633,72711.0%
13Celtic Bank $55,898,000 46 $1,215,17410.9%
14First Bank of the Lake $42,432,600 42 $1,010,30010.7%
15KeyBank $25,703,300 41 $626,91011.0%
16BancorpSouth Bank $30,735,800 41 $749,65410.9%
17Wells Fargo $41,407,700 36 $1,150,2148.1%
18Citizens Bank $26,324,100 29 $907,72810.8%
19Berkshire Bank $57,852,800 29 $1,994,92410.6%
20Northwest Bank $19,490,700 27 $721,87810.8%

For businesses with more than 25 employees, Huntington Bank remains a key player, lending $185.3 million across 304 loans, averaging $609,654 per loan at an interest rate of 10.5%. Based on number of loans issued, Huntington is #1 nationally, so it’s no surprise it ranks #1 across the three categories presented here. Live Oak is #1 nationally based on total dollar lent as Live Oak focuses on larger loans (typically $1M+).

Newtek Bank surpasses Huntington in total lending with $217.5 million, albeit with a higher average loan amount of $997,711 at 11.5%.

Live Oak takes a notable position with $395.5 million in total loans and the highest average loan amount of $2.16 million at a 9.6% rate.

Other significant contributors include BayFirst National Bank, Bank of America, Byline Bank, Readycap Lending, LLC, M&T, TD Bank, and JPMorgan Chase Bank.

Key Takeaways in SBA Lending Data: Insights and Implications

The SBA lending data reveals distinct trends and preferences among top lenders when it comes to funding businesses of varying sizes. These trends offer valuable insights into the lending behaviors and strategies of major financial institutions. Here’s a closer look at some of the key patterns observed in the data:

Loan Amounts and Business Size

One of the most noticeable trends is the increase in average loan sizes as the number of employees in a business grows. For instance:

  • Businesses with 1 to 10 employees receive loans averaging around $158,594 from top lender Huntington Bank.
  • Businesses with 11 to 25 employees see average loan sizes rise significantly, with Huntington Bank providing loans averaging $418,132.
  • Businesses with over 25 employees benefit from even larger loans, with Huntington Bank offering loans averaging $609,654.

This pattern indicates that lenders are more willing to commit higher amounts of capital to businesses with larger employee bases, likely due to the perceived stability and growth potential of these businesses.

Interest Rates and Risk Perception

Another key trend is the variation in average interest rates across different business sizes. Generally, larger businesses enjoy slightly lower average interest rates, reflecting the reduced risk perceived by lenders:

  • Smaller businesses with 1 to 10 employees face higher interest rates, with lenders like BayFirst National Bank offering loans at an average rate of 12.6%.
  • Mid-sized businesses with 11 to 25 employees receive slightly better rates, with rates around 10.6% to 12.3% from top lenders.
  • Larger businesses with over 25 employees are offered even more favorable rates, such as the 8.3% average rate provided by Bank of America, indicating lenders’ confidence in the lower risk associated with these enterprises.

Lender Preferences and Loan Size

The data also reveals lender preferences based on loan sizes. Some large SBA lenders, like Live Oak, do not rank very high in lending to the smallest businesses. This is primarily because they prefer to issue larger loans, often exceeding $1 million. Live Oak, for instance, has an average loan size of $2.16 million for businesses with over 25 employees, highlighting their focus on larger, potentially more stable businesses.

In contrast, lenders like Huntington Bank and BayFirst National Bank are more versatile, providing a wide range of loan sizes and catering to businesses across all segments. Huntington Bank’s consistent top ranking in all three business segments underscores its broad appeal and flexible lending practices.

 Specific Lender Insights

Huntington Bank: Dominates across all segments, indicating a broad and flexible lending strategy capable of catering to businesses of all sizes.

Newtek Bank: Shows a strong preference for larger loans, particularly excelling in the segments with 11 to 25 employees and over 25 employees.

Live Oak: Specializes in very large loans, with a clear preference for businesses with significant employee counts, thus not featuring prominently among the smallest businesses.

Implications for Businesses

For small businesses seeking SBA loans, understanding these trends is crucial for selecting the right lender. Smaller businesses might focus on lenders like Huntington Bank and BayFirst National Bank, which demonstrate a willingness to fund smaller enterprises. On the other hand, larger businesses with more employees might benefit from approaching lenders like Live Oak and Newtek Bank, which prefer and excel in providing larger loans.

Help Finding the Right SBA Small Business Lender

The SBA lending landscape is dynamic, with distinct trends based on business size and lender preferences. By analyzing these trends, businesses can make informed decisions about their financing strategies, choosing lenders that align with their size and financial needs.  SBALenders.com can match you with ideal lenders today. Just click on Find me a Lender in the menu above or the green button below. of capital to businesses with larger employee bases, likely due to the perceived stability and growth potential of these businesses.

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