Top New York SBA Lenders | New York SBA Loans

Last update: Jun 22, 2024

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Best SBA lenders in New York

RankSBA LenderSBA Lender HQs# of LoansAvg Interest Avg Loan
1TD BankWILMINGTON, DE72912.1% $145,148
2M&TBUFFALO, NY35512.4% $122,628
3BayFirst National BankSaint Petersburg, FL26312.7% $153,537
4JPMorgan Chase BankCOLUMBUS, OH23712.4% $182,562
5Newtek BankMiami, FL10812.1% $491,157
6Noah BankMiami, FL10812.1% $491,157
7KeyBankCLEVELAND, OH10412.6% $117,653
8Readycap Lending, LLCBERKELEY HEIGHTS, NJ8813.1% $226,026
9BancorpSouth BankTUPELO, MS4711.0% $324,043
10Northeast BankLEWISTON, ME4211.1% $83,143
11Hanover Community BankMineola, NY4111.4% $917,537
12Five Star BankWARSAW, NY4110.1% $70,405
13FinWise BankSANDY, UT4010.9% $1,073,250
14ESL FCUROCHESTER, NY398.5% $189,179
15Bank of AmericaCHARLOTTE, NC398.4% $469,536
16Northwest BankWARREN, PA3611.3% $207,247
17Live OakWILMINGTON, NC339.6% $1,750,836
18Lendistry SBLCLos Angeles, CA3212.8% $107,703
19Colony BankFITZGERALD, GA2613.0% $119,673
20Huntington BankCOLUMBUS, OH2610.3% $734,862

Interest rates for SBA loans in New York

The table below shows the average interest rates for SBA loans in New York during the past few quarters for loans over $50,000. Note that most SBA loans are variable-rate loans, so borrowers may benefit from lower rates in the future if the Federal Reserve lowers interest rates.

YearQtr# of Loans Avg LoanAvg Rate
20241654 $422,95411.3%
20234562 $472,59011.4%
20233652 $505,75611.2%
20232608 $403,06010.7%
20231492 $377,72810.3%
20224461 $478,0879.1%
20223458 $493,9057.6%
20222394 $539,1956.3%
20221329 $659,0895.7%
20214256 $597,1915.7%
20213547 $888,8175.4%
20212359 $771,6095.4%
20211224 $732,3565.5%

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Top industries receiving SBA loans in New York

Here are the top 20 industries in New York based on small business loan volume from last year. This information can help you gauge what to expect for your business in terms of interest rates from SBA lenders:

RankIndustry (NAICS Description)# of LoansAvg Interest Avg Loan
1Full-Service Restaurants13611.4% $362,844
2Residential Remodelers7712.1% $104,770
3Limited-Service Restaurants6110.9% $247,134
4Administrative Management and General Management Consulting Services5012.7% $163,054
5All Other Specialty Trade Contractors5011.6% $341,944
6Marketing Consulting Services4812.3% $143,733
7Fitness and Recreational Sports Centers4511.5% $489,340
8Plumbing, Heating, and Air-Conditioning Contractors4411.3% $512,589
9Beauty Salons3612.9% $74,653
10All Other Personal Services3412.2% $143,979
11Electrical Contractors3311.5% $209,667
12Child Day Care Services3111.8% $587,510
13Janitorial Services3111.6% $240,335
14Other Personal Care Services3112.4% $291,226
15General Freight Trucking, Local3011.7% $183,667
16Insurance Agencies and Brokerages3011.1% $628,250
17All Other Professional, Scientific, and Technical Services2911.6% $291,079
18Electronic Shopping2911.9% $138,069
19Offices of Dentists2810.5% $812,104
20Offices of Physicians (except Mental Health Specialists)2810.5% $285,425

New York SBA lenders FAQs

 

Who are the top SBA lenders in New York?

The best SBA lenders in New York are those closing the highest number of SBA loans in the state. You can find them listed in the table above. This data is updated quarterly and reflects the rolling 12-month period.

 

How do I qualify for an SBA loan in New York?

To qualify for an SBA loan in New York, your business (or the one you’re acquiring) must meet size standards, demonstrate the ability to repay, and have a sound business purpose. Contact an SBA-preferred lender in New York or use our SBA Lender Match tool to check your eligibility. Common reasons for disqualification include:

1. Insufficient Cash Flow: Ensure you have enough cash flow to cover SBA loan payments. Use our SBA Maximum Loan calculator to determine your maximum loan amount.

2. Low Credit Score: A credit score of 650 or above is generally required.

3. High Working Capital Needs: Loans over $150,000 primarily for working capital face stricter scrutiny.

4. Business Acquisitions: Lack of industry or relevant experience and insufficient down payment (typically 10% or more) can be disqualifying factors.

Complete our SBA Lender Match tool, and we’ll provide a preliminary assessment of your SBA loan eligibility. We can then connect you with lenders who specialize in New York SBA loans.

 

What is the SBA 7(a) loan program?

The SBA 7(a) loan program is the most popular SBA loan, offering up to $5 million for various business purposes, including working capital, equipment, and real estate. This program is available to businesses throughout New York and offers flexible terms. Unlike SBA 504 loans, which require a Certified Development Company (CDC) and full collateralization by real estate, 7(a) loans are quicker and more versatile. At SBAlenders.com, we specialize in assisting with SBA 7(a) loans and can also help with 504 loans if needed.

 

What is the SBA 504 loan program?

The SBA 504 loan program offers long-term, fixed-rate financing for major assets like real estate and equipment, providing up to $5.5 million. Designed to promote business growth and job creation in New York, this program requires both a Certified Development Company (CDC) and an SBA lender to finance portions of the loan. While SBA 504 loans offer significant benefits, they typically take longer to close and require full collateralization, resulting in lower activity compared to SBA 7(a) loans. At SBAlenders.com, we can assist you with securing an SBA 504 loan to support your New York business.

 

Which SBA loan is easiest to get approved for?

SBA loans of $150,000 or less from an SBA preferred lender are the easiest to get approved for. The application process is streamlined, with most lenders focusing primarily on the individual borrower’s credit score rather than the business itself.

 

What types of businesses are eligible for SBA loans in New York?

Most small businesses in New York are eligible for SBA loans, including those in manufacturing, retail, service, and agriculture. Certain restrictions apply, so it’s best to consult with your New York SBA lender or SBAlenders.com to confirm your eligibility.

Common Ineligible SBA Loan Inquiries we see at SBAlenders.com include:

  1. Passive Income Businesses: Businesses generating passive income, like rental real estate or apartment purchases, are ineligible for SBA loans, which are designed for active businesses. Hotels are eligible but AirBNBs are not.
  2. Leasing or Finance Companies: Businesses mainly involved in leasing or financing are not eligible for SBA loans due to their operational nature.
  3. Venture Capital or Private Investor Consortiums: Entities formed solely to invest in other businesses do not qualify for SBA loans. This includes general partners of special purpose vehicles seeking to leverage equity for investments.

 

How do I find an SBA-approved lender in New York?

Through our SBA Lender Match tool, we can introduce you to three (or more) SBA lenders who serve the New York market. All of the SBA lenders in our network are SBA preferred lenders, and the individual bankers work exclusively on SBA loans.

 

Can I use an SBA loan to buy a franchise in New York?

Yes, SBA loans can be used to purchase a franchise in New York or create a startup. In fact, SBA lenders prefer franchises over startups as generally the franchise has already demonstrated success in the marketplace. Your SBA lender can help you navigate the process and secure financing for your franchise purchase.

 

How can an SBA loan help my small business in New York?

SBA loans offer several advantages over conventional loans, making them especially attractive for acquisitions. They have no collateral requirements, no debt covenants, and offer longer repayment terms—10 or 25 years—which result in lower monthly payments. Although SBA loans generally have slightly higher interest rates, these benefits can help your New York small business manage cash flow, invest in growth opportunities, and reduce financial strain.

 

Can I refinance existing debt with an SBA loan in New York?

Yes, SBA loans can be used to refinance existing business debt under certain conditions, but in general one SBA loan can’t be used to pay off an existing SBA loan. This can help reduce your interest rate and improve cash flow as SBA loans have ten-year terms or 25 years if real estate. Talk to your SBA lender in New York to explore refinancing options.

 

How do SBA loan guarantees work?

SBA loan guarantees reduce the risk for lenders by backing a portion of the loan amount. This makes it easier for lenders to finance small businesses in New York that might not qualify for conventional loans. However, this guarantee doesn’t prevent the lender from pursuing the borrower in the event of a loan default. The lender is required to do so and will require all 20%+ owners of the business to personally guarantee the SBA loan.

 

What support services are available for small businesses in New York?

New York offers numerous support services for small businesses, including Small Business Development Centers (SBDCs), SCORE chapters, and local chambers of commerce. These organizations provide free or low-cost business counseling, training, and resources to help your business succeed.

 

Other FAQs about the best SBA lenders in New York

People frequently ask us if one of the banks above is 1) on the New York preferred lender list 2) an approved lender in New York, or 3) participating in the New York SBA Express lending program. All these questions revolve around whether a given SBA bank makes small business SBA loans in New York and can they process SBA loans quickly. The answer is yes, of course. These are not the small banks that only make a few SBA loans a year and do not understand the SBA 7(a) loan program.

We analyze thousands of SBA loans each year and rank lenders based on recent activity. We would be remissed if we did not mention that although many banks will only lend in certain geographies, there are a handful of extremely aggressive nationwide SBA lenders who will lend anywhere. These lenders understand the SBA program as well as anyone and move very quickly, so we recommend not limiting your search to your home state. If you utilize our lender match tool, we can find you suitable SBA banks based on your geography, industry, and company and size at no cost or obligation to you to save you valuable time.

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