SmartBiz Reviews

If you're an established business owner with a strong credit background and you're in the market for an SBA loan, SmartBiz could be an excellent fit. Its streamlined process, access to multiple lenders and specialized support make it an attractive option for navigating the SBA loan landscape.

But if your business is newer or has credit challenges, or if you're seeking a broader range of non-SBA financing options, you might need to consider other lending platforms.

SmartBiz specializes in SBA loans, but it also offers term loans and lines of credit.

Overview of SmartBiz products

SmartBiz’s marketplace is made up of several lenders, so the exact annual percentage rate (APR) will depend on which company you get matched with, along with your borrower profile.

Each of Smartbiz’s products has its own rate structure:

• SBA loans: 11.25% to 12.25% APR as of publishing. This is calculated as the Prime rate (currently 8.50%) plus an additional 2.75% to 3.75%.
• Term loans: 9.99% starting APR as of publishing. The exact rate can vary based on the loan amount, term length, creditworthiness and other factors.
• Lines of credit: 15.31% to 35.31% APR as of publishing. This rate is based on the Secured Overnight Financing Rate (SOFR), currently at 5.32%, plus an additional 9.99% to 29.99%.

There are no SmartBiz fees, but you will most likely pay closing costs or origination fees, depending on which loan and lender you go with. For instance, SBA loans have closing costs of around $450 and a processing fee of up to $2,500. Lines of credit have a 6% origination fee and closing costs of $750.

You may also pay prepayment penalties or wire transfer fees, depending on the lender.

With SmartBiz, you fill out one application to access multiple lenders. Here’s how it works:

1. Visit the SmartBiz website and start the application process online to get pre-qualified. You'll provide basic information about your business.
2. If you meet the criteria, SmartBiz will connect you with its network of lenders for loan offers.
3. Compare the terms of each loan offer and choose the one that best fits your needs.
4. Go through the final approval process with your chosen lender. This will involve submitting additional paperwork, such as bank balances, income statements, balance sheets and past net income. For SBA loans, you might need Articles of Incorporation, proof of insurance, a business plan and possibly lease agreements.
5. Once everything is approved and finalized, the loan funds will be disbursed to your account.

For SBA loans, a minimum credit score of 650 is generally required. For non-SBA loans, like term loans or lines of credit, the minimum credit score might be around 680.

Your business should be U.S.-based and operational for at least a few years. New businesses might find it challenging to qualify. You should have a clear record, free of recent bankruptcies or outstanding tax liens.

SmartBiz isn’t the only marketplace where you can find funding for your company’s needs. Two more competitors in the space are Fundera and Lendio, and while all three platforms have a network of lenders, the composition of these networks can differ.

SmartBiz’s network is heavily skewed toward lenders that specialize in SBA loans. Fundera and Lendio have more diverse lender networks, ideal for businesses seeking a broader range of non-SBA loan options.

SmartBiz was founded after the 2008 financial crisis with the mission to streamline the often complex and time-consuming process of applying for SBA loans. Since then, the company says its technology-driven platform has made it easier for over 230,000 entrepreneurs to access more than $9 billion in funding.

Unlike many other loan marketplaces that offer a wide range of financial products, SmartBiz specializes primarily in SBA loans. This focus allows it to offer support specifically tailored to the SBA loan application process.