The 8 Best SBA Lenders for 2021 - Investopedia

The 8 Best SBA Lenders for 2021 - Investopedia


The 8 Best SBA Lenders for 2021 - Investopedia

Posted: 04 Jan 2021 08:46 AM PST

Frequently Asked Questions (FAQs)

What Is an SBA Loan?

The SBA makes private lenders' loans more affordable and attractive by guaranteeing a significant portion of the loan amount. Because the SBA's guaranty substantially reduces the lenders' risk of default, they are willing to make SBA loans with lower interest rates and fees, longer terms, more flexible qualification requirements, and/or lower down payment requirements. 

SBA loans come in various flavors, but by far the most prominent is the basic 7(a) loan. It can be used as working capital; to acquire land; to purchase, construct, renovate, or expand buildings; to purchase supplies, inventory, or fixed assets; and even to start or purchase a new business.

Among the other common SBA offerings are smaller loans called microloans, and larger loans with longer terms called 504 loans, which are often targeted for investment in fixed assets and real estate.  

What Is an SBA Preferred Lender?

To offer SBA loans, a financial institution or organization must become certified as an approved SBA lender. But there is another tier of lender status within the SBA program, and it has a big impact on the borrower.

Some institutions are elevated to the Preferred Lender Program (PLP). These lenders have a successful track record of processing and servicing a large number of SBA loans and have demonstrated their solid understanding of effective SBA loan underwriting. Consequently, they are granted the status of Preferred Lenders, which allows them to do their own loan approvals in-house and get a streamlined approval from the SBA to finalize the loan.

In contrast, standard SBA lenders must send their applications to the SBA for underwriting and approval taking as much as a month to review. Since most business owners are anxious to have their loans approved and funded as quickly as possible, choosing a Preferred Lender will deliver the fastest turnaround.

Who Should Get an SBA Loan?

Businesses that meet eligibility requirements that need funding should apply for an SBA loan. Eligible businesses must be incorporated as a for-profit enterprise, do business (or plan to do business) in the U.S. or its territories, demonstrate that there is reasonable owner equity to invest in the business, and show that other funding sources have been used or attempted before seeking SBA funding.

On the flip side, some business owners should not waste their time even exploring SBA loan options. If you have bad credit, have defaulted on a government loan in the past (including a government-backed student loan), or have a criminal record, you are highly unlikely to be approved for an SBA loan of any type. Additionally, some business types are ineligible, such as those involved in gambling, illegal activities, and pyramid schemes, as well as real estate investment firms, religious organizations, and nonprofits.

How We Chose the Best SBA Lenders

We began our research by looking at the past year's most active SBA 7(a) lenders, filtering the list to about the top three dozen by both largest amount loaned and highest number of SBA loans processed.

We then filtered by Preferred Lender status, so as to avoid leading readers to any SBA lenders whose process would require an extra month in the timeline for SBA loan approval.

Next, we researched the geographic range of the remaining lenders, opting for those providing nationwide loans or, alternatively, covering as many states as possible. Some analysis was then conducted to compare program features, loan limits, number of available financing choices, the steps involved, and (via the SBA's annual lender activity report) what the average interest rates were from the lenders last year.

Chase Business Checking Review 2021: - The Dough Roller

Posted: 04 Jan 2021 09:32 AM PST

A checking account is like a financial clearinghouse. It serves as the center of your financial life. Any money you make arrives in your checking account and all the money you spend comes out of your checking account.

Businesses, just like people, need access to banking services like checking accounts. Business owners can use business checking accounts to keep their personal and company finances separate and many banks offer specialized, business-focused features in their business checking accounts.

Chase is a large bank that offers both personal and business banking services. It offers three different types of business checking accounts, each serving different size businesses.

Product Features

These are some of the top features of Chase's business checking accounts.

Three account types

Every business is different, which means every business has different banking needs.

Chase offers three different business checking accounts so it can best meet each company's banking needs.

The Chase Business Complete Banking SM is the company's basic business checking account. It offers basic features and the easiest ways to avoid the monthly fee.

The Performance Checking account is designed for medium-sized businesses that need to make more frequent transactions, that work with large sums of cash, and that want to earn interest on their account balance. In exchange, account holders must meet more stringent minimum balance requirements to avoid fees.

The Platinum Business Checking account is Chase's premier business account, offering the most features and fee-free deposits and transactions. However, account holders have to maintain a $100,000 balance to avoid fees, meaning this account is designed primarily for large businesses.

Point of sale systems

One thing that any successful business needs is a way to get paid for the goods and services it provides. Even if you have the best products in the world, you can't make money if people can't pay you.

Chase offers point of sale solutions that you can use with any of its business checking accounts. The Chase QuickAccept tool lets you accept both credit card and debit card payments with an easy to understand fee structure and same-day deposits of the payments you receive.

You can install the app on your phone or tablet, which means you don't have to buy any additional equipment to accept payments for your business.

Online bill payment

Business, just like people, have bills to pay. Whether it's paying your employees or paying invoices submitted by suppliers, your business will have to send money to other people from time to time.

Chase offers multiple options for both sending and receiving payments. Chase's online bill payment service has a few business-focused features, making it easy to track your payments in progress and your bills so you can be sure to never miss a due date.

The company also offers an online bill payment guarantee. Chase guarantees that your bill payments will always arrive by the time they were scheduled to arrive. If an error by Chase causes you to miss a due date and incur a fee, Chase will pay the late fee for you.

Earn interest on checking balance

Most checking accounts don't pay interest on the money you have in the account, but the Chase Performance Checking and Platinum Business Checking accounts do offer interest. You can speak with your banker to ask about the different options.

These days, interest rates are low so you probably won't earn huge amounts from the balance of your checking account, but every little bit helps.

Business savings and lending services

One of the benefits of banking with Chase is that it is a large, well-known brand that offers a variety of banking services. If you like your experience with your Chase checking account, odds are good that you won't have to find another bank if you need other services, like credit cards or loans.

Related: Best Small Business Loans 

Business credit cards are a great way for business owners to finance smaller purchases over the short-term and give employees who need to make business purchases a way to do so without complicated reimbursement arrangement. Chase also has generous rewards programs if you use its business credit cards.

Chase also offers loans and lines of credit to companies large and small, giving you a way to finance an expansion of your company or the money you need to tackle other projects.

Related: Best Small Business Credit Cards

Pricing and Fees

The pricing for Chase's business checking accounts differs based on the type of account you open.

The Complete Business Checking account charges a $15 monthly fee, which you can avoid by maintaining a $2,000 balance, making $2,000 in purchases on your Chase Ink card, receiving $2,000 in deposits from eligible Chase Merchant Services (like QuickAccept), or linking a Chase Private Checking account.

The many ways to avoid the monthly fee make this the best option for smaller businesses.

The Performance Checking account charges a $30 monthly fee which you can avoid with a $35,000 balance.

The Platinum Checking account charges a $95 monthly fee which you can avoid with a $100,000 balance.

Some of Chase's account services also involve fees. For QuickAccept transactions, you'll pay 3.5% + $0.10 per key entry transaction and 2.6% + $0.10 for card reader transactions.

You'll also pay $0.40 per transaction (deposit, withdrawal, ACH transfer, etc.) you make in excess of each account's free transaction limit.

Signing Up

Opening a business checking account with Chase is just like opening an account with any other bank. Visit the company's website, choose the type of account you want to open, and fill out the application. During the application process, you'll be asked for some basic information about yourself and your business.

You'll also have to link another bank account if you want to fund your business account with an online transfer. If you have an existing personal bank account at Chase, they make this process easy.

You can also open the account in-person at a branch. The application process will be similar in-person or through your computer.

Learn More: How to Open a Business Bank Account

Mobile Support

Chase offers one powerful mobile app that you can use to manage all of your Chase accounts in one place. This includes business and personal bank accounts, credit cards, and loans.

The app is easy to use and has a sleek interface. You can accomplish almost any task you need to through the app, including transferring money between accounts, paying bills, setting up automatic transfers, and accepting card payments from customers.

Related: Best Mobile Banking Apps

Security

When it comes to your money, security is a top concern, so you want to know that the money you keep in your Chase business checking account will be safe.

Chase uses state of the art encryption and internet security tools to protect your personal information and your money. The same is true for its mobile application. You can also set up multi-factor authentication for additional account security.

Related:  Is Online Banking Safe?

Customer Service

Chase offers many ways to contact customer service when you need help. Some of these options are available 24/7 while others have more limited hours, but there's always a way to get the help that you need.

The simplest way to get help is to call the company's support line. Assistance is available 24/7.

If you'd rather not chat with someone over the phone, you can send a secure message through your account portal any time of the day or night. Chat support through the company's Twitter account is also available from 7 AM – 11 PM Eastern on weekdays and 10 AM – 7 PM Eastern on weekends.

Chase also accepts support requests through the mail and of course, you can visit a branch to speak to a banker anytime a branch is open.

Related: Best ATM Locator Apps

Pros and Cons

There are both benefits and drawbacks to consider before opening a Chase Business checking account.

Buy now, pay later plans take a bite out of credit card purchases - Pittsburgh Post-Gazette

Posted: 28 Dec 2020 03:15 AM PST

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