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Newtek Small Business Finance Small Business Loan Review

Anne Miller

Anne Miller

Senior Author

Anne Miller

Senior Author

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Newtek Small Business Finance Small Business Loan Review

Newtek does traditional SBA loans but provides a new kind of service that specializes in SBA loan packaging through its wholly owned subsidiary banc-serv Partners. Newtek is not a direct lender, except through other banks or their subsidiaries.  This company seems to offer its expertise to facilitate anyone in the process of trying to secure an SBA

Understanding Your Loan Options

With their Business Lending Program, they are pitching their services to direct lenders who either do not enjoy the depth of expertise or are distracted by other banking business, so they need to outsource the SBA work. Newtek and banc-serv can take on one or more of the following on behalf of direct lenders: structuring & eligibility; credit analysis; packaging & closing compliance; auditing; secondary market management; and portfolio compliance & servicing.

The two major SBA partnership loans are available through Newtek including the 504 unsecured loan program that focuses on real estate and machinery funding and unlike 7(a) loans, 504 loans include job creation requirements: Manufacturers, for example, must create or retain one new job for each $100,000 of the loan, while all other industries must create or retain one new job for each $65,000 of the CDC 504 loan.The 7(a) program that requires security but offers the same real estate loans for variable rates and 20-25 year terms.

Speed of Implementation and Loan Duration

Since Newtek offers many different kinds of small business loans in the form of short term credit arrangements like merchant services all the way to term loans. Different credit programs call for different financial information and take differing lengths of time to prepare. Newtek also offers lines of credit for small businesses, but there is no mention on their website about how long that process takes.

Newtek doesn’t have any more specific information on how fast their loan application process is or when an applicant should expect a decision. We can tell you from experience that if you’re applying for one of their SBA products, then the best case scenario will be 30 days, but that will only happen if you have all of your paperwork ready to go before you start the loan application process.

Fine Print and Final Thoughts

Too many cooks can spoil the broth and this broth has at least three. This is a strange company that seems to prefer banks and lending institutions as customers rather than individuals.

Anne Miller


Anne is a Senior Author for SBL. She began her career as an independent consultant for local businesses after graduating with a BA in Management. Since that time, she’s expanded to writing as well as consulting to spread helpful knowledge to small business owners across the country.

 

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