Live Oak Bank Business Loans Review
Not disclosed online
$10,000 to $15,000,000 for Express or SBA loan
Two years for express loans
Not disclosed online
Pros and cons of Live Oak Bank
| Pros | Cons |
|---|---|
SBA Preferred Lender Personal, assigned business analyst Full business banking services available | Few financing details available online Two or three years of operational history required for most loans |
Live Oak Bank small business loans review
Live Oak Bank offers a variety of small business loans (including SBA loans, USDA loans, lines of credit and term loans) with a wide range of potential funding and payment terms. And as an SBA Preferred Lender, it can increase the speed of funding for SBA loans, as well as offer banking services like checking with treasury services, high-yield savings and certificates of deposits (CDs).
Live Oak also offers business analyst services during the duration of your loan — they can help with loan modifications and provide recommendations to grow your business based on experience and industry trends and benchmarks. Your dedicated business analyst may help you get the most out of your loan and gain new business strategies, which can be incredibly valuable for businesses with limited resources.
And if you’re in certain industries, you may be able to receive even more specialized help. Live Oak offers specialists in fields like auto dealerships, fitness centers, plumbing contractors, health care practices and veterinary practices — there’s even a DVM on staff to consult on veterinary loans.
- Relatively established businesses. Live Oak requires at least two years of operational history, depending on the loan type. Younger businesses that are established enough to qualify, but are still growing, can benefit greatly from the business analyst services.
- Businesses looking for SBA loans. As a Preferred Lender, Live Oak can approve you and provide funding for SBA loans faster than nonpreferred lenders.
Live Oak Bank small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| SBA 7(a) loans | Up to $5,000,000 | Up to 300 months | 12.50% to 15.50% for variable loans
15.5% for loans $25,000 or less 14.5% for loans $25,001 to $50,000 13.5% for loans $50,001 to $250,000 12.5% for loans above $250,000 Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA. | May be subject to guaranty and annual fees.Terms over 15 years may have prepayment penalties |
| SBA 504 loans | Up to $15,000,000 | Up to 300 months | About 3.00% Based on SBA guidelines | May be subject to guaranty and annual fees.Terms over 15 years may have prepayment penalties |
| Term loans | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
| Live Oak Express loans | $10,000 - $500,000 | Up to 120 months | Not disclosed | Not disclosed |
| USDA loans | Varies by program | Not disclosed | Not disclosed | Not disclosed |
| Lines of credit | Not disclosed | Not disclosed | Not disclosed | Not disclosed |
SBA 7(a) loans
The popular SBA 7(a) loan is the general-purpose workhorse for the SBA loan program. The maximum loan term length is 120 months for most business purposes, or 300 months if you’re purchasing business real estate.
The SBA sets the maximum interest rates and fees that lenders can charge, although lenders can charge less if they like. As a Preferred Lender, Live Oak Bank may be able to offer a quicker time to funding than a nonpreferred competitor.
SBA 504/CDC loans
Live Oak Bank also offers SBA 504 loans for qualified applicants. You can’t use these for working capital, but they are available for larger purchases like real estate and expensive equipment or machinery.
Like the 7(a) loans, the SBA sets guidelines for the maximum amount lenders can charge, but Live Oak Bank offers no information on its website about whether it offers loans below that maximum interest rate. But again, since it’s a Preferred Lender, you can quickly find out if you’re eligible or not and what rates you might have to pay.
Term loans
Live Oak also offers conventional business term loans, a typical business loan that isn’t backed by a government department like the SBA or USDA. Like an SBA loan, these can be used to acquire a new business or help fund an existing one.
There isn’t much information available about maximum loan amounts or rates for Live Oak’s term loans — you’ll need to talk with a representative to find out what the best funding option is for your business needs.
Live Oak Express loans
Live Oak Express loans may be helpful for small business owners who need access to funds quickly. These are term loans of $10,000 to $500,000 with flexible terms and repayment periods of up to 120 months. There are no prepayment penalties, and Live Oak also notes that this loan comes with transparent closing costs.
To speed up the process, there are simple documentation requirements during the application processes and no hard personal credit inquiries. These loans can be used for a variety of business needs like buying equipment or onboarding new staff.
Notably, while the name sounds similar to an SBA Express loan, Live Oak uses both SBA-backed and conventional loans, depending on your business. To find out what rate you’ll qualify for, you’ll need to contact the bank directly.
USDA loans
Live Oak Bank also offers USDA business loans for certain rural business projects. It offers funding for REAP and 9003 programs. So if you live outside of a metropolitan area, it’s worth reaching out to a banker to get more details on how Live Oak Bank handles these loans.
Lines of credit
A business line of credit differs from a loan, in that you can draw funds from an available balance and avoid interest payments when you’re not actively borrowing. Live Oak Bank mentions that it offers lines of credit on its website but, again, doesn’t provide any details on what rates it offers.
Live Oak Bank borrower requirements
| Minimum annual revenue | Not disclosed online |
| Minimum time in business | Two years for Express loans, though other loans may require three years |
| Minimum credit score | 650 for SBA loansExcellent credit for Express loans A FICO score of 800 or higher is generally considered excellent credit. Not disclosed for other products |
Live Oak Bank isn’t very prescriptive about the exact requirements you’ll need to get a business loan, but it does provide some guidance on what type of business owners make good loan candidates at least. If you’re a startup or a relatively new business, it might be better to focus on other lenders, but if you’re near (but below) these numbers, don’t let that stop you from reaching out to see if you may still be eligible.
Required documents
The documentation requirements will vary based on the type of loan you need. Most lenders require:
- Business plan
- List of business debts
- Voided business check
- Copy of your driver’s license
- Current business balance sheet
- Current profit and loss statement
- Most recent business bank statement
- Personal and business tax returns from the previous years
Keep in mind that Live Oak Bank may require other documents, too, depending on your business profile and the type of loan you’re applying for. Make sure to stay in touch with the underwriting team so you can quickly respond to any requests.
Alternatives to Live Oak Bank
| Live Oak Bank | Wells Fargo | Bank of America | |
|---|---|---|---|
| Minimum credit score | 650 | 680 for unsecured lines of credit, not disclosed for other products | 700 for unsecured loans or lines of credit, not disclosed for other products |
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Live Oak Bank vs. Wells Fargo Bank
Wells Fargo offers more diverse options for business lines of credit, including distinct options for established businesses with two years in business and options for those with less than two years of operational history.
Like Live Oak Bank, it also has loans for health care practices, including dental, veterinary, and medical offices, in addition to basic SBA loans like 7(a) and 504 loans.
Unlike Live Oak, however, Wells Fargo offers more transparent details about starting interest rates online, which can be helpful when comparing lenders.
Read more in our Wells Fargo review.
Live Oak Bank vs Bank of America
Bank of America, like Live Oak Bank, is an SBA Preferred Lender and offers similar SBA loan options. It also offers transparent details about both secured and unsecured lines of credit and conventional term loans, with competitive interest rates at 7.00% and 8.50% for secured business loans and secured lines of credit, respectively.
Bank of America does have more stringent minimum credit score requirements compared to other lenders, but not by much, and their secured credit line for businesses under six months old can provide essential funding to new business owners who may not qualify with some other lenders.
Read more in our Bank of America review.