Founded in 2008 with the purpose of innovating traditional banking processes, Live Oak Bank provides small business loan options to business owners in niche industries. It is one of the largest business loan processors in the United States, with a strong portfolio of small business lending products. Live Oak Bank is a preferred Small Business Association (SBA) Lender, so you can get an SBA loan, a USDA loan, or a commercial loan.
Live Oak is also a financial institution offering personal and business banking services. So alongside a business loan, you can utilize this online bank for your personal savings account, business savings account or high-yield CD account.
Live Oak Bank has loan solutions for the following financial goals:
With Live Oak Bank, you’ve got lots of options in regards to loan type and amount. The loan amounts available vary by product, but with an SBA 7(a) loan you can get up to $5 million and with an SBA 504 you can get up to $15 million.
Loan terms can go up to 25 years. Equity requirements and interest rates vary depending on borrower qualifications like credit score, revenue, and time in business.
Notably, the company has competitive expertise and recognition surrounding SBA loans: In 2020, Live Oak Bank was the nation’s top SBA 7(a) and USDA commercial lender by dollar amount.
Live Oak Bank focuses almost exclusively on providing customers with access to SBA-approved loan products, which means they are more difficult to qualify for but significantly cheaper in the long run when you take interest rate into account. These loans include the standard SBA 7(a), 504, and micro-financing loan programs.
With each area of niche business, Live Oak Bank provides customers with account managers who specialize in their industry. The business advisory group at Live Oak Bank has a servicing director for each of the niche markets served. Live Oak Bank has specialized in veterinary practices,agriculture, pharmacy, healthcare, and other industries.
Construction financing is another one of its specialties. The company facilitates all documentation throughout the closing and construction disbursement process. Then after a construction loan closes and construction begins, the Live Oak Bank team walks borrowers through the process, working directly with the approved contractor and architect on construction-related items.
The company’s portal technology simplifies its loan process from application through funding. From the portal, you can upload documents securely, fill out outline forms, and electronically sign documents.
The portal has real-time transparency so customers know where they’re at in the approval process and what is happening with each step.
The customer service relationship doesn’t end when the loan is funded. With Live Oak Bank, you’re given a devoted business analyst who will share detailed financial analysis and guidance throughout the life of your loan.
Live Oak Bank allows for huge loan amounts, up to $15 million, but cannot cater to businesses needing small loan amounts. Loans start at $150,000.
There is very little support on the website for initiating the loan process. The only form that is online is a referral form, that lets the bank reach out to potential customers. There is also not a lot of information for the turnaround of the loan approval and access to funds.
Typically, the SBA loans can be approved within 36 hours, but in some instances, it can take businesses as long as 30 days to access the funds, depending upon the type of SBA loan purchased. On average, clients will have funding within a week, but it may take longer.
While there are not a lot of Live Oak Bank reviews in our repository, the company has not yet responded to the negative reviews referencing issues with the application process and construction loan protocols.
Robert Brentwood, CA
4 years ago