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25 User Reviews

3.2

Overall Score

Established in 1998, Newtek offers small business financing directly to borrowers and also provides business lender resources to help other lenders scale their current lending capabilities. 

Newtek claims to be all about lending solutions, not lending products. Each loan is customizable according to need and may include a combination of a term loan and a line of credit. Therefore, it offers flexibility to borrowers who need a custom business loan. 

The company also offers loan portfolio underwriting, servicing, and closing support for other financial institutions. 

Find Newtek reviews below to see what customers have to say about the business loans provider.

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The Good

  • Lender Resources 
  • Customer Service 
  • Loan Amounts and Uses
  • Asset-Based Financing

Lender Resources

Newtek is unique in its ability to service other lenders, not just borrowers. Newtek’s business services beyond direct-to-consumer lending illustrate its breadth and depth of financial resources. 

If you’re a lender, you can expand your offering of lending products as a lender service provider (LSP), fully outsource or scale your back-office SBA team to Newtek, or refer loans you can’t or don’t want to take to Newtek while earning a referral bonus with Newtek’s referral program. 

Additionally, Newtek can assist with the following for small lending businesses: 

  • Structuring and eligibility
  • Credit analysis
  • Packaging and closing compliance
  • Auditing
  • Secondary market management
  • Portfolio compliance and servicing 

Customer Service 

Newtek’s forte with customer service is individualized attention to each customer. 

When you finance a loan through Newtek, you will work with the same lending specialist throughout the loan process, so you don’t need to worry about your account being passed from person to person. Your specialist will walk you through each step, including completing all required documentation and forms for you. 

Not only that, but your specialist will help you, as the business owner, pinpoint areas you can maximize your funding while minimizing risk based on where your business can cut costs and grow. If you can benefit from multiple loan solutions, such as a line of credit and a term loan, they will create a loan solution that may consist of both financing products that address both short-term and long-term funding needs. 

Newtek provides customer service via live chat, email, phone, and call-back requests for any customers or prospective customers or business clients. 

Loan Amounts and Uses  

Newtek offers term loans up to $10 million, enough to meet the needs of most small or midsize businesses. Newtek claims it can offer longer repayment terms than a bank or credit union, which allows it to lower payments and provide more attractive rates than banks.

Term loans have limited or no repayment penalties and have payback terms ranging from 7 to 25 years. 

Lines of credit go up to $3 million for shorter-term cash needs. 

Either type of small business loan can be used for the following needs: 

  • Expand or acquire a business  
  • Increase working capital
  • Increase cash flow  
  • Open a new location
  • Invest in marketing or eCommerce  
  • Purchase inventory or equipment  
  • Purchase owner-occupied real estate
  • Renovate owner-occupied real estate  
  • Leasehold improvements  
  • Refinance existing business debt   

Asset-Based Financing

Secured by accounts receivable or inventory, Newtek’s asset-based line of credit model is more flexible than a traditional loan, requires less rigorous underwriting compared with conventional financing, has competitive interest rates, and gets you your funds in two weeks or less. 

For accounts receivable, financing, you can expect the following: 

  • Lines from $50,000 to $3,000,000
  • Get cash now for invoices due 30, 60, or 90 days out
  • Up to 80% advance rate
  • Renewable 1-year term

For inventory financing, you can expect the following: 

  • Lines from $50,000 to $500,000
  • Most non-perishable inventory qualifies
  • Up to 50% advance rate
  • Renewable 1-year term
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The Bad

  • Loan Program Unknowns 
  • Strict Eligibility Requirements 

Loan Program Unknowns

For any ballpark figures regarding business lending rates, you’ll need to contact the company directly. 

While Newtek claims to have competitive interest rates for lines of credit, it doesn’t provide sample interest rates. While rates are highly individual and based on creditworthiness and other factors, the case studies provided don’t indicate the rates for which the customers qualified. 

In addition to interest rate and fee information, businesses can benefit from having the following information added to the business loans section of Newtek's website:

  • Minimum credit score needed to qualify
  • Minimum annual or monthly revenue required
  • Collateral required for secured loans

Strict Eligibility Requirements 

Newtek is more strict than many other lenders in regards to who it will lend to. No startups, nonprofits, or new businesses can borrow with Newtek. The financial performance and years of experience requirements are as follows: 

  • Existing businesses with 2-3 years of tax returns
  • U.S.-based businesses that operate for profit
  • Businesses with repayment ability from earnings
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The Bottom Line

Businesses in the fields of manufacturing, wholesaling, services, retailing, general and heavy construction, and special trade construction can borrow with Newtek along with other for-profit businesses. 

However, they must have at least two years of tax returns, so newer businesses are ineligible for funding. You’ll need to look into other lenders if your business falls into that category. 

In addition, Newtek claims it can offer attractive rates for its financing options, but does not provide any examples of what interest rates it charges or the cost of any application fees businesses can expect to pay if they get a loan with Newtek. To find out about the fees and terms of the loans available to them, business owners need to go through the application process, but they could benefit from knowing this information in advance of applying for the loans so they can compare the costs of Newtek's loans to its competitors.

To determine whether the interest rates and fees Newtek charges for its loans are affordable, business owners need to apply for pre-qualification and speak with a Newtek employee. If you have the time to go through the pre-qualification and application process, it may be worthwhile to see if Newtek's costs are more competitive than other lenders' costs for your business financing needs.

Find Newtek reviews below to see what customers have to say about the business loans provider.

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Star Rating

1.3

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25 Reviews

Review Breakdown

5 grade

4%

4 grade

0%

3 grade

4%

2 grade

0%

1 grade

92%

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Dave Matli Greenbrae, CA

Applied for a PPP loan in January 2021 for my struggling small business. After uploading all documents we got an approval and an SBA number. But Newtek never posted a promissory note nor updated me on status so every week or two my wife or I would call to inquire about our loan status. Now - beginning of June after being passed off to multiple "loan specialists" I'm told our loan was cancelled - and the program is over. Thanks to Newtek our struggling business is even more in the hole as we kept expenses that we thought the loan would cover (as it was intended to do). But now we're screwed - and no one at the company seems to know who to talk to, why it was cancelled after it was approved or anything else. Do yourself a favor and AVOID THIS COMPANY!!!

2 weeks ago

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kimberli eicher Bend, OR

Applied for 1st draw PPP loan in March 2021 through Newtek, and since the middle of March, my loan page just says "lending". I can't get anyone to explain what "lending" means exactly- have I been approved? Am I going to receive any funding, and if so, When? There's no easy way to contact anyone- even to cancel my loan- so I don't think the app I put in through Womply will be approved. This is heartbreaking and a huge financial burden because I cannot resume operations with my small business unless I receive the PPP funding. I agree with the previous comments that they are a scam; the direct damage they are doing to so many small business should be considered theft. All of us who are failing to get PPP funding because of Newtek should Seriously consider filing a CLASS ACTION suit. I am out of hope at this point, but I simcerely wish the best of luck to all of you who are still struggling with this "company"- I do hope your situations end up working out!

4 weeks ago

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Nick Garrett Salt Lake City, UT

I applied for a PPP Loan on February 4th 2021. It is now May 3rd and I still have not received any funding for an application that was approved by the SBA two days after applying. Either this company is completely incapable of handling their workload or is a corrupt bank earning interest off of the loan funding they have received but refuse to disburse. I have called in weekly and my questions and concerns are only met with assurance that I need to be patient and that I'm in the final stages so my money should be on its way. I was even approached by my credit union asking if I'd like to apply through them like I did in the first round, but Newtek pleaded with me not to cancel and told me again it would only be a few more days. Search "Newtek PPP" on Twitter and you'll find dozens of others in the same boat. If you are in desperate need of a loan, look elsewhere.

1 month ago

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ak San Marcos, CA

The worst PPP lender experience. I applied for a 1st round PPP loan early Feb 2021, SBA funded a fews days later..HOWEVER Newtek failed to fund my loan after repeated, calls and inquiries and false promises. I withdrew my application earlier this month (April 2021). Applied thru BlueVine and was funded within 5 business days. My biggest frustration is that because of Newteks filure to fund an already SBA approved and funded loan, my chance of getting the second PPP loan is slim to none since the deadline is May 31st and I am supposed to wait 8 weeks to reapply. Had I used BlueVine back in February this would be a non issue. The worst of the worst. How hard is it to send closing documents after all funding was in place and approved.If you are still waiting for Newtek you may want to withdraw your application and apply elsewhere.

1 month ago

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Keith Youngsville, LA

Absolutely the worst company to ever do business with. I don't think anyone at this company knows what they are doing. You give them everything they need for the PPP get the approval letter from the sba and they can't do anything. It's a scam company do not use them. I filed in March and here it is coming up on June and now they say after 100 phone calls and emails they don't have everything they need. Where is what I sent them? Where did it go?

1 month ago

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Kathy Runnels Cibolo, TX

I regret that I can’t give Newtek Business Solutions a negative rating because they deserve it. I applied for a PPP loan on 1/19/21, finally received Promissary Note when SBA funds were depleted in May. Then it was for the wrong amount. They would not return calls, texts or emails. Reported Newtek to my congressman and he couldn’t get results. Complete failure in every way!!

1 month ago

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Mai Long Beach, CA

If I could give them 0 stars I would. I never write reviews but I'm writing this hoping to help other business owners avoid making the same mistake I made when I applied for my PPP loan through Newtek. DO NOT go with Newtek for your PPP loan. I repeat it, DO NOT go with them. It's terrible! They lock you in immediately and then you're stuck. The process doesn't move along, it's always "waiting for review". When you call (and good luck, because you'll be waiting on the phone for 20 minutes until someone answers the call) no one can give you a straight answer. So, you're still pending, waiting. A week ago I called to withdraw my application to apply through Womply. Again, it has to go through a process that is not moving along... even cancelling is a freaking nightmare because it has to go through a processor and they probably don't want to let go of the application because they profit from this. I've complained this morning but all is futile. You're stuck in limbo, time keeps going by with nothing happening, you're struggling financially, and are hoping the PPP will help you stay afloat, and these people just take advantage of the situation. It's a disgrace. It's truly a disgrace that they operate the way they do. This is what's wrong with the system in this country.

2 months ago

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Tanna Harris Douglasville, GA

Horrible Experience DO NOT use.. Don't waste your time. Put in application for PPP, sba approved and for 2 months they toyed around, never returned emails or phone calls. I finally have withdrawn my application, but now must look for new lender within limited time. Unprofessional, rude, unconcerned, not business oriented to say the least.

1 month ago

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Jan Brown Snellville, GA

We applied for a PPP loan on Jan 14,2021. As of April 5, 2021, we still haven’t received any funds. Businesses have already been able to get a second round of funding and we’re still waiting for the first one. Lots of run around, hear different information from their representatives. They lock you in and keep you stuck so that you can’t apply elsewhere. We requested to cancel so that we can go elsewhere.

2 months ago

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Nathaniel J Frank Oshkosh, WI

I did a large scale SBA loan with Newtek and found them to be professional and courteous. We had an excellent account manager who did a great job communicating and was extremely fun to work with. SBA loans are a lot of paperwork, I mean, it's a federal loan and that is not Newtek's' fault. So, if you're going for a SBA loan make sure you know just how much paperwork is involved. Newtek helped me navigate through the paperwork and frustrations therein. I cannot say enough good things about this company and if you are well educated in the process, respectful, and willing to put in the effort, I believe anyone will find Newtek a great resource to help you grow your business.

1 year ago

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Chris May Round Rock, TX

Very nice web portal. But mixed results with agents assigned to us. Our company used Newtek loan services for our covid PPP loans. The first was handled very well. The second was a long process due to multiple cases of absent communication via the loan officer.

4 months ago

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Jay Bartels Lutz, FL

This company submitted an old version of the SBA Guidelines for my PPP Loan to the SBA and have made no effort to help me straightene it out. The sent me $300 rather than $6800. Their customer service is terrible.

2 months ago

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INB Enterprise ,

They will rip you off! Took them 4 months to approve!! Prime + 6.5 % !!! (9.5 total as of 2021) Variable! Then they will take another $700 upfront in fees! SHAME on them for taking money from desperate SMB owners!!!

3 months ago

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Adam Munoz Fort Worth, TX

Strung along Changed requested ppp loan amount Not sure if I am or am not a paying customer of Newtek. Horrible experience

2 months ago

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Cari-Anne James Corondoni-Felix Albuquerque, NM

Wow! Received three different approval amounts for ppp Loan. The last amount was hysterical.. a few hundred dollars. This took about a month. Even though My client had an approval for 30, 000.00-it must be illegal. Called SBA and they said they must fund the letter of approval that they gave my client. They wouldn’t respond to phone calls or emails. Finally received a response stating you are welcome to apply elsewhere even though they knew that most places had used up their funds. They literally are sitting on these loans...or money? I believe they requested all of these SBA loan numbers and approved loans under false pretenses. They should be investigated by the government. It’s a tragedy.

1 year ago

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Amy Buck New Braunfels, TX

My credit union gave over our PPP loan to NEWTEK, as the 3rd party processor. I applied 6 weeks ago. Approved with NEWTEK 4 weeks ago, and SBA 3 weeks ago. Still have not received my PPP. When asked if NEWTEK was sitting on our approved money from SBA, earning interest, they would not answer. Small businesses are going under waiting to be funded and NEWTEK is not releasing the approved money!!!! Criminals! I have many friends that own small businesses and PPP funds in their account within a week of applying!!! Will be contacting news stations and social media if it does not come through by the end of this week! Beware!

1 year ago

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Rebecca Fischer Colorado Springs, CO

I was referred to Newtek by my credit union for the PPP loan application. I stated with my banker on March 31st. Phone calls, texts, finally on April 10th after conversation with my banker I got an email saying an application email would be coming. I got one on April 14th, filled out all my application and documents and then waited, and waited, my banker tried to contact them as well and no response to my requests. Finally got an email after the new second round of Applications were already opened a different representative saying he got reassigned my case on April 27th. They never included the health insurance benefits I pay for employees. I sent to LEndio as a back up and was approved with application under 30 hours, they have a great website and put my application in on April 27th when it opened up. Horrible trying to navigate Newtek's website, VERY uninformative....Stay AWAY from Newtek!!

1 year ago

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Tahota Spokane, WA

Newtek was recommended by our credit union who does not do SBA loans. We put in an application request on their site and they sent us a letter that said they would be sending us a link to the application shortly. They never did. I followed up numerous times. At first they responded saying they would send it soon. Then they stopped responding all together. It was a huge waste of time and a terrible experience. I don't even know how they stay in business. We ultimately went somewhere else for the same loan and the process went without a hitch. I would never do business with NewTek for any reason.

1 year ago

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Tom Cedar Springs, MI

DO NOT ATTEMPT BUSINESS WITH THESE PEOPLE! Criminals. Absolute criminals. We gave them $1300 in start up money that was billed as "earnest money" but they changed the vernacular to "deposit" and then stole $1000 from us when the loan failed to go through. Their reasoning was for "third party fees". When confronted I received nothing but barriers. They were unhelpful to work with from the beginning. They will make it sound like they can get this done for you immediately, and actually do nothing. Their computer system must be the most glitch-filled monster since Windows Vista since EVERY time we called, it was "down for maintenance" and we had to "wait for it to come back up" to get an answer to a question. Our loan was denied on November 13th, it is today December 19th, and we have yet to actually see a dime of the money they said they would return. So in honesty, they have stolen our entire earnest deposit. When we complained to the BBB, they told us we were out of luck because they had a contract and the BBB agreed. I say again, DO NOT ATTEMPT BUSINESS WITH THESE PEOPLE!

1 year ago

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Devontee Delaney Houston, TX

My experience with Newtek was horrible I got approved last year right after thanksgiving I was supposed to close before Christmas that never happen by then the government went down when the government opened up I still waiting 5 more months finally we were trying to close the day of funding Newtek pull out of the deal after I’ve add all this insurance that wanted me to have for the equipment I was purchasing that cost me 35,000k down out of pocket vacant land insurance on my property I used for collateral life insurance for the money I was getting that I never received by the way the day before funding the pull out of the deal with no valid reason why and stop completely talking to me now I in a worse situation by dealing with them I wouldn’t recommend there’s representative or horrible worst experience I ever had

1 year ago

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Mike Patel Mobile, AL

We applied for a 7A Hotel business loan 4 months ago, they approved us 4 months ago providing we provide all closing requirements which we did> they strung us along only to make us occur thousands of dollers in Appriasels, surveys, insurance, Attorney fees only to put a hold on your loan forcing you to go somewhere else . They are not forth coming in their intentions from the get go. Please do not trust them!!!!

1 year ago

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Will Pflaum Stuyvesant Falls, NY

I took out a loan to the small business administration administered by Newtek. They were extremely sloppy or something, never sending me an invoice so I have no idea how much to pay or where to send a check for my variable interest rate loan. When a check from my online banking at my local bank went missing they assessed a ton of fees and penalties. When I objected to these quite astronomical penalties they moved immediately to close my loan and give me a bad credit rating and get their 85% back from the government. Shady operation.

2 years ago

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Joseph Zumwalt Kalispell, MT

I started the process of getting a loan through newtek, to buy a distribution route with Mission Foods, 5 months ago. The agent assured me that it was in the bag. 4 months into the process, the agent informed me that they had forgotten to check the SBA franchise registrar beforehand. They kept $1200 of my money, and told me, "whoops, yeah, we should have done that".

2 years ago

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Queen Bee Picayune, MS

They don’t view your documents or communicate with you at all. I thought the ppp was a two week process.It has been 2 months.I hope this is a real legal business. 2 more weeks and I’m contacting the FEDS. I need my money so I can generate revenue.But it is really scary for a company to be running around with people personal information

1 month ago

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MICHAEL HUBER

Worst financial company ever! They lied to us multiple times and continue to do so. Gave us approval on three loans and then backed out on two of them. We would not have done the one without the others. Stay away from these guys. Many, many better options out there.

1 year ago

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