In 2021, Wilmington-based Live Oak Bank was once again named the most active lender of SBA 7(a) loans for the sixth consecutive year. According to the U.S. Small Business Administration, this is a significant achievement that demonstrates Live Oak’s commitment to supporting small businesses across the country.
A 7(a) loan is a popular business loan program offered by the SBA, which can be used for various purposes such as refinancing, acquiring or improving real estate buildings, or obtaining short- or long-term working capital. With its reputation as an active lender in this program, Live Oak has established itself as a trusted partner for small business owners seeking funding opportunities.
During the SBA’s fiscal year that ended on September 30th, Live Oak Bank lent out $1.8 billion in SBA 7(a) loans, making it the top lender by dollar amount nationwide. This represents an increase of almost $50 million compared to the runner-up, Huntington National Bank in Ohio, which lent $1.37 billion during the same period.
While Live Oak had the highest number of loans and largest average loan size among its peers according to the SBA, it did not have the most loans nor the largest average loan size overall. However, this does not detract from Live Oak’s impressive achievements in this area.
Standard 7(a) loans typically have long repayment periods and low interest rates, making them highly sought after by small business owners looking for funding opportunities with manageable repayment terms and favorable interest rates. The fact that these loans are backed by government guarantees adds an extra layer of security and reduces risk for banks like Live Oak, making it a win-win situation for both parties involved.
Overall, Live Oak Bank’s success as a leading lender of SBA 7(a) loans is a testament to their commitment to supporting small businesses across America and their ability to provide financing solutions that meet their clients’ unique needs while managing risk effectively.