NewtekOne Business Loans Review
 | Rate range: Undisclosed Loan amounts: $5,000 to $15,000,000 or a credit line of up to $5,000,000 Our Verdict: NewtekOne is an SBA-preferred lender that offers large loan amounts for businesses that can provide collateral, including startups, but the lender’s website lacks transparency and the customer support is subpar. |
Pros and cons of NewtekOne
Pros
- Largest SBA-preferred lender by loan volume
- Offers term loans up to $15,000,000
- Option to prequalify online
- Terms up to 300 months
- Startups with good credit may qualify for funding
Cons
- Undisclosed APRs and fees
- Larger term loans require collateral and lines of credit must be backed by account receivables, inventory or operating capital
- Doesn’t offer merchant cash advances or other bad credit financing options
- Website lacks transparency and customer service team provides incomplete information
NewtekOne small business loans review
NewtekOne, also referred to as just Newtek, is a popular SBA-preferred lender that offers an array of loan options, including term loans up to $15,000,000, a relatively large maximum loan size among small business lenders. Newtek may also offer funding solutions for startups that can provide collateral and have good credit.
But the lender’s website lacks transparency, providing few details about the features, requirements and rates of its loans. Newtek’s customer service team isn’t particularly helpful in providing clarity. Newtek did not reply to our requests for essential information, which raises concerns for small businesses that need help understanding their loan options.
NewtekOne is part of the Newtek brand, which also includes Newtek Bank. The company refers to its nonbank business products as NewtekOne.
- Startups with good credit: NewtekOne will consider new businesses with a minimum credit score of 700 and collateral. However, startups may not be eligible for all loan programs.
- Asset-based financing: Businesses with sufficient collateral may find Newtek’s secured term loans and lines of credit appealing. Secured loans often come with lower rates, but Newtek doesn’t disclose its APRs, so be sure to compare your options.
NewtekOne small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated interest rate | Use cases |
|---|---|---|---|---|
| Business term loan | $5,000 to $15,000,000 | 60 to 300 months | Undisclosed | Working capital, real estate, inventory, refinancing, acquisition and expansion |
| Secured business line of credit | $50,000 to $5,000,000 | Renewable 12-month term | Undisclosed | Working capital, payroll, taxes, expansion, acquisition and other operations |
| SBA 7(a) loans | Up to $5,000,000 | Up to 300 months | 10.50% to 14.00% for variable loans
14% for loans $50,000 or less 13.5% for loans $50,001 to $250,000 12% for loans $250,001 to $350,000 10.5% for loans above $350,000 Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA. | Real estate, working capital, equipment, refinancing, ownership changes and other purposes |
| SBA 504 loan | Up to $5,500,000 | 120, 240 or 300 months | Approximately 3.00% of debt Based on SBA guidelines | Major fixed assets |
| SBA microloan | Up to $50,000 | Up to 84 months | Undisclosed | Working capital, inventory, equipment and other purposes |
Term loan
NewtekOne offers small business term loans, which provide a lump sum of cash in exchange for monthly payments over 60 to 300 months. Loan amounts range from $5,000 to $15,000,000. Newtek doesn’t charge prepayment penalties, so you can pay off a term loan early to save money on interest. However, there may be down payment and/or collateral requirements for loan amounts greater than $50,000.
Business line of credit
Newtek offers secured business lines of credit with limits ranging from $50,000 to $5,000,000 that are designed to meet short-term cash flow needs. Newtek credit lines have a one-year renewable term and must be backed by accounts receivable, inventory or operating capital.
SBA 7(a) loan
Newtek also offers SBA 7(a) loans, which are term loans backed by the Small Business Administration (SBA). Newtek participates in the SBA Preferred Lending Program, allowing the lender to process some SBA loans with reduced requirements and without prior approval from the SBA. This may benefit borrowers with a faster approval time. Newtek is also experienced with the SBA 7(a) application process and is the largest SBA lender by loan volume.
SBA 504 loan
Also backed by the SBA, 504 loans are longer-term loans that you can use to purchase real estate, land, equipment or machinery. The 504 loan program also allows for consolidating or refinancing debt in certain circumstances. The maximum loan amount is $5,500,000.
SBA Microloan
Newtek offers SBA microloans up to $50,000 for businesses with at least one year of tax returns.
NewtekOne borrower requirements
| Minimum annual revenue | Undisclosed |
| Minimum time in business |
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| Minimum credit score |
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Newtek’s website doesn’t provide much information about borrower requirements, and the lender doesn’t disclose if it has a minimum annual revenue requirement. Newtek generally lends to businesses that are at least two to three years old, but it may provide startup business loans for borrowers that meet credit requirements. To find out for certain if you can qualify, you’ll need to apply.
Newtek does require applicants to provide collateral to qualify for small business loans greater than $50,000. Term loans may be backed by real estate, heavy machinery and/or equipment, and lines of credit may be backed by account receivables, inventory or cash. Newtek may extend up to 85% of the value of your account receivables or up to 50% of the value of your inventory as a line of credit.
If you’re applying for an SBA loan, you’ll also need to meet additional requirements established by the Small Business Administration. For example, your business must operate for profit, meet SBA size requirements, be an eligible business type and have exhausted non-government financing sources. You may also need to make a down payment.
Some term loan options may only be available to businesses in select industries that have been operational for at least two or three years.
Required documents
To qualify for a business loan from Newtek, you may need to submit the following required documents:
- Business plan with financial projections
- Financial statements
- Repayment plan
- Personal and business credit reports
- Tax returns (if available)
- Collateral statement with market value
- Legal documents such as licenses and contracts
Note that the requirements may vary by loan type, collateral type and loan use, but a Newtek customer service representative can help you ensure your application is complete.
Alternatives to NewtekOne
| NewtekOne | Wells Fargo | OnDeck | |
|---|---|---|---|
| Minimum credit score | 650 (700 for startups and microloans) | 680 for business line of credit, may vary for other products | 625 |
| Loan products offered |
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| Time to funding | Undisclosed | Undisclosed | As soon as the same day |
| Starting rate |
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| Maximum loan size |
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| Minimum annual revenue | Undisclosed | Undisclosed | $100,000 |
NewtekOne vs. Wells Fargo business loans
Wells Fargo offers versatile options for small businesses, including a small business line of credit for newer businesses with a guarantor credit score of 680 and a higher-limit line of credit with competitive rates for larger small businesses.
Like Newtek, Wells Fargo is also an SBA-preferred lender, and the bank was our top pick for the best SBA loans from a traditional bank, which offers the advantage of in-person support. But it may be tough to qualify for a loan from Wells Fargo, and Newtek offers larger loan amounts.
Learn more in our Wells Fargo business loan review.
NewtekOne vs. OnDeck
OnDeck may be a good option for fair credit borrowers since the lender has a lower minimum credit score requirement than Newtek.
But OnDeck is not an SBA lender, and its loan options are relatively limited. The maximum loan size is $250,000 for business term loans, a far cry from Newtek’s $15,000,000 maximum loan size. But small businesses looking for a small cash injection may find OnDeck’s processes and requirements easier to navigate, and the lender has an excellent Trustpilot rating based on thousands of glowing reviews from borrowers.
Learn more in our OnDeck business loan review.
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