Newtek Small Business Financing: 2022 Review

Founded in 1998, Newtek is a financial lender for small businesses. It currently serves all 50 states and offers financing options including term loans, revolving lines of credit and SBA loans.

Newtek’s revenue requirements make this lender a good fit for established businesses with consistent income. Use this Newtek review to help you decide whether the lender could be an option for your business.

Overview: Amounts, rates and fees

Newtek offers business financing products options that include term loans, lines of credit and SBA loans.

Newtek financing at a glance

Financing productAmountTermsStarting rateFeesMin. credit score
Term loan$10,000 to $10,000,00084 to 300 monthsNot disclosedLimited or no repayment feesNot disclosed
Lines of credit$50,000 to $3,000,0001 year, renewableNot disclosedNot disclosedNot disclosed

Term loans

The amount a business can borrow with a Newtek’s long-term loan can range from $10,000 to $10,000,000 with a payback term of 84 to 300 months. However, it’s not clear from the website if the repayment schedule is weekly or monthly payments.

There is very little information on the website regarding any fees associated with these loans, though it does note that there are “limited or no repayment penalties” if you choose to pay off your loan early.

The website lacks other important information, too, including interest rates associated with term loans and the typical time it takes to receive funds after approval.

Line of credit

Newtek’s revolving line of credit is secured by accounts receivable or inventory, and can provide more flexibility than traditional term loans. Lines of credit backed by accounts receivable range from $50,000 to $3,000,000, while credit assured by inventory is from $50,000 to $500,000.

The terms can be renewed after a year. Lines of credit with accounts receivable can receive an 80% advance rate, which is the percent of the collateral’s value that the lender extends to the borrowers as a loan. This means that a borrower looking for a line of credit with Newtek could be eligible for a credit line up to 80% of the value of their business’ accounts receivable invoices. Lines of credit with inventory have a 50% advance rate.

The website states that you can “receive your funds in weeks,” but doesn’t disclose a more specific timeline. Further, Newtek also doesn’t disclose any information on the repayment schedule, interest rates or fees associated with a line of credit financing.

SBA loans

Listed as one of the SBA’s most active 7(a) lenders, Newtek also offers SBA loans. Although Newtek doesn’t specifically state that they offer 7(a) loans on their website, businesses interested in a 7(a) loan with Newtek should inquire with the lender directly for more information.

In addition, Newtek advertises SBA Economic Injury Disaster Loans, which provide up to $2,000,000 for businesses mitigating disasters. Businesses have up to 360 months to pay off the loan, and interest rates vary on the type of business. A small business may have rates at 3.75%, while a nonprofit may see rates for 2.75%. It is unclear on the website, however, whether there are any fees associated with Newtek’s SBA loans.

Requirements: Are you eligible?

In order to be eligible for Newtek’s loan products, business owners need to have an existing, for-profit business located in the United States. However, the company isn’t very transparent on its website when it comes to other requirements — there is no information found online about minimum credit score or annual revenue requirements, which means the interested borrowers will need to call Newtek directly.

The website does list examples of the types of businesses it lends to, which include anything from retailing to special trade construction — at the same time, it doesn’t provide information on industries that are prohibited.

Required documents

Business owners will need to provide two to three years of tax returns when applying for Newtek’s financing products. Newtek doesn’t provide much other information regarding documents or loan requirements for the application process.

Pros and cons


  Provides loans up to $15 million

  Not for new businesses 

  Loan terms from 7 to 25 years

  Website doesn’t offer term loan rates or in-depth eligibility requirements

  Combination offers that can feature term loans and lines of credit financing 

  Businesses have to present at least 2 years of tax returns

Newtek Review: Should you apply?

A Newtek loan product can be a good option for an existing business. There are many potential benefits of borrowing from Newtek, such as large loan amounts reaching up to $15 million and transparent terms that range from seven to 25 years. Newtek can also create unique solutions that incorporate both term loans and lines of credit for more specific financing needs. Borrowers can get prequalified within 48 hours (though Newtek’s website only specifies this for term loans) and work with a lending specialist throughout the entire duration of the application process.

However, there are certain drawbacks to consider — namely, the lack of transparency on the website. Newtek doesn’t provide a lot of information, including its rates, repayment structure, minimum credit score requirements or fee information; to find this information, you’ll need to contact the lender directly. The website only states that businesses must provide two to three years of tax returns to apply, but doesn’t discuss any further documentation requirements.

Alternatives to Newtek small business loans

Newtek may be a good option for existing businesses who need financing, but it’s always a smart idea to consider other lenders when shopping for funding. In this Newtek review, we’ve listed a few top competitors to help compare.

Newtek vs. SmartBiz

Similar to Newtek, SmartBiz also offers SBA loans. SBA 7(a) loans can allow for $30,000 to $5,000,000 and a payoff term ranging from 120 to 300 months. This is consistent for 7(a) loans regardless of lender, though SmartBiz charges a one-time application fee that can go as high as $3,000 to $5,000. (Newtek, on the other hand, doesn’t disclose if it charges any fees with its SBA loans.) Besides SBA loans, SmartBiz also offers term loans with a borrowing amount of $30,000 to $500,000 and terms that include 24 to 60 months. Like Newtek, businesses in operation for two years or more can apply for a SmartBiz loan.

Newtek vs. Elevation Capital

Newtek and Elevation Capital both offer accounts receivable financing as a borrowing option for businesses. For inventory financing, Elevation Capital offers $5,000 to $10,000,000 to borrow, whereas Newtek allows for $50,000 to as high as $3,000,000, depending on the loan product. After approval, Elevation Capital states you could receive funding in as little as 24 hours for some products, while Newtek doesn’t disclose a time to funding. And while it’s unclear what Newtek’s credit score requirements are, Elevation Capital accepts borrowers with lower credit scores, with some products only requiring a score of 500. Still, one thing to keep in mind is that, unlike Newtek, Elevation Capital doesn’t offer traditional term loans.

Newtek vs. OnDeck

OnDeck is similar to Newtek in that it also offers a range of financing options, which include term loans and lines of credit. One notable difference between the two is that OnDeck provides small loans that can start at $5,000, whereas Newtek’s lowest amounts start at $10,000, doubling OnDeck’s minimum. The largest amount you can borrow with OnDeck is $250,000, but OnDeck’s terms are much shorter, only extending up to 24 months. Newtek can take weeks to send funds for a line of credit, while OnDeck advertises that it offers “instant funding” — within 30 minutes — for lines of credit up to $10,000.