Wells Fargo SBA Loans Review

Wells Fargo SBA loans come in three forms: SBA 7(a) loans, SBA Express Loans, and SBA CDC/504 loans. Wells Fargo SBA lending offers the low rates, long repayment terms, and large loan amounts that small businesses expect from SBA loans. But they’ll also be tough to secure—SBA bank loans like Wells Fargo SBA loans are typically only available to the most qualified small business borrowers

In this article, we’ll go through everything you need to know about Wells Fargo SBA Loans, including rates, requirements, and application processes.

First, “Wells Fargo SBA Loan” is a bit of a misnomer.

When people talk about SBA loans, what they’re really referring to are SBA-guaranteed loans. Considered generally, SBA loans are much like any other traditional business term loan you can get through small business lender.

The main difference is that the U.S. Small Business Administration serves as a resource for small business owners to help them get bigger business loans than they’d otherwise qualify for.

They do this by agreeing to guarantee or back large portions of the loans administered to small businesses in the event that the small business fails or defaults on their loan.

This means that if a small business defaults on their SBA-guaranteed loan, the government will be partially responsible for covering it, meaning lenders won’t lose as much of their money.

This incentivizes lenders to take more risks when lending to businesses—making it much easier for small business owners to secure funding they may not be eligible for otherwise.

Under the U.S. Small Business Administration’s various “SBA loan” programs, you can get funding for almost any business purpose.

This includes, but is not limited to:

• Adding to working capital
• Purchasing inventory or equipment
• Refinancing other debts
• Buying real estate
• Funding the acquisition of other businesses

Wells Fargo is one of the best banks for small business lending. In fact, they call themselves “America’s leading small business lender.”

It’s not just hot air—Wells Fargo lends tens of billions of dollars in small business loans each year, more so than any other large U.S. bank. Wells Fargo has also been the nation’s top SBA lender in dollar volume since 2009.

Additionally, Wells Fargo is part of the SBA Preferred Lender Program, which means they can push your application through faster than other non-preferred lenders.

The SBA Preferred Lender Program is designed to connect small businesses with banks like Wells Fargo that are more likely to provide you with better terms and a smoother application and closing process.

To be eligible for an SBA loan, your business must:

• Exist as an ongoing, for-profit business.
• Not have a tangible net worth exceeding $15 million and/or have an average net income greater than $5 million over the past two years.
• Be officially registered through the government and legally operating.
• Be physically located and operated in the U.S. or its territories.
• Be owned by someone who has invested their own time or money into the business.
• Not have access to funds from any other financial lender.
• Not have any delinquencies or defaults on debt obligations to the U.S. government (including student loans)

Wells Fargo SBA loan applications are available to all small businesses, even if they don’t have prior customer history with the bank.

Generally speaking, SBA loan eligibility is based on how a business makes its money, the demonstrated resource management skills of the business, and where the business operates. The business must meet small business size requirements, show that they have the capacity to repay the loan, and have a sound business plan and purpose.

Wells Fargo offers three different types of the many different SBA loans available. We’ve broken them down for you below.

The SBA 7(a) loan is what most people think of when consider an SBA Loan. The SBA 7(a) loan program is the most prevalent SBA loan program out there.

SBA loans are highly sought-after. This means the process of applying to one can be arduous.

There are a lot of SBA loan requirements you’ll need to get in order before you get into the process of applying for one.

What does this mean exactly?

It means you’ll need to go through the application process and provide documentation to both Wells Fargo and the Small Business Administration.

Each program has its own paperwork you’ll need to fill out. But generally, you can expect to see some SBA loan requirements on any SBA application. It’s important to get to know them.

It’s important to be careful in the process of getting your documentation together. You don’t want to be disqualified for a loan you’d otherwise qualify for simply because of a typographical error or financial miscalculation.

Wells Fargo will want to see that you are responsible enough to handle a business loan, and proficiently putting together your loan documents will greatly help them see that you are.

Know that this is not necessarily a complete list—other documentation and information may be requested by Wells Fargo. To truly know everything you need for a Wells Fargo SBA Loan application, it’s best to go through the actual process.

Here’s what you’ll need:

As you may have figured out, applying for a Wells Fargo SBA Loan isn’t the most straightforward process on the planet.

First, you will have to find out if you are eligible for a loan without an SBA guarantee. If you qualify for a loan without the SBA guarantee, then you’re not eligible to apply for an SBA-backed loan—with Wells Fargo or any other lender.

This means you’ll have to apply to certain loan programs before you can apply for an SBA Loan through Wells Fargo—which is why the loan process for SBA-guaranteed loans can take so much longer.

However, once you go through this process and determined SBA eligibility, you can contact a business lending specialist through Wells Fargo who can assist you by phone or in person with the loan application process. Call or make an appointment online.

If you’re looking for Wells Fargo SBA financing, odds are you’re looking for bank financing.

If, for some reason, an SBA loan isn’t exactly what you need, you could seek out Wells Fargo for other financing options that can better meet your financing needs.

For instance, if you need more flexible financing than a long-term loan, a Wells Fargo business line of credit could make sense for you.

And if an SBA loan is right for you, be sure to compare your options with other banks. Chase SBA loans and Bank of America SBA loans are good options as well.

Always remember, bank financing can be tough to qualify for, so don’t rule out similar options with alternative lenders.