No Widgets found in the Sidebar

Live Oak Bank, a Wilmington-based financial institution, announced on Monday that it has been the most active lender of SBA 7(a) loans for the sixth consecutive year, according to the U.S. Small Business Administration.

A 7(a) loan is the SBA’s primary business loan program, which can be used by small businesses for refinancing, acquiring or improving real estate buildings, as well as for short- or long-term working capital. During this fiscal year, Live Oak approved 1,215 SBA 7(a) loans nationwide and lent $1.8 billion in total, making it the top lender by dollar amount. This means that Live Oak Bank lent more money to small businesses through the SBA 7(a) loan program than any other bank in the country.

While Live Oak had the most loans and the largest average loan size of the group according to the SBA during this fiscal year, it did not have the most loans nor the largest average loan size of all banks involved in the program. Despite this, Standard 7(a) loans typically have long repayment periods and low interest rates due to their attractive features such as being fully collateralized by eligible property assets and having flexible repayment options which have made them increasingly popular among small business owners looking to secure financing for their enterprises.

It is worth noting that these loans are guaranteed by a government agency called Small Business Administration (SBA), which means that if a borrower defaults on their debt obligations or cannot repay their loans on time then they will be compensated up to a certain limit of funds provided by SBA.

In conclusion, Live Oak Bank’s continued success in providing financing solutions to small businesses through its active participation in SBA 7(a) loan program demonstrates its commitment towards supporting entrepreneurship and promoting economic growth across various industries.

By Editor

Leave a Reply