SMALL BUSINESS LOANS REVIEWS
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Live Oak Bank Small Business Loans: 2024 Review

Written by
Allison Martin
Edited by
Pippin Wilbers

Updated Nov 27, 2024

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At a glance

3.0
Bankrate Score
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Accessibility
Affordability
Customer experience
Transparency
Flexibility
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Overview

Live Oak Bank offers U.S. Small Business Administration, U.S. Department of Agriculture and commercial bank loans. It was also the leading provider of SBA loans by dollar volume in fiscal year 2023, according to the SBA weekly lending report.

 

Lender Details

  • Money Bag Icon

    Loan amount

    Up to $15 million

  • Rates Icon

    Interest rate

    11.50% to 16.50% APR

  • Clock Wait Icon

    Term lengths

    Up to 25 years

  • Dollar Icon

    Min. annual revenue

    Not stated

  • Briefcase Icon

    Min. time in business

    Not stated

Who Live Oak Bank is best for

Business owners seeking SBA loans are an ideal fit for Live Oak Bank business loans. As a member of the SBA Preferred Lender Program, Live Oak can make credit decisions in-house. This accelerates the approval process by three to four weeks. Plus, because these loans are government-backed, you might qualify for longer terms and lower interest rates than you would with a non-SBA lender.

Who Live Oak Bank may not be best for

If you operate in a restricted industry not served by Live Oak Bank, it’s best to look elsewhere. These include companies in sectors that pose an elevated risk to the lender. Live Oak Bank isn’t the best for fast loans — even with a Preferred Lender, the funding process for SBA loans can take weeks.

Live Oak Bank: in the details

Loan amount
Up to $15 million
Interest rate
11.50% to 16.50% APR
Term lengths
Up to 25 years
Min. annual revenue
Not stated
Min. time in business
Not stated
Personal credit score
650

Live Oak Bank pros and cons

Pros

  • Checkmark Icon

    Generous loan limits

  • Checkmark Icon

    SBA Preferred Lender

  • Checkmark Icon

    Multiple loan options

Cons

  • Limited disclosures on website

  • No online prequalification tool

  • Industry restrictions

Business loan types offered

Loan quick facts

  • Amounts: $150,000 to $5,000,000
  • Terms: 10 to 25 years
  • APR: 11.50% to 16.50%

Live Oak Bank SBA 7(a) loan overview

In fiscal year 2023, Live Oak Bank was the leading originator in SBA 7(a) loans by dollar volume. It approved more than 1,200 loans totaling $1.85 billion, making the lender a trusted option for this type of business loan. 

Borrowers can qualify for between $150,000 and $5 million. The maximum loan term is 15 years if you’re using the funds to purchase machinery and equipment, 25 years for real estate investments and 10 years for other purposes. Live Oak Bank doesn’t disclose its interest rates, but the SBA caps interest rates. There are no prepayment penalties for loans with terms under 15 years.

Personal guarantees are required from all business owners with a 20 percent or greater stake, and you may have to put up personal assets to satisfy collateral requirements. You’ll need a personal credit score of at least 650.

Loan quick facts

  • Amounts: Up to $15 million
  • Terms: Up to 25 years
  • APR: Not stated

Live Oak Bank SBA 504 loan overview

SBA 504 loans are ideal for acquiring commercial real estate and large equipment. You can also use the loan proceeds to finance improvements to existing facilities. A down payment of 10 percent is typically required. Personal guarantees are required from all business owners with a 20 percent or greater stake, and the financed asset itself will act as collateral for the loan.

Loan quick facts

  • Amounts: Not stated
  • Terms: Not stated
  • APR: Not stated

Live Oak Bank USDA rural development loan overview

Live Oak Bank’s website provides limited details on its commercial USDA loan offerings  unless you download its loan guide. However, it helps small business owners navigate the application process for the following: 

  • USDA Business & Industry Program
  • USDA Community Facilities Program
  • USDA Water and Environmental Program
  • USDA Rural Energy for America Program (REAP)
  • USDA 9003 Program
  • USDA Food Supply Chain Guarantee Program

The lender states it offers larger funding opportunities to assist small business owners. You could get a combination of SBA loans, conventional loans and business lines of credit. But details regarding these commercial lending products are limited. 

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Bankrate insight

Live Oak Bank is the leading originator in SBA 7(a) loans by dollar volume for fiscal year 2023. It has approved 1,215 loans totaling over $1.85 billion.

Do you qualify? 

Small business loans are available in all 50 states, but the eligibility guidelines vary by loan product. Generally, you’ll need a good or excellent personal credit score to qualify. Some loans also require a down payment. 

It’s important to note that Live Oak Bank may not lend to industries and business models that:

  • Have weak or variable historic cash flow
  • Rely on discretionary spending for revenue
  • Depend on one or a few high-paying customers
  • Are highly cyclical

What we like and what we don’t like

Live Oak Bank is an SBA Preferred Lender offering generous loan limits. Still, there are downsides to consider before applying for funding. 

What we like

  • Generous loan limits: You could be eligible for a business loan of up to $15 million, depending on the loan type you pursue.
  • SBA Preferred Lender: Borrowers generally receive faster loan decisions and more attractive loan terms. Plus, these lenders have demonstrated experience in handling SBA loans, meaning they can help your business navigate the process.
  • Multiple loan types: In addition to government-backed SBA and USDA loans, Live Oak Bank can customize a lending package with other commercial loan types, such as lines of credit.

What we don't like

  • Limited disclosures: Like many banks, Live Oak does not list interest rates and other borrowing costs online. In general, the bank steers borrowers toward contacting its lending experts for answers to their questions — which could be a plus for some, but a minus if you prefer to research a lender thoroughly before reaching out.
  • Industry restrictions: Although loans are available in all 50 states, industry restrictions apply depending on your business model.

How Live Oak Bank compares to other lenders

Live Oak Bank is a bit limited with its business loan offerings. Furthermore, it fails to disclose lending guidelines on its loan products, making it difficult to know if they’re more attractive than options from other lenders. Even so, as they focus primarily on SBA loans, there are set interest rates that all lenders must follow. 

3

Bankrate Score

  • Loan amount

    Up to $15 million

  • Interest rate

    11.50% to 16.50% APR

  • Term lengths

    Up to 25 years

  • Min. time in business

    Not stated

  • Min. business annual revenue

    Not stated

4.1

Bankrate Score

  • Loan amount

    $1,000-$5 million

  • Interest rate

    Not stated

  • Term lengths

    Up to 25 years

  • Min. time in business

    Not stated

  • Min. business annual revenue

    Not stated

Read our review Arrow Right Icon

on Bankrate

4.1

Bankrate Score

  • Loan amount

    $5,000-$5 million

  • Interest rate

    8.49%

  • Term lengths

    2-25 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    Not disclosed

Read our review

on Bankrate

Live Oak vs. Huntington National Bank 

Huntington National Bank also features SBA 7(a) loans and SBA 504 loans in its lending arsenal. But you’ll have far more commercial lending solutions, including SBA Express Loans, business term loans, real estate loans and business lines of credit. Flexible loan solutions are also available if you operate a dental or veterinary practice.

Like Live Oak Bank, this lender does not disclose loan terms on the website, and online prequalification isn’t available. Keep in mind that Huntington National Bank only serves 11 states for its loan offerings outside of SBA loans, which could mean it's not an option for you. 

Live Oak vs. U.S. Bank  

U.S. Bank is another option if you’re seeking extensive commercial lending solutions. U.S. Bank accepts both new and established companies, and there are five types of business loans to choose from, including SBA loans and multiple business lines of credit. Loan amounts vary between $5,000 to $12.4 million. But you’ll need at least two years in business to qualify for most loans unless you’re getting a quick term loan which maxes loan amounts at $50,000 for an unsecured loan and $250,000 for a secured loan. 

If you’d prefer a line of credit, four options are available with limits between $5,000 and $1 million. You can apply online for select loan products, and some come with zero origination fees. However, U.S. Bank is only available to borrowers in 26 states, and you’ll need to apply to find out what you’ll qualify for and the rates you may receive. 

How to apply for a loan with Live Oak Bank 

When you’re ready to apply for a loan with Live Oak Bank, use the search bar on the website to locate your industry. You’ll be routed to a page with more information on how the lender can assist you with your funding needs. 

Submit an inquiry to connect with a loan specialist about potential loan opportunities. A representative will contact you to discuss lending options, documentation requirements and the next steps. 

Loan specialists are available by phone at 866-518-0286 to answer any questions. Phone lines are open Monday through Friday from 8 a.m. until 8 p.m. EST. You can also submit an online inquiry to connect with a loan specialist. 

Live Oak Bank frequently asked questions

How Bankrate rates Live Oak Bank

Overall Score 3.0
Accessibility 2.7 Though Live Oak Bank offers massive loans, your business must be well-established to qualify. Funding timelines are unclear.
Affordability 3.0 The website doesn’t disclose interest rate ranges, though SBA loans have caps established by the government.
Transparency 3.2 Details on Live Oak Bank’s website are slim — you’ll need to talk to a bank employee to learn more. SBA lenders are required to report payments to the three major commercial credit bureaus.
Customer experience 2.4 You can’t apply online, but Live Oak Bank has a team of lending experts ready to answer your questions Monday through Friday.
Flexibility 3.8 Live Oak Bank offers multiple loan types and can customize its loans to your business’s needs.

Methodology

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47
years in business
Credit Card Search Icon
30+
lenders reviewed
Loan Icon
22
loan features weighed
Rates Icon
770+
data points collected

To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:

  • Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
  • Affordability: This section measures interest or factor rates and fees.
  • Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
  • Customer experience: Customer service hours, online applications and app availability are considered in this category.
  • Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

What small business owners think

CTA Live Oak Bank Small Business Loans has 18 reviews

Live Oak Bank Small Business Loans has 18 reviews

Dive into community reviews below and see what others think about Live Oak Bank Small Business Loans.

4.6 Star Icon
18 ratings
Info Icon
Score breakdown
5 stars
61%
4 stars
39%
3 stars
0%
2 stars
0%
1 star
0%
Score by category
Customer experience 4.6 / 5
Accessibility rating 4.6 / 5
Affordability rating 4.1 / 5
Transparency rating 4.3 / 5
Flexibility rating 4.3 / 5

Community Reviews

See what users like you are saying about Live Oak Bank Small Business Loans.
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Overall
Did you feel that the lender was knowledgeable about their product and loan terms? Why or why not?
Yes the representative was literate and knew what he was talking about
Score by category
Flexibility rating 5 / 5
Transparency rating 4 / 5
Accessibility rating 5 / 5
Affordability rating 5 / 5
Customer experience 5 / 5
Overall
What was your biggest pain point during the application process?
My biggest pain was the credit check process
Score by category
Flexibility rating 4 / 5
Transparency rating 4 / 5
Accessibility rating 5 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Did you feel that the lender was knowledgeable about their product and loan terms? Why or why not?
They typically understand the legal loopholes and can exploit the desperation of borrowers. This knowledge allows them to set high-interest rates and unfavorable conditions, making it difficult for borrowers to repay their loans but even with this I still think it's quite favorable for people like me.
Score by category
Flexibility rating 4 / 5
Transparency rating 3 / 5
Accessibility rating 4 / 5
Affordability rating 4 / 5
Customer experience 4 / 5
Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes because they earned it with their exceptional customer service and knowledgeable staff
Score by category
Flexibility rating 5 / 5
Transparency rating 5 / 5
Accessibility rating 5 / 5
Affordability rating 4 / 5
Customer experience 4 / 5
Overall
Were you able to contact the lender for customer support? What was the process like?
My contact with the customer support was seamless and what questions I had were answered as soon as possible and it was very helpful
Score by category
Flexibility rating 4 / 5
Transparency rating 4 / 5
Accessibility rating 4 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Were you able to contact the lender for customer support? What was the process like?
It was a friendly recording then a friendly person on the other end after typing in response to what and who was needed. Other than that it was relatively easy and straight forward.
Score by category
Flexibility rating 4 / 5
Transparency rating 4 / 5
Accessibility rating 5 / 5
Affordability rating 3 / 5
Customer experience 5 / 5
Overall
Were you able to contact the lender for customer support? What was the process like?
I was able to contact the customer support and my loan was granted and approved at the right time .
Score by category
Flexibility rating 5 / 5
Transparency rating 4 / 5
Accessibility rating 5 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes, the lender was receptive to our business's unique needs by taking the time to understand our industry-specific challenges, offering flexible repayment structures tailored to our seasonal cash flow, and considering intangible assets like our strong customer loyalty when evaluating our loan application; this allowed them to provide a financing solution that aligned well with our growth plans, unlike other lenders who might have only focused on traditional metrics that didn't fully capture our business model.
Score by category
Flexibility rating 4 / 5
Transparency rating 5 / 5
Accessibility rating 5 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes they were receptive to our business needs, by offering personalized financial solutions tailored to our industry and growth stage of our business.
Score by category
Flexibility rating 4 / 5
Transparency rating 5 / 5
Accessibility rating 4 / 5
Affordability rating 4 / 5
Customer experience 5 / 5
Overall
Were you able to contact the lender for customer support? What was the process like?
They were great with me. They helped me get what I could and helped me figure out how I could afford to pay back without paying interest. I would use them again they were wonderful.
Score by category
Flexibility rating 2 / 5
Transparency rating 3 / 5
Accessibility rating 4 / 5
Affordability rating 5 / 5
Customer experience 5 / 5

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