Slow Funding Partner for SBA Loans

Is Newity legit?

Yes, Newity is a legitimate loan service provider for Northeast Bank, a lender participant in the SBA’s 7(a) loan program. It was founded in 2020 during the pandemic in response to difficulties that underserved businesses had in accessing emergency funding through the Paycheck Protection Program (PPP).

To date, it’s helped more than 125,000 businesses obtain over $11.8 billion in funding through SBA loans.

What makes Newity shine?

Newity stands out by giving small businesses access to SBA 7(a) loans through a streamlined loan process and dedicated loan specialists for each borrower. The application is fast and easy, and you could receive an offer in as little as 10 minutes. And there’s no hard credit check to prequalify.

It also offers competitive rates that start at 10.25% and are capped at 14% — better than you can find with most alternative business loans. Plus, if you don’t qualify for an SBA loan, you may be eligible for a business line of credit or term loan from one of Newity’s other partner lenders, although it doesn’t disclose rates for those options.

Where Newity falls short

There’s no denying that SBA loans, on average, can take a lot longer than online business loans. There are often stricter requirements to qualify — you’ll typically need a credit score of 660+ to be eligible — and the underwriting process can take weeks or months to complete. There’s also typically more paperwork to submit.

Furthermore, while SBA 7(a) loans typically reach up to $5 million, Newity has a maximum loan amount of $350,000. If you need a larger business loan, you’ll have to look elsewhere.

Newity business loan details

Newity contact info

How to qualify for Newity

Here are the requirements to get an SBA 7(a) loan through Newity, which only conducts a soft credit check to prequalify.

• A US-based for-profit small business (as defined by SBA size requirements)
• In operation for at least three months
• A 660+ credit score
• At least $50,000 in annual revenue

The bank that provides the loan may also have additional requirements.

How to apply

Follow these steps to apply with Newity. You can also call at any time for personal assistance.

1. Visit Newity’s website and create an account.
2. Navigate to Business Loans and select Start Application.
3. Provide basic business details, ownership information and requested loan amount.
4. Receive a loan offer, if eligible, typically within 10 minutes.

If you decide to proceed with the loan, you’ll be prompted to submit the required documentation and be connected with a dedicated loan specialist.

How Newity compares to other lenders

Newity reviews and complaints

Newity only received one out of five stars on the Better Business Bureau (BBB), but it only has one review and one complaint. One reviewer said they were rejected before filling out the entire application. Another person said they were ultimately denied the loan without explanation after receiving multiple preapproval offers. The company responded to both reviewers, explaining why they weren’t approved.

Newity had more reviews on Trustpilot, and 85% of those rated the company five stars. Customers applauded the fast and convenient process, competitive rates and knowledgeable loan specialists. But others complained the process took longer than expected, there was a lot of paperwork to submit (sometimes having to submit multiple times) and communication wasn’t always quick. A few customers also said they ended up qualifying for a much lower amount than they expected.