Grasshopper Bank SBA Loans Review: Eligibility, Terms, and What Funding Involves

Quick answer

Grasshopper Bank offers SBA 7(a) loans and describes itself on its SBA page as a delegated SBA Lender. It is a fit for established businesses that need a large loan and can document their finances. It is not built for smaller borrowers, since the bank says it does not offer 7(a) loans under $150,000. For the program itself, our SBA loan guide covers how it works across lenders.

What Grasshopper's public page says

Per Grasshopper's SBA lending page, read October 8, 2026:

• Preapprovals for SBA 7(a) loans start at $150,000 and up, and a banner says they qualify borrowers up to $5M.
• The bank says it does not offer 7(a) loans under $150K.
• To prequalify, it conducts a soft pull, which it says does not impact your credit score.
• It states that Grasshopper Bank is a delegated SBA Lender.
• It advertises "competitive rates" and "more flexible eligibility requirements than traditional financing."
• It adds that eligibility requirements and loan terms listed on the page are specific to Grasshopper's internal lending criteria and may differ from the general guidelines or program requirements set by the U.S. Small Business Administration.

What the public page does not say

The public page does not state a minimum credit score, minimum years in business, citizenship requirement, for-profit requirement, rate basis or term length. If you see those figures elsewhere, check where they came from.

Grasshopper's partner materials, which the bank shared with partners rather than publishing on its SBA page, give the following criteria. We cannot confirm them on a public Grasshopper page, so treat them as a starting point and confirm with the bank before you apply:

We do not state the Prime rate here because it changes. If the Prime + 2% basis holds, look up the current Wall Street Journal Prime rate and add the spread, but treat that as a rough guide, not a quote.

If you want a quick screen against those partner-shared criteria, SwitchWize's SBA eligibility check is a screening tool that uses the criteria the lender shared with partners. It does not represent published requirements and is not a decision from Grasshopper.

What a funded SBA 7(a) loan typically involves

The program is run by the Small Business Administration, which guarantees part of the loan, and the lender still underwrites it. The points below describe typical SBA practice, not Grasshopper's confirmed terms. Ask Grasshopper to confirm each one.

• Personal guarantee. SBA lenders typically require one from every owner with 20% or more of the business. Your personal assets are on the line if the business cannot repay.
• Repayment. Monthly payments over a long term. A long term lowers the payment compared with short-term loans, but you will owe interest for years.
• Collateral. Lenders generally take available business assets, and may take real estate or other assets as security. Ask what Grasshopper would require for your loan size and purpose.
• Timeline. Underwriting an SBA loan generally takes weeks, sometimes longer, because of documentation and SBA requirements. Prequalification is not the same as funding.
• Paperwork. Expect financial statements, tax returns and a clear use of proceeds.

Questions to ask before you apply

Because the public page leaves so much unstated, a short list of questions to put to Grasshopper directly will save you time:

• What are the minimum credit score, time in business and ownership requirements for my situation, in writing?
• What is the current rate for my loan size and purpose, expressed as Prime plus what spread?
• What loan term would I be offered?
• Which fees apply, including any SBA guarantee fee and closing costs, and who pays them?
• What collateral would you require, and would you place a lien on business or personal assets?
• How long does underwriting take for a loan like mine, and what documents will you want first?
• Does the soft-pull prequalification change what I will see at full application?

A lender that answers these clearly, in writing, is easier to compare with other SBA lenders. Compare at least two offers on total cost over the full term, not just the starting rate.

Who this is NOT for

• Anyone who needs under $150,000. The bank says it does not offer 7(a) loans below that. A smaller loan needs a different product. Grasshopper separately advertises an Innovator Term Loan, but confirm its terms on the product page.
• Borrowers needing money in days. SBA underwriting is slower than online lender products.
• Businesses that may fall short of the partner-shared criteria. If you are under two years old or below a 660 FICO, those criteria could rule you out. Read our guide to bad-credit business loans for other routes, and confirm with the bank.
• Anyone unwilling to sign a personal guarantee.

If you are not sure which kind of loan fits, start with how small business loans work, then see best banks for small business loans.

Pairing a loan with a business account

Lenders often like to see operating accounts at the same bank, but do not assume it helps your approval. Grasshopper's business checking and savings are separate products from its SBA lending. Our Grasshopper business account review covers them, and the Relay, Bluevine, Novo and Found comparisons show alternatives.

This is educational information, not personalized financial advice. Loan terms, eligibility and rates change, so confirm everything directly with Grasshopper before you apply.