Live Oak Bank Small Business Banking

Learn more about business banking with Live Oak Bank. Includes features & benefits, rates & fees, and frequently asked questions.

Updated on April 28th, 2020

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Live Oak Bank is a digital bank that provides SBA loans, FDIC-insured business savings accounts, certificates of deposit (CDs), and more. The bank is an SBA Preferred Lender.

Pros and Cons:

Pros

  • SBA Preferred Lender.
  • Specialist teams that provide loans to businesses in 40 industries.
  • A general team that serves all other industries.
  • Savings products have competitive APYs and no monthly maintenance fees.
  • Serves clients in all 50 states.

Cons

  • No business credit cards.
  • No business checking accounts.
  • No business money market accounts.
  • Lacks physical bank branches.
  • Cannot deposit hard cash into savings accounts.

Review:

Live Oak Bank is a highly active SBA Preferred Lender that is known for processing loan applications relatively quickly. Their savings products include competitive APYs. However, their range of products is fairly limited compared to other major banks, and their lack of physical branches may be constraining for some.

Highlights:

  • Conventional business savings accounts and CDs that offer relatively high APYs.
  • Preferred SBA Lender.
  • Has teams focused on providing loans to 40 specific industries and a team that caters to all other industries.
  • Known for approving SBA loans within shorter turnaround times than those provided by other lenders.
  • According to our research, Live Oak Bank offers highly competitive interest rates on their SBA loans.
  • Live Oak Bank is an online bank, which allows them to serve clients nationwide.

Shortcomings:

Unlike many of its competitors, Live Oak Bank does not offer business checking accounts, credit cards, or money market accounts. They also lack physical branches, which could be constraining for businesses that depend on these. The bank also does not offer live chat support.

Reputation:

Live Oak Bank is unrated by the Better Business Bureau. However, its SBA Preferred Lender designation is a testament to its successful track record of issuing SBA loans, as well as its grasp of applicable policies and procedures.

Currently, most customer reviews center on Live Oak Bank's personal banking products, rather than their business offerings. However, we found two pertinent reviews on Facebook, both of which were positive. Both cited great customer service and efficient business processes.

Business Banking Products:

Live Oak Bank provides two core sets of offerings to small businesses: loans and savings products.

Conventional and SBA Loans:

As highlighted, Live Oak Bank has specialized teams that provide loans to businesses operating in 40 specific industries. They also have a team that serves industries not included in this list.

Currently, Live Oak Bank's website includes little information about the specific types of loans offered, as well as the details thereof. Interested parties should contact the company to obtain further information. Be sure to compare their offers with those of other top-ranking providers of conventional and SBA loans.

Business Savings Account:

Live Oak Bank's business savings account includes a highly competitive APY of 1.00%. There is no opening deposit requirement or monthly fees. Clients can deposit funds into their account in one of four ways: through an ACH transaction, by depositing a check via the mobile app, by mailing a check to Live Oak's headquarters, or by wire transfer.

Certificates of Deposit:

Lastly, Live Oak Bank offers business certificates of deposit (CDs) with term lengths varying between six months and five years. Each has a minimum opening deposit of $2,500, and a maximum limit of $250,000. There are no online banking or interest disbursement fees, but clients are penalized for early withdrawals.

Live Oak Bank's APYs are highly competitive. However, before opening an account, these are subject to regular change. This makes it difficult to compare their rates to those of other banks. When you're ready to sign up, be sure to check how Live Oak's latest APYs stack up against those offered by leading providers such as First Internet Bank.

CD Term Lengths and Early Withdrawal Penalties:

Term Length

Penalty

6 months

90 days of simple interest

1 year

90 days of simple interest

18 months

90 days of simple interest

2 years

180 days of simple interest

3 years

180 days of simple interest

4 years

180 days of simple interest

5 years

180 days of simple interest

At a Glance:

Physical branches

None

Key business products

Loans and savings accounts

FDIC-insured savings products

Yes

Offers available nationwide

Yes

Customer support channels

Phone, online contact form

Key Information:

Legal Name

Live Oak Banking Company

Founder

James S. (Chip) Mahan III

Founding Date

Jan 01, 2007

Address

1757 Tiburon Dr., Wilmington, NC 28403

Number of Employees

635

Number of Customers

99

Email

info@liveoakbank.com

Telephone

1 (866) 518-0286

Website

https://www.liveoakbank.com/

FAQs:

Is Live Oak Bank FDIC insured?

Yes, Live Oak Bank is FDIC-insured. The FDIC insures up to $250,000 per depositor for every account ownership category. This is standard practice across FDIC-insured banks.

What does Live Oak Bank do?

Live Oak provides personal and business banking products such as savings accounts and certificates of deposits. The bank also offers business loans.

When was Live Oak Bank founded?

Live Oak Bank was founded in 2007.

What are some Live Oak Bank alternatives?