Grasshopper, the client-first digital bank built for the business and innovation economy, announced the launch of a digital application for borrowers to apply directly for Small Business Administration (SBA) loans. Small business owners can now get pre-qualified for an SBA 7(a) loan in less than 10 minutes from any device using this online form.
The launch of the digital loan application, combined with Grasshopper’s industry-leading digital Innovator Business Checking account and access to exclusive perks and custom offerings, like corporate cards, accounting software, productivity and communication tools through its partner marketplace, makes it easier than ever for time-constrained small businesses to manage their business needs all in one place.
This achievement coincides with a historic peak in American entrepreneurship, with the U.S. Small Business Administration reporting that, under President Biden, Americans filed a record 16 million applications to start new businesses, and $52 billion in SBA capital supported the small business boom in 2023. The growing interest in entrepreneurship from first-time small business owners, particularly women and minority-owned businesses, is fueling the demand for diverse and efficient ways to access capital. Coupled with the increase in borrowers seeking to apply for business loans online, Grasshopper found it imperative to offer a seamless digital application to potential borrowers.
“As a digital bank, technology-focused experiences that meet evolving client demands are always at the forefront of our minds,” said Stephanie Castagnier Dunn, Head of SBA Lending at Grasshopper Bank. “The launch of this digital application marks a significant shift from the historically traditional SBA loan application process. By leveraging this innovative approach, we’re aiming to transform and modernize the SBA lending process to help small business owners achieve their funding goals sooner.”
Grasshopper’s Preferred Lender Program (PLP) status, combined with a cutting-edge digital application, accelerates the funding process for small business borrowers by enabling faster documentation submission and verification. Backed by the Small Business Administration, Grasshopper currently offers SBA 7(a), SBA 504, and USDA business and industry loans.
“Serving small businesses is a core component of our mission – they are the backbone of our economy, which makes banking this sector more important than ever,” said Mike Butler, President & CEO of Grasshopper Bank. “We want to see the small business ecosystem flourish, and by launching this digital application, we are making it easier to get critical funds into the hands of small business owners so their doors stay open, and they can continue delivering value to their customers.”
Grasshopper’s client-first approach and commitment to serving small businesses across the nation has helped fortify the strength of its offerings, with the Bank reporting 16% year-over-year growth in total loans and an impressive 96% year-over-year growth in total deposits. Additionally, its SBA Lending division has notably contributed to this success, reporting $72.5 million in total loan production in 2023, underscoring the Bank’s pivotal role in supporting the growth and stability of small businesses.
Grasshopper leveraged the strength of its fintech partnerships to successfully bring this digital application to market, working with industry-leading technology providers, including MANTL to build the application and Alloy to serve as the decision engine. With an initial focus on the SBA’s most widely used loan program, the digital application currently supports SBA 7(a) loans, with ongoing plans to expand its capabilities to include other SBA and small business loan types, catering to a broader range of small business financing needs.