Grasshopper business loan review: Interest rates, eligibility, and the application process

If you’ve ever applied for funding and thought, “This feels either too slow or too risky,” you’re not alone. Traditional banks can sometimes be slow to respond, while fast online lenders often come with higher costs and stricter terms than expected.

Grasshopper is a digital bank that offers business loans alongside modern banking tools. Rather than positioning itself as a fast-cash fintech lender, Grasshopper sits closer to traditional banking, with a more streamlined, technology-led experience. That comes with clear advantages, but also some trade-offs worth understanding upfront.

This review breaks down how Grasshopper business loans actually work, what you can borrow, and how the process compares with other lenders. If you want to see where Grasshopper fits alongside alternative options, Swoop can help you compare them in one place.

An overview of Grasshopper business loans

Grasshopper is a US-based, FDIC-insured digital bank founded in 2019. Its lending offering is broader than many online lenders, spanning small business term loans, SBA loans, and specialist finance products for larger or more complex businesses.

For most US SMEs, the two most relevant options are:

The Innovator Term Loan (a standard small business loan)
SBA 7(a) and SBA 504 loans (for larger funding needs with longer terms)

Unsecured business loans

Grasshopper’s primary unsecured option is the Innovator Term Loan.

This is a traditional lump-sum business loan designed for established small businesses that want predictable repayments without pledging specific assets.

Key features include:

Loan amounts from $25,000 to $200,000
Fixed 36-month repayment term
No collateral required
A personal guarantee is required
Soft credit pull to apply (no hard inquiry at application stage)

This type of loan is typically used for working capital, hiring, inventory purchases, equipment upgrades, or managing cash flow gaps.

Secured business loans

Grasshopper also offers secured lending through its SBA loan programs.

SBA 7(a) loans can be used for working capital, acquisitions, partner buyouts, refinancing, and commercial real estate.
SBA 504 loans are designed specifically for long-term fixed-rate financing of commercial real estate or major equipment.

These loans are partially guaranteed by the Small Business Administration, which allows for:

Lower down payments
Longer repayment terms
More flexible eligibility than conventional bank loans

Collateral is typically required for SBA loans, depending on the size and structure of the deal.

Growth Guarantee Scheme

Grasshopper does not participate in the UK Growth Guarantee Scheme or similar government-backed programs outside the US.

For US businesses seeking government-supported financing, Grasshopper’s SBA loan offerings serve a similar role, providing longer terms and more favorable structures than many private loans.

Additional funding products

Beyond standard business loans, Grasshopper offers a range of specialist finance products, including:

Commercial real estate loans (starting at $1M, regionally focused)
Sponsor finance and private-equity-backed lending
Venture capital and fund-level facilities
Embedded finance and Banking-as-a-Service infrastructure

These products are not designed for most small businesses, but they reinforce Grasshopper’s positioning as a full-service digital bank rather than a single-product lender.

What is Grasshopper’s typical interest rate?

Grasshopper does not publish a single headline interest rate across its products. Pricing depends on the type of loan, your business profile, and overall risk.

For the Innovator Term Loan:

Rates are fixed for the life of the loan
An origination fee of 1% is deducted from loan proceeds
There are no prepayment penalties

Exact interest rates are determined during underwriting and are not publicly disclosed.

For SBA loans:

Rates are typically tied to the Prime Rate plus a lender margin
Rates may be fixed or variable, depending on structure
SBA guarantee fees may apply for larger loan amounts

The key takeaway is that Grasshopper’s pricing reflects bank-style underwriting, not instant-approval fintech lending. Rates may be more competitive than short-term lenders, but approvals take longer.

How much can I borrow with a Grasshopper business loan?

Loan amounts vary by product:

Innovator Term Loan: $25,000 to $200,000
SBA 7(a) loans: From $200,000 up to $5 million
SBA 504 loans: Typically used for large real estate or equipment purchases, often in the millions

Smaller businesses looking for sub-$25,000 financing will need to explore alternative lenders.

What is the acceptance rate for a Grasshopper business loan?

Grasshopper does not publish an acceptance rate. Approvals are based on traditional banking criteria, including:

Time in business
Revenue stability
Creditworthiness
Existing banking relationship (for some products)

Because Grasshopper is a regulated bank, approval rates are generally lower than fast-approval fintech lenders, but funding limits and repayment terms are often more favorable for businesses that qualify.

Eligibility criteria and whether you qualify

Eligibility depends on the product you’re applying for.

For the Innovator Term Loan, minimum requirements include:

An active Grasshopper bank account for at least 6 months
At least 1 year in business
Sufficient revenue to support repayments
Willingness to provide a personal guarantee

For SBA loans, requirements are more detailed and may include:

Strong personal and business credit
Demonstrated ability to repay
Owner equity contribution
Collateral, where applicable

Grasshopper primarily serves US-based businesses operating in B2B environments.

Additional information

Before you apply, it’s worth understanding how Grasshopper handles approvals, funding speed, and repayment flexibility in practice. These details can make a real difference to cost, timing, and whether the loan fits your plans.

Early repayment fees

Grasshopper does not charge early repayment penalties on the Innovator Term Loan. Paying the loan off early can reduce total interest paid.

How long does it take to get approved?

Innovator Term Loan applications can be completed online in as little as 10 minutes
Approval timelines vary based on underwriting and verification
SBA loans typically take longer due to documentation and SBA review

Estimated time to receive funds

Innovator Term Loan funds may be deposited within 1 business day after approval
SBA loans usually take several weeks from application to funding

Can a loan be repaid early?

Yes. Loans can be repaid early without penalties, particularly for the Innovator Term Loan.

Is security required?

Innovator Term Loan: No collateral required, but a personal guarantee applies
SBA loans: Collateral may be required depending on loan structure

What documentation is required

Documentation requirements depend on loan type and size.

Business information

Legal business name and address
Industry and operating details
Time in business

Business owner information

Identification details
Ownership structure
Personal credit information (soft pull at application stage)

Funding requirement

Loan amount requested
Use of funds
Financial statements for larger loans (P&L, tax returns)

How to apply for a Grasshopper business loan

Grasshopper uses a digital-first application process, backed by traditional bank underwriting. Here’s how it typically works from start to funding:

Open or have an existing Grasshopper business account
- Required for most loan products, including the Innovator Term Loan
- Accounts can be opened fully online and help pre-fill application details
Submit the online loan application
- Takes around 10 minutes to complete
- You’ll provide:
  - Loan amount requested
  - Business annual revenue
  - Intended use of funds
- Application uses a soft credit pull only
Provide financial documents if requested
- Smaller loans may require minimal documentation
- Larger requests may require:
  - Year-to-date or trailing 12-month P&L
  - Prior-year business tax returns
  - Revenue verification
Underwriting and review
- Grasshopper’s lending team reviews:
  - Cash flow and repayment ability
  - Time in business
  - Overall risk profile
- SBA loans require additional review and SBA-specific documentation
Receive and review your loan offer
- Offer will outline:
  - Approved loan amount
  - Interest rate and repayment schedule
  - Fees (including the 1% origination fee, if applicable)
  - Personal guarantee requirements
Accept terms and receive funds
- Innovator Term Loan funds may arrive within 1 business day after approval
- SBA loans typically take several weeks to fund

Is the application process different from other lenders?

Yes. Compared with fintech lenders, Grasshopper’s process:

Is more structured and documentation-driven
Focuses on long-term affordability rather than short-term cash flow
Trades speed for higher loan limits and longer terms

Compared with traditional banks, the process is:

More digital
Faster to start
Less paper-heavy upfront

How to improve your chances of getting funded

Before applying:

Maintain a healthy business bank account history
Understand your revenue and cash flow
Apply for loan amounts aligned with your financial capacity
Be clear on how funds will support business growth

For SBA loans, preparation and patience are key.

Pros & cons of a Grasshopper business loan

Like any lender, Grasshopper has clear strengths and a few trade-offs. Whether it’s a good fit depends on how established your business is, how quickly you need funds, and how much structure you’re comfortable with.

Pros

Regulated, FDIC-insured digital bank
Fixed-term loans with predictable repayments
No prepayment penalties
SBA loans are available for larger funding needs
Modern online application experience

Cons

Not suitable for very young businesses
Smaller loans require an existing Grasshopper account
Slower approvals than instant-decision lenders
Limited transparency on interest rate ranges

Alternative funding options for different lenders

If Grasshopper isn’t the right fit, alternatives may include:

Online term loan providers for faster approvals
Business lines of credit for revolving access to funds
SBA lenders with different underwriting focuses
Short-term lenders for urgent cash flow needs

Comparing these side by side helps clarify trade-offs between speed, cost, and flexibility.

Why use a finance broker?

Choosing the wrong funding product can be expensive. A broker like Swoop helps you:

Compare multiple lenders in one place
Understand total cost, not just interest rates
Match funding to your business stage and goals

That means fewer applications and better outcomes.

Get started with Swoop’s business funding platform

If you’re considering Grasshopper or want to explore alternative business funding options, Swoop lets you compare lenders and apply through a single platform.

You can see what you’re likely to qualify for, understand the trade-offs between loan types, and choose funding that fits how your business actually operates.

Apply with Swoop today to explore your business funding options with confidence.