Best Banks for Small Business Loans

Business bank loans provide competitive rates and flexible terms, but you typically need strong credit and a solid business history to qualify.

Get Business Loan Offers
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Privacy Secured  |  Advertising Disclosures
 
Jill Chafin, staff writer for LendingTree
Written by
Jill A. Chafin
Edited by
Dawn Daniels
Updated on: June 21, 2024

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderBest for…Max. loan amountTerm lengthMin. interest rateTime in business
Building creditStarting at $1,00012 months (with annual review)Variable6 monthsGet business loan offers
Lines of credit$1,000,000Revolving9.00%*Startup to 2 years Get business loan offers
Chase logoVariety of small business solutions$5,000,000Typically up to 84 months for term loans Not publicly sharedNot disclosedGet business loan offers
Fast funding$250,000Up to 84 months8.49%6 monthsGet business loan offers
Equipment financing$500,00024 to 60 months6.49%Not disclosedGet business loan offers
Unsecured business loans$100,00024 to 60 monthsNot publicly shared2 years in most casesGet business loan offers
Commercial real estate loans$5,000,000Up to 240 monthsNot publicly shared2 years for most products (not required for SBA loans)Get business loan offers
SBA loans$5,500,00060 to 300 monthsRates vary, subject to SBA maximumsNot disclosedGet business loan offers
Truist logoStartups$250,00012 to 300 monthsNot publicly sharedNoneGet business loan offers

*Wells Fargo rate based on 0.50% plus the current prime rate of 8.50%

Learn more about how we chose our picks.

Get Your Customized Rates

Traditional bank lenders at a glance

Bank of America: Best for building credit

Starting at $1,000; credit line amount is equal to your cash deposit

Variable

12 months (with annual review)

Pros

  • Cash-secured line of credit can help establish and build business credit
  • Rate discounts and loyalty rewards for Bank of America Preferred Rewards members
  • Offers multiple small business products and solutions
  • Over 6,000 branches nationwide

Cons

  • Minimum credit score requirements aren’t listed
  • Credit limit based on your security deposit
  • Annual fee of $150 (waived the first year)

Why we picked it

+

With a Bank of America secured business line of credit, you can set money aside for business expenses while building your business credit profile. You must provide a cash deposit (starting at $1,000) to be able to withdraw funds up to that amount as often as needed. After a year of regular payments, your security deposit will be refunded.

Bank of America also offers an unsecured line of credit starting at $10,000 for businesses that have been operating for at least two years. In addition, Bank of America has a range of small business solutions, including term loans, credit cards, bank accounts, investing and a loyalty program for business members.

Read our Bank of America review.

How to qualify

+

In order to qualify, you’ll need to meet Bank of America’s criteria of:

  • Minimum credit score: Not disclosed
  • Minimum time in business: Six months
  • Minimum annual revenue: $50,000
See Your Business Loan Offers

Wells Fargo: Best for lines of credit

$5,000 to $1,000,000

9.00%*

Revolving

*Wells Fargo rate based on 0.50% plus the current prime rate of 8.50%

Pros

  • Collateral isn’t required for unsecured lines of credit
  • Offers a wide range of business products and services
  • Almost 7,000 branches nationwide
  • Automatic enrollment in the free rewards program

Cons

  • Annual fees for unsecured line of credit after first year
  • Personal guarantee required for some products
  • Must operate for more than two years to access higher credit limits

Why we picked it

+

Wells Fargo offers unsecured and secured lines of credit of up to $1,000,000, allowing you to withdraw what you need, when you need it. Interest is only applied to the amounts withdrawn, although some products charge an annual fee. Wells Fargo also offers SBA loans, business bank accounts, credit cards and more.

It can take up to two weeks to process and fund a Wells Fargo business line of credit. Newer businesses can consider the Wells Fargo Small Business Advantage line of credit, which is designed for companies with less than two years of operation.

Read our Wells Fargo review.

How to qualify

+

In order to qualify, you’ll need to meet Wells Fargo’s criteria of:

  • Minimum credit score:
    • 680 for unsecured lines of credit
    • Not disclosed for other products
  • Minimum time in business:
    • Less than two years for Wells Fargo Small Business Advantage line of credit
    • Two years for conventional lines of credit
  • Minimum annual revenue:
    • $2 million for Prime Line secured line of credit
    • Not disclosed for other products
See Your Business Loan Offers

Chase Bank: Best for variety of small business solutions

$5,000 to $5,000,000

Not publicly shared

Typically up to 84 months for term loans or 300 months for commercial real estate loans

Pros

  • Wide range of business products and services
  • SBA preferred lender
  • No origination fees for term loans and commercial real estate financing
  • Over 4,700 branches nationwide

Cons

  • Prepayment penalties for loans greater than $250,000
  • Doesn’t list interest rate ranges
  • May need to apply in person
  • Loans not available in Alaska and Hawaii

Why we picked it

+

If you want a one-stop solution to tackle your business’s financial needs, Chase Bank could be right for you. With a strong nationwide reach, Chase offers a range of small business solutions, including term loans, lines of credit, commercial real estate financing, SBA loans, checking accounts, credit cards, investing, payment solutions and more.

Since interest rates are based on your banking relationship, it can help to establish a relationship with Chase first before applying for financing. And since Chase is an SBA-preferred lender, you can potentially receive your funds faster than the average turnaround time.

Read our Chase Bank review.

How to qualify

+

Chase Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Apply online or contact the bank directly to learn if your business qualifies for a loan.

See Your Business Loan Offers

U.S. Bank: Best for fast funding

$5,000 to $250,000

8.49% with autopay from a U.S. Bank account

Up to 84 months

Pros

  • Quick online application with expedited decisions
  • No origination fees
  • Secured and unsecured options available
  • Offers SBA loans
  • Approximately 2,000 branches

Cons

  • Not all states are eligible for business financing (unless you’ve been a U.S. Bank customer for at least 12 months)
  • Online applications can’t have more than five business owners
  • Doesn’t list minimum credit score or business history requirements

Why we picked it

+

For companies needing fast access to capital, US Bank offers quick business loans and lines of credit up to $250,000. While traditional banks can often take up to two weeks or longer to process and fund loans, U.S. Bank uses a streamlined online application to approve and deliver funds within minutes.

Unsecured business financing is available for those who can’t provide collateral. However, you can unlock the lowest rates by pledging collateral with a secured business loan. In addition to quick business financing, U.S. Bank offers SBA loans, business checking accounts, payroll services and more.

If you’ve been a U.S. Bank customer for less than 12 months, you’ll need to reside in one of the following states to qualify: Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin or Wyoming. If you live in North Carolina, South Carolina or Texas, your eligibility will depend on your ZIP code.

Read our U.S. Bank review.

How to qualify

+

In order to qualify, you’ll need to meet U.S. Bank’s criteria of:

  • Minimum credit score: Not disclosed
  • Minimum time in business: Six months
  • Minimum annual revenue: Not disclosed
See Your Business Loan Offers

First Citizens Bank: Best for equipment financing

Up to $500,000

6.49%

24 to 60 months

Pros

  • 100% financing for equipment available
  • Turnaround time as quickly as one business day
  • Serves a variety of industries

Cons

  • Doesn’t list eligibility requirements
  • Lack of information online regarding interest rate ranges
  • Only around 600 branches in 21 states

Why we picked it

+

Businesses needing to invest in heavy or industrial equipment can borrow up to $1,000,000 with equipment financing through First Citizens Bank (NC). You can receive 100% financing for new and used equipment, receiving funds in as soon as one business day.

Interest rates can start as low as 6.49%, but your final rate will depend on your credit score, borrowing history and the overall value of the equipment you want to purchase. While First Citizens Bank doesn’t list its eligibility criteria, recently established businesses may be eligible to apply since the equipment acts as collateral to secure the debt.

Read our First Citizens Bank review.

How to qualify

+

First Citizen Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Apply online or contact the bank directly to learn if your business qualifies for a loan.

See Your Business Loan Offers

PNC Bank: Best for unsecured business loans

$20,000 to $100,000

Not publicly shared

24 to 60 months

Pros

  • No collateral required
  • Some leeway on the typical two-year business history requirement
  • Simple application and decision process
  • Over 2,000 branches nationwide

Cons

  • Lack of transparency regarding interest rates
  • Minimum credit score and annual revenue requirements not disclosed
  • You can access higher loan amounts by providing collateral

Why we picked it

+

Companies without collateral can consider an unsecured business loan with PNC Bank. Loan amounts go up to $100,000 with fixed interest rates. Payments are automatically deducted from your PNC Bank checking account on a monthly basis.

Similar to other traditional banks, PNC Bank offers a wide range of small business solutions like credit cards, merchant services and lines of credit. While you typically need to operate for at least two years to qualify for a PNC Bank business loan, other credit solutions may be available for startups.

Read our PNC Bank review.

How to qualify

+

In order to qualify, you’ll need to meet PNC Bank’s criteria of:

  • Minimum credit score: Not disclosed
  • Minimum time in business: Two years in most cases
  • Minimum annual revenue: Not disclosed
See Your Business Loan Offers

Capital One: Best for commercial real estate loans

$10,000 to $5,000,000

Not publicly shared

Up to 240 months

Pros

  • Dedicated business banking specialists
  • Offers a range of small business solutions
  • SBA loans have no minimum time-in-business requirement

Cons

  • Doesn’t share potential interest rates in advance
  • Must apply in person at a branch
  • Only about 300 branches nationwide
  • Collateral or deposit requirements may apply

Why we picked it

+

As a top 10 bank in the U.S., Capital One has a solid track record of providing flexible options to help small businesses acquire, improve or refinance commercial property. You can borrow up to $5,000,000 with terms lasting up to 20 years. If you want to streamline your business finances, Capital One offers additional products like checking, savings, lines of credit, SBA loans and more.

Note that you must have a business checking account and apply for business financing in person at a branch.

Read our Capital One review.

How to qualify

+

In order to qualify, you’ll need to meet Capital One’s criteria of:

  • Minimum credit score: Not disclosed
  • Minimum time in business:
    • Two years for most products
    • No requirement for SBA loans
  • Minimum annual revenue: Not disclosed
See Your Business Loan Offers

TD Bank: Best for SBA loans

Up to $5,500,000

Rates vary, subject to SBA maximums

60 to 300 months

Pros

  • SBA Preferred lender
  • Faster decision times compared to average SBA lenders
  • Typically no balloon payments

Cons

  • Branches are only located in 15 states on the East Coast and the District of Columbia
  • You need to apply in person for loans over $250,000
  • Collateral and down payments are typically required

Why we picked it

+

As an SBA Preferred lender, TD Bank can make lending decisions with approval from the Small Business Administration (SBA), helping you get your money faster. Although the specific timeline will depend on your unique business needs, SBA Preferred lenders typically process and fund loans within two weeks, compared to the average turnaround time of 30 to 90 days.

TD Bank offers up to $5,000,000 with an SBA 7(a) loan, or up to $5,500,000 with an SBA 504 loan — depending on your industry. You can also explore other financing options, such as term loans, lines of credit, commercial real estate loans and financing for healthcare professionals.

But branches are only available in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and the District of Columbia.

Read our TD Bank review.

How to qualify

+

TD Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Apply online or contact the bank directly to learn if your business qualifies for a loan.

See Your Business Loan Offers

Truist: Best for startups

$3,500 to $250,000

Not publicly shared

12 to 300 months

Pros

  • No minimum business history or annual revenue requirements
  • Wide selection of lending products
  • Up to 100% financing available for auto, commercial vehicle and equipment loans

Cons

  • Doesn’t disclose rates and minimum credit score requirements
  • Smaller loan amounts compared to other traditional banks
  • Doesn’t offer SBA loans
  • Extra paperwork may be required if you’ve been in business for less than two years

Why we picked it

+

Truist works with each company on an individual level, assessing their overall growth and potential. Because of this, there are no standard business history or annual revenue requirements, making Truist ideal for those needing startup financing. Options include unsecured and secured term loans, lines of credit, commercial auto loans, equipment financing and commercial real estate loans.

While Truist only advertises loans up to $250,000, there are higher loan products available if your business earns at least $2 million in annual revenue.

Read our Truist review.

How to qualify

+

In order to qualify, you’ll need to meet Truist’s criteria of:

  • Minimum credit score: Not disclosed
  • Minimum time in business: None, but you may need to fill out extra paperwork if you’ve been in business for less than two years
  • Minimum annual revenue: None
See Your Business Loan Offers

What is a bank business loan?

A bank business loan is a type of small business financing provided by a traditional bank, usually with physical locations and in-person support.Conventional bank lending typically provides access to generous loan amounts, competitive rates and flexible terms. However, eligibility requirements tend to be strict, making it hard for startups or low-revenue companies to qualify.

On this page

Traditional bank loans vs. online lenders

When looking to secure financing for your business, the most popular options include a traditional bank or credit union loan or working with an alternative lender.

Traditional bank loans typically offer better rates and terms, helping you save money in the long run. Additionally, you may have the option to visit a branch to discuss strategies face-to-face with a financial expert. And building a long-term relationship with your local bank can often help improve your chances of getting approved for business financing.

However, online business loans might be a better option if you can’t qualify for traditional financing. For example, some online lenders offer business loans for bad credit, accepting scores as low as 500. You also can’t beat the speediness that comes with online lenders, with some lenders providing same-day financing. In comparison, it can take weeks or even months to receive your funds from a traditional bank.

Picking the right type of business lender depends on your immediate and long-term goals, as well as your company’s overall financial health.

Types of small business bank loans

In addition to business checking accounts and merchant services, most traditional banks offer multiple types of small business loans.

Term loans

Bank term loans provide a lump sum of cash upfront, with scheduled repayments and accruing interest. You can choose between a short-term loan, which typically ranges from three to 24 months, or a long-term loan with repayment terms from five to 25 years or longer.

Uses: A term loan can help cover specific projects or expenses, such as investing in new supplies or financing an expansion. The regular payments can also help you stay on track with your business budget.

Lines of credit

Similar to a credit card, a business line of credit lets you withdraw up to your credit limit as often as needed. Once you repay the debt, you can withdraw up to your full limit again. You typically only pay interest on the withdrawn amounts, although some lenders charge additional maintenance or annual fees.

Uses: A line of credit can be great for ongoing or unexpected expenses, such as covering payroll services or seasonal dips in income. Since you typically only pay for what you use, it can be handy to keep a credit line open for whenever you need extra cash on hand.

Equipment financing

Equipment financing can help small business owners purchase or upgrade essential equipment needed to keep operations running smoothly. Since the equipment often acts as collateral to reduce lender risk, you may find it easier to qualify compared to other types of traditional business loans. Some lenders even provide 100% or more financing for equipment to help cover the cost of the equipment plus extra costs like taxes, delivery and installation.

Uses: Equipment loans can be a great choice for startups or low-credit business owners who can’t provide a down payment or collateral. You can also consider equipment leasing if you anticipate needing equipment for the short term.

Commercial real estate loans

Commercial loans can be used for many purposes, such as investing in property or securing a physical location when starting a retail business. Terms can last anywhere from five to 25 years or longer, and may not require a balloon payment at the end. However, you typically need to provide a down payment of 20% or more.

Uses: Business owners needing to purchase or refinance commercial real estate are likely going to seek out a commercial real estate loan. You have a higher chance of approval if your business has operated for at least two years or longer, with a minimum credit score of 650 or higher.

SBA loans

The U.S. Small Business Administration (SBA) provides a partial guarantee for SBA loans, making them a more affordable option for those who struggle to qualify for traditional financing. While the SBA sets the maximum interest rates, it’s up to the individual lender to define the eligibility criteria. In general, it’s recommended to have at least two years in business and a personal credit score of 680 or higher.

Uses: The popular SBA 7(a) loan is typically best for general business expenses, such as inventory, payroll, equipment, marketing campaigns and more. The SBA 504 loan can help with more significant projects, such as expansions or construction.

Pros and cons of bank business loans

ProsCons

 Generous loan amounts: You can often get funding in the millions, especially if working with an SBA lender.

 Competitive rates: Business loan interest rates can range from 6.25% to 9% for traditional banks, while online loans can go up to 60% or higher.

 Longer repayment terms: Terms typically range from 12 to 300 months, giving you more breathing room to handle repayments.

 Borrower incentives: Some banks offer loyalty reward programs for business members.

 In-person support and networking opportunities: Your local bank may provide educational classes or offer in-person support to take your business to the next level.

 Strict requirements: Traditional lenders typically like to see a good to excellent credit score, along with a steady income, at least one to two years in business, assets and more.

 Extra paperwork: Some banks require you to apply in person with a paper application. You may also need to provide additional paperwork during the underwriting process.

 Slower turnaround times: Traditional banks typically take anywhere between several days to three months to process your application, though some have a shorter or longer timeline.

How to get a business loan from a bank

Once you are ready to apply for financing, here are some general steps to help improve your chances of getting a business bank loan.

1. Establish a relationship with your bank

You can start by opening a business checking account at your local bank. From there, consider applying for business credit cards. Once you have a solid history of on-time payments, contact your branch to see if you qualify for small business financing.

2. Boost your credit scores

Traditional banks generally have stricter requirements for credit scores than online lenders. While there’s no hard-and-fast rule for minimum credit scores, it’s generally recommended to have a personal credit score above 680 or 700 to qualify for traditional business financing.

Business credit scores are typically measured on a scale of 0 to 100. A score of 80 or higher is considered low risk, while 50 or lower is considered high risk.

You can monitor your credit score for free with LendingTree Spring, following our key tips to boost your score before applying for a business loan.

3. Improve your revenue

When you apply for funding, lenders look at how much revenue your company generates each year. This is to ensure your business is capable of repaying the debt.

Lenders typically require businesses to bring in at least $100,000 in annual revenue. However, some lenders are flexible around this requirement, especially if you have a robust credit profile.

4. Provide collateral

Many traditional lenders offer unsecured business loans, meaning you don’t need to provide collateral. However, providing collateral and getting a secured business loan can often unlock the most competitive rates and flexible terms, making your loan more affordable.

You can often pledge equipment, real estate or cash assets as collateral. Just keep in mind that the lender can seize the collateral if you fail to repay the debt.

5. Gather essential paperwork

Traditional banks typically require additional paperwork when processing your loan application. While the exact business loan documents will vary by lender and loan type, you can be prepared by gathering the following paperwork in advance:

6. Shop around and review offers

It’s worth shopping around to find the best bank for a business loan that fits your needs. You can read lender reviews, visit lenders’ websites and apply with several lenders. You typically have a 14- to 45-day window to “rate shop” and submit official applications to multiple banks without further impact to your credit score.

Once you pick the best option, be sure to thoroughly review the business loan agreement before proceeding. Sometimes lenders sneak in hidden fees, like origination fees or prepayment penalties, which can increase the overall cost of borrowing.

Watch out for red flagsJust because a traditional bank might have an established history and positive reviews doesn’t mean it’s the best fit for you. Here are some warning signs to watch out for when comparing bank loans for your business:

  • Vague or confusing terms and fees
  • Variable interest rates — these can change without warning, increasing the cost of your loan
  • Repayment periods that are longer or shorter than what was initially discussed
  • Additional fees, such as prepayment penalties or high late fees
  • Restrictions on how to spend the funds

Alternatives to bank business loans

If a traditional bank loan doesn’t seem like the best option for you, here are some alternative ways to access capital for your business.

  • Business loans from online lenders: Online lenders typically work with a wider range of borrowers, such as startups and low-revenue businesses. Just note that you’ll likely pay higher fees with less flexible terms for these loans.
  • Small business grants: There are a range of grants available from the state and federal government, as well as from nonprofits and private corporations. While competition can be stiff, it’s still worth the time and effort to apply.
  • Business credit cards: Although business credit cards usually have significantly higher APRs than business loans, they can help in a pinch when you need to cover everyday or low-cost expenses. You can also apply for business credit cards with travel rewards to help reduce travel expenses. Try to pay off your balance each month to avoid racking up interest charges.
  • Microloans: If you need $50,000 or less, a microlender could be a good option. The SBA also offers microloans, catering to underserved communities like women-owned businesses and minority entrepreneurs.
  • Merchant cash advance: Technically not a loan, merchant cash advances (MCAs) provide a cash advance in exchange for your future debit and credit card sales. This type of funding can provide fast cash with minimal eligibility requirements, but tends to be a more costly way to borrow.
  • Invoice factoring: If your business has a lot of unpaid invoices, you can sell them to a factoring company for a cash advance. The factoring company will then collect payments on your behalf, sending you the reminder of the funds after they subtract their fee.
  • Crowdfunding: You can raise donations from friends, family and the general public via a crowdfunding platform like GoFundMe. While there is no fee to start a fundraising campaign, the crowdfunding platform will deduct a fee from each donation for using their service.

How we chose the best bank business loans

We reviewed more than 20 lenders to determine the overall best nine bank business loans. In addition to being a traditional bank with physical branches, we evaluated lenders based on the following criteria:

  • Range of small business solutions: Options to help streamline all or most of your business’s finances within one institution, such as business checking accounts, savings, credit cards, lines of credit and more.
  • Loan amounts: We included lenders with financing options from $1,000 to $5.5 million to help tackle a wide variety of business expenses.
  • Rates and terms: While traditional lenders don’t typically disclose their rates and fees in advance, we prioritize lenders who advertise competitive fixed rates, no hidden fees and greater options for repayment terms.
  • Repayment experience: We consider each lender’s reputation and business practices, favoring lenders that report to all major credit bureaus, offer reliable customer service and provide unique perks to customers, like free business coaching or rewards programs.

Frequently asked questions

Traditional banks typically take between two weeks to several months to process and fund business loans, while SBA loans can take up to 90 days to process. However, some lenders offer faster options, delivering funds as quickly as the same day.

In general, traditional banks have a longer timeline than online lenders since they need to thoroughly review your paperwork, business plan, credit criteria, collateral details and more. In contrast, online lenders utilize the latest software to assess your company’s overall financial health.

A no-doc business loan is a loan that requires minimal paperwork during the underwriting process, such as only needing your credit score, bank account statements and recent tax returns. No-doc loans are typically unsecured and don’t require collateral, which can help shorten the funding timeline.

While no-doc loans are generally offered by online lenders, some traditional banks offer unsecured business loans with minimal documentation required.

Some traditional banks offer financing for early-stage startups, such as Wells Fargo and Truist. However, many traditional banks want a business to operate for at least two years before extending credit.

If you run a startup, there are other ways to raise funds to jumpstart your entrepreneurial ideas. For example, you can apply for startup business grants, ask relatives to contribute toward a family loan or save up your income to bootstrap your startup.