Chase business loans review
 |
|
Pros and cons of Chase business loans
Pros
- SBA preferred lender
- No origination fee for loans
- Nearly 5,000 branches nationwide
- Good customer satisfaction ratings
Cons
- May need to apply in-person
- Non-transparent financing details
- Loans over $250,000 have prepayment penalties
- Not available in Alaska or Hawaii
- Rates depend on prior Chase banking history
Chase business loans review
Chase stands out by integrating competitive financial products with the backing of a trusted, well-established financial institution. It offers a variety of lending options, including term loans, lines of credit, SBA loans and commercial real estate financing to cater to businesses of different sizes and various stages of growth.
Another factor that sets Chase apart is its accessibility. With branches in 48 states, borrowers can access in-person assistance, which is particularly valuable for business owners who prefer face-to-face interactions.
- You already bank with Chase. Chase bases your interest rate partially on your prior “banking relationship,” so if you already have a business bank account with Chase, you could score a more affordable loan.
- You want convenient branch access. Chase has more branches than any other bank in the country, meaning you’re never far from a real-life banker — which is good because you may need to apply for a business loan in person.
- You want to apply for an SBA loan. Chase is an SBA-preferred lender, meaning it may be able to get you a loan decision faster than the average SBA lender.
Chase business loans at a glance
| Product | Loan amounts | Repayment term | Estimated interest rate | Fees |
|---|---|---|---|---|
| Term loans | $5,000 to $500,000 | Up to 84 months | Not disclosed | Prepayment penalty for loans over $250,000 |
| Business line of credit | $10,000 to $500,000 | 60-month revolving term with 60-month repayment term | Not disclosed | 0.25% of your approved credit limit or $200, whichever is higher |
| SBA 7(a) loans | Up to $5,000,000 | Up to 300 months | Capped at 10.50% to 14.00% for variable loans* | Fees vary, subject to SBA maximums |
| SBA 504 loans | Up to $5,500,000 | Up to 300 months | About 3.00%* | Fees vary, subject to SBA maximums |
| Commercial real estate loans | Starting at $50,000 | Up to 300 months | Not disclosed | Prepayment penalty for loans over $250,000 |
*Based on SBA guidelines
Business term loans
Chase offers three different options for business term loans. There’s a standard business term loan with a lump-sum disbursement and a set payback period like you’d find with any other small business lender. It also offers a “draw loan” that basically operates like a business line of credit, with a one-year draw period. Finally, Chase offers an “advised line” that allows you to be pre-approved for a set amount, and then draw against that amount as needed for up to a year.
Business line of credit
Chase doesn’t provide any details about how much the rates might be for its business line of credit, but it does say it will depend on things like your “banking relationship, credit history and collateral.”
A Chase business line of credit may come with another fee, too, but Chase will waive this if you use an average of at least 40% of your credit line over a 12-month period.
These lines of credit have a five-year draw period, during which your monthly payments will be $100 or 1% of your outstanding balance, whichever is more. After that, there is a five-year repayment period.
SBA 7(a) loans
The popular SBA 7(a) loan program is a great choice for most business needs, such as working capital, upgrading equipment and even purchasing or upgrading real estate. Chase offers standard SBA 7(a) loans up to $5,000,000 and SBA Express loans for amounts under $500,000 under this program. Loan decision timelines can be pretty fast for these loans because Chase Bank is an SBA-preferred lender.
SBA 504/CDC loans
Chase offers SBA 504 loans which you can use to make major business investments like buying real estate or expensive equipment such as farm combines or specialized delivery vehicles. The SBA limits these loans to $5,500,000.
You may be able to combine an SBA 504 loan with a term loan from Chase to boost your total financing amount.
Commercial real estate loans
Aside from SBA loans, which you can use to purchase real estate for your business, Chase also offers conventional commercial real estate loans. These loans are for owner-occupied businesses, however, so things like franchise restaurant locations generally won’t be eligible.
Chase offers these loans to build or purchase a new property or to refinance your existing commercial mortgage at fixed or variable rates. In addition, Chase may allow down payments as low as 10% for some loans.
Chase Bank business loan borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | Two years |
| Minimum credit score | Not disclosed |
It’s common for lenders to be a little hush-hush about the specific business loan eligibility requirements. Even so, they often provide some sort of concrete information, but Chase provides very little. Instead, it merely says you must be in business and under the same majority ownership for at least two years. For interest rates, Chase states it’ll consider your credit history, any collateral you plan to offer and your banking history.
That’s not very helpful if you’re deciding whether to even reach out to Chase about a loan. However, you can take heart that Chase will disclose all of these details and more after you apply for the loan, but before you sign on the dotted line. Be careful to read this information and compare it to other offers to see if you’re actually getting a good deal.
Required documents
Chase doesn’t provide details about the required documents you’ll need to apply for any of its loan products. However, business loan applications typically require:
- Recent bank statements
- Current financial statements
- Your business budget
- A written business plan
- Recent income tax returns
- An evaluation of your credit report
Alternatives to Chase business loans
| Chase Bank | U.S. Bank | Bank of America | |
|---|---|---|---|
| Minimum credit score | Not disclosed | Not disclosed | 700 |
| Loan products offered |
|
|
|
| Time to funding | Not disclosed | Same business day for unsecured Quick Loans | Not disclosed |
| Starting APR | About 3.00% for SBA 504 loans* Not disclosed for other products | Not disclosed |
|
| Maximum loan size | $5,500,000 | $12,375,000 | $5,000,000 |
| Minimum annual revenue | Not disclosed | Not disclosed | $50,000 to $250,000 |
*Based on SBA guidelines
Chase business loans vs. US Bank
US Bank is the fifth-largest bank in the country and offers similar small business financing options as Chase Bank. Compared with Chase, it offers the added advantage of offering “Quick Loans,” which are smaller loans from $5,000 to $250,000 that can be approved and deposited into your account the same business day you apply.
Unfortunately, US Bank is only available in 26 states — roughly half of the states with a Chase presence — so it might not be an option depending on where you live.
Chase business loans vs. Bank of America
As the second-largest bank in the country, Bank of America offers many of the same financing options as Chase, albeit with a few more variations, including equipment loans and business vehicle loans.
Like Chase, Bank of America also factors your prior banking history when setting your rates. It’s a bit more transparent about rates than Chase, however, and it does charge origination fees with its loans, which Chase avoids. Finally, Chase scored higher than Bank of America in J.D. Power’s 2024 U.S. National Banking Satisfaction Study.
Compare business loan offers
Read More
How to Get Funding For a Business Updated April 14, 2023 If you’re wondering how to finance a business, we’ll walk you through the process depending…Read More
SBA Loan Down Payment: How Much Is Required? Updated November 11, 2024 Business owners should expect to pay a down payment of 10% to 30% for a…Read More