TD Bank Business Loans Review
8.24% Based on the current prime rate of 7.50% + 0.74% added by TD Bank for lines of credit, not disclosed for term loans
$10,000 to $1,000,000
Not disclosed
Not disclosed
Pros and cons of TD Bank
| Pros | Cons |
|---|---|
| SBA-Preferred lender No loan limit for first mortgages through SBA 504 loan program Offers a wide array of business products, including term loans, lines of credit, SBA loans, bank accounts, credit cards and more | You must apply in person for loans over $250,000 Requires automatic payments from a TD Bank Business Checking account Only available in a few states (Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont and Virginia) and Washington, D.C. |
TD Bank small business loans review
TD Bank is one of the largest banks operating inside of the U.S., even though it’s a subsidiary of the larger Canadian banking firm. It offers a relatively standard suite of small business products to customers based on the East Coast, including small business bank accounts and a range of small business lending options.
TD offers personal accounts, too, if you’re really looking for a place to keep all of your financial matters in-house. That could help if you’re looking for fast transfers between your business and personal accounts, for example.
Finally, it’s a standout choice if you’re in the market for an SBA loan, particularly if you’re looking to make a significant investment in a new business location. TD Bank is an SBA Preferred lender — which gives it more leeway and speed in dealing with SBA loan underwriting — and uses this status to offer SBA 504 loans to customers on certain real estate properties with no maximum cap on how much you can borrow.
Who is TD Bank for?
- Established TD Bank Business customers. While not a requirement to apply for a loan, some products — notably the line of credit — require you to have a minimum balance of $40,000 in a TD Bank Business Checking account.
- East Coast business owners. You can only apply for TD Bank business financing if you live in one of the following states — Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont and Virginia — as well as Washington, D.C.
- You prefer working with a bank. There are many online small business lenders, but only a few of them are banks. Getting a business loan from the same place you do your banking can simplify things since everything will be done in-house.
TD Bank small business financing at a glance
| Products | Loan amounts | Repayment term | Estimated rate | Fees |
|---|---|---|---|---|
| Term loan | $10,000 to $1,000,000 | 12 to 60 months | Not disclosed | Not disclosed |
| Line of credit | $25,000 to $500,000 | Not disclosed | 8.24% Based on the current prime rate of 7.50% + 0.74% added by TD Bank | Not disclosed |
| SBA 7(a) loans | Up to $5,000,000 | Up to 300 months | Capped at 10.50% to 14.00% for variable loans
14% for loans $50,000 or less 13.5% for loans $50,001 to $250,000 12% for loans $250,001 to $350,000 10.5% for loans above $350,000 Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA. | Not disclosed |
| SBA 504 loans | No maximum loan amount for first mortgage; up to $5,500,000 for second mortgages | Up to 240 months | About 3% of the debt financed Based on SBA guidelines | Not disclosed |
Secured term loans
If you’re just searching for a standard business loan, TD Bank’s term loans are what you’ll want to look at. You can use a TD Bank small business loan for just about anything you need, including working capital, equipment, real estate and more. However, you will need some sort of collateral.
For equipment loans and real estate purchases, that’s typically the thing you’re buying. But for less tangible things — like working capital loans, and specifically those under $250,000 — TD Bank will file a blanket lien against your business to secure the loan.
However, TD Bank offers both short-term loans and long-term loans, up to 60 months in length.
Line of credit
TD Bank also generally requires collateral for its business lines of credit in the form of accounts receivable (similar to accounts receivable financing) or as cash. You’ll also need a TD Bank Business Checking account with a $40,000 minimum balance in order to be approved, unlike with its business loans.
You can draw against your line of credit with an online transfer or by writing a check. TD Bank may also offer the option for interest-only payments for a time, so be sure to inquire about your contract if that interests you.
SBA 7(a) loans
As an SBA Preferred lender, TD Bank has more authority to make lending decisions on its own, which results in a faster response for you, the borrower.
TD Bank requires a 10% minimum down payment with the popular SBA 7(a) loans, and you can use funds for a wide range of purposes including buying equipment, hiring new workers, buying real estate and more.
SBA 504 loans
For larger purchases, like a significant real estate or equipment investment, TD Bank also offers SBA 504 loans. You can use the property you’re buying as collateral for the loan, and there are no loan limits if you’ll be purchasing your first business property. Like the SBA 7(a) loan, you’ll also be required to make a minimum down payment of 10%.
TD Bank borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | Not disclosed |
| Minimum credit score | Not disclosed |
Unfortunately, TD Bank doesn’t provide many of the important details about the requirements you’ll need to meet in order to get approved for a business loan. Typically, though, you’ll need good credit, a demonstrated track record for your business and a strong income to be approved for most business loans.
TD Bank does provide a few details about its business financing requirements, however:
- You’ll need a 10% down payment for SBA loans.
- You’ll need to sign up for autopay for business loans and lines of credit.
- You can apply online for financing amounts under $250,000, but you’ll need to apply in person for amounts above that.
- You’ll need a TD Bank Checking account with a minimum balance of $40,000 if you’re applying for a business line of credit.
- You’ll need to sign a personal guarantee.
Required documents
TD Bank is pretty open with what documents you’ll need to apply for a business loan. Here are some of the things you’ll need:
- Copy of your government-issued ID
- LLC operating agreement, if applicable
- Partnership banking agreement, if applicable
- A copy of the minutes from your business’s last meeting or your bylaws
- Most recent tax return, if you’re requesting a loan between $100,000 and $250,000
- Personal authorization form from any business owners with more than 10% equity in the company
You should also keep in mind, though, that TD Bank might request additional documents depending on your situation.
Alternatives to TD Bank
| TD Bank | OnDeck | Capital One | |
|---|---|---|---|
| Minimum credit score | Not disclosed | 625 | Not disclosed |
| Loan products offered |
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|
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| Time to funding | Not disclosed | As soon as same day | Not disclosed |
| Starting APR |
| 31.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered) | Not disclosed |
| Maximum loan size | No loan limit for first mortgages taken out with an SBA 504 loan | $250,000 | Up to $5,000,000 |
| Minimum annual revenue | Not disclosed | $100,000 | Not disclosed |
TD Bank vs. OnDeck
If your business needs money today — with no time to wait for slow bankers — consider OnDeck. It’s much more transparent about its lending requirements, so you’ll have a better idea right away whether your business is likely to be approved or not.
If you are approved, lines of credit are available to use immediately, and loans up to $100,000 can be funded within the same day. Of course, you’ll pay a price for this convenience, though, in the form of much higher interest rates.
TD Bank vs. Capital One
If you want to stick with a traditional bank, Capital One is another good choice. You can apply for business loans at a branch location, though locations appear to be concentrated in several northeastern states, as well as major cities in Louisiana and Texas.
Capital One was the top-ranked bank in J.D. Power’s 2024 survey of overall customer satisfaction for small business banking, outranking TD Bank, which was ranked 10th.
But although Capital One is similarly tight-lipped about its requirements, you’ll need at least two years in business and a Capital One business checking account to qualify for its products. You can still apply if you don’t yet have a Capital One business checking account, but you will need to open one if you are approved.