What are the best banks for small business loans? Here’s our guide to 8 of your top options.
After listing our picks, we’ll provide an overview of what types of small business bank loans are available. Next, we’ll look in detail at 8 of the best business loan lenders as far as conventional banks are concerned as well as what they have to offer. Lastly, we’ll focus on factors such as available loan types, loan amounts, interest rates, loan terms and qualification requirements.
Our Lender Picks for Small Business Bank Loans
Some of the best banks for small business loans include the following:
- Bank of America
- Wells Fargo
- U.S. Bank
- TD Bank
- Live Oak Banking Company
- Huntington National Bank
Our picks are based on criteria such as available loan types, amounts, rates, qualification requirements, loan volume and reviews. We’ve included general lenders as well as providers specializing in loans from the Small Business Administration (SBA).
1. Bank of America
Based in Charlotte, N.C., with roots dating back to 1904, Bank of America is one of the nation’s biggest commercial lenders. Bank of America’s established track record and wide range of loan products make them a good choice for small business borrowers.
Small business financing products include:
- Unsecured term loans in amounts from $10,000 to $100,000, with fixed rates as low as 4.75%, terms from 12 to 60 months and $150 origination fees, available to companies with 2 years in business under current ownership and $100,000 in annual revenue
- Secured loans from $25,000 and rates starting at 3.5%, with terms up to 4 years when secured by collateral and 5 years when secured by certificates of deposit, available to companies with 2 years in business and $250,000 in revenue
- Unsecured lines of credit from $10,000, with interest rates as low as 4.5% and annual renewal of revolving credit, available to companies with 2 years in business and $100,000 in revenue
- Secured lines of credit from $25,000 and rates as low as 3.75%, requiring 2 years in business and $250,000 in revenue
- Auto loans from $10,000 with terms of 48 to 72 months
- Commercial real estate loans from $25,000 and rates starting at 3%, for terms up to 10 years with balloon payments and 15 years with full amortization, requiring 2 years in business and $250,000 in revenue
- Equipment loans from $25,000 and rates starting at 3%, with terms up to 5 years, available to companies with 2 years in business and $250,000 in revenue
- Health-care practice loans for doctors, dentists and veterinarians
- SBA loans
Based in New York with roots tracing back to 1799, Chase is a brand of JPMorgan Chase Bank, which joins Bank of America atop the ranks of the largest banks in the U.S. Chase business loan products include:
- Business lines of credit from $10,000 to $500,000, with 5-year revolving terms and interest rates based on factors such as banking relationship, credit history and collateral
- Commercial lines of credit above $500,000, with initial terms from 12 to 24 months and variable rates
- Small business loans from $5,000 and up, with terms from 12 to 84 months and both fixed and adjustable rates
- Commercial real estate loans starting at $50,000, with adjustable terms and fixed and variable rate options
- SBA loans, including SBA 7(a) loans up to $5 million, SBA 504 loans programs up to $12.5 million and SBA Express loans and lines of credit up to $350,000
- Equipment financing
- Trade financing for companies doing international business
Chase’s flexible variety of loan options help make them one of the best banks for small business startup loans.
3. Wells Fargo
Based in San Francisco and founded in 1852, Wells Fargo stands with Bank of America and Chase among the leading banks in the U.S. It offers a number of financing products geared toward small businesses, including:
- Revolving lines of credit, including basic lines from $5,000 to $100,000, with rates starting at prime plus 1.75%, as well as prime lines from $100,000 to $500,000 with monthly interest-only payments
- Business credit cards with rewards and 0% introductory rates
- Commercial real estate financing options, including funding for purchasing and refinancing and commercial real estate equity loans and lines of credit
- SBA 7(a) loans up to $5 million and 504 loans up to $6.5 million
One advantage of Wells Fargo is that it has more branches than any other banking institution in the U.S., making it a candidate for the easiest place to get a loan from a bank.
Based in New York and founded in 1812, Citi rounds out the list of America’s “Big Four” banks. Its business loan products include:
- Business installment loans from $5,000 to $5,000,000
- Business lines of credit from $10,000 to $5,000,000
- Commercial mortgages from $250,000 to $5,000,000
- Health-care practice financing from $250,000 to $5,000,000
- Small business credit cards
Citi has more than 600 branches located in a dozen states, with a strong presence in California, New York, Illinois, Florida and the District of Columbia, making it a good option if you have a location near you.
5. U.S. Bank
Based in Minneapolis with roots dating back to 1863, U.S. Bank trails just behind the banks covered above as the fifth-largest bank in the U.S. Its business loan products include:
- Business term loans of up to $1 million at fixed interest rates
- Commercial real estate loans of up to $10 million with variable or fixed rates and amortizations up to 25 years
- Equipment financing of up to $500,000 for up to 125% of costs including indirect “soft costs,” with multiple pieces of equipment funded by a single contract
- SBA loans up to $5 million for 7(a) loans and up to $12.375 million for 504 real estate loans
U.S. Bank doesn’t have as large a national reach as some of its larger competitors, but if there’s a branch in your area, this can be a good choice when you’re looking for a bank loan for your business.
6. TD Bank
Based in Toronto and established in 1852, TD Bank ranks eighth in size among U.S. banks and sixth in SBA approvals.
Small business loan products include:
- Loans from $10,000 to $1,000,000, with fixed rates and 3 to 5 years amortization
- Lines of credit from $25,000 to $500,000, with variable rates
- Commercial mortgage loans up to $1,000,000, with fixed rates, 5-year terms and up to 20-year amortizations
- SBA 7(a) loans of up to $5 million, with terms up to 25 years and amortization up to 25 years, requiring 10% down payments
- SBA 504 loans with no maximum amount for the first mortgage and maximums from $5 million to $5.5 million for second mortgages depending on industry, with terms up to 20 years, amortization up to 25 years and 10% down payments required
- SBA Express Loans of up to $350,000 with terms up to 25 years, fully amortizing, at both fixed and variable rates
- U.S. Department of Agriculture (USDA) loans for rural businesses in amounts up to $25 million and terms up to 30 years, fully amortizing, at both fixed and variable rates
TD Bank accepts loan and line of credit requests for under $100,000 online. Greater amounts require an in-person application at a branch office. TD Bank operates more than 1,100 locations on the East Coast from New England to Florida.
7. Live Oak Bank
Based in Wilmington, N.C. and operating since 2008, Live Oak Bank is an online bank without physical branch locations. It specializes in SBA loans, leading the nation in total amount of SBA loans approved annually.
Loan products include:
- SBA 7(a) loans up to $5 million and 504 loans up to $15 million, with terms up to 25 years and minimal equity requirements
- USDA loans for rural businesses
- Other commercial loan products
8. Huntington National Bank
Based in Columbus, Ohio, since 1866, Huntington National Bank operates primarily in the Midwest, where it is the top regional SBA lender, approving more SBA loans annually than Live Oak Bank but with a smaller total amount. Business loan products include:
- Business term loans and real estate loans
- Business lines of credit
- SBA 7(a), Express and 504 loans
- Dental and veterinary practice loans
Types of Small Business Loans
Let’s look in more detail at some of the loan products you can find from our list of the best banks for commercial loans. Popular bank loans for business products include:
- Term loans: Loans with set repayment schedules ranging from less than a year for short-term loans to 25 years or more for long-term loans
- Lines of credit: Accounts with fixed spending limits which can be used to make purchases or write checks, often with the option of spending the money again after it has been repaid (an arrangement known as a revolving line of credit)
- Auto loans: Financing for business cars, trucks, vans and other vehicles, typically collateralized by the vehicle
- Commercial real estate loans: Funding for construction or expansion of business facilities
- Equipment loans: Financing for equipment such as heavy machinery, tools and office equipment
- SBA loans: Funding from private lenders partially guaranteed by the U.S. government, offered at affordable rates and designed for borrowers who have difficulty qualifying for standard loans (Note that SBA loans are intended for borrowers who have challenges qualifying for conventional forms of financing.)
In addition, alternatives to the best business loan lenders are online nonbank financing providers. These lenders are able to offer additional types of small business financing with less stringent qualification requirements and fast funding, such as merchant cash advances. In turn, borrowers can expect shorter repayment periods, more frequent payment installments and higher interest rates than they’d find with the best banks for small business loans.
Choose the Small Business Lender Who’s Right for You
We’ve covered large banking lenders with proven track records, including Bank of America, Chase, Wells Fargo, Citi, U.S. Bank and TD Bank. We’ve also looked at smaller ones that specialize in SBA loans, including Live Oak Bank and Huntington National Bank. The best place to get a small business loan depends on your specific business needs and your ability to qualify.
Also, keep in mind, Fast Capital 360 can pair you with alternative lenders who meet your borrowing needs and qualifying criteria, even if you have less-than-perfect credit. Take a few minutes to fill out our free, no-obligation prequalifying form to see your loan options.