Denice R. Preston
These are the top banks that offer small-business loans. They are ranked based on their industrial and commercial lending volumes, product offerings, and other options.
Bank of America
According to S&P Global Market Intelligence, Bank of America held the record for the largest commercial and industrial loans among all banks in September 2020. This surpasses the closest lender by nearly $100 billion.
Bank of America business loans can be a great choice if you are looking for rewards. You can receive interest rate discounts and no fees for wire transfers if you meet certain account requirements. Bank of America might be a good choice for veterans and service members as it offers a 25% discount on origination or loan administration fees.
Term loans Bank of America offers both fixed-rate secured and unsecured term loans. The fast loan requires more annual income: $250,000 for the secured option and $100,000 for the unsecured. It offers higher borrowing limits, up to $250,000, and possibly a lower interest rate. These business loans are available for up to five years and require a minimum of two years of business.
Business credit. Bank of America offers both secured and unsecured business lines of credit. They have the same income requirements as their term loans. Tight credit has a higher borrowing limit than the unsecured, starting at $25,000 and ending at $10,000. There is no maximum borrowing limit. Both terms have revolving terms that allow you to use the money when needed and renew each year.
JPMorgan Chase
Chase offers products to small-business owners. These include checking accounts and Credit cards. The following are Chase business loans:
Term loans. Chase offers adjustable-rate and fixed-rate loans starting from $5,000. This is lower than banks like Bank of America and PNC Bank. The repayment terms are flexible and can be extended for seven years.
Business credit. Chase offers both business and commercial credit lines. The company’s credit line for business provides $10,000 to $500,000 on a five-year renewable revolving term. The commercial line can be extended for up to $500,000 and may be renewed on a one- or two-year basis.
Other business loans. Chase offers multiple equipment loans at fixed and variable rates. Terms can be up to seven years or up to 75% of equipment’s estimated useful life. Some words include up to 10% for soft costs, such as shipping and installation. The loan amount starts at $10,000. Commercial real estate loans can also be fixed or variable. They start at $50,000 and have terms up to seven years.
Citibank
Citibank is perhaps better known for its small business credit cards. The bank offers business loans, though fewer products than other lenders. Citi may be simpler than you would like, but that doesn’t mean you should ignore other lenders.
Term loans. Citibank offers term loans ranging from $5,000 to $3,000,000. The terms are up to seven years, the fixed interest rates and personal guarantees are required for loans. Citi does not offer equipment loans, but you can get term loans for this purpose.
Business credit. Citibank offers two lines of credit for business, with amounts from $10,000 to $3,000,000. Each bar has variable interest rates and revolving terms and requires a personal guarantee.
Wells Fargo
In 2021, Wells Fargo stopped offering term loans, including Equipment Express loans. The bank offers other types of small-business financing and multiple types of credit.
Wells Fargo’s maximum lending limits are lower than other banks. If you have collateral or need financing for more than $500,000, consider other options.
Business credit. Wells Fargo offers three types of credit, one secured by collateral and one unsecured. They range from $5,000 to $500,000. Variable rates are available on credit lines up to $100,000. They can also revolve. Higher than $100,000 credit lines have a 1-year term. To qualify for Wells Fargo’s most generous line of credit, you will need to have at least $2,000,000 to $5,000,000 in annual sales. The fees vary depending on the product.
SBA loans. Wells Fargo is the largest SBA loan lender. It had approved $114 million in SBA 7A loans during the 2020 fiscal year, the highest number of traditional national banks.
PNC
PNC’s business loans work best for mature businesses. To qualify, you must have been in business for three years or more. This is longer than what other banks might require.
Term loans. PNC offers term loans from $20,000 to $100,000 for unsecured terms and loans secured with collateral up to $100,001 to 3 million. Unsecured loans have a fixed interest rate and term of up to five years, while secured loans can have fixed or variable rates and terms lasting up to seven years.
Lines of credit for businesses. PNC’s credit lines are similar to bank’s term loans. Unsecured options range from $20,000 to $100,000 and secured options that range from $100,001 up to $3 million. Both offer variable interest rates and revolving terms. An annual fee for the unsecured line is $175. The secured line charges 0.2%5% of the committed line amount.
U.S. Bank
U.S. Bank is located in fewer locations than other brick and mortar banks like Wells Fargo and Bank of America. U.S. Bank might have a branch close to you. This is because you might be eligible for an SBA loan if you are a startup with collateral.
Term loans U.S. Bank offers term loans with fixed rates and secured amounts up to $1,000,000. The bank does not provide an unsecured loan for businesses. The bank offers a faster version of its term loan product if you require quick access to working capital. The Quick Loan allows for a lower borrowing limit ($250,000), but it also has a faster application process. This loan is best for businesses that have been in business for at most two years.
Business credit. U.S. Bank offers a business line of credit that can be extended up to $1,000,000 and includes an interest-only option. CashFlow Manager is a revolving credit line that can be extended to companies that have been in business for at least 2 years. It can reach $250,000. If the credit line is less than $50,000, there’s a $150 fee.
