Given the potential impact financing can have on your business, you need to find the best place to get a small business loan. Lendio reviewed the largest SBA lenders and national banks to find the ones with the best small business loan options. Let’s look at some of the prime bank options available to you.
US Bank: Best for smaller loan amounts.
US Bank offers a specialized business “quick loan”, which is a term loan from $5K to $250K with terms of up to 7 years and no origination fee. The loan is “quick” because it can be applied for online. Both unsecured and secured options are available.
Products offered:
- “Quick” term loan from 5K-250K with terms up to 7 years
- Line of credit up to $250K
- Commercial real estate loans with terms of up to 15 years
- SBA loans
Online application: Yes
Huntington National Bank: Best for underserved communities.
Huntington National Bank is the number one distributor of SBA loans in the U.S. It also runs a program called “Lift Local Business” that supports minority, woman, and veteran-owned small businesses through loans with reduced fees and lower credit requirements.
Products offered:
- SBA loans
- Term loans
- Lines of credit
Online application: Yes- for current customers.
JPMorgan Chase: Best for no origination fees.
Chase offers term loans, lines of credit, commercial real estate, and SBA loans. The bank charges no origination fees on its term loan and has no prepayment penalty on loans less than $250K.
Products offered:
- Line of credit up to $500K
- Term loan up to $500K with terms of 1-5 years
- Commercial real estate loans from $50,000 with terms of up to 25 years
- SBA loans
Online application: No
TD Bank: Best online application options.
TD Bank is the 2nd-largest SBA loan distributor in the U.S. and offers an online application for any of its loan products for amounts less than $250,000.
Products offered:
- Line of credit from $25K-$500K
- Term loan from $10K-$1M with terms of 1-5 years
- SBA loans
- Commercial real estate loans of up to $1M with 5-year terms
Online application: Yes
Wells Fargo: Best for unsecured lines of credit.
While Wells Fargo offers fewer loan products to small businesses than other banks, it offers multiple unsecured line of credit options with no fee. For businesses with less than two years of business, they can apply for an unsecured line of credit of up to $50K. For those with two years in business or more, Wells Fargo offers a line of credit of up to $150K.
Products offered:
Online application: Yes
PNC Bank: Best for unsecured loan options.
PNC Bank offers multiple unsecured loan products including an unsecured line of credit and an unsecured term loan. The unsecured line of credit and unsecured term loan are both available for amounts from $20-$100K.
Products offered:
- Unsecured line of credit from $20K-$100K
- Secured line of credit from $100K
- Unsecured term loan from $20K-$100K with 2-5 year terms
- Secured term loan from $100 K with 2-7 year terms
Online application: Yes – for existing customers for limited loan products.
BayFirst National Bank: Best for fast SBA loans.
BayFirst, the third-largest SBA lender in the U.S. offers a specialized SBA 7(a) loan called “BOLT”. The loan is available for up to $150,000 with a 10-year term. The streamlined online application process can you get funded as quickly as six days.
Products offered:
Online application: Yes
Bank of America: Best for building credit.
Bank of America offers a secured business line of credit to business owners with six months in business and $50K annual revenue. The credit line’s purpose is to help the business owner build business credit, so the lines start as low as $1000 and are secured by a refundable cash deposit equal to the line amount. Once the business has established its credit history and reached a revenue of $100K/year, the business can graduate to a larger unsecured line of credit.
Products offered:
- Secured line of credit from $1K
- Unsecured line of credit from $10K
- Unsecured term loan from $10K with 1-5 year terms
- Commercial real estate loans from $25K with terms of up to 15 years
- SBA loans
Online application: Yes
Eligibility criteria for bank business loans.
While some banks will have specialized products with more flexible requirements, the most common eligibility criteria for a bank business loan are:
- 700 credit score
- 2 years in business
- $100,000 annual revenue
Other lender options.
Community banks
Community banks have a smaller footprint than banks listed above, but your local community bank may have more flexible options and a more personalized customer experience.
Online lenders
Online lenders don’t offer bank accounts. Instead, they focus solely on lending. These lenders offer several alternative financing options like business cash advances and invoice factoring that can be easier to qualify for in addition to term loans and lines of credit.
Microlenders
Nonprofit lenders offer loans of less than $50,000 called microloans. Microlenders often have less strict eligibility requirements and frequently cater to specific locations or underserved groups.
Learn more about how to get a business loan.
Methodology
Lendio based its selection on the following criteria:
- The largest number of SBA loans originated according to SBA data.
- Largest national banks by assets held according to federal reserve data.
- Loan products the bank offers according to the bank’s website.
- Special features such as an online application, unsecured loan, or faster processing times as identified by the bank’s website.
Quickly compare loan offers from multiple lenders.
Applying is free and won’t impact your credit.
Information provided on this blog is for educational purposes only, and is not intended to be business, legal, tax, or accounting advice. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. While Lendio strives to keep its content up-to-date, it is only accurate as of the date posted. Offers or trends may expire, or may no longer be relevant.
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