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Bank of America business loans review
Last updated:
Unsecured funding with rate discounts as high as 0.75% for Preferred Rewards customers.
finder.com’s rating: 3.6 / 5.0
★★★★★
Bottom line: Bank of America (BofA) offers low starting rates and steep discounts for current customers. But it might not be worth it if you don’t want to open a business account.
$10,000
Min. Amount
$100,000
Max. Amount
Details
| Product Name | Bank of America business loans |
|---|---|
| Min. Amount | $10,000 |
| Max. Amount | $100,000 |
| Loan Term | Depends on loan terms |
| Min. Credit Score | 670 |
| APR | Starting at 4.75% |
| Requirements | At least 2 years in business with current ownership, 670+ credit score, $100,000+ in annual revenue. |
Pros
- Low rates starting at 4.75% APR
- Loyalty discounts of up to 0.75%
- Low credit and revenue requirements for a bank
Cons
- Flat origination fee of $150
- Online application only available to current customers
- Recently-purchased businesses are ineligible
Expert review
Review by
Anna Serio
anna.serio@finder.comAnna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
Expert review
Bank of America (BofA) offers business loans with resources to help you along the application process. It offers some of the lowest rates out there that you’ll find on business loans — and you can get that reduced from 0.25% to 0.75% if your business is enrolled in BofA’s Preferred Rewards program.
But like with most banks, business loans are available to companies that have been around for two years or more. Which means that if you’re a startup, you may need to look elsewhere for a financing.
Bank of America pauses business loans during COVID-19
Bank of America has stopped accepting business loan applications to focus on funding loans through the Paycheck Protection Program, or PPP. But it appears to have plans on restarting its business loan program after it's processed the majority of PPP forgiveness applications.
The SBA is only accepting applications from businesses with fewer than 20 employees between February 24 and March 10, 2021. But larger businesses may be able to submit an application to Bank of America during this time. This round of PPP funding ends on March 31, 2021.
Bank of America business loan rates, fees and terms
Bank of America charges rates starting at 4.75% APR on its unsecured business loans. This includes a $150 origination fee, which Bank of America charges after you’re approved. If your business is enrolled in BofA’s Preferred Rewards program, you’re eligible for a rate discount depending on your level.
- Gold: 0.25% rate discount
- Platinum: 0.5% rate discount
- Platinum Honors: 0.75% rate discount
You can borrow between $10,000 and $100,000 with terms from one to five years. Use our calculator to find out how much a BofA loan might cost your business.
Business loan calculator
See how much you'll pay
| Your loan |
|---|
| Loan amount |
$ |
| Loan terms (in years) |
| Interest rate |
$% |
Fill out the form and click on “Calculate” to see your
estimated monthly payment.
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Based on your loan terms…
You can expect to pay back
$
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How Bank of America compares to other business lenders
Here's how BofA stacks up to other providers that offer financing to small businesses.
★★★★★
| Find out more |
|---|
Loan amount $10,000 to $100,000 |
APR Starting at 4.75% |
Loan term 12 to 60 months |
Requirements At least 2 years in business with current ownership, 670+ credit score, $100,000+ in annual revenue. |
★★★★★
| Check eligibility |
|---|
Loan amount $500 to $5,000,000 |
APR Starting at 6% |
Loan term 12 to 300 months |
Requirements Operate business in US or Canada, have a business bank account, 560+ personal credit score |
★★★★★
| Check eligibility |
|---|
Loan amount $30,000 to $5,000,000 |
APR 4.75% to 7% |
Loan term 120 to 300 months |
Requirements 650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years |
Compare more business loans lenders
Bank of America reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1.1 out of 5 stars, based on 408 customer reviews |
| Trustpilot Score | 5,516 out of 5 stars, based on 1.3 customer reviews |
| Customer reviews verified as of | 28 February 2021 |
Bank of America gets mostly negative reviews from customers — and has over 5,000 complaints logged with the Better Business Bureau, or BBB. The majority aren't about Bank of America's business loans. But a few mention having their accounts closed — and several complain about not getting the help they needed with coronavirus assistance.
How to qualify
You and your business must meet the following requirements to qualify for a BofA unsecured loan:
- At least 2 years in business under current ownership
- $100,000 annual revenue or higher
- Personal credit score of 670 or higher
How the application works
If you’re currently a BofA customer, you can apply online by logging on to your business account. Otherwise, you’ll need to schedule an appointment to apply in person at a branch. You can do so by visiting Bank of America’s business loans website and hitting Schedule an appointment at the bottom of the page.
Once you’re approved, a representative will let you know about the various ways you can access your funds and help assist you sign your loan documentation. How long it takes to process depends on the applicant — but you can likely expect it to take several days or a week.
What sets it apart
BofA's loyalty discounts are higher than you'll find with most banks. Many don't even offer discounts on business loans. This combined with its low starting rates makes it a good deal for current customers.
But if you aren't interested in opening an account with this bank, it might not be worth it. Banks typically offer lower rates, a faster turnaround and better service to existing business checking customers who apply for a loan.
More financing options available through BofA
Secured business loans | Start at $25,000 | From 3.5% | 4 or 5 years |
Unsecured business lines of credit | $10,000–$100,000 | From 4.5% | Annual renewal |
Secured business lines of credit | Start at $25,000 | From 3.75% | Annual renewal |
Small business auto loans | Start at $10,000 | From 2.99% | 2–6 years |
Commercial real estate loans | Start at $25,000 | From 3% | Up to 15 years |
SBA loans | $25,000–$5 million | Varies | Varies |
Equipment loans and lines of credit | Start at $25,000 | From 3% | Up to 5 years |
Medical, dental and veterinary practice loans | Up to $5 million | Varies | Varies |
Take the time to read about other business loan options and make sure you’re getting the most for your money.
See other business loans
Compare lenders that don't require you to be a current customer account to apply online.
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We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.
Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.