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We chose these banks based on the amount businesses can borrow, minimum requirements and types of loans available. To present the widest scope to our readers, we categorized each lender based on its strength — but most banks offer similar loan options so you can choose the best loan with other factors, like business credit card and bank account options, in mind.
SmartBiz is a connection service that works exclusively with banks. While previously an SBA loan broker that offered packaging services, SmartBiz has branched out to help small business owners find traditional bank loans as well. But if you do want an SBA loan, this might also be a great place to start. It only partners with preferred lenders and packaging services can cut the turnaround time from months to weeks.
Min. Loan Amount | $30,000 |
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Max. Loan Amount | $5,000,000 |
APR | 4.75% to 7.00% |
Interest Rate Type | Variable |
Min. Credit Score | 650 |
Minimum Loan Term | 120 months |
Maximum Loan Term | 300 months |
American Express is ideal if you already have a business card and are looking for a small loan amount. While most banks require you to borrow at least $10,000, Amex has a low minimum of just $3,500. And American Express is the only bank on our list that offers loans specifically for working capital and credit card debt consolidation, as well as merchant cash advances.
Min. Loan Amount | $3,500 |
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Max. Loan Amount | $75,000 |
Interest Rate Type | Fixed |
Minimum Loan Term | 6 months |
Maximum Loan Term | 36 months |
Regions has low annual revenue and time-in-business requirements that make it easy for small businesses just getting started to find funding with a bank. And because you may be able to lower your APR after six months of on-time payments, your starting rate doesn’t have to be your final rate. Just be sure your business doesn’t need too much or too little: Regions only offers loans between $15,000 to $1 million.
Min. Loan Amount | $15,000 |
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Max. Loan Amount | $1,000,000 |
Interest Rate Type | Fixed |
Min. Credit Score | 600 |
Minimum Loan Term | 12 months |
Maximum Loan Term | 60 months |
Wells Fargo offers a wide variety of loan options for small businesses, including the SBA 7(a), 504 and Express loan programs. And because it’s an SBA Preferred Lender, the approval process won’t take months. However, only current customers with a year of banking history are eligible to apply using its online application. Everyone else will need to make an appointment and visit a branch to get started.
Min. Loan Amount | $10,000 |
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Max. Loan Amount | $100,000 |
APR | 6.25% to 22.99% |
Interest Rate Type | Fixed |
Min. Credit Score | 670 |
Minimum Loan Term | 12 months |
Maximum Loan Term | 60 months |
SunTrust — now operating under Truist — offers some of the largest business loans out there, with its maximum amount topping out at $10 million. Its rates are competitive, and terms span up to 20 years. It also offers four types of SBA loans on top of traditional bank loans and lines of credit to suit your business’s needs.
Min. Loan Amount | $10,000 |
---|---|
Max. Loan Amount | $10,000,000 |
Interest Rate Type | Fixed |
Minimum Loan Term | 36 months |
Maximum Loan Term | 60 months |
This regional bank’s loan officers offer the quality service you might find with a local bank — but you can manage your account and even apply online if you’re already a customer. It doesn’t require collateral on loans under $100,000 — rare for a bank. And it’s an SBA-preferred lender, meaning that it has the authority to process applications for you. The main drawback is that its customer service team gets poor customer reviews.
Min. Loan Amount | $20,000 |
---|---|
Max. Loan Amount | $100,000 |
APR | 8.18% to 15.57% |
Interest Rate Type | Variable |
Minimum Loan Term | 24 months |
Maximum Loan Term | 60 months |
Most banks have unsecured and secured lines of credit, but BBVA Compass has three options with different credit limits and collateral requirements for each. And if you already bank with BBVA, you may qualify for an autopay discount of 0.25% to 1% off your APR. However, BBVA Compass only operates in a handful of states, and it has quite a few negative reviews — with multiple complaints about its customer service and high fees.
Max. Loan Amount | $100,000 |
---|---|
Interest Rate Type | Fixed |
Maximum Loan Term | 120 months |
These lenders offered more financing through the SBA 7(a) program than any other provider out there.
Live Oak Bank | $850,070,700 | Working with an industry specialist to a fund large project or refinance debt | |
Byline Bank | $463,603,700 | Lower-than-average collateral requirements, especially on large SBA loans | |
Wells Fargo | $382,005,600 | SBA funding from a national bank | |
Huntington National Bank | $366,870,100 | SBA loans on the smaller end — these start at $5,000 | |
Celtic Bank | $322,246,300 | Online and offline expert assistance with the application |
Source: 100 most active SBA 7(a) lenders, SBA.gov
The most active lenders aren’t necessarily the best. Visit our guide to the best SBA lenders to find a government-backed loan that’s right for your business.
Borrowing from a bank is different from going to an online lender. It’s usually about more than just getting one loan, but developing a relationship. Instead of looking at rates and terms — which can be difficult to find — consider these factors:
The type of bank you go with makes a difference in the experience you have with a lender. These are the main types of banks you’ll find in your search.
Big names like Wells Fargo and Chase fall under the category of large national banks. The benefit of working with these banks is that they’re available in most states and have the budget to invest in new technology that smaller banks might not access. These might benefit businesses that operate in multiple states.
Regional banks typically offer services that are a little more tailored to the industries in the states that they serve. They also typically have multiple branches and offer a wide range of online services and tools. These are generally a good option for businesses owners that want a personal touch but also would like to manage their accounts virtually.
Community banks specialize in financing the local businesses in their areas. Loan officers are often experts in the local market as well as popular industries in their area. They may even be a customer if you run a local small business. These are your best bet when you want to develop a close, mutually beneficial relationship with a financial institution in your area.
But they often only have a handful of branches. They were also traditionally slow adapt to new technology — though have started partnering with tech companies to bring applications online.
6 expert tips to find the best community bank for your small business
Community Development Financial Institutions, or CDFIs, are typically community banks with a mission to develop the economy of the area it serves. These often have special financing programs for underrepresented business owners — such as women, minorities and veterans. And they often offer services like training for entrepreneurs and financial management courses.
CDFIs also typically offer financing to business owners with poor credit and startups, often at a more competitive rate than you’d find online.
The exact loan options will depend on the bank, but many offer a combination of these:
8 financing options for your business
To improve your chances of being approved, focus on banks that accept smaller businesses. Having a business banking account, exceeding minimum revenue requirements and proving your business can repay what it borrows will help you get approved.
Here are a few points banks look for when you apply:
Everything you need to know about business loan requirements
Like any loan application, the first step is to reassess. Look into why you were denied by the lender and start making any changes that could improve your chances of being approved later. Reworking your business plan and paying down other debt are simple ways to get started. You may also want to open an account with the bank and establish a relationship with it before applying again.
But there are some things that take time. If your business only just meets a bank’s minimum time-in-business or annual revenue criteria, you may not be approved. Consider other types of business loans or an online lender for funding while you work on polishing your business to meet the requirements set by a bank.
Banks are easy, safe and familiar. But if your business doesn’t quite meet a bank’s requirements, you might want to consider these alternatives:
Banks are still one of the primary sources of funding for many businesses. But they aren’t the only place your business can borrow from. Before you spend time applying, compare all your business loan options to make the most out of your time.
Check out our guide on the differences between mortgage brokers and bank loan officers. See which one will suit your needs.
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