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Regions Bank business loans review

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Apply at a branch or over the phone with this regional lender.

finder.com’s rating: 4.1 / 5.0

★★★★★

  • Best for SBA loans — if you already have a banking relationship with Regions Bank.
  • Pick something else if you need funding fast.

$15,000

Min. Amount

$1,000,000

Max. Amount

Details

Product NameRegions Bank business loans
Min. Amount$15,000
Max. Amount$1,000,000
Loan Term12 to 60 months
Min. Credit Score600
APR7% to 17%
Requirements1+ years in business, $50,000+ in annual revenue, 600+ personal credit score

Expert review

Anna Serio

Review by


Anna Serio is a trusted loans expert who's published more than 950 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

Regions Bank offers secured and unsecured term loans and is a preferred SBA lender. It used to partner with Fundation to offer small-dollar loans online, but it appears that’s no longer available. In fact there’s currently there’s not much information about this product available.

Currently, you can only apply at a branch or over the phone, and getting touch over the phone can be a challenge. I was unable to get through to a representative to confirm the details of this review without entering my Social Security number.

With relatively few details available before you hand over sensitive information, you might want to consider another lender — unless you already have an account with this bank. Or, consider apply directly through Fundation to find something close to what Regions used to offer.

How much will this loan cost me?

It’s unclear how much Regions Bank loans cost as of June 2020. It used offer loans from $15,000 to $1,000,000 through the online lender Fundation — and higher amounts to more established businesses.

While it had a partnership with Fundation, rates ranged from 7% to 17% — with no application or origination fees. Regions bank loans typically came with lower rates, though fees may apply. And you had one to five years to repay the loan.

Use the loan calculator below to get a ballpark idea of how much a Regions bank loan might cost you. But make sure to get an estimate of the rates and terms your business might qualify for before you apply.

Business loan calculator

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How it works

Generally, the lowest rates and highest loan amounts go to businesses that have positive cash flow and have been around for several years and to owners with a credit score of at least 760. The loan term you select can also affect your loan in some cases. Typically, shorter terms spell lower rates. But these can also make it more difficult to qualify for higher loan amounts.

When Regions partnered with Fundation, loans under $50,000 typically qualified for terms of one to two years. The average loan term was two to three years.

What do I need to qualify?

You and your business had to meet the following requirements to be eligible for a loan through Regions’s program with Fundation:

  • At least one year in business
  • $50,000 in annual sales or more
  • Personal credit score of at least 600
  • Not based in Nevada

You might have to meet additional requirements if you apply for a loan directly through Regions Bank. That’s because banks tend to have stricter requirements than online lenders. Regions also might not be available in as many states, though I was unable to confirm this.

What do I need to apply?

Regions recommends that you have the following information on hand before you call in or visit a branch to apply.

  • Personal financial statement
  • Personal tax returns
  • Business tax returns
  • Interim financial statement for the current year
  • Six months of statements from an account outside Regions

Unsecured loans and those over $250,000 likely require additional documents. Some businesses may also have to provide answers to an industry-specific questionnaire and additional financial statements. This includes religious organizations, nonprofits, agricultural businesses and restaurants.

What industries does Regions Bank work with?

Regions doesn’t specify which industries it does or does not work with. But it mentions requiring additional documents for nonprofits and religious organizations. These types of businesses are often ineligible for bank loans, so Regions might be more flexible than other, similar lenders.

What other types of financing does Regions Bank offer?

In addition to term loans, Regions Bank offers the following types of financing:

Lines of credit

Both secured and unsecured, these generally come with similar rates and amounts as a Regions Bank term loan. But you can draw from it as needed to cover cash expenses.

SBA loans

Regions Bank is a preferred lender for this government-guaranteed business loan program. That means it has the authority to process applications itself instead of sending them to the SBA. This can significantly cut down on the turnaround time, though it still may take weeks or months.

You can apply for a loan through the SBA 7(a), the bank portion of a 504 loan or an Express loan.

Pros and cons

Regions Bank might be a decent option if you already have an account and want an SBA loan. But make sure you consider the drawbacks.

Pros

  • SBA preferred lender
  • Accepts nonprofits and religious originations
  • Secured and unsecured loans

Cons

    • Must give Social Security number to speak to customer service
    • No online application
    • Almost no information available online

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    Use this connection service to get paired with a loan you can use for business.
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    How do I apply?

    Applications are only available by setting up an appointment or over the phone. You can apply over the phone by calling 800-734-4667. Otherwise, follow these steps to set up an appointment.

    1. Go to the Regions Bank website and click Small businesses in the main navigation bar.
    2. Hit Borrow and then Loans and lines of credit.
    3. Click the Make an appointment.
    4. Select either Small business ($20 million or less in revenue) or Small business (greater than $20 million in revenue), depending on your revenue.
    5. Select Open new account and hit Continue.
    6. Enter your city, state or ZIP code and select the branch you’d like to visit. Hit Continue.
    7. Select a date and time and hit Continue.
    8. Fill out your contact information and click Continue once again.
    9. Review the information you provided and hit Schedule it.

    What happens at the appointment?

    You and the banker will go over the options available to you and get started on the application. This typically takes about 45 minutes.

    After you complete and submit the Regions loan application, a loan officer will review it and get back to you with an offer. You have up to 30 days to accept the offer, so you have time to shop around. Once you agree to the terms, review and sign the loan agreement, Regions Bank will transfer it to your bank account.

    How do repayments work?

    Generally, bank loans come with monthly repayments. You can find out how much you owe and when it’s due on your loan agreement.

    If it’s an option, consider signing up for automatic repayments. That way, you won’t need to take the time each month to manually pay back your loan — and won’t accidentally miss any.

    See how Regions Bank compares to other lenders by reading our guide to business loans.

    Frequently asked questions

    Pictures: lending.regions.com

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