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finder.com’s rating: 4.1 / 5.0
★★★★★
$15,000
Min. Amount
$1,000,000
Max. Amount
Product Name | Regions Bank business loans |
---|---|
Min. Amount | $15,000 |
Max. Amount | $1,000,000 |
Loan Term | 12 to 60 months |
Min. Credit Score | 600 |
APR | 7% to 17% |
Requirements | 1+ years in business, $50,000+ in annual revenue, 600+ personal credit score |
Review by
Anna 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.
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.
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.
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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.
You and your business had to meet the following requirements to be eligible for a loan through Regions’s program with Fundation:
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.
Regions recommends that you have the following information on hand before you call in or visit a branch to apply.
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.
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.
In addition to term loans, Regions Bank offers the following types of financing:
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.
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.
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.
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.
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.
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.
Pictures: lending.regions.com
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.