Although qualifying can be difficult, banks remain the most common source of credit for small businesses — compared with options such as online lenders, community financial institutions and credit unions.
Business bank loans offer low interest rates, long repayment terms and can be used for a variety of purposes. The right bank for you should offer the small-business loan you need, as well as fund enough loans to make financing possible.
Here, we reviewed the best banks for small-business loans based on their commercial and industrial lending volume, product offerings and qualifications, among other features.
Why you can trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
95+ years of combined experience covering small business and personal finance.
50+ categories of best business loan selections.
Objective and comprehensive business loans ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Best banks for business loans
Click on a provider to jump to details about its business loan offerings, or keep reading to learn about how to get business financing from banks, as well as alternative funding options.
Bank of America: Best customer relationships and loyalty programs
JP Morgan Chase: Best variety of small-business products
Wells Fargo: Best for SBA loans
U.S. Bank: Best for startups
Citibank: Best for simple options and in-person service
PNC Bank: Best for automatic loan payments
TD Bank: Best for applying online
Capital One: Best for credit lines up to $5 million
Fifth Third Bank: Best for fast approval with minimum documentation
Compare the best banks for business loans
Bank | Notable feature | Loan amounts | Branch locations |
|---|---|---|---|
Bank of America | Reward programs. | $1,000 - $5 million | All U.S. states. |
JP Morgan Chase | Range of products for small businesses. | $5,000 - $5 million | U.S. states, except Hawaii and Alaska. |
Wells Fargo | Active SBA lender. | $5,000 - $5 million | AL, AK, AR, AZ, CA, CO, CT, DE, FL, GA, ID, IL, IA, KS, KY, MD, MN, MS, MT, NE, NV, NJ, NM, NY, NC, ND, OR, PA, SC, SD, TX, UT, VA, WA, WI and WY, plus D.C. |
U.S. Bank | Friendly to new businesses. | $5,000 - $5 million | AR, AZ, CA, CO, ID, IL, IN, IA, KS, KY, MN, MO, MT, NC, ND, NE, NM, NV, OH, OR, SD, TN, TX, UT, WA, WI and WY. |
Citibank | In-person service. | $5,000 - $10 million | Six metropolitan areas: Chicago, D.C., Los Angeles, Miami, NYC, SF. |
PNC Bank | Automatic loan payments. | $10,000 - $5 million | AL, AZ, CA, CO, DE, FL, GA, IL, IN, KS, KY, MA, MD, MI, MN, MO, NC, NJ, NM, NY, OH, PA, SC,TN, TX, VA, WI, WV, plus D.C. |
TD Bank | Online applications for financing under $250,000. | $10,000 - $5 million | CT, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, plus D.C. |
Capital One | Large lines of credit up to $5 million. | $10,000 - $5 million | CA, GA, IL, MA, NY, PA TX, VA. |
Fifth Third Bank | Fast approval process. | $10,000 - $5 million | FL, GA, KY, IL, IN, MI, NC, OH, SC, TN, WV. |
1. Bank of America
Best for: Customer relationships and loyalty programs.
Bank of America is the biggest commercial and industrial loan bank lender in the U.S. — according to data released by S&P Global Market Intelligence in June 2023 — surpassing the next closest lender by nearly $130 billion. It operates in all U.S. States.
May be a fit for: Bank of America business loans are a good choice if you value rewards and use other Bank of America or Merrill products. By meeting certain account requirements, you can qualify for interest rate discounts, no fees on wire transfers and other benefits. Bank of America may also make sense for loans for veterans and service members, as it offers them a 25% discount on loan administration or origination fees.
Here’s what Bank of America has to offer:
Term loans
Bank of America issues both fixed-rate secured and unsecured term loans. Its secured loan requires greater annual revenue: $250,000 versus $100,000 for the unsecured option. But it also offers higher borrowing limits — up to $250,000 — and a potentially lower interest rate. Both business loans require at least two years in business and can have repayment terms of up to five years, which is less than some other banks may offer.
Business lines of credit
Bank of America offers secured and unsecured business lines of credit, with the same revenue requirements as its term loans ($250,000 and $100,000, respectively). The secured line of credit comes with additional borrowing power — starting at $25,000 compared with $10,000 for the unsecured option. Borrowing maximums are not disclosed. Both have revolving terms, meaning you use the money as needed, that renew annually.
For newer businesses (those with at least six months in operation and $50,000 in annualized revenue), Bank of America offers a cash secured business line of credit. With this product, you must provide a security deposit to match your credit line limit with minimum initial deposits starting at $1,000. You can then use the line of credit to cover daily expenses, make regular payments and establish a positive account history — with the goal to transition to an unsecured business line of credit.
SBA loans
Bank of America is a preferred Small Business Administration lender, but other banks on this list are more active in issuing SBA loans. For example, TD Bank and Wells Fargo have approved a higher number of 7(a) loans — the most common type of SBA funding — in the 2024 fiscal year.
Other business loans
Bank of America offers business auto loans starting at $10,000, as well as commercial real estate loans and equipment loans, which both start at $25,000. The lender also administers a specialized program for medical practice loans.
Read our full review of Bank of America business loans.
2. JP Morgan Chase
Best for: Variety of small-business products.
Chase ranks as the largest U.S. bank based on its $3.5 trillion in consolidated assets according to the Federal Reserve. It operates in 48 U.S. states, but doesn’t offer business loans in Hawaii and Alaska.
May be a fit for: Chase business loans are a good option for business owners who want access to a range of business products, including small-business loans, lines of credit and commercial real estate financing, as well as business banking, credit cards and payment solutions from a single provider. With loan amounts ranging from $5,000 to $5 million, it offers financing that can grow as your business grows.
Chase business loans include:
Term loans
Chase offers fixed-rate and adjustable-rate term loans starting at $5,000 — which is a small starting amount than lenders like Bank of America or PNC Bank — and repayment terms that can last up to seven years. Some small-business loan options have amounts as high as $500,000 with no origination fee. However, a prepayment fee may apply for loans greater than $250,000 that are paid off early.
Business lines of credit
Chase has business and commercial lines of credit. Its business line of credit provides $10,000 to $500,000 in funding on a renewable five-year revolving term. The commercial line is above $500,000, with one- to two-year terms that may be renewed.
SBA loans
Chase is an SBA preferred lender and has approved 1,013 SBA 7(a) loans totaling almost $222 million so far in fiscal year 2024. Loan amounts up to $5 million are available.
Chase funds multiple types of SBA loans, including SBA Express loans and credit lines, which offer faster funding of up to $500,000.
Other business loans
Chase offers commercial real estate loans with fixed or variable rates that start at $50,000. Terms are available for up to 25 years. Chase also gives you the option to pay back the loan on a standard repayment schedule — or make interest-only payments for a set period with a large payment at the end of the term.
Read our full Chase business loans review.
» MORE: Best commercial real estate lenders
Advertisem*nt
NerdWallet rating 5.0/5 | NerdWallet rating 4.7/5 | NerdWallet rating 4.5/5 |
Est. APR 20.00-50.00% | Est. APR 27.20-99.90% | Est. APR 15.22-45.00% |
Min. credit score 625 | Min. credit score 625 | Min. credit score 660 |
Apply Now | Apply Now | Apply Now |
3. Wells Fargo
Best for: SBA loans.
Wells Fargo comes in third when ranked on assets and can trace its history back to 1852. It operates in 36 states plus Washington, D.C. It doesn’t have branches in Hawaii, Indiana, Louisiana, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Ohio, Oklahoma, Rhode Island, Tennessee, Vermont and West Virginia.
May be a fit for: Wells Fargo is a solid option for those interested in SBA financing. It partners with the SBA to offer both SBA 7(a) and 504 loans. And if an SBA loan isn’t the right fit, Wells Fargo can help you explore a number of other types of lines of credit and business loans. However, some term loan programs have been discontinued so you may want to consider other options if a term loan is what you want.
Here are Wells Fargo's business loan offerings:
Business lines of credit
Wells Fargo has three lines of credit — two unsecured and one secured by collateral — ranging from $5,000 to $1 million. Credit lines of up to $150,000 are revolving with automatic enrollment in a free rewards program. You’ll typically need at least $2 million to $10 million in annual sales to qualify for Wells Fargo’s most generous business line of credit. This line of credit has a one-year term. Fees vary by product.
SBA loans
Wells Fargo is one of the most active SBA loan lenders. In the 2024 fiscal year, the bank has approved over 1,700 SBA 7(a) loans, worth more than $354 million in funding.
Other business loans
Wells Fargo offers semi truck financing, equipment financing and commercial real estate purchase loans, as well as medical practice financing.
Read our full Wells Fargo business loans review.
» MORE: Compare the best SBA lenders
4. U.S. Bank
Best for: Startups.
U.S. Bank has fewer locations than other brick-and-mortar banks, including Chase and Wells Fargo, but it still offers the variety of products you’d expect from a large lender. You’ll find branches in Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming.
May be a fit for: U.S. Bank may be a good choice for startups, as you may be able to qualify for certain products with less than a year in business. Its Quick Loan can have a minimum time in business requirement of six months, depending on the length of your relationship with the bank and the state you live in.
Here what U.S. Bank has to offer:
Term loans
U.S. Bank offers fixed-rate, secured term loans as well as a fast business loan, which has a limit of $250,000 and a quick online application process. The Quick loan can be secured or unsecured and offers repayment terms of up to seven years. This product can be a good option for newer companies as you only need a minimum of six months in business to apply.
Business lines of credit
U.S. Bank has four business lines of credit that can be used to manage cash flow, fund major purchases and protect from overdraft charges. The bank’s revolving line of credit, called Cash Flow Manager, goes up to $250,000 and only requires a minimum of six months in business to qualify. That product has a $150 annual fee if the line of credit is less than $50,000.
SBA loans
U.S. Bank is a good choice if you’re in the market for an SBA loan. For fiscal year 2024, it has approved nearly 2,200 SBA 7(a) loan applications.
Plus, as a preferred lender you may be able to qualify for an SBA loan from U.S. Bank with fewer than two years in business.
Other business loans
U.S. Bank offers equipment loans of up to $1 million, and soft costs of up to 25% can be included. The bank has fixed- and variable-rate commercial real estate loans with five-, 10- or 15-year repayment terms, with amortizations up to 25 years.
» MORE: Compare the best startup business loans
5. Citibank
Best for: Simple options and in-person service.
Although Citibank is the fifth-largest bank in the U.S. based on assets, it offers fewer business loan products than some other banks. Its branches are concentrated in six metropolitan areas: Chicago, Los Angeles, Miami, New York, San Francisco and Washington, D.C.
May be a fit for: The in-person, hands-on loan application experience offered by Citi might be the right option for business owners who feel developing a relationship with their banker today will offer benefits down the road. Whereas many banks offer at least some type of online application option, you can only apply for a business loan from Citi by visiting a branch location.
Here are Citi’s loan options:
Term loans
Citibank’s term loan ranges from $5,000 to $5 million. Interest rates are fixed, terms last up to seven years and loans require a personal guarantee. Citi doesn't offer a specific equipment loan, but term loans can be used for this purpose.
Business lines of credit
Citibank offers two business lines of credit, with amounts ranging from $10,000 to $5 million. Both lines come with variable interest rates and revolving terms and require a personal guarantee.
SBA loans
Citi is an SBA preferred lender and issues SBA loans (up to $10 million) and lines of credit to finance working capital and equipment, inventory, commercial real estate and other purchases.
Other business loans
Citi also provides specialized healthcare practice business loans from $250,000 to $5 million and commercial mortgage loans, ranging from $250,000 to $10 million.
6. PNC Bank
Best for: Automatic loan payments.
PNC Bank ranks sixth among U.S. banks with regard to assets. It operates branches in 28 states — Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin — as well as Washington, D.C.
May be a fit for: PNC Bank is a good choice for business owners who prefer automatic loan payments as well as mobile banking and cash flow tools. Whether you have a business term loan, line of credit or specialized financing for a vehicle, payments can automatically be deducted from your PNC business checking account.
PNC business loans include:
Term loans
PNC offers $20,000 to $100,000 for unsecured term loans and $100,001 and above for loans secured by collateral. Unsecured loans come with a fixed interest rate and terms of up to five years, whereas rates on secured loans can be fixed or variable and terms can last up to seven years.
Business lines of credit
The amounts for PNC’s lines of credit mirror the bank’s term loans, with unsecured options ranging from $20,000 to $100,000 and secured options of $100,001 and up. Both have variable interest rates and revolving terms. The unsecured line has an annual fee of $175, while the secured credit line charges 0.25% of the committed line amount.
SBA loans
PNC is a preferred SBA lender, but the bank is less active than some others issuing these loans. For fiscal year 2024, PNC has approved 485 SBA 7(a) loans, compared with TD Bank and U.S. Bank which have both approved over 2,000.
Other business loans
PNC business auto loans range from $10,000 to $250,000 with repayment terms up to six years. The bank’s commercial real estate loans come with fixed or variable interest rates, repayment terms up to 20 years (with up to a 25-year amortization) and financing amounts of $100,001 and up.
Read our full PNC Bank business loans review.
7. TD Bank
Best for: Applying online (for loans under $250,000).
TD is another large bank with significant assets that operates in 11 East Coast states including Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont and Virginia as well as Washington, DC.
May be a fit for: TD Bank is a good choice for business borrowers who want the convenience of applying for funding at a time and place of their choosing. They’ll find an online application available for both term loans and lines of credit under $250,000. However, if you want a loan for more than that amount, you’ll have to download an application and apply in person at a bank branch.
Here are TD Bank’s business loan offerings:
Term loans
TD Bank offers secured loans from $10,000 to $1 million at fixed interest rates and terms up to five years. Loans can be secured by equipment, inventory or cash, and monthly payments will be deducted from your checking account automatically.
Business lines of credit
Secured, revolving lines are available that range from $25,000 to $500,000 with variable interest rates. To qualify, you will need a TD Bank business checking account with a minimum balance of $40,000 and to agree to automatic loan payment deductions from the account.
SBA loans
TD Bank is an SBA preferred lender that offers SBA 7(a), 504 and Express loans. TD Bank is a top SBA lender by volume in fiscal year 2024. It has approved almost 2,900 SBA 7(a) loans, ranking only behind Huntington National Bank.
Other business loans
TD Bank offers real estate loans up to $1 million with five-year terms to buy or refinance commercial real estate. Healthcare practice financing up to $12 million is also offered with 100% financing plus working capital.
8. Capital One
Best for: Lines of credit up to $5 million.
Capital One, which has made a name for itself in the credit card industry, also offers business financing with locations in eight states: California, Georgia, Illinois, Massachusetts, New York, Texas, Pennsylvania and Virginia.
May be a fit for: Capital One is a good option for business owners who want the ability to access a large amount of funding, but on their own timetable. Business lines of credit that top out at $5 million are offered. Also, discounted rates are available to businesses that have existing business deposit relationships with Capital One.
Capital One loan options include:
Term loans
Business loans have minimum amounts of $10,000 and maximum amounts of $5 million. Collateral or a deposit may be required to secure the loan. You have to visit a Capital One location and talk with a representative to start the application process and a business checking account is required.
Business lines of credit
Amounts for lines of credit are the same as for loans, ranging from $10,000 to $5 million — one of the largest limits offered by the lenders on our list. A business checking account and visit to a Capital One location are needed to apply.
SBA loans
Capital One offers SBA loans including the 7(a), 504 and the Express program, but it is not a very active SBA lender based on the number of loans it funds. Capital One has approved only 50 SBA 7(a) loans for a total amount of about $50 million in fiscal year 2024.
Other business loans
Equipment loans, real estate loans up to $5 million and medical practice loans are also offered by Capital One.
Read our full Capital One business loan review.
9. Fifth Third Bank
Best for: Fast approval with minimum documentation.
Fifth Third Bank bills itself as a community bank and currently has branches in 11 states including Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina, Tennessee and West Virginia.
May be a fit for: For business entrepreneurs who want fast loan funding, Fifth Third Bank says it can approve and fund business term loans and lines of credit as quickly as 48 hours. And with any business loan or line of credit, the standard monthly service charge on your business checking account will be waived.
Here are loan options offered by Fifth Third Bank:
Term loans
Two options are offered for term loans, both with fixed interest rates. Loan amounts for secured term loans are undisclosed, but the unsecured term loan offers amounts from $10,000 to $100,000.
Business lines of credit
Both secured and unsecured lines of credit are offered. Amounts for the unsecured line of credit range from $10,000 to $100,000 and secured lines of credit are for amounts over $100,000.
SBA loans
SBA 7(a), SBA 504 and SBA Express loans are offered by the bank. While not at the top of SBA lenders, Fifth Third Bank has approved 146 SBA 7(a) loans for a total amount of over $103 million in fiscal year 2024 — more than Capital One and Citibank.
Other business loans
Fifth Third Bank also offers real estate loans and healthcare practice financing for medical, dental, optometry and veterinary practices.
Read our full Fifth Third Bank business loans review.
How to get a business loan from a bank
Although recent market conditions have led banks to tighten their lending standards, it’s still possible to access this type of business financing. Here’s what you need to get business loan from a bank:
An existing relationship
Most banks require you to have at least a business checking account at their institution. While you can simply open an account at some banks to meet this qualification, you can often benefit from a longer-term relationship. For example, you need an account with Wells Fargo for at least one year to apply for financing online.
Good credit
You’ll likely need a personal credit score in the 700s — although some lenders may be a little more flexible than others. Wells Fargo, for instance, accepts a minimum credit score of 680 for its unsecured line of credit.
Potential deal-breakers in your personal credit history could include too much debt, too many open accounts or negative marks — like late payments, loan defaults and bankruptcies. The bank will check your business credit score for similar red flags.
Strong revenue
When you apply for a small-business loan, the bank will look to see whether your business is in good shape and has enough revenue to support how much you want to borrow. For example, Bank of America’s unsecured business loans require at least $100,000 in annual revenue; its secured options increase that number to $250,000.
Enough time in business
Two years under the same ownership is the standard time in business requirement. But there are exceptions. For example, some U.S. Bank lending products are available if you’ve been in business for just six months.
Collateral
You don’t necessarily need to put up business collateral like commercial property or equipment to get a bank loan. Some banks offer both unsecured and secured business loans. But the bank may fund larger amounts for secured loans, while also providing longer terms and lower interest rates to make payments more affordable.
Alternatives to big bank business loans
If you can’t get a business loan from a big bank, consider these alternatives:
Small banks and credit unions: Business loan applicants report higher approval rates from smaller banks than big-name financial institutions, as well as greater overall satisfaction, according to the Federal Reserve’s 2023 Report on Employer Firms. However, a local bank or credit union may lack the benefits you want — like online loan management or multiple locations.
Online lenders: Online business loans come with faster funding and higher approval rates than bank loans. Some online lenders even specialize in small-business loans. For example, for fiscal year 2023, Live Oak Bank, a digital bank, was the most-active SBA 7(a) lender by loan approval amount. These lenders are also less likely to require traditional collateral and may provide funding for newer businesses. But the trade-off will likely be higher costs than a traditional bank offers.
Microlenders: Nonprofit organizations offer microloans, and these can be a good choice for startups or small businesses that need working capital but can’t qualify for a bank business loan. Microloans are typically less than $50,000 and can come with short repayment terms. Their costs may also be higher than a bank business loan.
Can't qualify for a bank business loan?
If you think you’ll qualify for an SBA loan, start by looking for the best SBA lenders that work for your business.
If you are facing personal credit challenges, look for business loans for bad credit — either through online lenders, CDFIs or microlenders.
If you need funding fast, consider these fast business loans to get capital as quickly as the same day you apply.
Frequently asked questions
What is the easiest bank to get a small-business loan?
The easiest bank to get a small-business loan will largely depend on the type of financing you need and your business’s qualifications. You might start, however, by reaching out to a bank with which you have a current relationship. Because you have an existing relationship, this bank may be more willing to help you with potential loan options.
Which banks offer startup business loans?
Some large, national banks like Bank of America, U.S. Bank and Wells Fargo offer certain loan options for companies with less than two years in business. In general, however, online and nonprofit lenders are more likely to offer startup business loans.
What are the typical requirements for a business bank loan?
To qualify for a bank loan for your business, you’ll generally need at least two years in business, a personal credit score above 700 and strong annual revenue — usually between $100,000 and $250,000 per year.
NerdWallet assigning editor Ryan Lane contributed to this article.
