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More than 67% of small businesses sought a small business loan from a bank, far more than any other type of lender, according to the U.S. Small Business Administration Office of Advocacy.[1]
That’s because bank loans are one of the best financing options for small businesses—offering low interest rates and competitive terms. If you have strong credit and several years in business, an SBA loan or conventional loan from a bank is worth considering.
Best Banks for SBA Loans
SBA loans are issued by banks, credit unions, and other lenders and guaranteed by the U.S. Small Business Administration. The government guarantee mitigates the lender’s risk when working with you, incentivizing banks to issue loans to more small business owners.
You’ll need strong credentials to access SBA financing, and you’ll need to meet several other requirements to qualify, including having previously tried but failed to get financing elsewhere. But these loans offer some of the most competitive interest rates and repayment terms, so they’re well worth trying for.
Here are several of the best banks offering SBA loans.
1. Huntington National Bank
Huntington National Bank approved the most SBA 7(a) loans in fiscal year 2024: 7,577 loans for a total of over $1.5 billion in funding.
Huntington Bank participates in the SBA 7(a) loan, SBA 504 loan, and SBA Express loan programs.
And although Huntington Bank is only located in 12 states, the lender is consistently recognized as a top SBA lender in the region.
2. TD Bank
TD Bank has been ranked one of the top SBA lenders on the East Coast and issued almost 4,000 SBA 7(a) loans worth more than $569 million in 2024. This bank offers SBA 7(a) loans, SBA 504 loans, and SBA Express loans.
You’ll need to schedule an appointment to apply for an SBA loan through TD Bank. Conveniently, TD is one of the top 10 largest banks in the U.S. and has thousands of branches across 16 states.
3. Live Oak Bank
Live Oak Bank loaned the highest total amount for SBA 7(a) loans at more than $1.8 billion in 2023, and in fiscal year 2024 the bank was close to the top of the list of highest approval amounts as well with nearly $2 billion in total funding.
This bank, based in Wilmington, North Carolina, has no consumer loan products and no physical branches. Instead, they focus largely on small business loans, including SBA loans.
4. Wells Fargo
One of the best banks for SBA loans, as well as conventional bank loans, Wells Fargo approved 2,224 SBA 7(a) loans in the fiscal year 2024, for a total of over $567 million.
In addition to 7(a) loans, Wells Fargo offers SBA 504 financing for business owners who want to purchase real estate, equipment, or other fixed assets.
5. Celtic Bank
In 2024, Celtic Bank approved 960 SBA 7(a) loans, lending nearly $500 million. Celtic also offers SBA 504 loans, as well as SBA Express loans.
Headquartered in Salt Lake City, Utah, this bank has consistently ranked among the top 10 SBA lenders in the U.S. for over a decade.
Best Banks for Conventional Business Loans
Considering loan products and lending volume, which is based on S&P Global data as of February 2024, these are some of the best banks for conventional business loans.
1. Bank of America
With approximately 3,700 branches and strong mobile banking capabilities, Bank of America is a competitive bank lender for small business owners throughout the country.
Bank of America business loans are a particularly good option for borrowers with two or more years in business, as well as those who want to choose from a variety of financing options as this bank offers both business lines of credit and business term loans.
As of Q4 2023, Bank of America had the most commercial and industrial loans among banks—with over $100 million more in loan volume than the next closest lender.[2]
Bank of America Business Term Loans
Bank of America offers unsecured and secured business term loans. Unsecured loans are available in amounts from $10,000 to $100,000 and with terms from 12 to 60 months. Secured loans, which are available in amounts from $25,000 to $250,000, have terms up to four years when the loan is secured by business assets and up to five years when it’s secured by a certificate of deposit. Both types of loans are fixed rate, with monthly repayments.
To qualify for either loan, you’ll need at least two years in business—and $100,000 in annual revenue for the unsecured loan, or $250,000 in annual revenue for the secured loan.
Bank of America Business Lines of Credit
Bank of America also offers unsecured and secured lines of credit. The unsecured line of credit is available in amounts of $10,000 and up, and revolving terms with annual renewal. To qualify, you need at least two years in business and $100,000 in annual revenue.
The secured line of credit is available in amounts of $25,000 and up, and the same revolving terms. To qualify, you need at least two years in business and $250,000 in annual revenue. You can secure your credit line using a blanket lien on your assets or a certificate of deposit.
Additional Loan Options
Bank of America offers additional loans, such as business auto loans, equipment financing, commercial real estate loans, and more.
A benefit of working with Bank of America for business loans is their relationship rewards program, where you can get a lower rate if you maintain high balances across your BoA accounts.
To apply for most of their loan options, you’ll need to schedule a phone or in-person appointment with a lending specialist.
2. Wells Fargo
With years of experience in the small business lending space, Wells Fargo can be a great choice to work with if you need bank financing.
As of the last quarter of 2023, Wells Fargo had a balance of more than $200 million in commercial loans.[2]
This bank offers competitive business line of credit products, which can be a good funding option for a wide variety of small business owners.
Wells Fargo Business Lines of Credit
Wells Fargo offers two unsecured line of credit products and one secured business line of credit. The unsecured line of credit, designed for businesses with two or more years of history, is available in amounts ranging from $10,000 to $150,000 with no collateral required. The other unsecured option is meant for newer businesses with less than two years in operation. That revolving line of credit is available in amounts of $5,000 to $50,000. With both of these, you can receive rewards points for spending on your credit line, similar to a credit card.
The secured line of credit is backed by your business assets and is available in amounts ranging from $100,000 to $500,000. To apply, you’ll need to call or visit a Wells Fargo branch.
3. JPMorgan Chase
Chase had just under $200 billion in commercial loan volume as of Q4 2023, and in fiscal year 2024, the bank issued over $625 million in SBA 7(a) loans alone.[2]
Chase offers a wide variety of lending options, including lines of credit, SBA loans, and real estate financing. If traditional bank loans don’t make sense for your business, Chase also offers a lineup of small business credit cards for you to consider.
Chase Business Loans
Chase offers term loans starting at $5,000 with terms from one to seven years and fixed monthly payments. These business loans can come with either fixed or variable interest rates.
Chase also offers two different lines of credit: a business line of credit and a commercial line of credit. The standard business line of credit is designed for financing needs up to $500,000, and the commercial line of credit accommodates larger credit line amounts.
4. Citibank
In the final quarter of 2023, Citibank held a commercial loan balance of well over $150 billion.[2]
Citi offers business lines of credit as well as installment loans, commercial real estate loans and SBA loans.
Citibank Business Lines of Credit
Citi’s two lines of credit both have revolving terms and variable interest rates. One is intended for short-term business needs and ranges from $10,000 to $250,000, while the other option gives you access to a larger line amount, up to $5 million in some cases.
5. PNC Bank
PNC ended 2023 with a total commercial loan balance hovering around $125 billion.[2] This bank offers both secured and unsecured term loans along with commercial real estate and vehicle finance loans.
PNC Bank Term Loans
PNC’s unsecured term loans range from $20,000 to $100,000 with terms between two and five years. Interest rates are fixed, and no collateral is required.
Secured term loans from PNC are offered in amounts upwards of $100,000 and with terms from two to seven years. Rates are either fixed or variable, and you’ll be required to secure the loan with business assets that can include equipment or machinery.
How to Compare Business Bank Loans
When comparing bank loans for your small business, weigh the following factors:
- Types of small business loans the bank provides. Many banks offer more than one type of business loan product, including SBA loans, term loans, business lines of credit, auto loans, commercial loans, and more. Determine first which loan type best suits your needs, then be sure the bank you’re interested in offers that type of loan.
- Application process and time to funding. How quickly do you need the funds? If you’re in need of a quick business loan or an emergency business loan, then a bank loan is likely not the right fit for you. Many bank loans require you to apply in person or over the phone and to submit a number of documents. The entire process, from submitting the application to receiving funds, can take anywhere from weeks to months.
- Interest rates and repayment terms. These are important considerations for determining the overall affordability of a business loan from a bank. Bank loans typically come with longer terms and lower interest rates compared with online business loans. While this may mean you pay more in interest over the life of the loan, it also typically means your monthly payments are lower and therefore more manageable.
- Additional fees. Business loans often come with fees in addition to interest. These can include an origination fee, an underwriting fee, a draw fee (for a line of credit), and a guarantee fee in the case of many SBA loans.
- Customer service. Is a knowledgeable representative a short phone call away, or will you need to visit a branch in person to get the service you need? It doesn’t hurt to try ringing a bank’s customer service line as a trial to see how easy it is to reach a helpful human.
- Location and branch availability. Consider whether it’s a large national bank with branches all over the country, a regional bank that you’ll be able to access in only certain states, or a community bank that may only have one or two local branches. Depending on the size of your business and whether it has multiple locations, you may prefer one bank type over another.
How to Qualify for Banks Loans for Business
Small business bank loans usually have low interest rates, long terms, and manageable monthly payments—but you’ll need strong personal and business finances to qualify.
Here are some criteria that banks will consider when determining your eligibility:
Personal Credit
Business bank loans require a strong personal credit score. Business lenders—both commercial loan companies and banks alike—will look to your personal credit score to gauge your financial responsibility.
As a result, you—or any of your co-owners—will likely need a FICO score of at least 700 to be able to qualify for a business loan from one of these banks. The top business loan providers might even look for excellent personal credit—think 750 or higher—for you to qualify.
Business History
Typically, at least two years in business are required to be eligible for a small business loan from a bank. If your business has already lasted at least two years, then it’s less risky for a bank to lend you capital.
In some cases, you may be able to apply for a business bank loan with six or more months in business—however, you’ll need impressive business finances and excellent personal credit in order to qualify.
Annual Revenue
The best banks for small business loans won’t lend you any capital if they don’t think you’ll be able to pay it back. Therefore, most of the top lenders will look for at least $100,000 in annual revenue for you to be eligible.
Additionally, many banks will prefer that your business be profitable. You’ll want to make sure you meet every revenue and profitability requirement for a given lender before you take the time to apply.
Complete Business Loan Application
Along with these credentials, you should have a complete, organized business loan application to give the bank all the information they might need to approve your loan.
Of course, the specifics that you’ll need to prepare for your application will vary based on the individual bank you’re working with. In general, you can expect to prepare some, if not all, of the following:
- Personal background/resume for anyone who owns 20% or more of the business
- Business plan
- Personal and business tax returns
- Financial statements
- Bank statements
- Use of loan statement
- Debt schedule
- Statement of collateral
- Legal documents (licenses, registrations, articles of incorporation, etc.)
If You Don’t Qualify for a Bank Loan
If you don’t qualify for a traditional business loan from a bank, there are alternative lending options you might consider to find affordable, quick, and easy capital to grow your business.
Check out our guide to compare some of the best alternative lenders.
Randa Kriss
Randa Kriss is a senior staff writer at Fundera.
At Fundera, Randa specializes in reviewing small business products, software, and services. Randa has written hundreds of reviews across a wide swath of business topics including ecommerce, merchant services, accounting, credit cards, bank accounts, loan products, and payroll and human resources solutions.