This article is part of a larger series on Business Banking.
The best banks for small business loans should provide your company with financing options needed for both short- and long-term business needs. In addition, they’ll provide outstanding business checking products and great business support services, including merchant services, investment products, and point-of-sale (POS) products. Banks that only offer lending products or have limited business support products should provide services outstanding enough to merit inclusion on this list.
Here are the eight best banks for small business loans, with links directly to the company’s website:
- Bank of America: Best overall for variety of business loans and providing free business credit score
- U.S. Bank†: Best for long-term owner-occupied commercial real estate (CRE) loans
- Chase: Best CRE multifamily lender with best business checking and credit cards
- Bluevine*: Best small business line of credit
- Wells Fargo: Best CRE loans for multifamily properties
- First Internet Bank: Best digital-only bank with full-service business lending
- Huntington Bank†: Best for smaller Small Business Administration (SBA) 7(a) loans
- South End Capital: Best for SBA Express loans up to $25,000
*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Coastal Community Bank for Bluevine).
Best Banks for Small Business Loans At a Glance
Bank of America: Best Overall for Variety of Business Loans & Providing Free Business Credit Score
When To Choose Bank of America
Bank of America is our best bank for small business loans, thanks to a wide variety of business loan products. In addition, as part of its business checking product, you can receive your Dun & Bradstreet business credit score for free.
Business loans start at $25,000. Interest rates and loan terms vary with each loan product but starting interest rates of 5.25% are among the lowest on this list.
In addition to Bank of America’s variety of loan products, it offers business credit cards and two outstanding business checking products. Monthly fees on the business checking products can be easily waived by meeting certain criteria.
Bank of America offers other business services, such as savings, investments, and merchant services. It’s the best all-around traditional bank for your business needs. Visit Bank of America’s website for more information or stop by one of its more than 4,100 financial centers.
U.S. Bank: Best For Long-term Owner-occupied CRE Loans
U.S. Bank geographic limitations:
When To Choose U.S. Bank
U.S. Bank is an excellent choice for a business owner looking for a long-term, owner-occupied CRE loan. With SBA 504 loans of up to $12.375 million for up to 25 years, you can purchase or build owner-user commercial real estate or refinance an existing loan. Other SBA loans are available for up to $5 million for up to 25 years.
The bank also offers conventional commercial and investment property loans of up to $10 million with terms of either five, 10, or 15 years with amortization of up to 25 years. You can also get a real estate-secured line of credit.
It even has great business checking options and business credit cards. Other business services include payment processing and cash management systems. The one drawback is that U.S. Bank products are limited to the states listed above, and your business must reside in one of those states to open an account. Visit the company’s website for more information.
Chase: Best CRE Multifamily Lender With Best Business Checking and Credit Cards
When To Choose Chase
Chase is known as one of the best multifamily CRE lenders on the market. The combination of this with its outstanding business checking product and great business credit cards make Chase one of the best banks for small business loans.
For 2021, Mortgage Bankers Association (MBA) listed JP Morgan Chase & Company as the second-best commercial/multifamily mortgage lender in the nation behind Wells Fargo. Chase also offers a variety of other commercial loan products.
What makes it stand out is its excellent selection of business credit cards, many of which offer cash back bonuses and other perks. What’s more, its business checking account is our leading small business checking account.
Chase also offers other business services, including merchant services, fraud protection, and investment services. These are why it is our top-recommended bank for small businesses.
You can visit Chase’s website for more information or stop by one of its 4,800 locations nationwide.
Bluevine: Best Small Business Line of Credit
When To Choose Bluevine
While Bluevine has just one loan type, its line of credit earns it a place on this list, as it offers the best small business line of credit on the market. You can get a line of credit of up to $250,000 at an interest rate as low as 6.2%. You have to be in business for at least six months, which is a much shorter length than other options in this buyer’s guide.
It will file a blanket UCC filing and require a personal guarantee, but if approved, you can receive funding as soon as the same business day. In addition to its line of credit, it provides a great digital-only checking product that can earn you 2.0% APY on balances of $100,000 or less.
Visit Bluevine’s website for more information or to apply.
Wells Fargo: Best Commercial Real Estate Loans for Multifamily Properties
When To Choose Wells Fargo
Wells Fargo has a more limited selection of loan products than other full-service banks on this list. However, its multifamily commercial real estate loan is the best in this guide. The MBA named Wells Fargo the top lender of commercial/multifamily mortgage loans in 2021.
In addition to multifamily CRE loans, Wells Fargo offers lines of credit, SBA loans, and business credit cards. Loans start at $50,000 for CRE loans and go up to $11.5 million for SBA loans. Listed rates go as low as prime plus 1.75% but will vary per loan product.
You can borrow for up to 25 years on commercial real estate loans. Wells Fargo doesn’t disclose minimums for time in business or annual revenue.
It also has three different business checking products. There are merchant services and POS solutions available as well. Visit Wells Fargo’s website for more information.
First Internet Bank: Best Digital-only Bank With Full-service Business Lending
When To Choose First Internet Bank
If you’re looking for a full-service bank with extensive loan products that is digital-only, First Internet Bank is a great choice. It offers SBA loans, CRE lending, commercial lending, public finance, and term loans.
Lines of credit start at $100,000, while SBA loans max out at $5 million. Loan rates start at 4.75%, and terms can extend up to 25 years. Terms and rates vary per loan product. First Internet Bank doesn’t disclose minimums for time in business or annual revenue on its website.
If you’re also looking for business checking, the institution provides both business and commercial checking products. It also has savings, money market accounts, and CDs. You can even get an HSA through First Internet Bank.
As a digital-only bank, there are no physical locations to visit. However, if you’re interested in an online bank for your business lending needs, visit First Internet Bank’s website for more information.
Huntington Bank: Best for Smaller SBA 7(a) Loans
Huntington Bank geographic limitations:
Huntington Bank requires businesses to be based in the US and operating in Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Dakota, West Virginia, or Wisconsin to be eligible for an account.
When To Choose Huntington Bank
While Huntington Bank doesn’t offer much information on its website regarding loan sizes, rates, and qualification requirements, it is a lender that facilitates many SBA loans annually. It was the number one SBA lender in 2022, with 5,675 SBA loans approved for almost $1 billion.
Huntington seems to focus on the quantity of SBA loans rather than large SBA loan amounts. According to SBA.gov, the average SBA loan given by Huntington in 2022 was $175,818.
In addition to SBA loans, it offers business term and real estate loans, business lines of credit, dental and vet practice loans, and a business credit card. One drawback is it is a regional bank. Your business must operate in one of the 11 states listed above to be eligible for accounts.
Huntington offers four business checking options with waivable monthly fees. It also has treasury management and fraud tools and doesn’t charge returned deposit item fees on up to 25 occurrences per month.
Visit Huntington’s website or stop by a branch location for more information.
South End Capital: Best for SBA Express Loans up to $25,000
When To Choose South End Capital
In addition to large commercial loans, South End Capital no longer requires tax returns or financials on SBA express loans of up to $25,000, although larger loans will still require financials. So, for businesses looking for easy funding with smaller SBA express loans, it is a great choice.
It funds some of the largest loans on this list, with maximum loans of up to $75 million. Rates start as low as 5%, and loan terms go up to five years. Both of those will vary per loan product.
In addition to SBA loans, South End Capital offers equipment, CRE, term, and (USDA loans. Unlike the other options in this guide, it doesn’t offer business checking.
Visit South End Capital’s website for more information or to apply.
How We Compared the Best Banks for Small Business Loans
When comparing the best banks for small business loans, we considered the loan offerings provided by each bank and the other services offered. These services include business checking, business credit cards, and other business support services. We compared their loan products and the following criteria:
- Number of loan offerings
- Size of loans offered
- Loan qualifications required
- Time in business and minimum revenue requirements
- Loan rates and maximum terms
- How widely available the bank is
Before applying for any loan, be sure to check out our guide on how to get a small business loan.
Frequently Asked Questions (FAQs)
Which bank is best for a business loan?
Thanks to its wide range of business lending products and the ability to receive your business credit score for free with its checking product, Bank of America is the best bank for small business loans.
What bank does the most SBA loans?
Huntington Bank has issued the most SBA loans so far in 2023, with more than 1,600 loans approved, according to SBA.gov. Live Oak Bank has issued the most money in SBA loans in 2023, with more than $441 million approved.
How do you get a business loan from a bank?
To get a loan from a bank, you should follow these six steps listed in our how to get a small business loan guide:
- Determine what you need the funds for.
- Determine your eligibility.
- Determine your capacity to repay.
- Gather your information.
- Find the right lender.
- Submit your application.
All the banks listed provide either a wide range of loan product offerings or a limited selection of the best loan products on the market. These products should be readily available for well-qualified borrowers. In addition, except for South End Capital, all the banks listed offer outstanding business checking products and other business support services. Regardless of which bank you choose, you’re getting a great all-around bank that can help your business succeed.
If you would rather shop around for loan products from multiple banks, Lendio is an excellent option. Its marketplace of more than 75 lenders will allow you to get multiple offers from just one application, which lets you choose the best rates and terms available. Visit Lendio’s website to apply.