The best banks for small business loans offer competitive loan options along with essential services like checking accounts, merchant services, and business credit cards. This guide highlights top banks and covers their loan offerings, banking products, and additional services, whether you need short-term working capital, long-term real estate loans, or a business line of credit.
Here’s a breakdown of the best banks for small business loans that offer comprehensive solutions to meet your needs:
- Best small business line of credit and interest-earning checking: Bluevine
- Best long-term CRE loans with free business checking: U.S. Bank
- Best multi-family CRE lender with excellent business banking: Chase
- Best for eCommerce businesses: Mercury
- Best for multiple business loan products and free business credit score: Bank of America
- Best for small businesses seeking quick financing: Live Oak Bank
Best banks for small business loans quick comparison
Below, I summed up the top features I considered for the six financial providers. Here is our list of the best banks for small business loans.
Loan information
Checking account information
Bluevine: Best overall business loan bank
Our rating: 4.18 out of 5
Why I chose it
I chose Bluevine as the best overall business loan bank for its excellent line of credit, offering a limit of up to $250,000 and a rate starting at 7.8%. Businesses with $120,000 in annual revenue and 12-plus months of operation can easily qualify. Through Bluevine’s line of credit, you can improve your business cash flow, manage large expenses, and boost your credit score for future financing since your repayment history is reported.
In addition, you can open Bluevine Standard, a fee-free business checking account granting an APY of 1.5% for qualifying balances of up to $250,000. Bluevine is also named among our top online business bank accounts for easy online account application and an outstanding line of credit.
Lines of credit
- Loan amount: Up to $250,000
- Interest rates: As low as 7.8%
- Terms: 6 or 12 months
- Funding speed: 24 hours
How to qualify
- Business operation for at least 12-plus months
- Have at least $120,000 in annual revenue
- Have a 625+ personal FICO credit score
- Must be a corporation or limited liability company (LLC)
- Have no bankruptcies in the past year
- Have good standing with your Secretary of State
- Business operation or incorporation in an eligible US state, ineligible states include Nevada, North Dakota, and South Dakota
- Have an active bank connection or statements from the last three months
Other business loans
Term loans are available through Bluevine’s network of lending partners.
Monthly fees for checking accounts
- Bluevine Standard: $0
- Bluevine Plus: $30; waivable
- Bluevine Premier: $95; waivable
See our Bluevine business checking review for comprehensive information on its features and benefits.
Features
- Lines of credit of up to $250,000
- Quick account application and approvals within 24 hours
- FDIC insurance of up to $3 million
- No minimum balance requirement or monthly fee for Bluevine Standard
- Waivable monthly fees for higher-tier checking
- QuickBooks, Xero, and Wave integrations
- Wise, Venmo, CashApp, and Square compatibility
- Free ATM access at over 37,000 MoneyPass locations
- International payments to 32 countries in 15 currencies
- Business credit card with unlimited cashback and no annual fee
Pros and cons
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U.S. Bank: Best long-term CRE loans with free business checking
Our rating: 4.16 out of 5
Why I chose it
I picked U.S. Bank as one of the best business lending banks for its strong offerings in long-term commercial real estate (CRE) loans, making it ideal for businesses needing financing for owner-occupied properties. U.S. Bank’s SBA 504 loans provide terms of up to 25 years and amounts as high as $12.375 million. Additionally, their SBA 7(a) real estate loans allow businesses to purchase, expand, refinance, or construct commercial real estate with loan amounts of up to $5 million and similar 25-year terms.
You can also apply for same-day funding quick loans online, ranging from $5,000 to $50,000, with terms of up to 48 months and no collateral. For secured loans, terms of up to 84 months are available in amounts from $5,000 to $250,000.
Additionally, U.S. Bank is included in our best free business checking accounts and offers up to a $900 bonus when you open a new, eligible U.S. Bank business checking account online (promo code: Q1AFL25) and complete qualifying activities, subject to certain terms and limitations — offer valid through March 31, 2025. Member FDIC.
SBA (504) real estate loans
- Loan amount: Up to $12.375 million
- Interest rates: As low as 8.99%
- Terms: Up to 25 years
- Funding speed: Undisclosed
How to qualify
Generally, two years minimum time in business.
Other business loans
- SBA 7(a) business loan
- SBA 7(a) real estate loan
- Lines of credit
- Secured and unsecured term loans
- Equipment financing
- Practice financing
Monthly fees for checking accounts
- Silver Business Checking: $0
- Gold Business Checking: $20; waivable
- Platinum Business Checking: $30; waivable
Read our U.S. Bank business checking review to learn more about its features.
Features
- Up to $250,000 quick loan online application
- Preferred SBA lender
- Up to 25-year term CRE loans
- No monthly fee for basic tier checking
- Up to $900 welcome bonus for eligible checking accounts
- QuickBooks and ADP integrations
- Zelle, point-of-sale (POS) solutions, and cash management services
- Overdraft protection
- Check fraud prevention services
- Fee-free withdrawals at the MoneyPass network
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Chase: Best multi-family CRE lender with excellent business banking
Our rating: 4.14 out of 5
Why I chose it
I included Chase on this list for its strong position as a leading lender for multifamily CRE loans, offering loan amounts starting at $50,000 with flexible terms up to 25 years. Chase also allows refinancing to help lower mortgage payments. For small businesses, Chase offers an option for lump-sum funding. In addition, the bank has scalable business checking accounts, including premium accounts like the Chase Platinum Business Checking, which has a higher transaction limit and cash deposit allowance.
Additionally, Chase offers a full range of services, including merchant processing, fraud protection, investment services, and business credit cards. You’ll also get a bonus of up to $500 when you open a new Chase Business Complete Banking account and meet the qualifying activities. The offer is valid until April 17, 2025.
Commercial real estate loans
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- Loan amount: $50,000 and up
- Interest rates: Variable
- Terms: Up to 25 years
How to qualify
- Two years minimum time in business
- Under the same majority ownership for at least two years
Other business loans
- Lines of credit
- Term loans
Monthly fees for checking accounts
- Chase Business Complete Banking: $15; waivable
- Chase Performance Business Checking: $30; waivable
- Chase Platinum Business Checking: $95; waivable
See our Chase business checking review to discover its pros and cons and see if it fits your needs.
Features
- Small business and CRE loans
- Lump sum funding available to small businesses
- Digital banking and branch locations in 48 states
- Up to $500 cashback bonus for new checking accounts (conditions apply)
- No required opening deposit and minimum balance
- Unlimited electronic transactions
- Free associate and employee debit cards upon request
- Chase Bank QuickBooks integration
- Fraud protection services
- Payment and invoicing services via Chase Payment Solutions
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Mercury: Best for eCommerce businesses
Our rating: 4.03 out of 5
Why I chose it
I find Mercury an excellent choice for eCommerce businesses because it offers working capital loans with just six months of operation required, compared to the typical two-year requirement from traditional lenders. This financing can help cover unexpected expenses and support inventory expansion. Additionally, Mercury’s fee-free business checking account has no minimum opening deposit, no monthly fees, and no transaction limits, providing online business owners with more savings.
Working capital loans
- Loan amount: Undisclosed
- Interest rates: Flat fee
- Terms: Three to six months
- Funding speed: One to two business days
Other loans
Venture capital debt
How to qualify
- Have at least $250,000 of annual sales with at least six months trading history.
- Must be an eCommerce brand incorporated in the US. Additional eligibility requirements apply for California, Nevada, or Vermont businesses.
Monthly fees for checking accounts
- Mercury Business Checking: $0
- Mercury Plus: $35
- Mercury Pro: $350
For more information, check out our Mercury business checking review.
Features
- Working capital loans available to eCommerce businesses
- Checking account with no opening deposit, minimum balance requirement, or monthly fee
- Physical and virtual debit cards
- QuickBooks and Xero accounting software integration
- Compatible with Shopify, Stripe, Square, Zapier, Amazon, and PayPal
- Customized account access and 14 subaccounts
- Advanced accounting automation is available under a subscription plan
- Fee-free wire transfers
- FDIC insurance coverage of up to $5 million
- Credit card available with 1.5% auto cash back rewards
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Bank of America: Best for multiple business loan products and free business credit score
Our rating: 4.0 out of 5
Why I chose it
I chose Bank of America as one of the best banks for business loans because of its wide range of lending products, including lines of credit, equipment loans, SBA loans, and CRE loans, with amounts starting at $25,000. They also offer affordable business checking products and free access to your Dun & Bradstreet credit score. This makes it easy to track your financial health. Additionally, Bank of America’s Preferred Rewards for Business program lets you earn up to a 0.25% discount on loan interest rates.
Secured business loans
- Loan amount: $25,000 and up
- Interest rates: 7.0%
- Terms: 4 or 5 years
- Funding speed: Undisclosed
How to qualify
- Two years minimum time in business under existing ownership
- $250,000 in minimum annual revenue
Other business loans
- Unsecured credit line
- Term loan
- Auto loan
- Commercial real estate loan
- Equipment loans
- SBA loans
- Healthcare practice loans
Monthly fees for checking accounts
- Business Advantage Fundamentals Banking: $16; waivable
with no monthly fee for the first 12 months - Business Advantage Relationship Banking: $29.95; waivable
Features
- Various loans include lines of credit, term loans, CRE loans, and SBA loans
- Free Dun & Bradstreet business credit score
- Free enrollment for Preferred Rewards for Business program
- Loan interest rate discounts through the preferred rewards program
- Savings interest rate boosts included as preferred business rewards
- Business checking accounts with waivable monthly service fees
- Basic tier checking has no monthly fee for 12 months
- No fees for incoming wires under a higher-tier checking account
- QuickBooks integration
- Cash Flow Monitor tool
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Live Oak Bank: Best for small businesses seeking quick financing
Our rating: 3.93 out of 5
Why I chose it
I chose Live Oak Bank as one of the best banks for business loans. It specializes in small business lending, offering tailored solutions for various industries, including healthcare, agriculture, and real estate. It also has an easy online application process, making it convenient for business owners. Additionally, it does not charge prepayment penalties, giving flexibility to pay off a loan early without incurring additional fees.
The bank is also known as one of the top SBA lenders in 2024, with an approval amount of nearly 2 billion and an average loan size of $1,377,745. As an online lender, it serves businesses across the U.S., providing access to financing for small business owners regardless of location.
Live Oak Express® loans
- Loan amount: $10,000 to $500,000
- Interest rates: Variable
- Terms: 10 years
- Funding speed: Undisclosed
How to qualify
- Two years minimum time in business
- Excellent credit history
- Current on all business and personal debt
Other business loans
- SBA
- USDA loans
- Commercial loans
- Healthcare practice loans
Monthly fees for checking accounts
- Business Essential Checking: $10; waived with $1,000 average daily balance
- Business Plus: $25; waived with $25,000 average daily balance
- Business Plus Analysis: $100; earnings credit can offset fees
For more details on services and rates, read our Live Oak Bank review.
Features
- Offers small business, SBA, USDA, healthcare practice, and commercial loans
- Provides 90% bank financing or higher through SBA 7(a) loans
- Online loan applications
- Transparent closing costs
- Up to $500,000 small business loan amounts with 10-year terms
- Three business checking accounts with no initial deposit requirements
- Insured cash sweep account up to $10 million FDIC insurance coverage
- QuickBooks integration
- Free business bill pay
- ATM withdrawals allowed at over 55,000 Allpoint ATMs
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Key factors to consider when choosing the best small business loan banks
When evaluating the best small business loan banks, check the following:
- Loan variety: Look for a bank that offers the best small business loan options, including lines of credit, SBA loans, and CRE financing.
- Loan terms & conditions: Ensure the bank offers terms that suit your business needs, including competitive interest rates and flexible repayment options.
- Eligibility requirements: Check the bank’s criteria, such as credit score, business age, revenue, and collateral. Meeting these requirements increases your chances of approval.
- Collateral requirements: Check if the bank requires collateral and assess whether you’re comfortable with the risk of using your personal or business assets.
- Additional services: In addition to loans, choose a bank that provides comprehensive services such as business checking, merchant services, and business credit cards.
How to apply for a small business loan
Securing a loan from a business bank requires a few steps:
- Assess your financing needs: Determine what you need the loan for. Is it for covering operating expenses, purchasing equipment, or expanding your business? Understanding your business needs ensures choosing the right type of loan.
- Research loan options: Explore the different loan products available to find the best fit for your business. Research various lenders, including traditional banks, credit unions, online lenders, and alternative financing options. Compare interest rates, fees, terms, and approval processes.
- Review qualifications: Understand the bank’s eligibility requirements, including minimum revenue, time in business, and credit score. Learning the lender’s requirements can help you meet all conditions before applying, which increases your chances of approval.
- Submit your application: Once you’ve chosen the best lender, submit your loan application along with the required documentation. This can include business tax returns, financial statements, personal credit reports, and legal documents like business licenses and operating agreements.
Pros and cons of small business loans
When considering small business loans, weigh the pros and cons to determine if borrowing is the right choice for your needs.
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Impact of credit score on loan approval
Credit scores are key to loan approval, especially for small businesses. A higher score improves your chances of approval and better terms, like lower interest rates. A lower score may lead to higher interest rates or difficulty getting approved, as lenders view it as a sign of potential financial risk. A strong credit score shows reliability and the ability to repay the loan, boosting your chances of securing financing.
Tips to getting a small business loan
- Know your credit score and try to improve it.
- Build a relationship with your bank or lender.
- Complete your documentation.
- Understand different loan types and the amount you need.
- Look for lender reviews and recommendations.
- Consider alternative financing.
- Explore government assistance programs, like SBAs, for lower rates.
- Shop around for the best rates, terms, and conditions.
- Show consistent revenue and cash flow to increase reliability to repay.
- Prepare a solid business plan and maintain accurate financial records.
Alternative financing options
While bank loans are a great option, other financing alternatives might suit your needs:
- Online lenders: Bluevine, Mercury, Live Oak Bank, and other online lenders offer fast, flexible financing for businesses in need of quick capital.
- ROBS (Rollovers for Business Startups): If you have a retirement account, a ROBS allows you to use those funds to finance your business without taking on debt.
- Small business grants & crowdfunding: Consider non-loan options like grants and crowdfunding if you’re looking for funds without repayment obligations.
- Invoice factoring: You can quickly access funds by selling your unpaid invoices to a third party at a discounted rate.
- Merchant cash advance: Secure fast financing based on your daily credit card sales, providing flexibility for businesses with regular transactions.
- Revenue-based financing: Ideal for businesses with variable income, this option allows you to repay the loan based on your revenue, offering more flexible repayment terms.
Methodology
I researched top lenders to help small business owners find the best loans based on factors like loan terms, interest rates, approval speed, and eligibility. I reviewed options like SBA loans, CRE loans, working capital loans, and lines of credit, focusing on competitive rates, flexible terms, and fast approval. I also assessed business checking products and support services to make financing easier and more affordable.
Frequently asked questions
What type of loan is best for a small business?
Small businesses benefit from SBA loans and lines of credit due to easier requirements and competitive rates. SBA loans offer low interest rates, making them affordable, while lines of credit provide flexible funds with a set credit limit and draw period, making it ideal for managing your cash flow.
Which bank offers the best business loan?
The best bank for your business loan depends on your loan type, credit score, and business needs. U.S. Bank excels in long-term CRE loans, Chase is strong for multifamily CRE loans, and Bluevine offers fast lines of credit. Live Oak Bank specializes in quick financing and is a top SBA lender like U.S. Bank.
Is it easier to get a business loan with an LLC?
Securing a business loan is straightforward if you have an LLC, meet the lender’s requirements, and have good credit. However, approval can be tough for new businesses or those with limited revenue, especially with traditional banks and credit unions. In such cases, alternative financing options may be needed, but they often come with higher interest rates and stricter repayment terms.
