Compare the Best Banks for Business Loans of 2025
| COMPANY | FORBES ADVISOR RATING | LOAN AMOUNTS | APR | MINIMUM CREDIT SCORE | LEARN MORE |
|---|---|---|---|---|---|
   | $10,000 to $1 million | 8% to 16% | 615 | From participating partners via businessloans.com’s website | |
 | $5,000 to $500,000 | Not disclosed | Not disclosed | Via Forbes Advisor | |
| | $5,000 to $50,000 | 9.99% to 14.24% | 660 | ||
 | $10,000 and up | 6.50% to 14.24% | 700 |
Best Banks for Small Business Loans: A Closer Look
BEST FOR LARGE LOANS
TD Bank Small Business Loan
Loan amounts
$10,000 to $1 million
APR range
8% to 16%
Minimum Credit Score
615
$10,000 to $1 million
8% to 16%
615
TD Bank offers large loans you can use for equipment purchases, business expansion and more. We like that you can apply online for TD Bank loans of up to $250,000. For loans of $250,000 or above, you’ll need to submit a paper application. TD Bank loans have no origination fees, and you can talk with a loan expert to customize financing to fit your business needs.
- No origination fee
- No minimum time in business requirement
- Bank branches are primarily on the East Coast
- Loans may have prepayment penalties
Lender details
Eligibility
- Minimum credit score: 615
- Minimum annual revenue: $40,000
- Required time in business:None
Funding Speed
Funding may be available in as little as two days.
BEST FOR SBA LOANS
Chase Small Business Loan
Loan amounts
$5,000 to $500,000
APR range
Not disclosed
Minimum Credit Score
Not disclosed
$5,000 to $500,000
Not disclosed
Not disclosed
JP Morgan Chase ranks in the top six SBA lenders that approved the highest dollar amount of SBA loans in 2024, according to Small Business Administration data. We like that Chase offers a rate discount of 0.40% to 1.20% for relationship banking customers who borrow $500,000 or more. Loans have no origination fee, but loans might have a prepayment penalty fee, so read the contract terms before paying off a loan early.
- No origination fee
- Relationship banking rate discounts
- Loan turnaround as soon as one to two days possible
- Approves a high number of SBA loans
- Prepayment penalties for loans $250,000 or more
Loan Details
- Minimum credit score: Not disclosed
- Minimum annual revenue: Not disclosed
- Minimum time in business: Two years
Funding Speed
The funding turnaround time for a loan may range from three to four weeks.
BEST FOR STARTUPS
U.S. Bank Unsecured Business Term Loan
Loan amounts
$5,000 to $50,000
APR range
9.99% to 14.24%
Minimum Credit Score
660
$5,000 to $50,000
9.99% to 14.24%
660
US Bank business loans feature no origination fees, fast turnaround times and no minimum time-in-business requirement, making them a solid option for startups. Funding for unsecured loans caps at $50,000, but secured loans may provide up to $250,000 in funding, with a loan term of up to 84 months. As for the drawbacks, US Bank may charge a prepayment penalty fee for paying your balance off early, and loan rates may be high if you don’t pledge collateral.
- No origination fee
- Funding in as little as one day possible
- Online and in-person applications available
- Approves a high number of SBA loans
- Prepayment penalty fees
- Higher rates for loans with no collateral
- Strong credit may be necessary
Lender Details
Eligibility
- Minimum credit score: 660
- Minimum annual revenue: No minimum
- Required time in business: Six months
Funding Speed
Loans may be funded within one day.
BEST FOR LOW RATES
Bank of America Business Loan
Loan amounts
$10,000 and up
APR range
6.50% to 14.24%
Minimum Credit Score
700
$10,000 and up
6.50% to 14.24%
700
Bank of America business loans feature low interest rates; however, strong credit and a strong business track record are necessary. Borrowers need a credit score of 700 or higher, at least two years in business and $100,000 or more in annual revenue to qualify. If you’re a preferred rewards member, Bank of America may offer rate discounts of 0.25% to 0.75%. Loans have an origination fee of $150.
- Relationship rate discounts
- Low interest rates for those who qualify
- Origination fees
- Strong credit may be necessary
Types of Bank Business Loans
Business bank loans are typically structured as term loans, which provide a lump sum that you pay off with installment payments. Traditional banks may offer two main loan types—SBA loans and conventional loans.
SBA Loans
SBA loans are regulated and backed by the Small Business Administration. You can get an SBA loan through an SBA-approved lender, and these loans may offer lower interest rates and longer loan terms than other non-government-backed loans.
SBA loan amounts are capped at $5.5 million, depending on the loan program. The application tends to be lengthy: The entire process can take several weeks or months.
Conventional Loans
Conventional loans are not backed by the government, and funding comes entirely from the bank. Eligibility requirements for conventional business loans may be strict because the bank assumes more risk when another entity isn’t guarantying the loan. That said, funding speeds for conventional loans can be faster than SBA loans if you have an established business with strong credit and consistent revenue.
Secured vs. Unsecured Loans
Both SBA loans and conventional loans may require collateral. Here’s how secured and unsecured loans work.
Secured loans
Secured loans require that you pledge assets—like real estate, inventory or equipment—to back the loan. Secured loans may offer higher loan amounts and lower rates since the lender can take the collateral if you don’t repay the loan.
Unsecured loans
Unsecured loans don’t require collateral. Unsecured loans can make sense for businesses that need quick cash since the bank doesn’t have to go through the extra step of confirming your collateral before releasing funds. However, unsecured loans often have higher interest rates.
Pros and Cons of a Bank Small Business Loan
Consider these pros and cons before taking out a small business bank loan.
| PROS | CONS |
|---|---|
Loans may offer lower interest rates | Good credit and multiple years of business history may be required |
Loans may have fewer fees | Loans may have prepayment penalty fees |
Loans could come with traditional bank perks, like interest rate discounts if you’re a preferred customer | Loan processing may take several weeks or months |
SBA approved bank lenders may offer loans with lower down payments and longer repayment terms | Collateral may be required |
What You Need To Qualify for a Bank Business Loan
While requirements vary, this is a general idea of the credentials and documents you might need to obtain a business loan from a bank.
- Strong credit and consistent revenue. Bank lenders may look for borrowers to have credit scores above 600, while an even higher credit score increases your odds of approval. High revenue can also help you qualify for larger loans.
- Down payment funds. Business loans may require you to put money down. A typical down payment might be 25% to 35% for conventional loans, while SBA loans may have a down payment of 0% to 10%.
- Personal guarantee. Business loans often require a personal guarantee, which is a promise to be personally responsible for the loan if your business cannot repay the debt.
- Uniform Commercial Code (UCC) lien. If you pledge collateral for the loan, the lender may require a lien against the collateral. This makes it possible for the bank to seize the property if you don’t repay the debt.
- Financial documents. Banks will want to review your business’s performance using documents like tax returns and financial statements.
How To Compare the Best Banks for Business Loans
When loan shopping, compare financial institutions by reviewing the following important loan details.
- Interest rates. The median interest rate for fixed-rate urban term loans was 7.22% as of Q2 2025, but rates can be lower or higher based on your credit. Shopping with multiple lenders is the best way to find the most competitive rate you can obtain.
- Fees. Aside from interest, fees are an additional cost factor to consider. Lenders may charge origination fees, late fees and prepayment penalty fees on loans, which can add to the total cost of borrowing.
- Terms. Terms for business loans are often capped at five years but could be longer in some cases. It’s important to compare terms because the term length impacts your total borrowing costs and installment payment amount.
- Collateral and down payment requirements. As with other loan details, collateral and down payments required vary by lender. Shop around to find a loan with minimum conditions that your business can meet.
How To Apply for a Business Loan
Below are steps to take that can help you apply and qualify for bank business loans.
Strengthen your credit
Before loan shopping, pull your credit report and score to identify opportunities to improve your rating. Paying off personal debt and reducing your credit utilization are strategies that could help improve your personal credit score before applying for a business loan.
Decide how much you can put down
Since some loans require a down payment, consider how much you can manage to put down upfront.
Gather financial documents
Compile personal and business tax returns and financial statements, such as your balance sheet and cash flow statement.
Determine what collateral you have to pledge
Lenders may allow you to use assets like savings, real estate, inventory or equipment to secure your loan. Collect statements or documentation for each asset you will pledge.
Shop around
Speak with loan specialists from multiple lenders to compare terms and costs across multiple options.
Alternatives to Traditional Bank Loans
If a bank loan isn’t right for you, these are alternative funding options:
- Merchant cash advances: A merchant cash advance is an advance that’s paid back by a percentage of future sales. Merchant cash advances may not require great credit as long as you make enough revenue to qualify. Advance rates may be high, so it’s important to review all fees.
- Business lines of credit: Instead of giving you a lump sum in cash, a business line of credit is a credit line you can borrow against as you need funds. Interest is only charged on the amount you borrow, which could keep interest costs low if you use and pay off the credit line. However, credit lines may come with other fees, such as annual fees and draw fees.
- Business credit cards: Thanks to quick online approvals, business credit cards could be a good option for immediate working capital needs. Interest on credit cards may be higher than installment loans, depending on your credit, but paying off the balance periodically can minimize interest charges.
- Business loans from alternative lenders: Non-bank lenders may offer term loans with more flexible eligibility requirements and same-day or next-day funding. Interest rates and fees may be higher, but this type of loan can bridge a gap when you’re unable to qualify for bank loans.
Comparing all options from banks and alternative lenders can help you determine the best way to launch or grow your business.
Methodology
We reviewed 5 major bank lenders based on 20 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the four best lenders based on the weighting assigned to each category:
- Loan cost. 30%
- Loan details. 25%
- Customer experience. 19%
- Eligibility and accessibility. 15%
- Application process. 11%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Business Loans Rating Methodology.
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