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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:
Mercury is a fintech company, not an FDIC-insured bank. Banking services provided through Choice Financial Group and Column N.A., Members FDIC. The IO Card is issued by Patriot Bank, Member FDIC, pursuant to a license from Mastercard®.
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 1.3% 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
Waived by maintaining an ADB of $20,000 across your Bluevine checking account, including subaccounts, AND having a monthly spend of $2,000 using your Bluevine debit card or credit card.
Bluevine Premier: $95; waivable
Waived by maintaining an ADB of $100,000 across your Bluevine checking account, including subaccounts, AND having a monthly spend of $5,000 using your Bluevine debit card or credit card.
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
Pros
Cons
Line of credit with low rates
Short minimum time in business requirement
Potential funding in 24 hours
Nevada, North Dakota, South Dakota companies are ineligible
Limited to corporation or LLC entities
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U.S. Bank: Best long-term CRE loans with free business checking
Image: U.S. Bank
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 $400 bonus when you open a U.S. Bank Business Essentials Account or $1,200 when you open a Platinum Business Checking Account online with promo code Q2AFL26 and complete qualifying activities, subject to certain terms and limitations. Offer valid through June 30, 2026. 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
Waived by having any of the following:
- A U.S. Bank Payment Solutions Merchant account
- $10,000 average collected balance
- $20,000 combined average collected business deposit balances
- $50,000 combined average collected business deposits and outstanding credit balances
Platinum Business Checking: $30; waivable
Waived by having either of the following:
- $25,000 average collected checking balance
- $75,000 combined average collected business deposits and outstanding credit balances
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
Pros and cons
Pros
Cons
Up to $12.375 million loan offering
Quick loans via online application are available
$5,000 unsecured term loans with 48-month terms are available
Investment property, business vehicle loans, and business term loans require an appointment to apply
Financing over $50,000 requires collateral
Chase: Best multi-family CRE lender with excellent business banking
Image: Chase
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 Checking® account and meeting qualifying activities. The offer is valid until June 18, 2026.
Commercial real estate loans
Loan amount: $50,000 and up
Interest rates: Variable
Terms: Up to 25 years
Funding speed: Varies
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
Waived by meeting Chase Military Banking requirements or by having any of the following:
- $2,000 average daily balance
- $2,000 Chase Ink Business Cards spend
- $2,000 in deposits from Chase QuickAccept or other eligible Chase Payment Solutions transactions
- Linked Chase Private Client CheckingSM, JPMorgan Classic Checking, or Private Client Checking Plus account
Chase Performance Business Checking: $30; waivable
Waived by meeting a $35,000 or greater combined average daily balance (ADB) in qualifying business deposit accounts.
Chase Platinum Business Checking: $95; waivable
Waived by meeting a $100,000 combined ADB across qualifying business deposit and investment accounts. The required ADB is $50,000 for a linked Private Client CheckingSM, JPMorgan Classic Checking, or Private Client Checking Plus account.
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
Pros and cons
Pros
Cons
25-year terms CRE loans
Up to 90% financing available
Small business loans start at $5,000
Limited loan types
Requires in-person loan application
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Mercury: Best for eCommerce businesses
Image: Mercury
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.
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
Mercury is a fintech company, not an FDIC-insured bank. Deposits in checking and savings accounts are held by our banking services partners, Choice Financial Group and Evolve Bank & Trust®; Members FDIC. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through insurance to apply.
Credit card available with 1.5% auto cash back rewards
Pros and cons
Pros
Cons
Only six months of business operation required
Funds accessible in one to two business days
Flat fee for all loan amounts
Additional requirements for California, Nevada, or Vermont businesses
Cannot open sole proprietorship and trust accounts
Bank of America: Best for multiple business loan products and free business credit score
Image: Bank of America
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
Waived by meeting any of these conditions:
- Maintain a $5,000 combined average monthly balance in eligible linked business deposit accounts
- Make at least $500 in new net qualified purchases using your Bank of America business debit card
- Be a member of Preferred Rewards for Business (first 4 checking accounts per enrolled business)
with no monthly fee for the first 12 months
Business Advantage Relationship Banking: $29.95; waivable
Waived by meeting any of these conditions:
- Maintain a $15,000 combined average monthly balance in eligible linked business deposit accounts
- Be a member of Preferred Rewards for business (first 4 checking accounts per enrolled business)
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
Pros and cons
Pros
Cons
Several business loan options
Loan interest rate discounts included in Preferred Rewards for Business
7.0% interest rate for secured business loans
Loan amounts start at $25,000
High minimum annual revenue requirement
Live Oak Bank: Best for small businesses seeking quick financing
Image: Live Oak Bank
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
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
Pros and cons
Pros
Cons
No prepayment penalties for Live Oak Express loans
No hard personal credit inquiries
Top SBA lender
Limited in-person support as a digital bank
Undisclosed minimum business annual revenue
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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.
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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.
Pros
Cons
Access capital
Build credit
Choose flexible loan terms
Retain business ownership
Gain tax benefits
Take on responsibility for debt
Qualify under strict eligibility
Pay high interest rates
Face potential overleverage
Put assets at risk
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.
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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.
Lauren McKinley is a financial professional with five years of experience in credit analysis, commercial loan administration, and banking operations. She has worked at regional lending institutions across the Northeast, evaluating risk, analyzing financials, and managing loan processes. Specializing in commercial real estate and small business financing, Lauren has helped diverse borrowers navigate financial solutions.
