Updated Jul. 10, 2025
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Our team researched the best business loan options available so you can compare business lines of credit.
Click the ‘See personalized rates’ button next to the provider of your choice and provide us with a little information about what type of loan you’re looking for.
Choose a loan from a Bankrate partner and receive your funds if you qualify.
When you’re choosing the best bank for a business loan, there are several important factors to keep in mind. Important variables include interest rates, fees, penalties and loan amounts. Since banks often have more stringent eligibility requirements, make sure you meet the minimums before applying.
Wells Fargo offers small business lines of credit for every business size, whether you’ve been in business for under two years or whether you have a large business with millions in sales. Its most unique feature is that its lines of credit come with a Mastercard rewards program, rewarding you for every dollar spent. This top bank lender also offers SBA loans.
PNC Bank offers fast approvals as quickly as one to five business days, helping you get quick access to your cash when most banks would make you wait a week or more. It offers a variety of business loans from secured and unsecured options to commercial real estate. PNC Bank also offers discounts on interest rates if your business is located in a low-to-moderate income area.
Huntington National Bank has been the largest originator of SBA 7(a) loans for the past seven years. As an SBA Preferred Lender, this bank is an ideal choice if you need an SBA loan and want quick processing. You can choose from an SBA 7(a), 504 or Express loan.
TD Bank is a lending giant offering term loans, lines of credit, commercial real estate loans and SBA loans. It’s a popular choice because of its fast funding within one business day, and unlike competitors, it considers all businesses that apply regardless of credit score or time in business.
Live Oak Bank is a unique online lender that specializes in SBA loans, including 7(a), 504 and Express loans. The lender is the second-largest originator of SBA 7(a) loans by loan amount, so you can trust this lender with your SBA funding needs.
One of the largest banks with branches all across the U.S., Bank of America offers a versatile selection of business loans, including three lines of credit, equipment loans, commercial real estate loans and SBA loans. Its Cash-Secured Line of Credit helps small businesses build credit by allowing them to open a credit line with a cash deposit. The Cash-Secured Line of Credit will turn into a standard credit line once your business qualifies.
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A bank loan for business is any type of financing a business owner receives from a traditional bank like Bank of America or Wells Fargo. In 2023, five top U.S. banks held between $200 billion and $760 billion in total business funding, according to data from American Banker. These loans often come with attractive terms, generous loan amounts and competitive interest rates. Qualifying for a small business loan with a bank is often challenging for startups and businesses without strong financial backgrounds. So, you’ll need to do some research to find the best option for you.
When applying for a small business loan through a bank, business owners will often meet with a lender who can recommend them the best type of loan for their needs. Applicants will submit their credit score, a business plan with information like financials and cash projections and other personal and financial information. If the application is approved, the bank lends a certain amount of money to the small business, which business owners then repay over the term in addition to fees and interest.
Lenders may require a business owner to provide an asset or assets which will act as collateral to secure the loan. When you provide business collateral, you may receive lower rates, longer repayment terms or approval with a lower credit score or revenue amount.
Most bank loans for business also require business owners to provide a personal guarantee. If you fail to pay back your loan, a personal guarantee gives the lender the right to come after your personal assets. Even if your business is established as a limited liability company (LLC), a lender has the right to hold you personally liable if you default on a business loan.
One of the key things to remember about business loans is that unlike personal loans or other lending options, funds have to be applied to business operations. Some loan types may even stipulate which part of the business, such as equipment financing, which goes exclusively towards the equipment listed on the loan.
If you don’t know where to start in getting the best bank business loan for you, Bankrate is here to help. Let us walk you through the steps so you can get qualified and get the capital you need.
Bank business loans can offer a more tailored product and the potential for a long-term business relationship with an established lender, which can snag you mentorship opportunities, lower interest rates and access to a wide variety of loan products.
You should consider a business loan from a bank if:
Taking on too much debt can quickly put your business under with huge payments and exponential interest. Before you take out a loan, it’s key to calculate how much debt burden you can handle.
As a rule of thumb, you shouldn’t go beyond a 36 percent debt to revenue ratio for the total amount of loans you take out. For example, your business makes $650,000 a year, then you shouldn’t borrow more than $234,000 in total.
Another thing to consider is how much monthly payment you can afford. If you decide, for example, that you can afford a maximum monthly payment of $5,250, then the most you can afford to borrow with a 10.5 percent APR on a five-year loan is $244,255.
Using a business loan calculator can help calculate your monthly payment and fees based on how much you borrow.
Bank loans for businesses often have strict eligibility requirements, though these can differ based on the loan product, amount and the bank. In general, you can expect:
You'll also need to have the required documents.
When shopping for bank loans, consider prequalifying with us. Bankrate offers multiple benefits if you decide to prequalify on our site, including:
Thomas Brock, CFA, CPA
Expert Reviewer
"A small business loan obtained via a traditional bank can differ from one obtained via an online lender in a number of ways. Generally, the application and underwriting process for a bank is more rigorous, credit standards are higher and loan terms are more flexible. With an online lender, the application and underwriting process is more streamlined, credit standards are lower and loan terms are fairly standard. Before borrowing money from any financier, make sure the lender is reputable, properly licensed and in good standing from a regulatory/legal standpoint. For good measure, also make sure the lender has generally favorable satisfaction ratings from its clientele."
Choosing the right bank for your lending needs can make a big difference in your borrowing experience. As no two banks are exactly the same, and no two businesses have exactly the priorities, here’s what you should consider when comparing banks.
| If your most important deciding factor is… | …then you should consider |
| Borrowing costs |
Banks with lower interest rates or capped borrowing fees for members. |
| Funding flexibility |
Banks with adjustable terms, or with flexible lending products such as a line of credit |
| Rewards |
Banks with sign-on bonuses or business credit card tie-ins. |
| Customer service |
Banks that can pair you with a loan officer and that have 24/7 availability via app or phone line. |
| Product offerings |
Larger banks, which tend to have a variety of lending products. |
| Ease of approval |
Banks with lower credit requirements or the ability to secure your loan with collateral. |
| Speed of approval |
Banks that offer a fast funding guarantee, or a bank that you’ve borrowed from before. |
| SBA loan availability |
An approved SBA lender with a dedicated SBA division or office. |
Bankrate Insight
Not all lenders or loans are in your best interest. Here are some red flags to watch out for while looking for loans.
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