One of the best sources of capital for small businesses is a bank loan, which provides favorable terms and low-interest rates. A traditional bank loan or SBA loan is something to take into consideration if you have good credit and have been in business for a while.
Small business loans enable qualified business owners to borrow money to pay for acquisitions and running costs of business. The best small business loans can help you get the money your company needs to flourish, whether you’re just starting out or looking to expand.
Recent data shows that more than any other type of lender, major and small banks granted a combined 35.2% of small business loan applications.
Here are some banks which are giving loans to small businesses.
What are the Best Banks for Conventional Business Loans?
Bank of USA
Bank of America is a competitive bank lender for small company owners across the nation with over 4,200 branches and great mobile banking features. Borrowers with two or more years in business, as well as those who wish to select from a variety of alternative financing options, should consider Bank of America business loans as a smart option.
Bank of America had about $80 million more in loan volume than the next-closest lender as of August 2021, making it the bank with the highest commercial and industrial loans overall.
Features of USA bank
As a bank that supports small businesses, U.S. Bank distinguishes out from its rivals. For companies of all sizes, U.S. Bank provides a wide range of financial solutions, including:
- Quick loans with fixed rates, up to $250,000.
- Loans with terms up to $1 million
- Loans for commercial property up to $10 million
- 504 loans and 7(a) SBA loans
Wells Fargo
If you require bank funding, Wells Fargo can be a wonderful option to deal with because of its years of experience in the small business lending sector.
Wells Fargo still has more than $160 million in commercial loans outstanding as of August 2021, despite discontinuing some of its well-known small business loan products.
Additionally, Wells Fargo is still providing its competitive business line of credit solutions, which can be a viable funding choice for a number of small business owners.
Features of Wells Fargo
Small business owners can choose from a variety of financial products offered by Wells Fargo. Furthermore, finding a branch near you won’t be too tough with over 8,000 around the country. You can apply for the following things through Wells Fargo:
Credit lines up to $500,000
Commercial real estate loans, including the SBA 504 loan, are available through Small Business Association 7(a) loans up to $5 million.
JPMorgan Chase
Chase has over $190 million in commercial loan volume as of August 2021[2], and the bank had already made over $71 million in SBA 7(a) loans alone in fiscal year 2022.
From lines of credit and SBA loans to equipment finance and real estate financing, Chase provides a wide range of lending choices. However, Chase also offers a selection of rewards-earning small business credit cards for you to explore if standard bank loans don’t make sense for your company.
Features of Chase Bank
For startups and credit-worthy existing enterprises, Chase offers financing solutions. These consist of:
- Credit lines with a maximum of $500 000
- Long-term borrowing
- Loans for commercial properties
- SBA loans (express loans, 504 loans, and loans under 7(a)).
What are the best banks for SBA loans?
Banks, credit unions, and other lenders make SBA loans, which are backed by the U.S. Small Business Administration. By reducing the lender’s risk when dealing with you, the government guarantee encourages banks to lend to more small company owners. Here are the banks which are providing SBA loans to small businesses.
Live Oak Bank
The most active SBA 7(a) lender in the nation in 2021 was Live Oak Bank. The bank is still at the top of the list in fiscal year 2022, having approved a total of $724,302,000 in loan volume as of March 31.
This Wilmington, North Carolina-based bank does not offer consumer loans and does not have any physical locations. Instead, they concentrate nearly solely on SBA loans and other small business loans. Since they began doing business, they have given approximately $2 billion in small business financing.
Since Live Oak Bank doesn’t use branches, its SBA loan application procedure is simple and automated. The underwriting process can be sped up by uploading all loan papers online, and you can keep track of the status of your loan at any time via your online account.
Celtic Bank
Celtic Bank provides a fully online banking experience, similar to Live Oak Bank. This bank offers a limited number of consumer goods but equally focuses on SBA loans and traditional business loans.
Celtic Bank has thus far authorized 276 SBA 7(a) loans in 2022, lending a total of $268,484,700. SBA Express loans and SBA 504 loans are both provided by Celtic.
You only need to answer a short, seven-question online application to get started. Following completion, Celtic Bank will forecast your likelihood of loan approval and present you with alternative lending options.
TD Bank
One of the top banks for small business loans is TD Bank if your company is based on the East Coast. One of the leading SBA lenders on the East Coast, TD Bank has so far made 658 7(a) loans worth a combined $65,957,200 in 2022.
SBA 7(a), SBA 504, and SBA Express loans are all available through TD Bank. They regrettably do not provide the ease of an online application process. To apply, make an appointment at a TD Bank location.
Huntington Bank
The most SBA 7(a) loans in 2022 have presently been authorized by Huntington National Bank (2,279 loans in Q1 for a total of $346,276,400 in funding).
The SBA 504 loan, SBA Express loan, and SBA 7(a) general purpose business loan programmes are all supported by Huntington Bank. And although though Huntington Bank only has offices in 11 states, the area continually names the lender as one of the top SBA lenders. Utilizing the Huntington Bank website, you may even locate a regional expert in SBA loans in your state.
The Bottom Line
Both traditional business funding options and SBA loans are included in our list of the top banks which are providing loans to small businesses. However, there are alternative financing choices you can take into account if you don’t meet the requirements for a conventional business loan from a bank in order to get reasonable, quick, and simple funding to expand your firm.