Best Banks for Small Business Loans in 2023

Selecting the best bank for your small business loan allows you to focus more on managing your company. There are countless small business lenders that will lend you money.

We reviewed and ranked the top banks for small business loans. We set out to find the best one by thoroughly researching five of the most popular lenders: Wells Fargo, Chase, US Bank, Bank of America, and Live Oak.

Our Approach:

Choosing the best bank for a small business loan comes down to three things:

• Type of business you have
• Needs of your business
• What you want for the future of your business

In this review, we’ll look at some of the top banks for business loans and share what makes them the right choice. We’ll explore the details of each bank, along with pros, cons, and more. By the time you finish reading this review, you’ll know which bank is best for small business loans.

Our Top 5 Banks for Small Business Loans

1. Wells Fargo is best for businesses needing an SBA 7(a) loan because they approve more SBA loans than other banks.
2. Chase Bank is best for business term loans and business credit cards because they offer the best rates overall.
3. US Bank is best for lines of credit because they offer flexibility and great rates.
4. Bank of America is best for businesses with good credit because they have no set limits on how much you can borrow and rates are low.
5. Live Oak Bank is the best online bank because they offer multiple guaranteed loans and make accessing capital easy.

If you are a small business seeking a Small Business Administration (SBA) 7(a) loan, Wells Fargo is the first bank you’ll want to look at. When compared to other banks, Wells Fargo is the largest lender of SBA loans. Additionally, Wells Fargo makes applying for an SBA loan a simple process.

Wells Fargo offers two different types of small business loans: Wells Fargo unsecured business loans and equipment express loans. Assuming you meet the SBA requirements, you can apply for loans with Wells Fargo using the SBA program.

Here is a quick summary of Wells Fargo business loans:

• Wells Fargo Small Business Loan
  
  • Lowest rate: 6.25%
  • Loans sizes up to: $100,000

• Equipment Express Loan
  
  • Lowest rate: 5%
  • Loans sizes up to: $100,00

To apply for a Wells Fargo business loan, you will need to provide the following:

• Tax ID number
• Financial statements (cash flow, balance sheet, and income statement)
• Government-issued identification and proof of income
• Personal and business bank statements

You may be asked for further information if you have a startup or newer business, such as your cash flow projections, your business plan, and maybe even a lease agreement.

Pros

• Unsecured loans
• Longer-term repayment plans
• Great financing rates
• Free up your cash
• Transparent fees
• Easy approval if qualified

Cons

• Funds sent by check, not direct deposit
• Must apply in person or over the phone
• $150 Account opening fee

Chase offers two different types of small business loans: Chase business term loan and Chase SBA financing. What makes Chase term loans a desirable loan option is the fact they offer term loans up to any amount with both fixed and variable rate options. Variable rates will be based on the prime rate, London Interbank Offered Rate (LIBOR), or another market rate. Fixed rates are set in stone, so you always know what your payment will be throughout the life of the loan. What rate you receive depends on the amount you borrow and your business’s creditworthiness.

Here is a quick summary of Chase Bank business loans:

• Chase Business Term Loan
  
  • Lowest rate: Unpublicized
  • Loans sizes up to: No limit

• Chase SBA Financing
  
  • Lowest rate: Unpublicized
  • Loans sizes up to: $5 million

To apply for a Chase Bank business loan, you will need to provide the following:

• Tax ID number
• Financial statements (cash flow, balance sheet, and income statement)
• Government-issued identification and proof of income
• Personal and business bank statements

You may be asked for further information if you have a startup or newer business, such as your cash flow projections, your business plan, and maybe even a lease agreement.

Pros

• 100% financing available
• Terms as long as seven years
• Many loan choices
• Larger credit limits
• Free up your cash
• Fund only what you want
• Financing that grows with your business

Cons

• Must have a business checking account through Chase
• Some loans may require collateral to guarantee the loan
• Long application process
• Must apply in a branch

US Bank is the best bank for applying for lines of credit because they offer credit lines up to $250,000 along with competitive rates and the option of locking in fixed rates on existing balances. Lines of credit are perfect for companies needing access to working capital during the holiday season, purchasing more inventory, or some other short-term cash need.

Here is a quick summary of US Bank business loans:

• Business Line of Credit
  
  • Lowest rate: Not specified
  • Loans sizes up to: $250,000

• Business Loan
  
  • Lowest rate: Not specified
  • Loans sizes up to: $250,000

To apply for a US Bank business loan, you will need to provide the following:

• Tax ID number
• Financial statements (cash flow, balance sheet, and income statement)
• Government-issued identification and proof of income
• Personal and business bank statements

You may be asked for further information if you have a startup or newer business, such as your cash flow projections, your business plan, and maybe even a lease agreement.

Pros

• 100% financing available
• Longer terms than online lenders
• Many loans choices
• Large credit limits
• Free up your cash
• Financing that grows with your business

Cons

• Must have a business checking account through US Bank
• Some loans may require collateral to guarantee the loan
• Long application process
• Must apply in a branch

Bank of America offers the best loans for businesses with good credit because they have an assortment of loans to meet your business needs. They also offer competitive interest rates and favorable terms. If your business has good credit, then you’ll likely find more favorable rates here than at other competing banks.

Here is a quick summary of Bank of America business loans:

• Line of credit
  
  • Lowest rate: Undisclosed
  • Loans sizes up to: No limit

• Secured business loan
  
  • Lowest rate: Undisclosed
  • Loans sizes up to: No limit

• SBA loan
  
  • Lowest rate: 6%
  • Loans sizes up to: $250,000

• Equipment finance loan
  
  • Lowest rate: Undisclosed
  • Loans sizes up to: Dependent on the amount of equipment

To apply for a Bank of America business loan, you will need to provide the following:

• Tax ID number
• Financial statements (cash flow, balance sheet, and income statement)
• Government-issued identification and proof of income
• Personal and business bank statements

You may be asked for further information if you have a startup or newer business, such as your cash flow projections, your business plan, and maybe even a lease agreement.

Pros

• 100% financing available
• Longer terms than online lenders
• Many loan choices
• Large credit limits
• Free up your cash
• Financing that grows with your business

Cons

• Must have a business checking account through Bank of America
• Some loans may require collateral to guarantee the loan
• Longer application process than most online lenders
• Must apply in a branch

Live Oak Bank is the best online bank because they offer three types of loans, two of which are easier to get because they’re government-backed. Guaranteed loans are easier to qualify for because they pose less risk to the lender.

Here is a quick summary of Live Oak Bank business loans:

• SBA Loan
  
  • Lowest rate: 6%
  • Loans sizes up to: $250,000

• USDA Loan
  
  • Lowest rate: 2.75%
  • Loans sizes up to: No limit

• Commercial Loan
  
  • Lowest rate: Undisclosed
  • Loans sizes up to: No limit

To apply for a Live Oak Bank business loan, you will need to provide the following:

• Tax ID number
• Financial statements (cash flow, balance sheet, and income statement)
• Government-issued identification and proof of income
• Personal and business bank statements

You may be asked for further information if you have a startup or newer business, such as your cash flow projections, your business plan, and maybe even a lease agreement.

Pros

• Money can be used for any business expense.
• Zero interest loan
• Frees up cash flow
• Repayable over 36 months

Cons

• Smaller loans
• Kiva doesn’t report to credit bureaus.
• If your loan is only partially funded, you get nothing.
• You’re responsible for helping the loan get funded.

The type of loan you may wish to purchase will depend on your business’s needs. Traditional banks typically require longer processing times, but this may be offset by the added advantages of lower rates, more favorable terms, and greater access to capital.

Online banks may be a great way to build business credit, as they make accessing capital easier, though you may not qualify for as much. Keep in mind the type of loan you need then use this review to decide the bank that is likely to benefit you the most.