Bank of America Small Business Loans Review 2024
Whether you need funding for a business, to leverage borrowed capital, or to purchase equipment for your business, Bank of America offers a variety of small business loan options.
In this review, we’ll go over the details of Bank of America’s business loans to help you decide if they offer the right features for your business.
Recommended: Visit our comprehensive guide on small business loans or read our review of the best small business loans.
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Small Business Loan Guides
Learn more by checking out our comprehensive guides on small business loans.
Bank of America Business Loans
Our Approach:
To help match your business with the right loan, we compared Bank of America’s loan offerings and matched those to the businesses that would benefit most.
In this review, we’ll cover the types of loans Bank of America offers to help you decide if Bank of America is the right lending partner for your small business.
Selecting the best small business loan for your company comes down to three things:
- Type of business you have
- Needs of your business
- What you want for the future of your business
Bank of America Business Loans Summary:
Bank of America offers several small business loans. Your business’s needs will help determine which loan is best.
Small business loans offered by Bank of America:
- Line of credit loans are best for businesses needing capital for general business needs. Bank of America offers lines of credit that range from $10,000 to no limit. How much you qualify for will depend on what you want to use it for in your business.
- Secured business loans are the best business loans for companies that need access to larger quantities of capital with manageable repayment terms. Bank of America offers term loans starting at $25,000 to no limit. These loans are good for one time purchases, refinancing debt, or other general business purposes.
- SBA loans are the best business loans for small businesses needing great rates and easier approval. With an SBA 7(a) loan, you can finance a new business or a business needing capital to grow more rapidly. These loans are great because they’re guaranteed by the Small Business Administration (SBA), meaning Bank of America doesn’t take on as much risk lending money to a less established business. For this reason, you’re more likely to be approved for an SBA loan than a traditional bank loan through Bank of America.
- Equipment finance loans are the best business loans for small businesses needing to purchase or upgrade their equipment. Bank of America offers equipment financing loans up to the cost of the equipment you wish to buy and terms of up to five years.
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
Recommended: Read our guide on how to build business credit.
Bank of America Alternatives
You can find alternatives to Bank of America by reading our list of the five best small business loans. You can also learn about more funding options by visiting our guides on small business loans.
Types of Bank of America Business Loans
Bank of America offers several types of small business loans: Line of Credit, Secured Business Loan, SBA Loan, and Equipment Finance Loan.
A line of credit is a working capital loan. It works similarly to how a credit card works by offering a revolving line of credit from which you can draw funds when necessary. You must pay the fixed minimum monthly payment to stay in good standing with Bank of America. As you make payments, your credit limit returns, making it so you can continue to borrow funds from the credit line.
A secured business loan is a set amount of capital distributed up front, having fixed payments each month for the duration (term) of the loan. This is most commonly referred to as a Term Loan.
An equipment finance loan is a loan used to purchase equipment for your business. Bank of America lets you purchase equipment and use that as collateral for the loan.
An SBA loan is great for small businesses that meet the lending criteria of the Small Business Administration (SBA). These loans are easier to qualify for because Bank of America does not take on as much risk lending to a new or relatively newly established business, as these loans are guaranteed by the SBA. For this reason, you’re more likely to qualify for an SBA loan than for some other bank loan.
Bank of America Line of Credit
Lines of credit are useful when a business needs cash flow to make purchases, pay bills, or manage finances. As a business needs capital, they can draw from the line of credit and later repay the balance, paying interest only on what was actually borrowed.
Lowest rate: Not specified
Loan sizes up to: $100,000 (unsecured)
Benefits:
- Only pay interest on what you spend
- Lower rates for better-managed businesses
- Access to cash when needed
Qualifications:
- Must have a Bank of America business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Bank of America branch
Bank of America Secured Business Loans
Secured business loans (term loans) are useful when a business needs a set amount of capital upfront to cover business expenses for a set period of time (term).
Lowest rate: Not specified
Loan sizes up to: $1 million
Benefits:
- Loans from $25,000 and up
- Fixed rates
- Fixed terms
- Fixed monthly payments
Qualifications:
- Must have a Bank of America business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Bank of America branch
Bank of America Equipment Finance Loans
Equipment finance loans are useful when a business needs a set amount of capital upfront to cover replacing or buying equipment used to operate the business.
Lowest rate: Not specified
Loan sizes up to: Cost of equipment
Benefits:
- Secured by equipment only
- Fixed rates
- Fixed terms
- Fixed monthly payments
- Bank of America covers 80% of the cost
Qualifications:
- Must have 20% of the loan amount
- Must have a Bank of America business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Bank of America branch
Bank of America SBA Loans
SBA loans are useful when a business needs a set amount of capital upfront to cover business expenses for a set period of time (term). The best part is that the SBA guarantees 85% of the loan so Bank of America takes on less risk lending to businesses who qualify for these loans. This means lower interest rates and a greater likelihood of being approved.
Lowest rate: Not specified
Loan sizes up to: $250,000
Benefits:
- Government-backed, easier to qualify
- Fixed rates
- Fixed terms
- Fixed monthly payments
Qualifications:
- Must have a Bank of America business bank account
- Must visit a branch to determine if you qualify
- Must meet SBA qualification requirements
How to Apply:
- Visit a local Bank of America branch
Bank of America Reviews
Bank of America seems to have mostly negative reviews from customers, and a few positive. Here are some verified Bank of America reviews on Trustpilot’s website made by people who sought loans through them to help their businesses:
“Horrible customer service!”
“For Small business loan One of the best bank to work with”
"The service is terrible. I waited more than 46 minutes just for a simple question."
"Excellent bank for both business and personal! Have helped me from the ground up."
Learn more by checking out our comprehensive guides on small business loans.
Bank of America Review Ratings
Value - 3/5
Overall, Bank of America’s value works for some businesses given they offer many types of business loans. The customer service is questionable, we were on hold for 45 minutes before hanging up. Bank of America is a “preferred” SBA lender, making them a good banking partner for companies seeking SBA loans.
Customer Service - 1/5
We called during banking hours and was put on hold 45 minutes. Finally, we gave up!
Ease of Use - 3/5
Applying for a secured business loan was exceptionally easy at the branch level. The only frustrating part was having to visit a branch to learn what we needed to have in place to qualify. It took a few trips to be compliant with requirements.
Included Features - 4/5
Bank of America offers many features we found useful:
- Many types of loans to serve many business needs
- High loan amounts, more than most online lenders
- Competitive rates
The thing we didn’t like was that unlike other traditional banks who cover all the cost of equipment finance loans, Bank of America only covers 85% of the cost.
Final Thoughts on Bank of America
Bank of America may be the right lender for your business if you need an SBA loan or line of credit. These two types of loans offered by Bank of America are relatively inexpensive compared to other loans they offer.
Bank of America may not be the best loan option if you need fast financing or the best customer service.
Visit our comprehensive guide on small business loans.
Bank of America FAQs
To apply for a loan with Bank of America, you’ll need to visit a branch. It’s a good idea to have your business formation documents, tax statements, and a business bank account with them.
Yes, Bank of America is actually a “preferred” SBA lender. This means they have a lot of experience qualifying businesses for SBA loans.
An SBA loan is not forgiven if the business remains in operation. The SBA will pay off the vast majority of the outstanding balance, you’ll have to pay the rest.
This all depends on what you mean. Overall, Bank of America is a large bank that specializes in traditional bank loans. They offer competitive rates, but if you want a fast loan, your best bet is to select an online lender.
Bank of America does not set limits on their interest rates. Most traditional banks charge 7% to 100%, though SBA 7(a) loans range between 5.5% and 11.25%.
