Chase Small Business Loans Review 2024
Whether you need funding to weather a COVID-19 pandemic, keep your vendors paid on time, or leverage borrowed capital to grow your business, Chase offers a variety of small business loan choices.
In this review, we’ll go over the details of Chase'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.
Chase Business Loans
Our Approach:
To help match your business with the right loan, we compared Chase’s loan offerings and matched those to the businesses that would benefit most.
In this review, we’ll cover the types of loans Chase offers to help you decide if Chase 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
Chase Business Loans Summary:
Chase offers several loans. Some loans are better suited for larger corporations, while others are designed to help small businesses. We will focus on the latter in this review.
Small business loans offered by Chase:
- Term loans are the best business loans for companies that need access to larger quantities of capital with manageable repayment terms. Chase offers 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.
- Draw loans are the best business loans for companies that need access to money to operate for a set period of time. Companies draw money as needed for the duration of the term, after which a fully amortized repayment schedule is decided. Chase offers draw loans for small businesses based on their relationship with Chase, and the rate you receive depends on the amount you borrow and your business’s creditworthiness.
- Advised line loans are the best business loans for companies that need to make purchases for a set period of time, where the rate and terms are decided at the time of each purchase. Chase offers Advised Line loans for up to 12 months. Variable rates will be based on the prime rate, LIBOR, or another market rate at the time you make a purchase.
- Line of credit loans are the best business loans for companies needing the flexibility of a revolving line of credit. With a Line of Credit loan, you can draw as you need and pay only for what you use. Chase offers credit lines up to $500,000 with no set minimum interest rate. Rates vary based on your business’s relationship with Chase and other risk factors.
- 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 Chase 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.
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
Recommended: Read our guide on how to build business credit.
Chase Alternatives
You can find alternatives to Chase 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 Chase Business Loans
Chase offers several types of business loans: term loans, draw loans, advised line loans, lines of credit, and SBA loans.
A term loan is a set amount of capital distributed upfront, having variable or fixed payments each month for the duration (term) of the loan.
A draw loan is a flexible loan type that allows businesses to borrow (draw) money as needed to pay for business expenditures during a set period of time. After that time period lapses, the business is then held liable for repaying the overall amount borrowed plus applicable interest and fees.
An advised line loan makes it so businesses can make purchases over a period of time. Each time a purchase is made the interest rate is decided. These variable interest rates are determined by the current market rates based on the prime interest rate, LIBOR, or some other metric.
A line of credit is a working capital loan. It works similarly to how a credit card works; both offer 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 the lender. As you make payments, your credit limit returns, making it so you can continue to borrow funds from the credit line.
An SBA loan is great for small businesses that meet the lending criteria of the SBA. These loans are easier to qualify for because Chase doesn’t 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 a traditional bank loan.
Chase Term 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: $5 million
Benefits:
- Loans from $5,000 and up
- Fixed and adjustable rates
- Flexible terms from 12 to 84 months
- Fixed monthly payments
Qualifications:
- Must have a Chase business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Chase bank branch
Chase Draw Loan
A draw loan permits a business to make purchases (draw) while the bank covers the cost throughout a certain predetermined period. Once that period ends, the business then begins repaying the loan at a set rate for a determined period. The rate and term are determined based on the capital owed and other considerations.
Lowest rate: Undetermined
Loan sizes up to: $5 million
Benefits:
- Loans from $5,000 and up
- Fixed and adjustable rates
- Flexible terms from 12 to 84 months
- Fixed monthly payments
Qualifications:
- Must have a Chase business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Chase bank branch
Chase Advised Line Loan
An advised line loan permits a business to make purchases while the bank covers the cost over a predetermined period. At the time of purchase, the interest rate is set based on the current prime rate.
Lowest rate: Undetermined
Loan sizes up to: $5 million
Benefits:
- Loans from $5,000 and up
- Fixed and adjustable rates
- Flexible terms from 12 to 84 months
- Fixed monthly payments
Qualifications:
- Must have a Chase business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Chase bank branch
Chase Line of Credit
A line of credit is a certain quantity of capital extended to a business from which to make business purchases. Once a business makes a purchase, they are then responsible for repaying the purchase amount over a set period of time. This process is similar to how a credit card works. As a business repays the money, their balance returns giving them more borrowing power.
Lowest rate: Undetermined
Loan sizes up to: $5 million
Benefits:
- Loans from $5,000 and up
- Fixed and adjustable rates
- Flexible terms from 12 to 84 months
- Fixed monthly payments
Qualifications:
- Must have a Chase business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Chase bank branch
Chase SBA Loan
An SBA loan is a loan guaranteed by the US government’s SBA. This agency’s mission is to help small businesses acquire the resources needed to succeed in business, financing being one of those resources. Chase offers a variety of SBA loans including the coveted SBA 7(a) loan.
Lowest rate: Undetermined
Loan sizes up to: $5 million
Benefits:
- Loans from $5,000 and up to $5 Million ($350,000 for SBA 7(a) loans)
- Fixed and adjustable rates
- Flexible terms from 12 to 84 months
- Fixed monthly payments
Qualifications:
- Operate for profit
- Be engaged in, or propose to do business in, the US or its territories
- Have reasonable owner equity to invest
- Use alternative financial resources, including personal assets, before seeking financial assistance
- Must have a Chase business bank account
- Must visit a branch to determine if you qualify
How to Apply:
- Visit a local Chase bank branch
Chase Reviews
Chase seems to have mostly positive reviews from customers. Here are some verified Chase reviews on Trustpilot’s website made by people who sought loans through them to help their businesses:
“I have account [sic] with chase [sic] for the last 7 years and I don't have any issues with them so far. business bankers are great...Policy is little strict, my small business loan didn't approve then I applied through bizloanbankers dot com multiple lenders contacted me within 15 minutes.”
“More Hassles and Fees Than You Could Imagine!”
“Do not do business with Chase.”
Learn more by checking out our comprehensive guides on small business loans.
Chase Review Ratings
Value - 3.5/5
Overall Chase’s value works well for most businesses given they offer many types of business loans. Chase may not be so useful for companies needing fast access to capital. BlueVine may not be so useful for companies needing a real estate or equipment financing loan or other long-term loans. We recommend exploring alternatives by reading our review of the best small business loans.
Customer Service - 4/5
Many of the customer reviews we observed had customer service issues. Personally, when we called Chase, we were greeted by a pleasant voice on the phone and all our questions were answered. We also visited a branch, and a business banker patiently helped us through the loan application process and answered our questions while addressing our concerns.
Ease of Use - 3/5
Applying for both term loans was exceptionally easy. The only frustrating part was having to visit a branch to learn what we needed to have in place to qualify. It took a series of trips to ensure we were in compliance and able to get financing.
Included Features - 4/5
Chase offers many features we found useful:
- Many types of loans to serve every business need
- High loan amounts, more than many other lenders
- Fixed and variable rates of interest
- Professional loan experts to answer questions
Final Thoughts on Chase
Chase may be the right lender for your business if you need short-term or long-term financing with comparable rates, flexible terms, and financing that grows with your business. The better your relationship with Chase, the more favorable the terms and easier it is to qualify for a loan. Chase may not be the best loan choice if you need funding fast. Getting qualified is a process, like applying for a loan at most brick-and-mortar banks.
Visit our comprehensive guide on small business loans.
Chase FAQs
Yes. Chase offers many varieties of small business loans. Chase also is a qualified Small Business Administration (SBA) lender.
To qualify for a small business loan with Chase, you’ll need to visit a local bank branch and have a conversation with a Chase business loan expert. During the conversation, the expert will ask you a series of questions to determine which loan is best for you, how much you may likely qualify for, and set the rates and terms.
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.
Chase offers the best small business loan depending on your business.
Chase 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%.
Chase offers many types of business loans. In this review, we covered Chase’s small business loans; however, they also offer commercial real estate loans and equipment loans.
