Do you need a small business loan but don’t know where to get one? Maybe you aren’t sure what banks offer small business loans? Or are you curious and want to know more? Whatever the question is that brought you here, we are here with the answers you need!
Finding out where you can get a small business loan from can be tricky. It can be hard to see online what banks offer small business loans and searching through these to find the right bank for you can mean hours of scrolling.
Even after all this scrolling, you might not find a bank for you, leaving you frustrated and without the loan your small business needs. Disappointed and frustrated, you wonder if you will ever find the right bank and small business loan for you.
Well, no more! Today, we are here with the answers you need. Keep reading to find out what banks do small business loans and everything you need to know about them. Get ready to find your new bank and loan today!
What Is A Small Business Loan?
Before we dive into today’s article, let’s have a quick recap for those that need it. A small business loan is a loan for your small business.
These loans are credit given to the owners of a small business to help them purchase or rent space, buy equipment, train and pay employees, and more.
There are a range of small business loans available to you. Each type of loan has different criteria you need to meet to qualify for the loan. The criteria is listed underneath the loan before you apply for it.
Make sure you check this carefully to avoid spending ages filling out forms for a loan you don’t qualify for! Check out what types of small business loans there are in the list below:
- A small business line of credit
- Working capital loans
- Small business term loans
- Accounts receivable financing
- (SBA) Small business loans
- Equipment loans
- Small business credit cards
As you can see from the titles of these, some of them are quite specific. Other loans and credit cards can be used to cover a range of expenses your business might have.
All of these loans will come with different interest rates, and repayment times, and your approval will be subject to a credit check.
SBA loans are loans guaranteed by the US Small Business Administration. Their goal is to help small businesses grow.
Although you apply for the loan and take it out with a lender, the guarantee from the SBA means that if you can’t make your repayments, they will pay the guaranteed amount.
These loans can be tricky to get, so don’t be disheartened if you are rejected!
Now that we have established what a small business loan is, let’s move on to see what banks do small business loans!
What Banks Do Small Business Loans?
Lots of banks do small business loans! You have plenty of choices when it comes to finding a bank that does small business loans. We have broken our list down into the different types of banks to help you see where you can get a small business loan.
Large Commercial Banks
Large commercial banks offer small business loans. Banks like the Bank of America will offer borrowers the money for their small businesses, but they tend to have quite strict requirements you must meet to qualify for them.
However, these banks do offer larger loans than other lenders. If you are growing your business, it’s worth trying a large commercial bank! They also tend to offer low-interest rates for extended periods too, which can help you keep the cost of your loan down.
Although these can be tricky to qualify for, if you have good credit, it’s an option to consider. Here is a list of large commercial banks that offer SBA loans for you to check out:
Online Direct Lenders
You can also head online to borrow money directly. The money will come straight to the owner of the small business, and quickly too!
You can expect the money with an online lender far quicker than if you use a traditional bank. It’s a good option if you need the money quickly.
However, this speed comes at a price. Online lenders tend to have higher interest rates than traditional banks, which means the loan can end up costing you far more than had you waited!
If you are in a hurry and need cash quickly, it’s a good option, but make sure to factor in the additional costs to your budget.
SBA Backed Banks
SBA-backed banks are banks that offer SBA loans. These are good places to borrow money from as a small business, but they can be strict with who they lend money to.
As we mentioned earlier, SBA loans are hard to qualify for, and they tend to be available at banks with rigorous requirements. If your credit isn’t great, chances are you won’t qualify.
If you have good credit, then it is worth considering an SBA-backed bank. SBA loans have lower interest rates, lower down payment requirements, and longer repayment terms than other lenders. If you can qualify, they are a fantastic way to borrow money. We have included a list below of the most popular SBA lenders:
- Live Oak Banking Company
- U.S. Bank
- Celtic Bank Corporation
- KeyBank
- United Midwest Savings Bank
- The Huntington National Bank
- Newtek Small Business Finance
You should contact these banks directly if you want to find out more about the SBA loans they offer and their requirements.
Large Community Banks
Finally, we have large community banks. These are banks that are locally owned and operated and are much smaller than commercial banks. These smaller banks will offer a more individual service, which can be instrumental to the success of your business.
There is also more leeway here when it comes to being approved for these loans. Instead of focusing on just your credit score and statements, they will look at your entire credit report and other aspects of your business.
So if your credit history is fairly solid, you’ve got a good chance of being accepted.
It’s worth heading into a community bank in your area to find out if they offer small business loans and discuss your options (see also ‘10 Best Options For Financing Your Small Business‘). We bet you will be surprised at what they can offer you!
Final Thoughts
And there you have it! There are lots of banks out there that offer small business loans. While not every bank has a smooth application process and a good chance of success, we are sure you will find a bank that approves your loan!
Don’t forget to read all the terms before you agree to any loan, and to check that you can afford the repayments. If you have any questions, make sure to ask a financial advisor or speak to the bank directly for more information about the loans they offer.