Are you searching for the best banks for small businesses in the United States?
If your intention is to find a top bank for your small business, you’ve hit the jackpot.
With many banks recently growing more open to lending to small businesses, the Small Business Administration (SBA), an independent agency of the federal government program whose mission is to help Americans with starting, building and growing their businesses and who have been going above and beyond this since 1953, is responsible for helping small businesses through mentors, workshops, counseling, and small business loans.
The SBA has greatly aided the development of small business-oriented financial products and loan options in recent years, for all various types of businesses. However, the funds of the SBA loans don’t come directly from the SBA, but from participating banks and lenders in the U.S.
Both banking and the Small Business Administration have come a long way since 1953 though – these days, there are an incredible variety of small business loans, commercial real estate loans, small business bank accounts and all manner of other small business financial products out there on the market. These small business-oriented financial tools will help you greatly to expand your business.
People have already been using many of them for years. As well, being specifically developed for a small business like yours means that these loans are safer and much less risky than if you apply for a standard loan.
A few of these products even offer small business perks, like Bank of America’s Remote Deposit scanner, that allows you to deposit checks into your business account quickly, and get on with things. As well, there’s Preferred Rewards for Business, which allows you to choose more of the perks you want, the longer you bank.
And, of course, with all the loans being directly aimed at small businesses instead of short term personal loans, their interest rates, payment amounts, payment terms are all something your business can afford and will be able to deal with. This is coupled with approval from the SBA, meaning that all loans in our list should be quite safe to apply for.
Most of these business-oriented banks even have good integration with things you’re likely to be already using, such as accounting software like QuickBooks.
There are even some banks in our list that offer specialized loans that are appropriate for specific small business industries – for example, Live Oak Banking appears to have a different set of loan terms for everyone. They’ve got Accountancy, Vineyards and absolutely every industry possible in between. But besides this specific bank, most of the others seem to offer unique Dentistry and Vet loans.
You will see both in-person, physical banks with branches that you can go and visit and other modern online-only banks where you must set up your loan over the phone, or through an online service. Both types of banks should offer you equal enough customer service and the same options for your loan’s terms and interest.
So, if you’re an entrepreneur or a small business owner, you may want to check out these ten great banks, that all offer SBA approved financial products for your first (or next) lending venture. We hope you find your perfect version of a business loan on our list.
The 10 Best Banks for Small Businesses in the USA
With a successful track record – even touting their slogan “America’s leading small business lender” – Wells Fargo offers a variety of different financing solutions, and they have years of experience with small businesses. It offers one of the following loan options for small businesses: Unsecured Business Loan and Unsecured Business Line of Credit (both easy to qualify for). The Unsecured Business Loan allows you to request a loan of up to $100,000, with a potential repayment term from 1 to 5 years, though their FastFlex Small Business Loan specifically has a loan amount from $10,000 to $35,000, with a 1-year term. Wells Fargo also boasts of predictable repayments, and says that this product is particularly suitable for large one-time expenses, business expansion, remodeling to your business’s facilities or emergency business repairs.
Wells Fargo’s Unsecured Business Loan requires a $0 opening fee, and doesn’t need any collateral for you to set up the loan. There is also an instant credit decision, allowing you to open the loan quickly.
However, this loan also has a fixed interest rate for the loan’s duration, which could be pretty steep. Small Business loan rates actually start at 14.99%.
420 Montgomery St.
San Francisco, CA 94104
Phone: (800) 869-3557
Bank of America
Not only does Bank of America have branches throughout the U.S., but it’s also good to small businesses. Like Wells Fargo, Bank of America’s unsecured loans and credit lines are easy to qualify for. Loans range from $10,000 to $100,000, and have a fixed rate of 5.50%.
Bank of America also gives extensive, unique cash flow insight services, like cross-account debit and credit tracking and cash flow projections, as well as great integration with QuickBooks. You can even give all your employees’ separate debit cards if you open one of Bank of America’s Business Checking Accounts. Bank of America also give the option for you to apply for payment deferrals
Bank of America Preferred Rewards for Business scheme offers rewards like feeless cashier’s checks and an Interest Rate Booster. Their Business Checking account also offers a Remote Deposit Online scanner that allows you to quickly deposit unlimited checks.
Account Management has a monthly $15 fee. Remote Deposit Online has another monthly fee of $15 too and also requires a two year contract with a $250 early termination fee.
Bank of America
100 North Tryon St.
Charlotte, NC 28255
Phone: (800) 432-1000
JPMorgan Chase & Co.
One of the most unique banks in this list, actually established back in 1799, this very ethical bank that’s actually a thriving small business itself, JPMorgan Chase & Co.offers a wide variety of lending options for small businesses, from lines of credit and SBA loans to equipment and real estate financing. This bank is ideal for small businesses that don’t want traditional loans. With JPMorgan Chase & Co, you get a lot more freedom to set up your loan the way you want, with input from their highly trained financial advisors keeping you right at every step of the way.
JPMorgan Chase & Co are a highly pro-small business bank, with much highly successful previous experience in growing many small businesses.
They do not appear to have any specialized products available for small businesses, so applying for a loan could take quite some time.
JPMorgan Chase & Co.
270 Park Ave.
New York, NY 10017
Phone: (212) 270-6000
Capital One small-business loans come with the following:
- Lines of credit
- Equipment and vehicle financing
- Commercial real estate loans
- Business installment loans
- SBA loans (of course)
- Relationship-based rates for existing customers
- Customizable loan programs
As shown above, Capital One is considered one of the best banks that fully understand entrepreneurship. They have a diverse range of financial products that have been developed especially for small businesses, many of these coming with FDIC insurance cover, This big, popular bank offers your small business the opportunity to open an account with a credit card, checking features, savings features, automated loans, dedicated business services, dedicated commercial loans and access to courses and other resources for you to learn and grow.
They are a long-running professional and trustworthy financial service, with good security and insurance cover for many of their products, so you don’t have to worry when you bank with them.
This security comes at something of a premium, with high-interest rates.
1680 Capital One Dr.
McLean, VA 22102
Phone: (703) 720-1000
Although US Bank has locations only in 25 states (primarily in the West and Midwest), options on loans (term and commercial) and financing are abundant in this company. This United States- exclusive business has a good selection of business-oriented offers. For example, US Bank offers a Business Platinum account. This option feature 0% introductory APR for your first 20 billing cycles. After this, this APR could vary from around 9.99% to 17.99%, but it is still a good offer for certain businesses.
As a bank, US Bank call actually call themselves the World’s Most Ethical – this is because they have won an award for this, six years in a row.
US Bank have a range of great introductory offers for new customers, as well as 3% of the transaction amount for their balance transfer fee.
You’ll be forced to shop around for a better deal after the introductory offer is up – the APR rates could easily suddenly unexpectedly increase.
U.S. Bancorp Center
800 Nicollet Mall
Minneapolis, MN 55402
Phone: (651) 466-3000
Live Oak Banking Company
Not a physical bank, Live Oak are more digital-based than most banks. They’re known to streamline SBA loans and other services to small businesses. They provide a wide range of actual dedicated small business loans that are tailored to your business’ industry type, from Accounting & Tax to Winery & Vineyard. Live Oak Banking have dedicated financial advisors with experience and knowledge in these various industries to help you make the right financial decisions when it comes to both not only making a loan, opening an account or otherwise banking with them, but also growing your business for years to come.
As a bank with a very dedicated small business sector, you will get the best and most personalized service possible when you bank with them.
Not much information is provided about the pricing of their small business products before you speak to Live Oak – the cost could be more than what you expect.
Live Oak Banking
1757 Tiburon Dr.
Wilmington, NC 28403
Phone: (910) 790-5867
N26, a mobile bank or a neobank, who call themselves the mobile bank and the bank of everyone, were initially established in 2016, but have now recently launched in the United States in 2019. Their business bank account, which is aimed at freelancers and the self-employed, will give you 0.1% cashback on every single business purchase you make, and also comes with the handy feature of free worldwide payments in any currency. As well as this, these payments are secured by N26’s Mastercard 3D Secured payment security, no matter what currency you’re paying in. Also, unlike other business accounts, N26 don’t require any deposit.
This mobile bank offers great customer service, as well as not requiring you to meet any particular financial requirements.
Though N26 offers cashback and shared sub-accounts, their products don’t seem very specialized for businesses.
PO Box 690
New York, NY 10012
Huntington National Bank
This bank participates in the following loan programs:
- SBA 7(a) general purpose business loan
- SBA 504 loan
- SBA Express loan
Regardless of your business’s current status, this bank lets you choose the right loan(s).
Huntington National Bank have experienced business relationship managers who can tell you all about the bank’s vast array of financial business products available.- other than loans, Huntington’s offer business lines of credit, too, so that you can have access to cash when you need it. If you run a dental practice or vet’s, Huntington National Bank also offer specialized loans for usage specifically by this unique industry. But when it comes to SBA loans, Huntington are actually the #1 SBA lender of most American states, and have been for the past 10 years.
Huntington are certainly the most popular SBA lender, and this is for a good reason. With flexible options for paying their loans, many businesses already trust them.
Unlike Live Oak Banking, they offer very few existing specialized loan options for each industry.
Huntington National Bank
P.O. Box 182387
Columbus, OH 43218
Phone: (800) 340.4165
Celtic Bank – For Small-Business Financing
Like Live Oak Bank, Celtic is a digital place for small businesses to apply for SBA loans and conventional business loans. All you have to do is fill out a simple seven-question online application, and then the bank will evaluate your loan options. They offer loans for businesses who want to refinance, people who want to acquire a business, businesses who want to purchase equipment or inventory, or businesses who want to undergo construction. Uniquely, they offer the option to have your business’ furniture, fixtures and equipment as the collateral.
The loan’s amount can be anywhere from $350,001 to $5,000,000.
This is another SBA 7(A) loan with the option to choose between both fixed and variable rate interest, and both owner-operated and for-profit businesses are inherently eligible to apply.
This loan is just a standard SBA 7(A) without any alterations. It does not allow for much customization.
Celtic Bank Corporate Headquarters
268 South State St,, Suite 300
Salt Lake City, UT 84111
Phone: (801) 363-6500
Despite taking physical appointments only, TD Bank still helps out small businesses significantly by offering fitting loans, totaling to almost $52,000,000 in available loans if you were to take them up on all of them.
Besides this, they also offer the services of checking accounts, credit lines, credit cards, specialized solutions for merchants and specialized solutions for healthcare professionals.
When you apply for a loan, you’ll be assigned a specialist in small businesses, who will keep you well-informed about products and services TD offers that are relevant and helpful to support your type of business. You can even visit TD banks at weekends.
With good support, both in-person and over the phone TD Bank’s loans are suitable for a wide range of uses, and should be suitable for you.
Depending on the reason for your loan, there is a limit of $1,000,000, which might not suit all businesses.
357 Kings Hwy N.
Cherry Hill, NJ 08034
Phone: (856) 482-6662
Now Your Are Ready to Choose a Bank for Your Small Business
Although these ten banks may not be for everyone, it shouldn’t be difficult to find the right lender for your small business. Though all these banks are offering products specifically meant for businesses and small businesses, it all depends on what you need and what you want for your company. Do you need the loan for repairing damage to your store? Is it for purchasing tools or equipment, to let you branch out? Maybe the loan will be used for investing in a variety of different products to sell?
Some banks have incredibly specific loan products available, whereas others do cater very well to small businesses, and may also serve exclusively small businesses, but don’t actually have many highly specialized existing loan products available.
When you open a loan like this with a bank, you do have a lot more freedom to set the loan up to function exactly the way you want it, but setting up a loan like this can also take a very long time, with the terms becoming complicated and difficult to keep track of. Good, regular communication between you and your financial advisor becomes imperative at this point. Will you be able to visit a branch of the bank, or is the bank a remote bank that operates over the phone? Either way, using the medium to communicate well is quite vital.
Different providers offer different features too – do you want good security or insurance on your loan? Maybe a longer repayment time, or a specific type of interest rate, ? Perhaps you would prefer to manage the loan through online banking, or maybe you regard this as being less secure and would rather have a nearby branch to go to for lodging?
It would be difficult to get all these features in one place for your loan though. Chances are you’ll end up with a perfect loan amount with a good interest rate, but the bank’s nearest branch to you could shut down mid-repayment, or a scenario similar to this.
And, of course, you have to be careful that the interest rates of the loan don’t rise too much while you’re still in the process of repaying the loan. You also have to watch out for those introductory offers that quickly expire, unexpectedly raising the fees and rates extortionately all of a sudden and without warning, potentially leaving you in a dangerous mountain of debt.
Well, we hope that we’ve detailed some of the best banks and products out there for small businesses like yours. We hope we’ve helped you to find the exact type of small business loan you’re looking for, with all the features and even perks that you want, along with the other features, rules and stipulations that you’d expect from a financial product like this.
How lenders and small businesses get along, is when the lender is hands-on in helping the business choose the right loan(s) – whether they provide this service remotely or in-branch – based on current situations and future goals.
If you like this post, you may also want to check out our of best business brokers to sell your business.
About the Author
Michael Dehoyos is an editor at PhD Kingdom and Write my assignment. He also contributes to numerous sites and publications like Origin Writings, as a marketing writer and connoisseur. He helps companies improve their marketing strategy concepts.