Rob is a Senior Editor at Bankrate.com. With over a decade of experience covering small business and tech content, Rob is passionate about giving readers the best possible information to help them make better decisions for their businesses.
Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate is an independent, advertising-supported publisher and comparison service. We are
compensated
in exchange for placement of sponsored products and services, or when you click on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. However, this compensation in no way affects Bankrate’s news coverage, recommendations or advice as we adhere to strict
editorial guidelines.
Our advertisers do not compensate us for favorable reviews or recommendations. Our site has comprehensive free listings and information for a variety of financial services from mortgages to banking to insurance, but we don’t include every product in the marketplace. In addition, though we strive to make our listings as current as possible, check with the individual providers for the latest information.
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict
, this post may contain references to products from our partners. Here's an explanation for
.
The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices.
We’ve maintained this reputation for over four decades by demystifying the financial decision-making
process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy,
so you can trust that we’re putting your interests first. All of our content is authored by
highly qualified professionals and edited by
subject matter experts,
who ensure everything we publish is objective, accurate and trustworthy.
Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money.
Editorial integrity
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU — the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict
editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
At a glance
4.1
Rating: 4.1 stars out of 5
Bankrate Score
Bankrate Rating = 4.1/5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Bank of America is a national lender with a wide variety of business loan options, including term loans, lines of credit, equipment loans and SBA loans. Most loans are better suited for established businesses with good-to-excellent credit, but it also offers a cash-secured line of credit to help businesses that want to build credit.
Lender Details
Loan amount
Starts at $1,000
Interest rate
7.00% APR
Term lengths
6 months-25 years
Min. annual revenue
$50,000
Min. time in business
6 months
Who Bank of America is best for
Bank of America business loans are best for business owners who already do the majority of their banking with it. The lender offers interest rate discounts, rewards and other benefits to Preferred Rewards for Business members with eligible Bank of America or Merrill business accounts. The higher your balance, the greater the rewards.
But even if you don’t have an account with Bank of America, it may still be a good choice. Since it offers a variety of loans and lines of credit, businesses that meet its minimum requirements will likely even score interest rates far lower than rates offered by alternative lenders.
Veterans who need small business loans may also want to take special notice: Some Bank of America business loans offer discounts of 25 percent on loan administration or origination fees to veterans of the U.S. Armed Forces.
Who Bank of America may not be best for
Newer businesses may want to shop elsewhere. Only the cash secured line of credit has a relatively low minimum revenue requirement and minimum time in business of six months. But this option requires you to secure the line of credit with a cash deposit of at least $1,000.
Bank of America won’t be the best fit for small business owners who need fast business loans. If you don’t already bank with Bank of America, most loan products require you to set an appointment by phone or in person. And once approved, funding time is likely slower than what many online lenders offer, taking days or even weeks to fund.
Bank of America: in the details
Loan amount
Starts at $1,000
Interest rate
7.00% APR
Term lengths
6 months-25 years
Min. annual revenue
$50,000
Min. time in business
6 months
Personal credit score
700
Bank of America pros and cons
Pros
Variety of financing options
Low interest rates
Local branches for in-person support
Cons
Slow application process
Charges origination or annual fees
Some loans don't have accessible requirements
Business loan types offered
Bank of America offers a variety of business loan types that suit businesses of most sizes — including some small businesses that have only been open for six months.
SBA loans
Business lines of credit
Term loans
Equipment loan
Loan quick facts
Amounts: $25,000 to $5 million
Terms: Up to 25 years
Interest rates: Varies
Bank of America SBA loan overview
Bank of America offers several different types of SBA loans, including SBA 7(a), 504 and Express loans. Your down payment for these loans could be as little as 10 percent.
SBA 7(a) loans can be used to finance working capital expenses, business expansion or acquisition or even refinance current debts. SBA 504 loans are used to fund buying equipment or real estate or improving or constructing on existing property. SBA Express loans provide funding in small amounts with a streamlined application and funding process.
The loan amounts that Bank of America offers for each type of loan are:
SBA 7(a) loan: $200,000 to $5 million
SBA 504 loan: from $400,000
SBA Express loan: $25,000 to $500,000
Bank of America is a Small Business Administration (SBA) preferred lender. Because of this, it can streamline your application and offer a simplified and faster SBA loan process compared to other SBA lenders.
Loan quick facts
Amounts: Starting at $1,000
Terms: Revolving
Interest rates: As low as 8.50%
Bank of America business line of credit overview
Bank of America offers three business lines of credit: an unsecured line, secured line and cash-secured line of credit for credit-building. See the requirements to apply for each line of credit and how they compare:
Unsecured business line of credit
Secured business line of credit
Cash-secured business line of credit
Credit limits
From $10,000
From $25,000
From $1,000
Interest rates
From 9.00%
From 8.50%
Not stated
Requirements
700 FICO score
2 years in business
$100,000 in annual revenue
2 years in business
$250,000 in annual revenue
$50,000 in annual revenue
6 months in business
The unsecured line of credit renews every year, and you can access your funds any time without paying a cash advance fee, which is a feature other lenders may not offer. This line does have an $150 annual fee, which doesn’t get charged the first year.
With the secured line of credit, this line has upfront and annual renewal fees: $150 for credit lines of up to $100,000; $250 for lines above $100,000 and up to $250,000 and a 0.50 percent fee on the line amount for credit lines above $250,000.
With the cash-secured line of credit, this line helps you build business credit with a positive payment history. After 12 months, your account can be reviewed to graduate to an unsecured business line of credit if you have been in business for two years and have at least $100,000 in annual revenue.
Loan quick facts
Amounts: From $10,000
Terms: 12 to 60 months
Interest rates: From 7.00%
Bank of America term loans overview
You can choose from a secured or unsecured term loan through Bank of America. Compare the differences between these loans:
Unsecured term loan
Secured loan term
Loan amount
From $10,000
From $25,000
Interest rate
From 7.50%
From 7.00%
Requirements
700 FICO score
2 years in business
$100,000 in annual revenue
2 years in business
$250,000
The unsecured term loan charges a $150 origination fee if you’re approved. The secured term loan charges 0.50 percent of the loan amount for origination. But you can receive an interest rate discount with this loan up to 0.25 percent if you transfer new funds into a business bank account. The secured loan offers terms up to four years when secured by business assets or five years when secured by CDs.
Loan quick facts
Amounts: From $25,000
Terms: Up to 5 years
Interest rates: From 7.00%
Bank of America equipment loan overview
The equipment loan can help you finance new equipment that your business needs to keep it running smoothly. The loan is backed by the equipment as collateral and may qualify for terms as long as five years.
You will need two years in business and at least $250,000 in annual revenue to qualify for this loan, which may edge out some smaller businesses. This loan charges an origination fee of 0.50 percent. With this loan, you may also be eligible for a rate reduction of 0.25 percent if you transfer qualifying funds to a Bank of America bank account.
Do you qualify?
At a minimum, most businesses will need to meet three requirements to get a Bank of America business loan:
2 or more years in business
$100,000 to $250,000 in annual revenue
Personal credit score of 700+
Its Cash Secured line of credit is the only one to offer financing to businesses with six months in business and $50,000 in annual revenue.
Other limitations — like how you can spend loan funds and which industries qualify — are not stated directly by Bank of America.
What we like and what we don’t like
Bank of America is one of the best small business lenders, especially if you want low rates and to monitor your progress as you build credit. But it doesn’t offer many options to smaller and startup businesses.
What we like
Variety of financing options. Bank of America has lines of credit and term loans — all of which can be either secured or unsecured. This allows your business to find the right fit for its financing needs.
Low rates. Bank of America’s starting interest rates are low and can go even lower if you are a Preferred Rewards member or transfer qualifying funds to a Bank of America account.
Local branches for in-person support. Bank of America has thousands of local branches spread across the United States. You will likely have access to in-person support if you need to service your loan.
What we don't like
Slow application process. Most loans require you to apply in person at a Bank of America branch or over the phone if you don’t already have a Bank of America Online Banking ID. And bank loans typically take anywhere from a few days to several weeks to fully process.
Charges origination or annual fees. Most loans charge an origination fee either as a percentage of the loan amount, such as 0.50 percent, or a fixed fee, like $150. Its business lines of credit also charge annual fees to keep the line open, which isn’t the case with some competitors.
Some loans don’t have accessible requirements. Like banks and other traditional lenders, Bank of America doesn’t provide many options for business owners who need bad credit business loans. Plus, most loans have a minimum time in business of two years, which won’t work for startups.
Both Bank of America and Wells Fargo are brick-and-mortar banks with a wide U.S. reach. Bank of America offers more loans, including term loans, SBA loans, lines of credit, equipment loans and commercial real estate loans. Wells Fargo focuses on lines of credit and SBA loans.
Both banks offer multiple lines of credit catering to small businesses in different growth stages. Both offer secured and unsecured lines of credit with similar credit limits, though you’ll need much higher annual revenue of $2 million for Wells Fargo’s secured line.
They also both offer options for startups. You may receive a higher credit limit up to $50,000 if you go with Wells Fargo’s Small Business Advantage® line of credit, and you won’t need to back it with a cash deposit as you would with Bank of America’s cash-secured credit line.
With Wells Fargo, you’ll need a personal credit score of at least 680. Bank of America doesn’t state its minimum credit score requirement for every loan. It requires at least a 700 FICO score for its unsecured business line of credit and unsecured term loan. But as long as you have strong credit and revenue, you open up the possibilities of many different loans with Bank of America.
Bank of America vs. U.S. Bank
Bank of America and U.S. Bank offer similar loan options. Bank of America’s offerings span everything from term loans and business lines of credit to SBA loans and equipment loans. U.S. Bank covers SBA loans, lines of credit, equipment loans and term loans.
U.S. Bank’s equipment loans stand out apart from competitors. It offers financing up to $2.5 million and allows borrowers to finance up to 25 percent of additional costs like installation, tax and freight. You also don’t have to pay a down payment if you choose a term between 24 and 60 months, and you may be able to get a longer term loan. Bank of America only allows you to pay off equipment loans for up to five years.
While both banks offer multiple lines of credit, Bank of America provides a credit line for startup businesses that U.S. Bank doesn’t offer. The Bank of America cash-secured line asks for a $1,000 cash deposit to secure it, and credit limits start at $1,000. U.S. Bank provides four lines of credit, including its Cash Flow Manager that offers credit lines up to $250,000. Unlike Bank of America, you won’t have to pay an annual fee on lines over $50,000.
The main difference between these two banks are in the specific products and features they offer. You’ll want to compare the individual products to make the best decision for your business. Bank of America does offer business rewards if you already bank with the lender, potentially reducing the interest rate you’ll receive.
How to apply for a loan with Bank of America
Bank of America allows current account holders to log in and apply directly online. If your business does not already have an account, you will need to schedule an appointment with one of Bank of America’s small business specialists.
To get a business loan from Bank of America, you will need to provide a few basic pieces of information about your business, including:
Legal business name
Business tax ID number
Annual revenue
Annual profit before tax
Personal income, date of birth and Social Security number
Other information will be required based on your business and the type of loan you want to apply for.
Bank of America frequently asked questions
Yes, Bank of America offers a variety of small business loans, including secured and unsecured term loans, equipment loans, three lines of credit and SBA loans.
It depends. Bank of America does not state a specific funding period, but in general, expect to wait anywhere from a week or more for your loan to be processed.
Bank of America doesn’t state its minimum credit score for every type of loan. For reference, the minimum personal credit score for the Business Advantage Credit Line is 700, so you’ll likely need this score or higher to qualify for its other loans.
How Bankrate rates Bank of America
Overall Score
4.3
Accessibility
3.9
Business owners with poor credit or a need for fast loans may find better options elsewhere.
Affordability
4.1
Annual fees and the lack of information on maximum rates take a bite out of this lender’s score.
Transparency
4.5
Bank of America leaves some key details off its website, like specific minimum credit scores for each loan.
Customer experience
4.4
A quick online application for all applicants could help improve the lender’s score in this category.
Flexibility
4.6
Multiple loan types and perks like free business credit score help make this lender an appealing option.
Methodology
47
years in business
30+
lenders reviewed
22
loan features weighed
770+
data points collected
To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 30 lenders and gave each a rating, which consists of five categories:
Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
Affordability: This section measures interest or factor rates and fees.
Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
Customer experience: Customer service hours, online applications and app availability are considered in this category.
Flexibility: This category considers factors like the number of loan products and ability to change payment due date.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
What small business owners think
Bank of America Small Business Loans has 15 reviews
Dive into community reviews below and see what others think about Bank of America Small Business Loans.
4.1
15
ratings
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate.
To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
Score breakdown
5 stars
40%
4 stars
40%
3 stars
7%
2 stars
13%
1 star
0%
Score by category
Customer experience4 / 5
Accessibility rating4.1 / 5
Affordability rating4.1 / 5
Transparency rating3.7 / 5
Flexibility rating3.7 / 5
Community Reviews
See what users like you are saying about Bank of America Small Business Loans.
Overall
Did you feel that the lender was knowledgeable about their product and loan terms? Why or why not?
Lender was very knowledgeable however various factors were discovered as deceptive at a later time.
Score by category
Flexibility rating3/ 5
Transparency rating1/ 5
Accessibility rating3/ 5
Affordability rating2/ 5
Customer experience2/ 5
Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes, I was able to work with my financial advisor at Bank of America to get the amount of funding I needed with the interest rate that made it worth it.
Score by category
Flexibility rating4/ 5
Transparency rating4/ 5
Accessibility rating5/ 5
Affordability rating5/ 5
Customer experience3/ 5
Overall
Did you feel that the lender was knowledgeable about their product and loan terms? Why or why not?
Yes. They had business specific knowledge that really helped set them apart and swayed my choice to them even though they have slightly higher rates.
Score by category
Flexibility rating3/ 5
Transparency rating4/ 5
Accessibility rating4/ 5
Affordability rating3/ 5
Customer experience4/ 5
Overall
Were you able to contact the lender for customer support? What was the process like?
Yes. I would have to first call a phone number for an easy problem. For something more serious I was able to go into my local branch and speak with someone in person.
Score by category
Flexibility rating3/ 5
Transparency rating2/ 5
Accessibility rating3/ 5
Affordability rating4/ 5
Customer experience4/ 5
Overall
Was the lender receptive to your business unique needs? If so how? If not, why not?
Yes, it wasn’t a crazy amount I asked to borrow. They were very professional and helpful
Score by category
Flexibility rating5/ 5
Transparency rating5/ 5
Accessibility rating5/ 5
Affordability rating5/ 5
Customer experience5/ 5
Overall
Were you able to contact the lender for customer support? What was the process like?
Yes I was able to contact the lender for customer support. When I had questions and concerns regarding this matter I was able to receive answers in a timely manner and pertaining to my specific business practices. The process was smooth simple and effective and it did not take much time at all.
Score by category
Flexibility rating4/ 5
Transparency rating3/ 5
Accessibility rating5/ 5
Affordability rating4/ 5
Customer experience5/ 5
Overall
What was your biggest pain point during the application process?
Having to go to get all my verification and then review all the requirements and technical information that is within the contract agreement
Score by category
Flexibility rating4/ 5
Transparency rating4/ 5
Accessibility rating5/ 5
Affordability rating4/ 5
Customer experience5/ 5
Overall
What was your biggest pain point during the application process?
The lengthy process of applying
Score by category
Flexibility rating3/ 5
Transparency rating4/ 5
Accessibility rating2/ 5
Affordability rating2/ 5
Customer experience3/ 5
Overall
What was your biggest pain point during the application process?
It was a slow process. It seemed like they lacked enough staff
Score by category
Flexibility rating4/ 5
Transparency rating4/ 5
Accessibility rating5/ 5
Affordability rating5/ 5
Customer experience5/ 5
Overall
Were you able to contact the lender for customer support? What was the process like?
Yes, I was able to contact the lender for customer support by calling their dedicated toll-free number listed on their website; after providing my account details, I was connected to a representative who listened to my inquiry and provided a clear explanation regarding my loan details and the next steps needed to address my concerns
