Finding the best business loan with a low interest rate in the US can be a critical step for entrepreneurs and small business owners seeking to grow their operations while managing costs effectively. In 2024, several financial institutions and lending platforms stand out for offering competitive rates, tailored loan products, and favorable terms.
Bank of America is a leading choice for businesses looking for low-interest loans, offering rates starting at 8.50% and a range of loan amounts from $10,000 upwards. SBA 7(a) loans, supported by the U.S. Small Business Administration, provide another excellent option with interest rates currently capped at 6.50%, catering to businesses that meet specific eligibility criteria. Wells Fargo’s business lines of credit offer flexible funding with interest rates starting at the prime rate plus 0.50%, making it an appealing choice for both startups and established businesses.
For startups, Fundbox presents an attractive solution with lines of credit at interest rates beginning at 4.66% for short-term repayment plans, while Bluevine offers a similar product with rates starting at 6.2%, known for its quick funding process and minimal fees. Funding Circle, a peer-to-peer lending platform, provides business loans with rates starting at 7.49%, suitable for businesses with fair credit scores and looking for flexible term lengths.
These options highlight the diversity of low-interest business loans available, each with unique benefits tailored to different business needs and profiles.
List of Best Business Loan with Low Interest Rate in US
Here is a detailed overview of some of the best business loans with low interest rates available in the US:
1. Bank of America
- Loan Amounts: $10,000 and higher
- Interest Rates: Starting at 8.50%
- Term Lengths: 12 to 60 months
- Minimum Credit Score: 700
- Minimum Time in Business: 2 years
- Pros:
- Free business credit score updates
- Higher-than-average customer satisfaction
- Offers various business financing options
- Cons:
- Higher rates for non-current customers
- Non-current customers can't apply online
- Perks mainly for existing banking customers
- Ideal For: Businesses that already use Bank of America for their banking needs.
2. SBA 7(a) Loans
- Loan Amounts: Up to $5 million
- Interest Rates: Varies by lender, maximum of 6.50% currently
- Term Lengths: 120 to 300 months depending on loan purpose
- Minimum Credit Score: Typically 650 or higher
- Minimum Time in Business: Varies by lender, often 2 or more years
- Pros:
- Lower interest rates compared to traditional loans
- Wide choice of term lengths
- Smaller down payment required
- Cons:
- Options and requirements vary by lender
- Long processing times
- Stricter loan requirements
- Ideal For: Businesses with strong loan applications and sufficient time to go through the detailed approval process.
3. Wells Fargo
- Loan Amounts: $5,000 to $1,000,000
- Interest Rates: Prime plus 0.50%
- Term Lengths: Ongoing lines of credit
- Minimum Credit Score: 680
- Minimum Time in Business: Not specified
- Pros:
- Available for startups
- Offers rewards on spending
- Scalable options for most businesses
- Cons:
- Few business loan options besides lines of credit
- Requires personal guarantee
- May come with an annual fee
- Ideal For: Businesses seeking flexible funding options like lines of credit.
4. Fundbox
- Loan Amounts: Up to $150,000
- Interest Rates: Starting at 4.66% for a 12-week repayment plan
- Term Lengths: 3 to 6 months
- Minimum Credit Score: 600
- Minimum Time in Business: 6 months
- Pros:
- Quick funding timeline
- Builds business credit
- More accessible qualification requirements
- Cons:
- Line of credit, not a traditional loan
- Requires weekly payments
- Confusing financing structure
- Ideal For: Startups needing flexible and quick access to funds.
5. Bluevine
- Loan Amounts: $5,000 to $250,000
- Interest Rates: Starting at 6.2%
- Term Lengths: 6 or 12 months
- Minimum Credit Score: 625
- Minimum Time in Business: 24+ months
- Pros:
- Low starting interest rates
- No origination or monthly maintenance fees
- Quick funding (as soon as 24 hours)
- Cons:
- Weekly payments may be required
- $15 fee for same-day funding
- Potentially high APR for fair credit borrowers
- Ideal For: Businesses needing a reliable line of credit with quick access to funds.
6. Funding Circle
- Loan Amounts: $25,000 to $500,000
- Interest Rates: Starting at 7.49%
- Term Lengths: 6 months to 25 years
- Minimum Credit Score: 660
- Minimum Time in Business: Not specified
- Pros:
- Accepts fair credit
- No stated minimum revenue required
- No prepayment penalties
- Cons:
- Origination fees between 4.49% to 10.49%
- Rates can reach over 30% APR
- Five-day turnaround for some cases
- Ideal For: Businesses looking for peer-to-peer lending options with relatively low starting rates.
These options provide a diverse range of low-interest business loans to suit different needs and business profiles. Each lender has specific requirements and benefits, so it’s important to evaluate them based on your business’s unique situation.