If you are an entrepreneur, your company has been around for more than a year and doesn’t need
cash in the short-term, then banks are the best option for a small-business loan.
Banks offer multiple kinds of business loans, but getting it approved can be a bit difficult.
Normally, banks approve near about 13% of business loan applications.
That means that the right financial institution for you not only offers the type of business loan
you need but also funds enough loans to meet your expenses.
Here are the top 6 banks we have mapped out for small-business loans based on their commercial and
industrial lending volume.
- Bank of America
Bank of America's business loans is certainly a good choice if you value rewards. Upon meeting
certain account requirements, you can qualify for interest rate discounts, no fees on wire
transfers, and other benefits.
- JPMorgan Chase
JPMorgan Chase is a SBA-preferred lender and funds multiple types of SBA (Small Business
Administration) loans. This includes SBA Express loans and credit lines, which offers faster
funding of up to $350,000.
- Citibank
Citibank is quite familiar among entrepreneurs for its small-business credit cards. Though
the bank also offers business loans — it has comparatively fewer products than other lenders. You might
prefer that simplicity, but it also means you may want to consider other lenders if Citi doesn’t
endorse the kind of loan you want.
- Wells Fargo
Wells Fargo offers few types of small-business financing and multiple types of lines of
credit. The lending amounts are less than some other banks, so attempt other options if you have
collateral and need more than $500,000 in financing.
However, this bank is currently one of the most active SBA loan lenders. By the September of
2020, it had approved almost more than $114 million in SBA 7(a) loans in the 2020 fiscal year
— the highest among traditional national banks.
- U.S. Bank
U.S. Bank has fewer branches than other brick-and-mortar banks, including Bank of America
and Wells Fargo. But if you find one near you, U.S. Bank may be a good choice for startups with
collateral, as you may be able to qualify for an SBA loan with less than a year in business. U.S.
Best Banks for Small-Business Loans in 2021
Woodson and Associates Content
Bank may be another good choice for an SBA loan. It already had approved the second-most
7(a) loan applications in the 2020 fiscal year.
Let us know in the comments section if you find it insightful....
#banks #loans #smallbusiness #finance
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