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Bank of America Business Loans: 2024 Review

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full review

According to S&P Global Market Intelligence, Bank of America has the most commercial and industrial loans of any U.S. bank, with more than $329 billion, and the next closest financial institution with more than $127 billion as of March 31, 2023. That's more than a dollar.

To qualify for a Bank of America business loan, you need strong credit and, in most cases, a multi-year business history, but existing customers can benefit from discounted interest rates and other benefits. can.

We start with a quick survey to better understand your business's unique needs.

Once we have found your personalized match, our team will be happy to discuss the further process.

Bank of America is a great choice for borrowers who:

  • Established business. Bank of America requires that your business be under current ownership for at least two years to qualify for most types of financing.

  • The current customer is Bank of America. Small business owners with eligible Bank of America and/or Merrill business bank accounts may qualify for priority rewards programs that offer interest rate discounts and other benefits.

  • You don't need cash right away. Bank of America offers limited online loan applications. In many cases, you will need to apply for a business loan over the phone or in person. However, if timing is not your biggest concern, you can benefit from the competitive interest rates and financing terms offered by Bank of America.

Bank of America business loan types

Bank of America offers different types of business loans, including:

  • Secured and unsecured lines of credit.

  • Business car loan.

  • Equipment financing.

  • Commercial real estate loans.

  • Franchise financing.

  • Healthcare start-up loan.

Characteristics of Bank of America business loans and lines of credit

secured business loan

Business Advantage Unsecured Term Loan

secure business credit line

Business Advantage Unsecured Credit Facility

cash-secured credit facility

Loan amount

$25,000 to $250,000.

$10,000 to $100,000.

Over $25,000.

Over $10,000.

Over $1,000.

Time required for work

2 years.

2 years.

2 years.

2 years.

6 months.

minimum required annual income

$250,000.

100,000 dollars.

$250,000.

100,000 dollars.

Annual revenue is $50,000.

Fee

Outgoing fee: 0.5% of the loan amount.

$150 Outgoing fee.

Prepayment and renewal fees vary depending on your credit limit. $25,000 to $100,000: The fee is $150.
$100,001 to $250,000: The cost is $250.
For more than $250,000: 0.5% of the usage limit.

none.

There are no initial costs. $150 Annual fee (first year free).

clause

Up to 4 years if collateral is provided by business assets.

Up to 5 years if secured by a certificate of deposit.

12 to 60 months.

Revolving contract renewed annually.

Revolving contract renewed annually.

Revolving contract renewed annually. (There is an opportunity to transition to an unsecured loan facility after two years of operation.)

repayment schedule

monthly.

monthly.

monthly.

monthly.

monthly.

Features of Bank of America's business vehicle, equipment, and real estate loans

business advantage auto loan

equipment loan

commercial real estate loans

Loan amount

Over $10,000.

Over $25,000.

Over $25,000.

Time required for work

Unpublished.

2 years.

2 years.

minimum required annual income

Unpublished.

$250,000.

$250,000.

Fee

There is no application fee.

Outgoing fee: 0.5% of the loan amount.

Prepaid fee: 0.75% of the loan amount.
Additional fees and closing costs such as property insurance, flood risk insurance, and appraisal may apply.

clause

48-72 months.

Up to 5 years if collateral is provided by business assets.

Up to 10 years with a lump sum payment.

Up to 15 years with full amortization.

repayment schedule

monthly.

monthly.

monthly.

Bank of America SBA Loan

Bank of America is an SBA Preferred Lender. That is, the bank has extensive experience in processing and servicing his SBA loans. This designation also means that Bank of America can make the final credit decision without having to send her application to the SBA, allowing for a faster loan approval timeline.

Bank of America SBA Loan Features

Loan amount

From $25,000 to $5 million.

Estimated annual interest rate range

Depending on your business' eligibility, SBA limits apply.

Fee

Warranty, production, packaging, processing and other charges may apply.

Repayment terms

Maximum 25 years.

repayment schedule

monthly.

What sets Bank of America apart

various loan options

If you're not sure which type of business loan is right for your needs, schedule an appointment with a Bank of America loan specialist to discuss your options.

Competitive rates and terms

Bank of America offers long-term, competitive interest rate business loans among its financing options.

For example, unsecured Business Advantage Term Loans have terms ranging from 12 to 60 months and fixed interest rates starting at 8% p.a.

Similarly, Bank of America's business auto loans have terms ranging from 48 to 72 months, fixed interest rates as low as 7.09% per year, and are available to customers with good credit and other Bank of America requirements. Applies to borrowers who meet the criteria.

Discounts and offers also available

Bank of America offers discounts and benefits to small businesses eligible for its Preferred Rewards for Business program. To participate in the program you will need:

  • Active Bank of America Business Checking Account.

  • A three-month combined average daily balance of $20,000 or more in eligible Bank of America business savings accounts and/or Merrill business investment accounts.

There is no cost to attend, and if you are eligible, you can register on the Bank of America website.

Membership benefits include discounted interest rates on business loans, no fees on select banking services, and higher interest rates on savings accounts. Additionally, this program has three levels of reward tiers, and the more funds you have in your eligible Bank of America savings account, the better discounts you will receive.

Where Bank of America falls short

difficult to qualify

Like other bank lenders, you need a strong financial position and several years of business experience to qualify for a loan from Bank of America. And while a bank's cash-backed line of credit can help establish a business's credit history, it doesn't actually provide additional funding, as the deposit must match the amount of the line of credit.

Startups and businesses with poor credit should consider alternative funding sources, such as online lenders and microlenders, which usually have more flexible eligibility requirements.

Application process is slow

Submitting your application typically requires making an appointment over the phone or in person with a Bank of America loan specialist. However, if you have a Bank of America Online Banking account, you can apply for a cash-backed line of credit, a Business Advantage line of credit, or a term loan online. You can also apply for a Business Advantage Auto Loan online.

Compared to financial institutions where you can create an online account and upload and submit documents, Bank of America's loan process is likely much slower, resulting in longer funding times.

Limited information available online

Not unusual among bank lenders, Bank of America provides access to information from its online lending competitors, including interest rate ranges, minimum credit scores, and average time to funding. Is not … Knowing these details saves borrowers time and makes it easier to compare loan offers.

How to apply for a business loan with Bank of America

If you have a Bank of America Online Banking account, you can complete online applications for unsecured business term loans and lines of credit and cash secured lines of credit.

You can also apply for a business car loan online. For all other loans, or if you do not have an online banking account, you will need to make an appointment by phone or in person with a business loan specialist.

When you complete your loan application, you will be asked to enter basic information about your business, including:

  • Company name, address, and phone number.

  • Business tax identification number.

  • Business details, date of establishment, number of employees.

  • Annual net profit and annual total sales.

  • A list of outstanding debts (if applicable).

You must also provide the following information about each business owner, guarantor, and controlling manager:

  • Name, date of birth, and place of residence.

  • Social Security number (for U.S. citizens) or passport number and country of issue (for foreign nationals).

  • Nationality and country of residence.

  • Percentage of ownership.

  • personal income.

  • Living situation (renting or owning) and monthly housing costs.

When applying for a commercial real estate loan, equipment loan, or business auto loan, you must include details of the property, vehicle, and equipment you plan to finance.

You don't need a Bank of America business checking account to apply for a business loan, but some loans require payments to be automatically debited from one of these accounts, so you'll need to open one if you're approved. there is.

Bank of America Business Loan Alternatives

funding circle

If you have strong credentials but don't want to wait for a traditional bank loan, Funding Circle could be a good option for your business.

Funding Circle offers business term loans with competitive interest rates and terms, and a streamlined online application that can get you funding in as little as two days. Funding Circle's business loans are available for terms of six months to seven years and up to $500,000. The interest rate ranges are as follows:

15.22

to %

45

%.

Minimum credit score required to qualify

660

And at least

twenty four

Several months have passed since the start of business. Read our full Funding Circle review.

American Express Business Line of Credit

American Express offers business lines of credit from $2,000 to $250,000 with terms of 6, 12, 18, or 24 months. Instead of a traditional interest rate, American Express charges a monthly fee for any unpaid balance, depending on the term of the loan.

The total monthly charges incurred over the loan term are as follows:

  • 3% to 9% for a six-month loan.

  • 6% to 18% for 12-month loans.

  • 9% to 27% for 18-month loans.

  • 12% to 18% for a 24-month loan.

If you have existing American Express credentials, we will give you the option to pre-fill your application to streamline the process.

The American Express Business Line of Credit is a good option for new businesses or businesses with less-than-perfect credit histories. To qualify, you must have started your business at least a year ago and have at least his FICO score.

660

Must have an average monthly income of at least $3,000 at the time of application.

Please note that the required FICO score can be higher based on your relationship with American Express, credit history, and other factors, and every business is unique and subject to approval and review. Read our full review of American Express® Business Line of Credit.

Compare business loan options

The best business loans are generally those with the lowest interest rates and the most ideal terms. However, other factors, such as time to funding and business qualifications, will help determine which option you choose. NerdWallet encourages you to compare small business loans to find the best fit for your business.



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