Best Banks for Small Business Loans with Low Rates in 2025: Top Picks & Insights
Introduction: Why Choosing the Right Bank Matters for Business Loans
For small business owners, securing a loan with low interest rates can mean the difference between growth and financial strain. While many lenders offer business financing, banks generally provide lower rates, longer repayment terms, and better credibility.
But with so many options, how do you choose the right bank for your business loan?
In this guide, we’ll break down the best banks for small business loans with low rates in 2025, including key features, loan types, and approval requirements. Whether you need funds for expansion, working capital, or equipment purchases, we’ve got you covered.
Best Banks for Small Business Loans with Low Rates in 2025
1. Bank of America
✅ Best for: Established small businesses looking for traditional bank loans
💰 Loan Types: Term loans, SBA loans, lines of credit
📉 Interest Rates: Starting at 6.25% (varies by creditworthiness)
🕒 Loan Amounts: Up to $5 million
✔️ Key Features:
SBA Preferred Lender
No prepayment penalty for some loans
Rewards program for existing customers
Why Choose Bank of America?
With competitive interest rates and a strong reputation, Bank of America is an excellent choice for small business loans, especially for those with good credit.
2. Chase Bank
✅ Best for: Small businesses needing SBA loans or business lines of credit
💰 Loan Types: SBA loans, business term loans, lines of credit
📉 Interest Rates: Starts at 5.99% (varies based on credit and loan type)
🕒 Loan Amounts: Up to $5 million for SBA loans
✔️ Key Features:
Fast approval process for pre-qualified businesses
Flexible repayment terms
Dedicated business advisors for loan applicants
Why Choose Chase?
Chase provides one of the best SBA loan programs in the country, making it a solid option for businesses looking for government-backed financing.
3. Wells Fargo
✅ Best for: Small businesses seeking lines of credit and short-term financing
💰 Loan Types: Unsecured business loans, SBA loans, lines of credit
📉 Interest Rates: Starts at 6%
🕒 Loan Amounts: Up to $500,000 for term loans
✔️ Key Features:
No collateral required for some loans
Faster approval process than most traditional banks
Special programs for minority- and women-owned businesses
Why Choose Wells Fargo?
Wells Fargo’s low-interest unsecured loans and flexible lines of credit make it an attractive option for businesses needing quick access to capital.
4. U.S. Bank
✅ Best for: Startups and businesses seeking lower down payments
💰 Loan Types: SBA loans, business term loans, equipment financing
📉 Interest Rates: Starting at 6.25%
🕒 Loan Amounts: Up to $10 million (varies by loan type)
✔️ Key Features:
SBA Express loans available for quick funding
Lower down payment requirements for qualifying businesses
Flexible repayment terms
Why Choose U.S. Bank?
With low down payment options and SBA Express loans, U.S. Bank is ideal for startups and businesses looking for fast funding.
5. Capital One
✅ Best for: Businesses needing high loan amounts with flexible terms
💰 Loan Types: Term loans, SBA loans, lines of credit
📉 Interest Rates: Starts at 6.5%
🕒 Loan Amounts: Up to $5 million
✔️ Key Features:
Lower fees than competitors
Personalized loan structuring for businesses
Wide range of financing options
Why Choose Capital One?
Capital One offers customized loan solutions and competitive interest rates, making it great for businesses seeking large loan amounts.
How to Choose the Best Bank for Your Small Business Loan
1. Compare Interest Rates
Lower interest rates mean lower monthly payments, saving your business money over time.
2. Look at Repayment Terms
Some banks offer longer repayment terms (up to 10 years), reducing monthly payments and making loans more affordable.
3. Check Eligibility Requirements
Each bank has different credit score and revenue requirements. Choose a bank that aligns with your business’s financial profile.
4. Consider Additional Fees
Some banks charge origination fees, prepayment penalties, or annual fees. Always read the fine print before committing.
Frequently Asked Questions (FAQs)
1. Which bank has the lowest interest rates for small business loans?
Chase, Bank of America, and U.S. Bank typically offer the lowest rates, but eligibility depends on your credit and business financials.
2. Can I get a small business loan with bad credit?
Yes, but interest rates may be higher. Consider SBA loans or alternative lenders if your credit score is below 650.
3. How much can I borrow with a small business loan?
Loan amounts vary by lender, ranging from $5,000 to $10 million, depending on your revenue and loan type.
4. What is the easiest small business loan to get?
SBA Express loans and lines of credit from Wells Fargo and U.S. Bank are some of the easiest to qualify for.
5. How long does it take to get approved for a business loan?
Traditional banks: 2–4 weeks
SBA loans: 30–90 days
Online lenders: As fast as 24–48 hours
Final Thoughts: Find the Best Small Business Loan for Your Needs
Choosing the right bank for a small business loan can help you access low-interest rates, flexible repayment terms, and better growth opportunities. Whether you need working capital, equipment financing, or SBA loans, the banks listed above provide some of the best options in 2025.
💡 Take Action Now!
✅ Compare loan options from the banks listed above.
✅ Check your business credit score and financials before applying.
✅ Apply for the best loan that fits your business needs!
Need help deciding? Drop a comment or reach out we’re here to help you secure the best financing for your business!
