Bank of America Small Business Loans Reviews
Compare Bank of America's Small Business Loans, including rates and terms, to popular lenders Kabbage, OnDeck, and Accion. Includes customer feedback and faqs.
Updated on July 6th, 2020
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Bank of America offers a variety of small business loans with flexible terms and fast loan processing times. Bank of America loan options include term and SBA loans, lines of credit, equipment loans, and more.
Updates:
Updated 15th of May 2020
Updated rates and added comparisons with the small business lender Kabbage, OnDeck, and Accion.
Also Consider
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Low interest rates whether for loans from $6,000 or $250,000.
Apply NowPrime Business Loans
SBA Loans
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Pros and Cons:
Pros
- Good interest rates.
- Variety of small business loans available.
Cons
- Strict borrower requirements.
Review:
Bank of America is one of the largest banks in the U.S. and offers a wide selection of solutions for small businesses to match a variety of financing needs. They offer some of the best rates but also have rather stringent qualification requirements. If your business does qualify for a loan with them, Bank of America is certainly a strong choice for cost-effective funding.
Highlights:
- Wide variety of financial products.
- Great interest rates.
- Reputable lender.
Shortcomings:
- Stringent qualification requirements.
- Lengthy application process.
Reputation:
Bank of America has a Better Business Bureau rating of A+. Customer reviews on ConsumerAffairs are highly varied, with both positive and negative reviews generally relating to customer service issues.
Rates:
Loan Type | Loan Amount | Interest Rate | Payment Term |
|---|---|---|---|
Unsecured Credit Line | $10,000–$100,000 | Starting at 4.50% | Revolving with annual renewal |
Unsecured Term Loan | $10,000–$100,000 | Starting at 4.75% | 12–60 months |
Auto Loan | From $10,000 | Starting at 2.99% | 48–72 months |
SBA 504 | From $350,000 | n/a | 10–25 years |
SBA 7(a) | $350,000–$5,000,000 | n/a | 7–25 years |
Equipment Loan | From $25,000 | Starting at 3.00% | Up to 5 years |
Secured Business Line of Credit | From $25,000 | Starting at 3.75% | Revolving with annual renewal |
Secured Business Loans | From $25,000 | Starting at 3.50% | Up to 5 years |
Commercial Real Estate | From $25,000 | Starting at 3.00% | Up to 15 years |
Bank of America vs. Kabbage:
Kabbage only offers unsecured credit lines while Bank of America also offers secured credit lines along with a wide variety of other loan products. Bank of America does not offer as high an amount of unsecured credit as Kabbage does, but offers better rates. However, unlike Bank of America, Kabbage is accessible to borrowers with poor credit scores.
Bank of America vs. Kabbage Comparison:
Offer | Bank of America | Kabbage |
|---|---|---|
Loan Type | Line of credit (unsecured) | Line of credit (unsecured) |
Max. Loan Amount | $100,000 | $250,000 |
Terms | Revolving with annual renewal | 6, 12, or 18 months |
Interest rate | From 4.50% | Monthly fees from 1.25% to 10% |
Min. Credit Score | 670 | 560 |
Bank of America vs. OnDeck:
Bank of America offers a wider range of loan products than OnDeck does, including secured term loans and credit lines, and can offer much lower rates. However, it has comparably stringent qualification requirements and the application process is rather lengthy. In this respect, OnDeck is an easier and more accessible choice for fast funding.
Bank of America vs. OnDeck Term Loan Comparison:
Offer | Bank of America | OnDeck |
|---|---|---|
Loan Type | Term loan (unsecured) | Term loan |
Max. Loan Amount | $100,000 | $500,000 |
Terms | 12 - 60 months | 3 - 36 months |
Interest Rate | From 4.75% | From 11.9% |
Min. Credit Score | 670 | 600 |
Bank of America vs. Accion:
Compared to Accion, Bank of America offers small businesses more variety in terms of loan products and can offer lower rates, but may be inaccessible due to very stringent qualification requirements. Accion still offers reasonably competitive rates, has a faster application and funding process, and has more lenient qualification requirements.
Bank of America vs. Accion Comparison:
Offer | Bank of America | Accion |
|---|---|---|
Loan Type | Term loan (unsecured) | Term loan |
Max. Loan Amount | $100,000 | $250,000 |
Interest Rate | From 4.75% | 7% - 34% |
Min. Credit Score | 670 | From 525 - 575 (can vary by state) |
At-a-Glance:
Online Dashboard | Yes. |
Mobile App | Yes. |
Lines of Credit | Yes. |
Term Loans | Yes. |
Customer Support | Phone, social media, by appointment. |
Key Information:
Legal Name | Bank of America Corporation |
Founder | Amadeo Pietro Giannini |
Founding Date | Jan 01, 1904 |
Address | Bank of America Corporate Center, 100 North Tryon Street, Charlotte, NC 28255 |
Number of Employees | 204000 |
Number of Customers | 66000000 |
Telephone | |
Website | https://www.bankofamerica.com/smallbusiness/business-financing/ |
News & Activity:
Date | News or Activity |
|---|---|
May 4, 2020 | |
March 30, 2020 | |
March 17, 2020 | |
February 20, 2020 | |
December 11, 2019 | Bank of America’s Erica® Surpasses 10 Million Users, Introduces New Capabilities |
FAQs:
Does Bank of America give small business loans?
Yes. Bank of America offers unsecured and secured business loans. They also provide lines of credit with interest rates starting at 3.75%%.
Does Bank of America offer SBA loans?
Yes. Many business owners work with Bank of America for SBA loans or SBA Express loans, as they are one of the best banks for business loans.
What is the range of Bank of America Small Business Loan interest rates?
Bank of America small business loan rates vary according to each loan and range from 2.99% to 5.75%, and possibly higher. Your interest rate may differ according to your creditworthiness, loan amount, loan term, and your overall business relationship with Bank of America.
What kind of small loans does Bank of America offer?
- Small business credit cards.
- SBA loans.
- Equipment loans.
Which Bank of America small business startup loans should I consider for my business?
Choosing between bank loans for a small business depends on a variety of factors, such as the type of business you own, your operating costs, annual revenue, and credit score. You may want to consider a credit line loan, which allows you to obtain funds without collateral. You won't be charged cash advance fees or interest fees until you use the funds.
How do I know if I qualify for a bank loan for small business?
To apply for a business bank loan at Bank of America, you will need to be in business for at least two years and earn a minimum annual revenue of between $100,000 and $250,000, depending on the loan you're interested in.
Does Bank of America fund new business startups?
Bank of America financing requires that your business is under current ownership for at least two years. If you have not been in business for two years, you can apply for an SBA loan.
Can I find the Bank of America business loan application form online?
Yes. You can apply for Bank of America small loans online or in person.
Where can I find the business loan calculator Bank of America?
You can calculate your monthly loan payment on the individual loan webpages on the Bank of America website.
Can I get a loan from Bank of America with bad credit?
There is a wide range of providers that offer loans if you have bad credit.
What are some Bank of America Small Business Loans alternatives?
- LoanBuilder.
- The Loan Exchange.
- Credibility Capital.
- United Capital.
- LoanMe Small Business Loans.
- Kabbage.
- Accion.
- OnDeck.