6 Best Banks for Business Loans in 2024

Stacks of coins and a bank.

Startups need capital to survive and scale, business loans are a great option to secure resources for your startup or small business. Unlike securing a new funding round, business loans are an opportunity for your startup to extend its runway, filling cash flow gaps without sacrificing equity in your company. 

However, just as the type of business loan you choose matters, so does the vendor you borrow money from. These are the best banks for business loans that startups should consider in 2024.

We also recommend checking out our list of the best startup business loans.

Best Banks for Small Business Startup Loans



four point eight out of five


Best for High-Growth Startups

  • Non-dilutive funding 
  • Built for fast-scaling startups 
  • Industry- and stage-agnostic

Bank of America

four point six out of five


Best for Small Businesses

  • Multiple loans available 
  • Helpful business resources included 
  • Business lines of credit available

U.S. Bank

four point six out of five


  • Wide range of borrowing amounts available
  • Fixed interest rates


four point five out of five


  • Low borrowing amounts offered 
  • Long repayment terms

Capital One

four point four out of five


  • Ideal for real estate businesses
  • Business lines of credit offered

Huntington Bank

four point four out of five


  • #1 regional SBA lender 
  • Wide range of borrowing amounts offered

One of the downsides of taking on venture capital or angel investment is tentatively losing equity in your company. For smaller capital needs, business loans are a non-dilutive alternative to taking on standard funding rounds — allowing you to extend your runway while keeping ownership of your company. 

Comparatively, business loans involve borrowing from a vendor and then repaying the loan over a period of time with interest. You will most often receive your loan in a lump sum or as a business line of credit, depending on the terms of your loan and the vendor you borrow from. 

Before you start applying for business loans, it is important to consider the different banks and the loans they have to offer to ensure that you are choosing the best vendor for your business. These are the best banks for startup business loans.

6 Best Banks for Startup Business Loans 2024:

  1. Mercury – Best for High-Growth Startups
  2. Bank of America – Best for Small Businesses
  3. U.S. Bank – Best for Early-Stage Startups
  4. Chase Bank – Best for Business Lines of Credit
  5. Capital One – Best for Business Credit Cards
  6. Huntington Bank – Best for SBA Loans

1. Mercury

For startups that have raised venture capital within the past year, Mercury offers venture debt financing to startups based on the strength of their investors, your founding members, and the scalability of your company. 

Mercury is a fintech that is partnered with FDIC-insured banks, not a bank itself. The company primarily backs companies incorporated in the United States that have either raised venture capital in the past year or plan to raise it in the near future. They deploy funding in a wide range of industries and startup stages.  

Types of Loans Offered

General Eligibility Requirements

  • Applicants must have raised venture capital within the past year 
  • Or, plan to raise venture capital in the near future
  • Startups must be incorporated in the United States

2. Bank of America

Bank of America is a great choice for small businesses looking for a variety of loan options to choose from. With three Business Advantage loans offered, as well as several other business financing options, Bank of America has an extensive list of options available to small businesses looking for funding or to build business credit

There are two types of financing options available: loans and lines of credit. Business lines of credit provide companies with the opportunity to build their business credit score, making it ideal for startups with bad credit. 

Overall, the loans offered by Bank of America are robust in their selection and include helpful finance features such as free business credit scores, small business resources, and interest rate discounts if you are a Preferred Rewards for Business Member. 

Types of Loans Offered

  • Business Advantage Credit Line: Unsecured line of credit with no collateral
  • Business Advantage Credit Line Cash Secured: Line of credit with a security deposit
  • Business Advantage Term Loan: Unsecured term loan with no collateral 
  • Commercial Real Estate Loans 
  • Equipment Loans 
  • Healthcare Practice Loans 
  • Small Business Administration (SBA) Loans 

General Eligibility Requirements

  • Minimum two years in business 
  • Minimum $100,000 in the prior year's annual gross sales

3. U.S. Bank

U.S. Bank is another great option for small business loans. With locations in 25 states across the US, borrowers can often find a branch in their area or apply for loans online. 

The bank will work with borrowers to determine the right business loan to fill cash flow gaps and cover unexpected expenses. Businesses that take out loans with U.S. Bank receive a one-time payout of funds as well as a fixed monthly payment. 

Maximum amount that can be borrowed ranges from $250,000 to $12.375 million, depending on the loan. U.S. Bank’s two standard business loans, the U.S. Bank Quick Loan and Business Term Loan, both have fixed interest rates. 

Types of Loans Offered

  • U.S. Bank Quick Loan 
  • Business Term Loan 
  • Commercial Real Estate Loan 
  • Small Business Administration (SBA) Loan 
  • Equipment Financing Loan 
  • SBA Paycheck Protection (PPP) 

General Eligibility Requirements

  • Not listed

4. Chase Bank

Chase Bank offers select loans and financing options for small businesses. In order to get a small business loan from Chase Bank, you will need to go into a local branch, as they do not offer loan application services online. 

Loans through Chase Bank start as low as $5,000. Payment terms for their standard small business loans extend up to seven years, while commercial real estate financing terms can last up to 25 years. 

Types of Loans Offered

  • Business Terms Loans 
  • Draw Loans 
  • Business Lines of Credit
  • Commercial Real Estate Loans

General Eligibility Requirements

  • Not listed

5. Capital One

Capital One doesn’t offer as many loan options as some competitors, however, their top business loan is a real estate term, making it a great choice for commercial real estate companies. 

The other primary offering is business lines of credit, which can be a great choice for businesses looking to build and improve their business credit score. Both Capital One’s real estate loans and business lines of credit are offered up to $5 million. 

Types of Loans Offered

  • Real Estate Term Loans 
  • Business Lines of Credit 
  • Small Business Administration (SBA) Loans 
  • Medical Practice Loans 
  • Equipment Loans 

General Eligibility Requirements

  • Time in business must be two years minimum 
  • You must have a business checking account

6. Huntington Bank

Huntington Bank offers business loans and financing geared toward small businesses, real estate, and dental and veterinary practices. With only twelve states served, this bank is ideal for small businesses located in Colorado, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Tennessee, West Virginia, or Wisconsin. 

Loan amounts range from $1,000 to $5 million, depending on the loan type. 

Huntington Bank’s term loans for business or real estate involve a fixed or variable rate, depending on the use of funds and collateral.  You can apply for Huntington Bank business financing by phone, online, or at a local branch.

Types of Loans Offered

  • Business term loans 
  • Real estate term loans 
  • Business lines of credit 
  • Small Business Administration (SBA) loans 
  • Dental Practice Loans 
  • Vet Practice Loans 

General Eligibility Requirements

  • Not listed

Honorable Mentions

While the banks and fintech companies above offer great options for startup and small business loans, there are still a myriad of additional lenders you may want to consider before deciding on the best bank for your startup business loan. 

Wells Fargo

Wells Fargo offers business loans, business lines of credit, and SBA loans. Information on the types of loans offered by Wells Fargo is limited on their website. However, you can easily browse their lending options using their Small Business Product Selector

Live Oak Bank

Live Oak Bank business loans start at $150,000. The bank boasts a personalized experience to obtain a business loan to ensure your startup needs are met. Live Oak Bank offers commercial loans, SBA loans, and US Department of Agriculture (USDA) loans. 

PNC Bank

PNC Bank offers term loans for businesses, including an unsecured business loan, secured small business loan, small business commercial real estate loan, and secured vehicle finance loan. The amount that can be borrowed varies depending on the loan, however, PNC Bank offers services to help you determine the right loan for your business. 

How to Get a Startup Loan From a Bank

To get a startup business loan, you first need to determine the amount of capital you need to borrow and how it will be used. Then, decide on the bank or other lender you want to borrow from. 

In order to qualify for a business loan, you need to meet the eligibility requirements for the loan/lender, such as annual revenue or time in business minimums, have a tax ID for a credit check, and open or have a business checking account. 

Once you apply for your business loan and are approved, you will need to establish repayment terms and interest rates, as well as ensure you complete payments on time to avoid interest and fees.

Alternatives to Business Loans From Banks

While securing a business loan from a bank is a great way to fill cash flow gaps and get much-needed capital for your business, there are some alternatives that may be a better option for your startup. 

Loan Marketplaces

Loan marketplaces like Lendio and Uplyft Capital make it easy to shop and apply for business loans from a variety of vendors – all on one platform. Plus, with many loan marketplaces, you are able to upload only one application for a variety of loans and vendors, saving you time and energy.  

Revenue-Based Financing

Revenue-based financing or royalty-based financing is capital in exchange for a percentage of future revenue. Companies like Capchase offer revenue-based financing options for startups with flexible payment terms that generate quick capital for your business. 


If you’re only looking for a small amount of capital, consider The Microloan Program from the SBA. These small loans have a maximum of $50,000, making them perfect for smaller capital needs. The average loan amount of SBA microloans is $13,000. 


Crowdfunding involves raising funds from several sources, sometimes in exchange for products or, less commonly, equity. Crowdfunding is a great way to gain support from early adopters while generating additional capital to refine and develop your product or service in the final stages. 

Business Credit Cards

Another great option to increase your startup’s access to liquid cash is business credit cards. Plus, this option also allows you to build business credit and benefit from credit card perks such as travel benefits, cash back, and discounts on business expenses. 


Is it hard to get a business loan through a bank?

Obtaining a business loan through a bank may be challenging if you have bad business credit, no consistent revenue or your time in business is less than two years. However, there are business loans available with lower eligibility criteria for these requirements. 

What banks offer startup loans?

Many banks offer startup loans if the business meets eligibility criteria. However, it can be challenging to obtain for a startup that is early-stage and pre-revenue. Some banks offering business loans include Chase, Capital One, Wells Fargo, and Huntington Bank. 

Additionally, if you plan to take on venture capital in the near future, you may be better suited to a fintech company like Mercury’s venture debt program.

What credit score do you need for a startup business loan?

Minimum business credit score requirements for bank loans are typically 690 or higher. However, there are exceptions to this rule – especially if you opt for a bad credit business loan. 

Are startups eligible for SBA loans?

If a startup meets the Small Business Administration (SBA) loan requirements for their business credit score and revenue, they may be eligible to obtain an SBA business loan.