PNC Bank Business Loans Review

PNC is competitive when comparing traditional bank financing for small business loans, but it’s not the only option.
Jun 29, 2022

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Our Take

The bottom line: PNC business loans are a good option for existing PNC business banking customers who have established businesses and strong credit history.

Jump to: Full Review

Pros & Cons

Pros

  • A varied selection of business loans to offer, including SBA loans.

  • Specialized financing for business real estate and vehicle purchases.

  • The option to apply online, by phone or in person at a PNC Bank branch.

Cons

  • A minimum of three years in business is generally needed.

  • Limited interest rates and fee information are available online.

  • Automatic payment deduction from a PNC business checking account is required for all loans.

Full Review

Established in 1983, PNC is a traditional bank with branches located in 28 states, plus Washington, D.C. It offers small-business loans, lines of credit, SBA loans, business credit cards, business real estate loans and business vehicle loans.

If you have an established business and strong personal and business credit history, PNC is worth considering when looking for traditional bank financing. However, you must be willing to open a business checking account and use automatic payments for your loan.

PNC is best for borrowers who:

Are existing PNC banking customers. All loans and lines of credit require an automatic payment deduction from a PNC business checking account. If you’re not an existing business customer, then you’ll need to be willing to open an account with PNC.

Prefer to work with a traditional bank. If you prefer to work with a conventional bank, PNC is one to consider with its range of lending products. Online and mobile banking are also available to customers who prefer digital banking.

Have an established business. Per PNC credit guidelines, your business will need to have been in existence for a minimum of three years under the same ownership.

Types of PNC business loans

PNC offers financing options for businesses that include:

  • Unsecured and secured term loans.

  • Unsecured and secured lines of credit.

  • Business vehicle loans.

  • Real estate loans.

PNC loan features

PNC loan terms are competitive to what you’ll see at other traditional banks. Here’s the basics when it comes to loan type:

Unsecured business loan

Secured business loan

Unsecured business line of credit

Secured business line of credit

Business auto loan

Loan amount

From $20,000 to $100,000.

From $100,001 to $3,000,000.

From $20,000 to $100,000.

From $100,001 to $3,000,000.

From $10,000 to $250,000.

Interest rates

Fixed rate. Varies based on your business’s qualifications.

Fixed or variable rates. Varies based on your business’s qualifications.

Variable rate. Varies based on your business’s qualifications.

Variable rate. Varies based on your business’s qualifications.

Fixed rate. Varies based on your business’s qualifications.

Fees

Not disclosed.

Not disclosed.

Annual fee: $175. Additional fees may apply.

Annual fee: 0.25% of committed line amount. Additional fees may apply.

Not disclosed.

Terms

Two to five years.

Two to seven years.

Revolving terms with annual renewal.

Revolving terms with annual renewal.

Two to six years.

Repayment schedule

Monthly.

Monthly.

Monthly.

Monthly.

Monthly.

PNC SBA loans

SBA loans are also offered by PNC, including the following programs:

  • SBA 7(a) loans

  • SBA 504 loans

  • SBA Express

  • SBA Export Express

In addition, for qualified veteran-owned small businesses, PNC can waive the upfront guarantee fee on SBA Express loans up to a maximum loan amount of $350,000.

Loan amount

Up to $5,000,000.

Interest rates

Negotiated fixed rate that is subject to SBA maximums.

Fees

Guarantee and prepayment fees for loans with terms of 15 years or more. Additional fees and charges may apply.

Terms

Up to 25 years, depending on the program.

Repayment schedule

Monthly.

Where PNC stands out

Range of loan and other bank products

PNC offers a variety of products, including unsecured and secured financing. In addition to loans and lines of credit, there are products available to purchase business vehicles and real estate. And as a traditional bank, you’ll also have access to business checking accounts, merchant services, business credit cards and mobile services.

SBA lending partner

PNC is a lending partner of the Small Business Administration. As a result, it can offer SBA loans as an option to borrowers who may not qualify for their bank products. Loan programs available at PNC include SBA 7a loans, SBA 504 loans, SBA Express and SBA Export Express.

Credit evaluation criteria

PNC provides general guidelines for evaluating your application in a credit criteria chart. This is helpful to borrowers who are interested in how their personal and business credit will be considered. Also, information about debt-to-income ratios, leverage and collateral are covered.

Where PNC falls short

Strict credit requirements

When reviewing PNC’s credit evaluation criteria, you won’t find a minimum credit score requirement. However, your personal and business credit history need to show that you’ve made payments on time for at least the last five years. That means no 30-day late payments, collection accounts, charge-offs, foreclosures, judgments, liens or lawsuits.

Limited information on interest rates and fees

PNC provides very little information on the interest rates associated with its loan products and the fees it charges. This can make it difficult for borrowers to compare loan products before going through the process of completing an application.

Required business checking account

While some banks encourage borrowers to open checking accounts by offering discounts related to other products, PNC requires that borrowers have a business checking account. In addition, all loans and lines of credit require automatic payment from a PNC business checking account.

PNC loan requirements

PNC doesn’t list a minimum credit score requirement; however, it will review your personal and business credit history to look for derogatory information.

  • A personal guarantee by business owners is required.

  • A minimum of three years in business, generally.

  • Personal credit history with no derogatory items for five years or more.

  • Business credit history free of bankruptcy, tax liens, judgments and lawsuits.

How to apply for a loan from PNC

You can apply for a PNC loan online, by phone or at a PNC branch. However, to complete an online application, you must be a business banking customer of PNC. A PNC Banker is available to explain the application process and help you gather the necessary information.

You can find a Business Lending Guide on the PNC website that gives some details about the criteria the lender will use to evaluate your application.

Before you apply, PNC suggests you know the following:

  • Loan amount.

  • Type of loan you want.

  • Purpose of the loan.

  • Collateral information (if applying for a secured loan).

After PNC has reviewed your application, you’ll receive a decision and options to address any current issues.

Alternatives to PNC

Bank of America

If you’d like to stay with a traditional bank, Bank of America is an option. Bank of America offers secured and unsecured business loans, lines of credit, and SBA loans. Loan amounts for unsecured loans start at $10,000, which may be helpful if you’re not looking for a large loan. In addition, Bank of America requires fewer years in business, typically two, compared to PNC. However, your business must meet a minimum annual revenue requirement of $100,000 for unsecured loans. You can find general information on interest rates and fees on the website. Plus, Bank of America offers special benefits for veterans and interest rate discounts to certain business clients.

Credibility Capital

Credibility Capital is an alternative to a traditional bank offering business term loans. Loan amounts range from $50,000 to $500,000 and loan terms are one to five years. Interest rates start at 6.99%. An application fee isn’t charged, but you will pay an origination fee on your loan. You’ll need to be in business for at least two years and generate revenue to be eligible. Strong personal credit and no personal or business bankruptcies in the last five years are also required. Businesses located in Nevada, North Dakota, South Dakota and Vermont aren’t eligible.

Compare business loans

If you’d like to compare loan options, NerdWallet lists small-business loans that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and the needs of business owners, as well as rates and other factors so that you can make the right financing decision.