Best Low-Interest Business Loans of 2025
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Loans can help you grow your operations and weather adverse market conditions. But small-business loans come at a cost. And that cost hinges largely on the interest rate you secure. That’s why it’s important to get the best rate possible when shopping for a business loan.
To help you get started, we’ve compiled a list of the best low-interest business loans. To come up with our picks, we selected lenders with low annual percentage rates and strong NerdWallet star ratings.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
8 best low-interest business loans
| Product | Max loan amount | Min. credit score | Learn more |
|---|---|---|---|
 SBA 7(a) loan Apply now with Fundera by NerdWallet | $5,000,000 | 650 | Apply now with Fundera by NerdWallet |
 iBusiness Funding - Online term loan NerdWallet Rating Apply now with Fundera by NerdWallet | $500,000 | 660 | Apply now with Fundera by NerdWallet |
SBA microloan Apply now with Fundera by NerdWallet | $50,000 | 620 | Apply now with Fundera by NerdWallet |
 Triton Capital - Equipment financing NerdWallet Rating Apply now with Fundera by NerdWallet | $250,000 | 580 | Apply now with Fundera by NerdWallet |
 Bluevine - Line of credit NerdWallet Rating Apply now with Fundera by NerdWallet | $250,000 | 625 | Apply now with Fundera by NerdWallet |
 Bank of America Business Advantage Unsecured Term Loan NerdWallet Rating Apply now with Fundera by NerdWallet | Undisclosed | 700 | Apply now with Fundera by NerdWallet |
 Accion Opportunity Fund Small Business Working Capital Loan NerdWallet Rating Apply now with Fundera by NerdWallet | $250,000 | 600 | Apply now with Fundera by NerdWallet |
 Wells Fargo Small Business Advantage® Line of Credit NerdWallet Rating | $50,000 | 680 |
Why trust NerdWallet
A closer look at our top low-interest business loans
SBA 7(a) loan
Interest rates range from 10.5% to 14%.
If you’re looking for large loan amounts with affordable rates, SBA 7(a) loans can be a good option. These loans offer funding up to $5 million. In addition to low rates, 7(a) loans also have long repayment terms. You can use a 7(a) loan for working capital, equipment purchases, renovations and more.
iBusiness Funding
Interest rates range from 15.22% to 45%.
You can get an online term loan from iBusiness Funding (formerly Funding Circle) with repayment terms up to 84 months. Loans are available in amounts up to $500000. iBusiness Funding offers a streamlined application process that may take only minutes to complete; you may be able to get funding in as little as two days.
SBA microloan
Interest rates are set by individual lenders, but typically range from 8% to 13%.
The SBA microloan program provides traditionally underserved borrowers (including startups) with affordable financing up to $50000. So far in fiscal year 2025, about 25% of SBA microloans have been issued to startups (businesses with less than two years in operation).
Triton Capital
Interest rates range from 6.5% to 34.99%.
Triton Capital offers low-interest loans that can be used to purchase equipment and machinery for your business. Loans are available up to $250000 and funding can be available in just a few days.
Bluevine
Interest rates range from 14% to 48%.
Bluevine offers a fast and flexible line of credit in amounts up to $250000. You can apply online in minutes and receive a decision as fast as the same day. After you’ve been approved, you can draw from your credit line and get funds in as little as 24 hours. If you opt to pay the $15 wire fee, you can receive your funds in just hours.
Bank of America
Interest rates vary, but start at 7.5%.
Bank of America offers a flexible term loan that can be used for a range of purposes. This loan offers repayment terms of up to 60 months and doesn’t require collateral. Members of Bank of America’s Preferred Rewards program may also qualify for an interest rate discount.
Accion Opportunity Fund
Interest rates range from 8.49% to 24.99%.
As a nonprofit lender, Accion has more flexible qualification requirements than banks or credit unions. You may be able to qualify for a loan with a minimum credit score of 600. Accion offers loans of up to $250000 with repayment terms up to 60 months.
Wells Fargo
Interest rates range from 12% to 14%.
Wells Fargo’s unsecured line of credit is available in amounts up to $50000 with a 60-month revolving term. This line of credit can be used for working capital, emergency financing and other short-term funding needs. Businesses with less than two years in operation may be able to qualify.
What is a low-interest business loan?
A low-interest business loan is simply a loan with lower-than-average rates. It’s easier to get a cheap business loan if you have a high personal credit score, have been in business for several years and have a track record of strong business revenue.
Some lenders, like certain CDFIs, however, may have special programs that offer lower interest rates to target demographics that wouldn’t normally qualify for the lowest rates.
In addition to your credit score and business financials, other factors such as the federal funds rate, current market conditions and lender policies, can also influence the interest rate you’re offered.
Pros and cons of low-interest business loans
Lower interest rates mean the cost of borrowing money is smaller, so your total repayment amount and monthly payments are usually lower.
Because a low-interest loan is a cheaper form of capital, it can aid your business growth.
Making on-time payments can help you build business credit.
Can be harder to qualify for if you don’t have good credit and strong finances.
Lower rates can be riskier for lenders, so they may require higher collateral to counter the risk.
Types of low-interest business loans
These are some of the most common types of low-interest business loans:
How to get a low-interest business loan
Where to get a low-interest business loan
Banks and credit unions
Banks and credit unions typically offer the lowest rates on business loans — as well as long repayment terms and large loan amounts. To qualify, however, you’ll need to meet strict eligibility requirements. Business bank loans are also usually slow to fund.
It can be helpful to start your loan search by contacting a bank with which you have an established relationship. Some banks, especially local or community institutions, may be more flexible with their requirements if they’re already familiar with your business.
SBA lenders
SBA lenders, usually banks and credit unions, offer SBA loans in addition to their own business loans. The government guarantee reduces the risk for these lenders, making them more likely to work with small businesses.
SBA loans generally have low interest rates, long repayment terms and large loan amounts — similar to bank loans. Although SBA loans may be somewhat easier to qualify for, you’ll still need a good credit and financial history to get financing.
These loans are also slow to fund, taking anywhere from one to three months to complete the application and funding process.
If you’re looking for an expedited option, the SBA Express loan can offer loans up to $500,000. All SBA Express lenders have the authority to approve, process and close loans without the SBA’s review.
Online lenders
Some online lenders can offer low-interest business loans. And with streamlined application processes, certain lenders can offer financing in as little as two business days.
Typically, online lenders have more flexible requirements than bank or SBA loans. However, to qualify for the lowest rates and most competitive terms from an online lender, you’ll need to be an established business with good credit and strong revenue.
Of course, there are online lenders that are willing to work with newer businesses or those with fair or bad credit. Note though, that interest rates on these loans can range significantly — anywhere from 6% to 99% — so you should always compare several different financing options and think carefully about how much debt you can realistically afford.
Nonprofit organizations and microlenders
Nonprofit organizations and microlenders can be another source for low-interest business loans.
Depending on the lender and loans offered, loan amounts can be smaller and interest rates may be higher than bank or SBA loans, but these lenders can be a good option if you can’t qualify for those types of funding.
Nonprofits and microlenders tend to focus their lending efforts on traditionally underserved businesses, including women- and minority-owned businesses and those located in low-income communities. Some organizations also work with startups or businesses with bad credit (a score of below 630).
For example, CDC Small Business Finance is a nonprofit that specializes in financing for new and underserved businesses in Arizona, California and Nevada, as well as Atlanta, Dallas-Fort Worth, Detroit, Miami and Washington, D.C. Loans range from $30,000 to $350,000, with terms up to 10 years and interest rates starting at the prime rate plus 2.75%.
Alternatives to low-interest business loans
If you can’t qualify for one of these low-interest business loans — or you simply want to explore alternative options — there are other types of affordable financing you can consider. Here are a few possibilities.
Business grants. Small-business grants are essentially free financing, since you don’t have to repay the money you receive. Grants can be a particularly good option for businesses focused on technology, research and development, and projects in their local community. However, finding and applying for business grants is often time-consuming and competitive, so this type of financing may not be suitable for all businesses.
Personal loans. If you have good personal credit, but you're just starting your company, you might use a personal loan for your business. Instead of relying on your time in business and revenue, personal loan providers will focus on your income and personal credit history. These loans also tend to have lower APRs than many online alternative lenders, but defaulting on them could hurt your personal credit score and put your personal assets at risk.
Business credit cards. Business credit cards are a good option for financing recurring or everyday purchases. You can use your credit card to pay for business expenses, plus you can earn rewards — like cash back — for your spending. You’ll want to make sure that you can pay your bill every month, however. Otherwise, you’ll start accumulating interest on your balance. To qualify for a business credit card, you’ll typically need good personal credit, but you don’t need to have an established business history.
How we chose the best low-interest business loans
NerdWallet’s review process evaluates and rates small-business loans from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
To come up with our list of the best cheap business loans, we selected lenders with low APRs and strong NerdWallet star ratings.
Our star ratings award points to lenders that offer small-business friendly features, including:
Transparency of rates and terms.
Flexible payment options.
Fast funding times.
Accessible customer service.
Reporting of payments to business credit bureaus.
Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
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