Key takeaways
- Banks and credit unions tend to offer the lowest interest rates for business loans.
- Strong personal credit, a proven track record and at least a couple years in business can help you qualify for the lowest rates.
- You may also have to provide collateral or sign a personal guarantee to get a loan with low rates.
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.
8 best low-interest business loans
Why trust NerdWallet
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50+ categories of the best business loan selections.
Objective and comprehensive business loans ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
| Product | Min Credit | Min APR | Max Loan Amount | |
|---|---|---|---|---|
 Bank of America Business Advantage Unsecured Term Loan Nerdwallet Rating 5.0 with NerdWallet Small Business | 700 | 7.0% | $100,000 | with NerdWallet Small Business |
 Bluevine - Line of credit Nerdwallet Rating 5.0 with NerdWallet Small Business | 625 | 14.0% | $200,000 | with NerdWallet Small Business |
 SBA 7(a) loan with NerdWallet Small Business | 650 | 9.75% | $5,000,000 | with NerdWallet Small Business |
 Triton Capital - Equipment financing Nerdwallet Rating 4.1 with NerdWallet Small Business | 575 | 5.99% | $250,000 | with NerdWallet Small Business |
 iBusiness Funding - Online term loan Nerdwallet Rating 4.0 with NerdWallet Small Business | 660 | 22.45% | $500,000 | with NerdWallet Small Business |
 Accion Opportunity Fund Small Business Working Capital Loan Nerdwallet Rating 4.8 with NerdWallet Small Business | 620 | 9.99% | $250,000 | with NerdWallet Small Business |
SBA microloan with NerdWallet Small Business | 620 | 8.0% | $50,000 | with NerdWallet Small Business |
 Wells Fargo BusinessLine® Line of Credit Nerdwallet Rating 5.0 with NerdWallet Small Business | 680 | 8.5% | $150,000 | with NerdWallet Small Business |
A closer look at our top low-interest business loans
Bank of America
Best for bank term loans
Interest rates vary, but start at 7%.
Choose if you’re highly qualified and don’t need funds immediately.
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. It doesn’t require collateral. Members of Bank of America’s rewards program may also qualify for an interest rate discount.
Qualifications
- Minimum credit score: 700.
- Minimum time in business: 24 months.
- Minimum annual revenue: $100000.
Pros and cons
Pros
Bank loan with competitive interest rates.
No collateral required.
Bank of America’s rewards program can offer interest rate discounts and other perks.
Cons
Can be slow to fund.
Must be an existing Bank of America customer to apply online.
Charges an origination fee.
Bluevine
Best for fast funding
Interest rates range from 14% to 95%.
Choose if you need cash this week and can repay within six months. Rates climb quickly at the top of the range, so don’t use it for long-term needs.
Bluevine offers a fast and flexible line of credit in amounts up to $200000. 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 cash even quicker.
Qualifications
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120000.
Pros and cons
Pros
Cash can be available within a few hours.
Can be used to build business credit.
Low minimum credit score requirement.
Cons
Requires weekly payments.
Not available in North Dakota, South Dakota or Nevada.
SBA 7(a) loan
Best for large funding amounts
The SBA caps interest rates between 9.75% to 14.75%, depending on the loan size and whether the rate is fixed or variable.
Choose if you need a large loan and can wait 30 days or more for funding.
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.
Qualifications
- Must be a for-profit U.S. business.
- Must be unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
Pros and cons
Pros
Large borrowing maximums.
Interest rates are capped.
Long repayment terms available.
Cons
Collateral is typically required.
Longer processing times than online lenders.
Triton Capital
Best for equipment financing
Interest rates range from 5.99% to 34.99%.
Choose if you’re buying a specific piece of equipment. The equipment secures the loan, which is why the starting rate is the lowest on our list.
Triton Capital offers low-interest loans that can be used to buy equipment and machinery for your business. Loans are available up to $250000. Funding can be available in just a few days.
Qualifications
- Minimum credit score: 575.
- Minimum time in business: 24 months.
- Minimum annual revenue: $250000.
Pros and cons
Pros
Can fund within one to two business days.
No prepayment penalty.
Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
Charges an origination fee.
iBusiness Funding
Best for long repayment terms
Interest rates range from 22.45% to 50.24%.
Choose if you need a term loan more quickly than a bank or SBA lender can offer.
You can get an online term loan from iBusiness Funding with repayment terms up to 60 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.
Qualifications
- Minimum credit score: 660.
- Minimum time in business: 24 months.
- Minimum annual revenue: $50000.
- No bankruptcies in the past seven years.
Pros and cons
Pros
Competitive rates among online lenders.
Terms up to five years.
iBusiness Funding also offers SBA loans up to $5 million.
Cons
Charges an origination fee.
Must be in business for a minimum of 24 months.
Minimum credit score is higher than some other lenders.
Accion Opportunity Fund
Best for bad credit
Interest rates range from 9.99% to 28.95%.
Choose if your credit score is too low for a bank or SBA loan, but you still want a rate below what most online lenders charge.
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 620. Accion offers loans of up to $250000 with repayment terms up to 36 months.
Qualifications
- Minimum credit score: 620.
- Minimum time in business: 24 months.
- Minimum annual revenue: $300000.
Pros and cons
Pros
Loan amounts from $5,000 to $250,000.
Customized loan terms.
No prepayment penalty.
Cons
Slower processing speed compared with online lenders.
Charges an origination fee.
Not available in Montana, North Dakota, South Dakota, Tennessee, Vermont or Washington, D.C.
SBA microloan
Best for startups
Interest rates are set by individual lenders, but typically range from 8% to 13%.
Choose if you need $50,000 or less and have fewer than two years in business.
The SBA microloan program provides traditionally underserved borrowers (including startups) with affordable financing up to $50000. So far in fiscal year 2026 (which started on Oct. 1, 2025), over 28% of SBA microloans have been issued to startups (businesses with less than two years in operation).
Qualifications
- Must be a U.S. business.
- Must show your ability to repay the loan.
- Personal guarantee and collateral likely required.
- Specific financial qualifications determined by individual lender.
Pros and cons
Pros
Can be used for a variety of funding purposes.
Designed to finance traditionally underserved businesses.
Startups and business owners with bad credit may be able to qualify.
Competitive interest rates, low fees and long repayment terms.
Intermediaries typically offer business training and educational resources.
Cons
Loan amounts max out at $50,000.
Can’t be used to pay existing debt or purchase real estate.
Collateral is likely required.
Can be slow to fund.
Wells Fargo
Best for business lines of credit
Interest rates range from 8.5% to 16.5%.
Choose if you need a line of credit and have been in business for at least six months. It’s rare to find a bank product that accepts new businesses like this.
Wells Fargo’s unsecured line of credit is available in amounts up to $150000 with a revolving term. This line of credit can be used for working capital, emergency financing and other short-term funding needs.
Qualifications
- Minimum credit score: 680.
- Available to borrowers with at least 6 months in business.
- Personal guarantees required from any owner with a 25% or more stake in the business, totaling at least 51% combined ownership.
Pros and cons
Pros
Bank line of credit with competitive interest rates.
Available to borrowers with only six months in business.
Does not charge origination fee.
Cons
May take longer to fund than online lenders.
Need a Wells Fargo checking account to access online bill pay.
Can apply online, but may need to visit a branch if you need more than $100,000.
What is a low-interest business loan?
According to the Federal Reserve, average business bank loan rates range from 6.37% to 10.98%. A loan priced within or below this range is typically considered low-interest.
It’s easier to get a cheap business loan if you have:
- A high personal credit score.
- Several years in business.
- A track record of strong business revenue.
Some lenders, like CDFIs, run special programs with lower rates for borrowers who normally wouldn’t qualify.
Types of low-interest business loans
These are some of the most common types of low-interest business loans:
- Term loans. Longer term loans typically come with a lower interest rate than shorter term loans.
- Business lines of credit. Business lines of credit may have variable interest rates tied to a benchmark, like the prime rate, so your rates can fall or rise over time rather than staying fixed for the life of the loan.
- SBA loans. Because they’re guaranteed by the government and their interest rates are capped, SBA loans tend to have lower rates compared with other business funding options.
- Microloans. Because they’re smaller in size and tend to be funded by nonprofits or the SBA, microloans often come with low interest rates.
- Equipment loans. These can offer some of the lowest rates because they’re typically secured by the equipment you purchase, which lowers the lender’s risk.
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.
Pros and cons of low-interest business loans
Pros
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.
Cons
It can be harder to qualify 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.
Where to get a low-interest business loan
Many lenders offer low-rate financing. Here’s how to choose the right one for you:
Banks and credit unions
Best for: Established businesses that can wait for funding.
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
Best for: Businesses that may not qualify at a bank, but still have good credit and don’t need funding fast.
SBA lenders, usually banks and credit unions, offer SBA loans in addition to their own business loans. Like bank loans, SBA loans tend to have low interest rates and long repayment terms.
Although they may be somewhat easier to qualify for, you’ll still need a good credit and financial history to get an SBA loan. These loans are also slow to fund. The process can take anywhere from one to three months from application to funding.
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 — allowing you to get funding more quickly.
Online lenders
Best for: Businesses that need funding quickly or don’t meet bank/SBA requirements.
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 14% to 99%. So, you should always compare several options and think carefully about how much debt you can realistically afford.
Nonprofit organizations and microlenders
Best for: Underserved businesses, startups or those with bad credit who don’t qualify for bank, SBA or the best online lender rates.
Nonprofit organizations and microlenders can be another source for low-interest business loans. Loan amounts may be smaller and rates higher than with bank or SBA loans. But they’re a good option if you don’t qualify elsewhere.
These lenders focus on borrowers that have a harder time getting financing — including women- and minority-owned businesses, those in low-income communities, startups and those with bad credit. Many organizations also offer free or low-cost training and support services to help your business grow.
How to get a low-interest business loan
Use these tips to get the lowest rate on your business loan:
1. Check your credit and finances
Lenders offering the lowest rates generally want to see:
- A personal credit score of 650+.
- At least two years in business.
- Annual revenue of $100,000.
“The main thing that affects the interest rate is the track record of your business,” says Carolyn Katz, a mentor at the New York City chapter of SCORE.
“An established business with a good credit record is going to get a better interest rate and have more loans available to them. For newer businesses your personal credit and personal expertise in the business are going to matter,” she says.
Pull your credit reports and recent profit and loss statements so you know where you stand before you apply.
2. Select your lender carefully
Compare multiple factors to decide which lender is right for your needs. In general, however,
- If you want the lowest rate possible ➡️ choose a bank.
- If you can’t get a bank loan, but can wait for funding ➡️ choose an SBA lender.
- If speed is your priority ➡️ choose an online lender.
- If you want flexibility and business resources ➡️ choose a nonprofit lender.
Consider starting your search with a lender that already knows you. Your current bank or local credit union may be more flexible on requirements if you have an existing relationship.
3. Compare total costs
Ask every lender for an APR, which includes any loan fees. Comparing loans using APR will give you an accurate sense of how they stack up — and which is the best deal.
For example, a $50,000 loan at 9% with a 5% origination fee ($2,500 upfront) can end up costing more than the same loan at 11% with no fees.
4. Get more than one offer
Rates vary depending on the lender, so you’ll want to compare multiple loan offers. When applying with different lenders, make sure they only do a soft credit check with the initial application. If they do a hard pull right away, your credit score will temporarily drop. Multiple hard pulls in a short period can add up and affect your approval chances.
Using a business loan marketplace, like NerdWallet Small Business, can prevent this issue. You submit one application and see several options in one place, without impacting your credit score. Once you decide to move forward with a specific lender, though, they’ll likely do a hard check as part of the actual application.
Alternatives to low-interest business loans
Can’t qualify for these loans? Here are other affordable options to consider:
- If you have good personal credit, but are just starting out: Consider a personal loan for your business. To evaluate your application, lenders focus on your income and personal credit, instead of revenue and time in business. These loans tend to have lower APRs than many online business lenders, but defaulting could hurt your personal credit score and put your assets at risk.
- If you want to avoid debt: Consider small-business grants. Grants are essentially free financing, since you don’t have to repay the money you receive. Grants can be a particularly good option if you’re focused on technology, research and development, or projects in your local community. You’ll need to devote time and effort to these applications, however, and funding isn’t guaranteed.
- If you need to cover everyday purchases: Consider business credit cards. Use your credit card for business expenses and earn rewards, like cash back, for your spending. Interest costs will add up quickly, however, if you carry a balance.
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.
Article sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- 1.U.S. Small Business Administration. Microloans Summary Report. Accessed Sep 2, 2026.
- 2.Federal Reserve Bank of Kansas City. Small Business Lending Survey - Q1 2026.
- 3.U.S. Small Business Administration. SOP 50 10 Lender and Development Company Loan Programs.
