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Bank of America Business Loans: Competitive Rates and Terms, But Slow Lending Speeds

Bank of America offers several types of business loans, low interest rates and rewards for Preferred members. But only established businesses can qualify, and you’ll need to apply for most of the bank’s loans in person or by phone.
Randa Kriss

Written by

Randa Kriss
Randa Kriss
Sally Lauckner

Edited by

Sally Lauckner
Sally Lauckner

Edited by

Sally Lauckner
Last updated on Dec 16, 2025
Expert verified
Why trust NerdWallet
Advertiser disclosure
Randa Kriss

Written by

Randa Kriss
Randa Kriss
Sally Lauckner

Edited by

Sally Lauckner
Sally Lauckner

Edited by

Sally Lauckner
Last updated on Dec 16, 2025
Expert verified
Why trust NerdWallet
Advertiser disclosure

Bank of America Business Advantage Unsecured Term Loan

The bottom line:

Bank of America business loans are a good option for established businesses that have existing Bank of America accounts and can take advantage of Preferred Rewards member discounts.

Loan details

Min. Loan Amount

$10,000

Min. Term Length

12 months

Min. APR

6.5%

Max Loan Amount

$100,000

Max Term Length

5 years

Qualifications

Min. credit score

Min. credit score

700

Min. Time in Business

Min. Time in Business

24 months

Min. Annual Revenue

Min. Annual Revenue

$100,000

Pros & Cons

Pros

    pros icon
    Competitive interest rates.
    pros icon
    Preferred Rewards program can offer interest rate discounts and other perks.
    pros icon
    Don’t need to provide collateral.

Cons

    cons icon
    Multiple years in business required to qualify.
    cons icon
    Need to visit a Bank of America branch or schedule a phone appointment to apply.
    cons icon
    Personal guarantee likely required.
Bank of America has the most commercial and industrial loans among U.S. banks at over $332 billion — surpassing the next closest lender by over $123 billion, as of December 2024, according to S&P Global Market Intelligence . Bank of America offers several types of small-business loans , including SBA loans, term loans, business lines of credit, auto loans and equipment financing.
Although you’ll need strong credit and at least a couple of years in business to qualify for a business loan from Bank of America, existing customers can benefit from discounted interest rates and other perks.

Consider Bank of America if you:

  • Have an established business. Bank of America requires that your business be under current ownership for at least two years in order to qualify for most types of financing.
  • Are a current Bank of America customer. Small-business owners with eligible Bank of America and/or Merrill business bank accounts can qualify for the Preferred Rewards program, which offers interest rate discounts, as well as other benefits.
  • Don’t need cash fast. Bank of America, like many bank lenders , offers limited online loan applications. More likely than not, you’ll need to apply for a business loan over the phone or in person. However, if timing isn’t a top concern you’ll be able to benefit from the competitive interest rates and loan terms that Bank of America can offer.
Not a fit? Consider these lenders instead .

How much do you need?

See Your Loan Options

with NerdWallet Small Business

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.

Types of Bank of America business loans

Bank of America offers several different types of business loans including:

Bank of American business loan details

Bank of America business term loans

Secured Business Loan
Business Advantage Unsecured Term Loan
Loan amount
$25,000 to $250,000.
$10,000 to $100,000.
Estimated APR range
Undisclosed.
Starts at 6.50%.
Fees
  • $150 annual fee (waived the first year).
  • Other fees may apply.
$150 origination fee.
Terms
  • Up to four years when secured by business assets.
  • Up to five years when secured by certificate of deposit.
12 to 60 months.
Repayment schedule
Monthly.
Monthly.
Time in business required
2 years.
2 years.
Minimum annual revenue required
$250,000.
$100,000.

Bank of America business lines of credit

Secured Business Line of Credit
Business Advantage Unsecured Line of Credit
Cash Secured Line of Credit
Loan amount
$25,000 and up.
$10,000 and up.
$1,000 and up.
Estimated APR range
Undisclosed.
Starting at 8.50%.
Undisclosed.
Fees
  • $150 annual fee (waived the first year).
  • Other fees may apply.
  • $150 annual fee (waived the first year).
  • Other fees may apply.
  • $150 annual fee (waived the first year).
  • Other fees may apply.
Terms
Revolving terms with annual renewal.
Revolving terms with annual renewal.
Revolving terms with annual renewal. (Opportunity to move to an unsecured line of credit after 2 years in operation.)
Repayment schedule
Monthly.
Monthly.
Monthly.
Time in business required
2 years.
2 years.
6 months.
Minimum annual revenue required
$250,000.
$100,000.
$50,000 in annualized revenue.

Bank of America SBA loans

Bank of America is an SBA Preferred Lender, meaning the bank has extensive experience processing and servicing SBA loans. This designation also means that Bank of America can make final credit decisions without sending applications to the SBA, allowing for a faster loan approval timeline.
The bank offers SBA 7(a) loans , SBA Express loans and SBA 504 loans . In fiscal year 2025, Bank of America issued 908 SBA 7(a) loans totaling nearly $522 million in lending .
Loan amount
$25,000 to $5 million.
Estimated APR range
Varies based on your business’s qualifications, but subject to SBA maximums.
Fees
Guarantee, origination, packaging, processing and other miscellaneous fees may apply.
Repayment terms
Maximum of 25 years.
Repayment schedule
Monthly.
» MORE: SBA loan requirements: Does your business meet the criteria to qualify?

Additional Bank of America business loan options

Auto loans
The bank issues business auto loans starting at $10,000 and with annual percentage rates as low as 5.79%. You can qualify for an auto loan from Bank of America with at least two years in business. The vehicle you wish to finance shouldn’t be more than five years old and should have less than 75,000 miles on it. Call the bank’s business loan program support line for more information, and complete the application online.
Commercial real estate loans
Bank of America’s commercial real estate loans start at $25,000 in funding. You can get terms up to 10 years with a balloon payment or up to 15 years on an amortization schedule. Businesses that have been operating for at least two years and bring in a minimum of $250,000 in annual revenue may qualify.
Equipment loans
Equipment loans from Bank of America start at $25,000 and have terms up to five years. Qualification requirements are the same as for some of its other loan products: minimum of two years in business and at least $250,000 in annual revenue.
Healthcare practice loans
Bank of America offers healthcare practice loans for dentists, veterinarians, physicians and optometrists. You’ll need to call and speak with a practice loan specialist to learn more about these offerings.

Where Bank of America stands out

Variety of loan options

Bank of America has a variety of business loans to choose from, including both unsecured and secured loans, as well as specialized financing options such as equipment loans, commercial real estate loans and business auto loans.
If you’re not sure which type of business loan is right for your needs, you can schedule an appointment with a Bank of America lending specialist to discuss your options.

Competitive rates and terms

Among its financing options, Bank of America offers business loans with long terms and competitive interest rates.
The unsecured Business Advantage Term Loan, for example, has terms ranging from 12 to 60 months, with fixed interest rates starting at 6.50% APR. The bank’s business auto loan has fixed interest rates as low as 5.79% APR — for borrowers who have excellent credit and meet other Bank of America requirements.

Discounts and rewards available

Bank of America offers discounts and perks to small businesses that are eligible for its Preferred Rewards for Business program. To join the program, you need:
  • An active Bank of America business checking account.
  • Three-month combined average daily balance of $20,000 or more in qualifying Bank of America business deposit accounts and/or Merrill business investment accounts.
There is no fee to join, and if you’re eligible, you can enroll through the Bank of America website.
Membership perks include discounted interest rates on business loans, no fees on select banking services and higher interest rates on savings accounts. Plus, there are three levels of reward tiers for the program — so, the more funds you hold in your qualifying Bank of America deposit accounts , the better discounts you can receive.

Where Bank of America falls short

Hard to qualify

Like other bank lenders, you’ll need to have strong financials and at least a couple of years in business to qualify for funding from Bank of America. And while the bank’s cash secured line of credit can help a business establish a credit history, it doesn’t actually provide additional funding since the security deposit must match the credit line amount.
Startups and businesses with bad credit will need to consider alternative sources of financing, such as online lenders or microlenders , which typically have more flexible eligibility requirements.
» MORE: Compare the best business loans for bad credit

Slow application process

You’ll typically need to schedule an appointment to meet with a Bank of America lending specialist, either by phone or in person, to submit an application. However, if you have a Bank of America Online Banking account, you can apply online for a Cash Secured Credit Line, or a Business Advantage Credit Line or Term Loan. You can also apply online for a Business Advantage Auto Loan.
Compared with lenders that allow you to create an online account to upload and submit documentation, Bank of America’s loan process will likely be much slower — resulting in a longer time to fund.

Limited information available online

Although not uncommon among bank lenders, Bank of America does not provide access to information that you may find from online lending competitors, such as interest rate ranges, credit score minimums and average time to fund. Knowing these details can save borrowers time and make it easier to compare loan offers.

Alternatives to Bank of America business loans

iBusiness Funding
iBusiness Funding - Online term loan

iBusiness Funding

iBusiness Funding - Online term loan

NerdWallet Rating

4.0

Max Loan Amount

$500,000

Read Review
External link icon Apply now

with NerdWallet Small Business
If you have strong credentials but don’t want to wait for a traditional bank loan, iBusiness Funding , which acquired Funding Circle in 2024, might be a good option for your business. Plus, this online lender is one of only a few that also offers SBA loans.
iBusiness Funding offers business term loans with competitive rates and terms, and a streamlined online application — with funding available within two to four days. Its business loans are available in amounts up to $500,000, with terms from 6 to 60 months. Interest rates range from 22.45% to 50.24%. To qualify, you’ll need a minimum credit score of 660 and at least 24 months in business.
Bluevine
Bluevine - Line of credit

Bluevine

Bluevine - Line of credit

NerdWallet Rating

5.0

Max Loan Amount

$200,000

Read Review
External link icon Apply now

with NerdWallet Small Business
Bluevine offers two business line of credit options:
  • Up to $250,000 for a 12-month term with monthly payments
  • Up to $200,000 for a 26-week (or potentially 52-week) term with weekly payments. 
Interest rates range from 14% to 95%. You can apply for this line of credit online and receive approval in as little as five minutes. Once you draw on your credit line, you can get same-day funding for a fee or receive funds within three days.
Bluevine can be a good option for newer businesses and those with less-than-perfect credit histories. To qualify for the weekly payment option, you’ll need to have at least 12 months in business, a minimum FICO score of 625 and at least $120,000 in annual revenue. Bluevine’s qualification requirements for its monthly payment option are much higher.

Methodology

NerdWallet’s review process evaluates and rates small-business loan products 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.
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 and 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 .