PNC Bank Business Loans Review
PNC is a traditional bank that offers a variety of business financing options, but it doesn’t have a branch in every state and you can’t apply online.
Overview
The bottom line:
PNC business loans are a good option for existing PNC business banking customers who have established businesses and strong credit history.
Loan details
Min. Loan Amount
$20,000
Max Loan Amount
$100,000
Qualifications
Min. credit score
720
Min. Time in Business
24 months
Min. Annual Revenue
$100,000
Pros & Cons
Pros
A varied selection of business loans to offer, including SBA loans.
Specialized financing for business real estate and vehicle purchases.
SBA Preferred Lender for faster processing speed.
Cons
A minimum of two 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.
PNC, established in 1983, is a traditional bank with branches located in 28 states, plus Washington, D.C. It offers a variety of small-business loans SBA 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 PNC business checking account and use automatic payments for your loan.
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.
PNC is best for borrowers who:
- Are existing PNC banking customers. All business 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 two 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.
- Business real estate loans.
PNC business loans comparison
| Unsecured small business loan | Secured small business loan | Unsecured small business line of credit | Secured small business line of credit | Small business vehicle finance loan | Small business commercial real estate loans | |
|---|---|---|---|---|---|---|
| Loan amount | From $20,000 to $100,000. | $100,001 and up. | From $20,000 to $100,000. | $100,001 and up. | From $10,000 to $250,000. | $100,001 and up. |
| Time in business required | 2 years. | 2 years. | 2 years. | 2 years. | 2 years. | 2 years. |
| 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. | Fixed or variable rates. 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. | 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. | Up to 20 years. |
| Repayment schedule | Monthly. | Monthly. | Monthly. (1.5% of balance or a minimum of $100.) | Monthly. | Monthly. | Monthly. |
PNC SBA loans
- SBA 7(a) loans.
- SBA 504 loans.
- SBA Express loans.
| Loan amount | Up to $5,000,000. |
| Estimated APR range | 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. |
» MORE: Requirements for an SBA loan
Where PNC stands out
Range of lending and other business products
PNC offers a variety of products, including unsecured and secured financing. In addition to term loans lines of credit
SBA lending partner
As a Preferred Lender of the Small Business Administration, PNC can make final credit decisions about SBA loan applications that can make for a speedier approval process. Loan programs available at PNC include SBA 7(a) loans SBA 504 loans SBA Express lines of credit
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
As is standard with traditional banks, you will need to have a good or excellent credit score and strong credit history to qualify for a business loan from PNC. You’ll need to show you’ve made payments on time for at least the last five years. That means no 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.
Geographical limitations
Although PNC does offer a variety of business financing, it only operates branches in a little over half of U.S. states — Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin, plus the District of Columbia.
Applying for a business loan could be a challenge for borrowers in states without PNC branches, especially since PNC doesn’t give the option to apply online, but instead asks that you apply by phone or by visiting a branch.
Requires a PNC 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. All loans and lines of credit require automatic payment from a PNC business checking account
PNC loan requirements
PNC will review your personal and business credit history, look at your business financials and your personal debt to see if you meet requirements:
- A personal guarantee by business owners is required.
- A minimum of two 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.
- Personal monthly debt payments that don’t exceed 40% of the owner's gross monthly income.
- A profitable operation with upward trending or stable revenue and profit margins.
How to apply for a loan from PNC
You can apply for a PNC loan by phone or at a PNC branch. There is not an option to apply online, although a PNC banker is available to explain the application process and help you gather the necessary information.
You can find a Business Lending Guide
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 a traditional bank, Bank of America is an option. Bank of America offers secured and unsecured business loans
You can find some general information on interest rates and fees on the website. And, Bank of America offers special benefits for veterans and interest rate discounts to certain business clients. Read our full Bank of America business loans review
Altbanq
Altbanq is an alternative to a traditional bank offering business term loans. Loan amounts range from $100000 to $10 million, and loan terms are up to 24 months. An application fee isn’t charged, but you will pay an origination fee on your loan.
You’ll need to have been in business for at least 12 months, have a minimum credit score of 650 and at least $100000 in annual revenue to qualify. Read our full Altbanq review
Accion Opportunity Fund
If you’re finding it challenging to meet the credit score requirements of a traditional lender, you may want to consider the nonprofit lender Accion Opportunity Fund. It offers business loans from $5,000 to $250,000 with interest rates starting at 8.49%.
Accion’s minimum credit score requirement of 600 is much more accessible than the other providers discussed here. AOF also considers factors such as time in business and cash flow when evaluating your loan application. Read our full Accion Opportunity Fund review
» MORE: Business loans for bad credit
Compare your business loan options
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans