Our Take
The bottom line:
Established businesses can get great terms on a business loan with Capital One, if they have the financials to qualify and the patience to apply in person.
Capital One Business Line of Credit
Max Loan Amount
$5,000,000
Min. credit score
700
Pros & Cons
Pros
- Quick funding for simple loans.
- Competitive rates and terms.
- Variety of loans available.
- Offers specialized medical practice and other industry-specific financing.
Cons
- Must apply in person.
- Only available in eight states and the District of Columbia.
- Limited SBA lending.
- Very little information available online.
Full Review
Capital One offers a wide variety of small-business loans: everything from SBA loans to standard term loans and lines of credit to construction loans, equipment financing and investor real estate loans. Across its business lending programs, Capital One held more than $91.1 billion in commercial banking loans at the close of the third quarter of 2023.
To qualify for some of that capital, your business needs at least two years in business and a Capital One business checking account (which you can open when you apply). Strong financials and excellent credit history are also important, though Capital One doesn’t specify those lending criteria on its website.
Businesses interested in business loans from Capital One need to apply in person, which could prove inconvenient if your business isn’t located near a branch. More on that below, along with details of the bank’s loan programs, its advantages and disadvantages, and other lenders to consider.
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.
Capital One business loans are best for borrowers who:
- Have established businesses. Capital One doesn’t disclose much about its lending criteria, but one thing it does specify is this: You need two years in business, at a minimum, to qualify.
- Prefer an in-person loan experience (and are near a Capital One branch). To apply for a Capital One business loan you must visit one of its roughly 300 branch locations; the bank does not offer online or phone applications.
- Need large loans. Capital One offers lines of credit, commercial real estate loans and SBA loans up to $5 million.
Types of Capital One business loans
Capital One offers the following types of small-business loans:
- Business lines of credit.
- Business term loans.
- Construction loans.
- SBA loans.
Capital One business loan features
Capital One offers a variety of business loans; here’s what to expect with a couple loan types.
Business line of credit | Commercial real estate loan | |
|---|---|---|
Loan amount | Up to $5 million. | Up to $5 million. |
Estimated APR range | Varies based on your business’s qualifications. | Varies based on your business’s qualifications. |
Fees | Annual fee: 0.25% of the line amount. | Origination fee varies by loan size.
Other fees may include title/lien search, appraisal, recordation and processing. |
Terms |
| Up to 20 years. |
Repayment schedule | Monthly. | Monthly. |
Time in business required | Two years. | Two years. |
Capital One SBA loans
Capital One offers SBA 7(a) loans, SBA 504 loans and SBA Express loans, but it is by no means a prolific SBA lender (more on that below). Here’s what to expect with an SBA loan through Capital One.
SBA 7(a) loan | SBA 504 loan | SBA Express loan | |
|---|---|---|---|
Loan amount | Up to $5 million. | Up to $5 million. | Up to $500,000. |
Estimated APR range | Varies based on your business’s qualifications, but subject to SBA maximums. | Varies based on your business’s qualifications, but subject to SBA maximums. | Varies based on your business’s qualifications, but subject to SBA maximums. |
Fees | Guarantee, packaging, servicing and other miscellaneous fees may apply. | Guarantee, packaging, servicing and other miscellaneous fees may apply. | Guarantee, packaging, servicing and other miscellaneous fees may apply. |
Terms | Up to 25 years for commercial real estate and up to 10 years for all other purposes. | Up to 25 years for commercial real estate and up to 10 years for all other purposes. | Up to 25 years for commercial real estate and up to 10 years for all other purposes. |
Repayment schedule | Monthly. | Monthly. | Monthly. |
Funding speed | Varies. Average timeline is 60 to 90 days for standard SBA loans. | Varies. Average timeline is 60 to 90 days for standard SBA loans. | Varies. The timeline for Express loans is shorter than for standard SBA loans. |
» MORE: How to qualify for an SBA loan
Where Capital One stands out
Quick funding for simple loans
Funding a business loan through a big bank can often take weeks or even months. But Capital One can fund simple business loans in just a few days. The key word there is simple. Large, complicated deals, like commercial real estate loans, can take up to three months to close, according to a Capital One spokesperson. If time is of the essence, you can also look to an online lender. Some deliver cash in hand in as little as 24 hours (if approved). The tradeoff: higher rates and less favorable terms.
Variety of loans available
Some lenders stick to one or two loan products. Not Capital One. This bank offers everything from construction loans to equipment loans and business lines of credit. However, you’ll need to visit a branch to learn about qualifications, terms, maximums, etc. Details on Capital One’s website are scant.
Where Capital One falls short
Must apply in person
To get a Capital One business loan, you have to visit a branch location to apply in person. That alone limits access for business owners who don’t live in Capital One’s service area, which encompasses eight states — Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Virginia and Texas — and the District of Columbia.
But access is still limited for many business owners within that area, as branch locations are concentrated in one or two locations in certain states. In Virginia, for example, all Capital One branches are located in northern Virginia, making the bank and its business loans inaccessible to business owners in other parts of the state. The same is true in Texas, where Capital One branches are primarily located in Dallas, Houston and their respective suburbs.
Very little information available online
Capital One keeps the details of its business loan offerings very close to the vest. Little information is disclosed on its website. Instead, business owners seeking a loan need to visit a branch to find out about requirements, terms, fees and rates.
While it’s not uncommon for banks to publish limited information on loans, Capital One is on the extreme end of the spectrum. This lack of transparency makes it difficult for business owners to compare financing options. By contrast, many online lenders publish average rates, fees and terms.
Limited SBA lending
SBA loan applications are nuanced and time consuming; it’s essential that your lender is well versed with all the ins and outs. While Capital One is the ninth-largest bank by assets (according to the Federal Reserve), it approves far fewer SBA loans each year when compared to other large national banks.
In the 2023 fiscal year, for example, Capital One approved 75 SBA 7(a) loans totaling roughly $68 million. In comparison, Bank of America, Wells Fargo and Chase Bank all approved more than 1,000 SBA loans during that time.
How to apply for a business loan from Capital One
You need at least two years in business and a Capital One business checking account to qualify for a Capital One business loan. You can open a checking account when you apply for your loan; both must be done in person at a Capital One branch.
Plan to provide the following documents and information when you apply:
- Business plan.
- Business name, address and phone number.
- Date business was established.
- Ownership type and tax identification number.
- Business tax returns.
- Bank and financial statements.
- Details on equipment or property for real estate and equipment loans.
Business owners will also need to give the following personal information:
- Name, home address and telephone number.
- Social Security number and date of birth.
- Personal tax returns.
- Citizenship information.
While Capital One doesn't disclose its minimum credit score requirement, you typically have the best chance of approval if you have a FICO score of 700 or higher.
Alternatives to Capital One
Wells Fargo
Looking for an SBA loan from a large national bank? Wells Fargo is a solid bet. The national bank offers SBA 7(a) loans, SBA 504 loans and SBA lines of credit.
Wells Fargo is one of the top SBA lenders and its status as a preferred lender means the bank doesn’t need to wait for the SBA to sign off on loan applications before approval. That can help speed up the often lengthy application process of applying for an SBA loan. Read our full Wells Fargo business loans review.
OnDeck
OnDeck is a good alternative for business owners who don’t have the stellar credit needed to secure a loan through Capital One (or other big, national banks). The online lender offers business term loans ranging from $5,000 to $250,000 and business lines of credit up to $100,000 — some with same-day funding.
You need to meet the following criteria to get a business loan through OnDeck:
12
months in business, annual gross revenue of at least $100,000 and a personal FICO score of 625
or higher. Most banks, by contrast, require two years in business and a FICO score in the high 600s, at a minimum. Read our full OnDeck review.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 to find the right fit for your business.
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