Capital One Business Loans: 2022 Review

Jul 20, 2022

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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
Capital One
Min. credit score
700

Pros & Cons

Pros

  • Quick funding for simple loans.
  • Competitive terms.
  • Variety of loans available.
  • Rebate for qualifying owner-occupied real estate loans.

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, commercial auto loans and investor real estate loans. Across its business lending programs, Capital One had a commercial loan program totaling more than $84.9 billion at the close of 2021.

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?

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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.

  • Are purchasing an office, warehouse or other owner-occupied property. Capital One currently offers a rebate on qualifying real estate loans for owner-occupied properties — a bonus for borrowers looking to offset closing costs.

Types of Capital One business loans

Capital One offers the following types of small-business loans:

  • Commercial real estate loans.

  • Business lines of credit.

  • Business term loans.

  • Equipment loans.

  • Commercial auto loans.

  • Construction loans.

  • SBA loans.

Capital One business loan features

Capital One offers a variety of business loans; here’s what to expect with each loan type.

Business term loan

Business line of credit

Equipment financing

Commercial real estate loan

Loan amount

$10,000 to $5 million.

$10,000 to $5 million.

$10,000 to $5 million.

$250,000 to $5 million.

Estimated APR range

Varies based on your business’s qualifications.

Varies based on your business’s qualifications.

Varies based on your business’s qualifications.

Varies based on your business’s qualifications.

Fees

Origination fee varies by loan size.

  • Loans up to $100,000: $150.

  • Loans between $100,000-$250,000: 0.25% of loan amount.

  • Loans over $250,000: Negotiable.

Other fees, such as lien search and processing charges, may apply.

Annual fee: 0.25% of the line amount.

Origination fee varies by loan size.

  • Loans up to $100,000: $150.

  • Loans between $100,000-$250,000: 0.25% of loan amount.

  • Loans over $250,000: Negotiable.

Other fees, such as lien search and processing charges, may apply.

Origination fee varies by loan size.

  • Loans up to $100,000: $150.

  • Loans between $100,000-$250,000: 0.25% of loan amount.

  • Loans over $250,000: Negotiable.

Other fees may include title/lien search, appraisal, recordation and processing.

*Rebate offer (1% of the loan amount) available for owner-occupied real estate loans over $250,000.

Terms

Up to 5 years for unsecured term loans.

  • One year revolving.

  • Evergreen lines available with no maturity date.

Up to 10 years, determined by the equipment’s estimated useful life.

Up to 20 years.

Repayment schedule

Monthly.

Monthly.

Monthly.

Monthly.

Capital One SBA loans

Capital One offers SBA 7(a) and SBA 504 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

Loan amount

Up to $5 million.

Up to $5 million.

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.

Fees

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.

Repayment schedule

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.

*The SBA will finance up to 40% (a maximum of $5 million). The remaining loan is funded by the bank and borrower.

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 commercial auto 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.

Rebates for qualifying real estate loans

Capital One currently offers a rebate to help offset the closing costs on certain real estate loans. The rebate equals 1% of the total loan amount, up to $7,500, and is available on owner-occupied real estate loans of $250,000 or higher. This offer is for a limited time and available as of this writing.

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 10th largest bank by assets (according to the Federal Reserve), it only approves a handful of SBA loans each year. In the first half of 2022, for example, Capital One approved just 17 SBA 7(a) loans totaling roughly $16.1 million. Most of its large bank peers each approved hundreds of 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.

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: one year in business, annual gross revenue of at least $100,000 and a personal FICO score of 600 or higher. Most banks, by contrast, require two years in business and a FICO score in the high 600s, at a minimum.

Compare small-business loans

To see and compare loan options, check out NerdWallet’s list of best small-business loans. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.

How Much Do You Need?

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