Chase Business Loans: 2023 Review
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Our Take
The bottom line:
Established businesses with strong financials and excellent credit can likely score competitive rates and terms on a business loan with Chase, but details are limited.
Full Review
Pros & Cons
Pros
- Multiple types of business loans available.
- Loans larger than $500,000 are available.
- Competitive, flexible terms.
Cons
- Strict eligibility requirements.
- Limited information on terms and fees available online.
- Low SBA loan volume relative to size.
Full Review
Chase is the largest bank in the United States based on asset size, with more than $2.6 trillion in assets and a lending portfolio to match. Like many banks, Chase doesn’t disclose its lending requirements — but if you have strong credit and several years in business, Chase may offer you a small-business loan with competitive rates and terms.
In order to apply, you’ll need to connect with a Chase business loan specialist. The application process may be slow compared to non-bank options, like online lenders. And if you’re approved, you’ll need to open a Chase business checking account prior to your loan being funded.
How Much Do You Need?
Chase business loans are best for borrowers who:
Have established businesses with strong credit, business financials. Banks tend to have stringent loan eligibility requirements. While Chase doesn’t publish its exact qualifications, startups and businesses with shaky revenue are unlikely to qualify.
Need large loans. If you want to borrow more than $500,000, you can meet with a Chase staffer to talk about options.
Don’t need quick access to funds. Business owners need to apply in person for a Chase business loan, and the underwriting process can take days or weeks. If you need fast funding, consider an online lender, some of which can fund loans in as little as 24 hours after approval.
Chase business loan features
Chase offers business term loans, business lines of credit, trade financing, commercial real estate loans and SBA loans — though not all loan types are available in all locations.
Here’s what to expect with each loan type:
Business term loan | Business line of credit | Commercial real estate loan | |
|---|---|---|---|
Loan amount | $5,000 and up. | $10,000 to $500,000. | $50,000 and up. |
Fees | Fees vary but may include documentation and origination fees. | Annual fee: 0.25% of the line. Waived when average daily line utilization is 40% or more. | Variable dependent on the customer, products and other factors. |
Terms | 12 to 84 months. | Five-year revolving term, renewable. | Up to 25 years. |
Repayment schedule | Monthly. | Monthly. | Monthly. |
Chase SBA loans
Chase offers three types of SBA loans: SBA 7(a), SBA 504 and SBA Express loans.
Chase is an SBA preferred lender, giving the bank authority to make the final call on SBA loans applications rather than routing loans through the SBA for approval.
While this can lead to quicker lending decisions for SBA loans processed through Chase, it may also make it harder to qualify. Chase processes a fraction of the number of SBA 7(a) loans approved through other large national banks, like Wells Fargo and U.S. Bank. Even smaller regional banks like Huntington and Key Bank approved more SBA 7(a) loans than Chase, according to SBA data, despite having fewer assets and resources.
Chase SBA loan features
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. | Approval within 36 hours of application being submitted to the SBA. Actual funding speed varies. |
*The SBA will finance up to 40% (a maximum of $5 million). The remaining loan is funded by the bank and borrower. | |||
» MORE: How to qualify for an SBA loan
Where Chase stands out
Competitive, flexible terms
Chase business loans offer flexible terms, beyond what is standard for most big banks. Repayment for Chase business term loans, for example, can extend up to seven years (84 months). By contrast, Bank of America’s business term loans top out at five years (60 months).
Business owners who take out an equipment loan through Chase can also choose between a standard term loan or a draw loan, which allows them to tap into a line of funding for up to 12 months. Draw loans convert to a standard repayment term once the draw period ends.
The flexibility of a draw loan can benefit business owners who need to make multiple equipment purchases — to outfit a new office, for example — within a defined time period.
Range of financing options
With SBA loans, term loans, lines of credit and commercial mortgages, Chase offers an array of options for business owners seeking financing. That can make it easier to find a product well suited to your needs. If you’re financing a new building, for instance, you’ll be able to consider both SBA 504 loans and commercial real estate loans.
On top of business loans, Chase also offers business checking accounts — which you’ll need to open for your loan to be funded — and Chase Payment Solutions, for accepting and processing payments. If you prefer working with fewer service providers, Chase may be a one-stop shop for several different business needs.
Where Chase falls short
Fees and terms not disclosed online
Chase doesn't publish the eligibility requirements or fees for its business loans, and its website is pretty opaque when it comes to terms for certain loans, as well.
While not uncommon among bank lenders, this lack of transparency makes it difficult to effectively shop and compare loans. It can also cause business owners to waste precious time pursuing funding when they don’t meet baseline eligibility requirements.
Limited availability by state
Chase business loans are only available in the following 28 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, New Jersey, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Virginia, Washington, Wisconsin and West Virginia.
Low SBA loan volume relative to size
Chase is the largest bank in the United States with $2.6 trillion in assets. It is also an SBA preferred lender. Despite those facts, Chase tallies far fewer SBA loans than competitors big and small.
In the 2022 fiscal year, for example, 683 SBA 7(a) loans were approved through Chase, totaling more than $171 million. Huntington National Bank processed 5,475 approved SBA loans totaling more than $952 million.
For context, Huntington is the 15th largest bank in the U.S. with $173 billion in assets. That means Chase processed roughly one-tenth as many approved SBA loans as Huntington, despite being 15 times bigger.
Given this, you may consider looking elsewhere if you want an SBA loan, unless you have an existing business relationship with Chase.
How to apply for a business loan from Chase
You'll have to work with a Chase business loan specialist to apply for a business loan from the bank. While you do not need a Chase business checking account to apply, you will need to open one before your loan is funded.
Chase doesn’t list the documents and information needed to apply, but you can expect to provide much of the following:
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.
Chase doesn't list a minimum credit score requirement on its site, but you typically need a FICO score of 700 or higher for the best odds of approval.
Alternatives to Chase business loans
Wells Fargo
Wells Fargo is consistently among the top SBA lenders, making it a good alternative for business owners seeking an SBA loan from a national bank. As a preferred SBA lender, Wells Fargo also has the authority to make the final decision on credit without waiting for SBA approval, helping to speed up the often lengthy application process.
Wells Fargo offers SBA 7(a) loans, SBA 504 loans and SBA lines of credit.
Funding Circle
If you have the credentials to qualify for a Chase business loan but don’t want to wait for funding, consider Funding Circle. This online lender’s term loans can fund in just two days.
Funding Circle offers business term loans of up to $500,000 with terms of six months to seven years. Interest rates start at a competitive 15.22%. To qualify, you’ll need a credit score of 660 or higher and at least two years in business.
American Express Business Blueprint™
If you don’t think you can qualify for a Chase business loan, consider American Express Business Blueprint™ (formerly Kabbage). Unlike Chase, American Express extends credit to startups (at least one year in business) and business owners with fair credit (a minimum FICO score of 640 is required). You can apply online with minimal paperwork, making it a good option for businesses that don't have time to wait for a bank loan. It's also important to note that all businesses are unique and subject to approval and review.
American Express Business Blueprint™ offers business lines of credit of from $2,000 to $250,000 with monthly repayment terms. The lender requires a personal guarantee and charges higher fees than banks or credit unions. You also need an online checking account or PayPal account to verify cash flow.
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.
