Chase Business Loans: 2022 Review

Chase offers business term loans, lines of credit, commercial real estate loans, and equipment and trade financing.
Jul 1, 2022

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Our Take

The bottom line:

Established businesses with strong financials and an excellent credit can score competitive rates and terms on a business loan with Chase, but you can only apply in person.

Chase
Chase
Min. credit score
700

Pros & Cons

Pros

  • Multiple types of business loans available.
  • Equipment financing at up to 100% plus soft costs.
  • Competitive, flexible terms.

Cons

  • No option to apply online or by phone.
  • 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. In 2021, for example, Chase averaged $205 billion in commercial loans, including term loans, lines of credit, equipment financing and real estate loans.

Business owners can apply for a small-business loan in person with a Chase business loan specialist, provided they have strong credit and have been in operation for several years. While Chase has branch locations in 48 states and the District of Columbia, Chase business loans are only available in the following 23 states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Michigan, New Jersey, Nevada, New York, Ohio, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and West Virginia.

You do not need a Chase business checking account to apply but, if approved, you will need to open one prior to your loan being funded.

How Much Do You Need?

with Fundera by NerdWallet

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 equipment financing. Chase offers up to 100% financing on equipment loans, plus up to 10% for soft costs like warranties, installation and the like.

  • 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.

Types of Chase business loans

Chase offers the following types of small-business loans. Not all loan types are available in all locations:

  • Business term loans.

  • Business lines of credit.

  • Equipment financing.

  • Trade financing.

  • Commercial real estate loans.

  • U.S. Small Business Administration loan programs include SBA 7(a) loans, Express loans and 504 loans.

Chase business loan features

Chase 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

$5,000 and up.

$10,000 to $500,000.

$10,000 and up.

$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.

Variable dependent on the customer, products and other factors.

Terms

12 to 84 months.

Five-year revolving term, renewable.

Up to seven years or 75% of equipment’s estimated useful life.

Up to 25 years.

Repayment schedule

Monthly.

Monthly.

Flexible repayment terms available.

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.

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 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.

Financing for soft costs with equipment loans

New equipment can come with a lot of upfront costs — delivery, installation, setup and warranties, for example — that aren’t part of the purchase price. Chase business equipment loans will cover up to 100% of the equipment cost, plus 10% for those soft costs. This is not a given with other lenders. Some will only cover the equipment price, while others will fund a percentage of the equipment — 80% for example — with the remaining 20% designated for soft costs.

Where Chase falls short

Must apply in person

The only way to apply for a Chase business loan is in person at a branch. That can be an inconvenience for business owners, particularly those running their business during banking hours. Prefer to apply online or in-person? Wells Fargo offers the option to apply by phone, and several online lenders offer completely online business loan applications.

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.

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 first quarter of 2022, for example, 259 SBA loans were approved through Chase, totaling $71,157,300. Huntington National Bank processed 2,279 approved SBA loans totaling $346,276,400. 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

Want to apply for a Chase business loan? You need to apply in person with a Chase business loan specialist. 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 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.

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

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.

Kabbage

Kabbage offers business lines of credit of up to $250,000 with monthly repayment terms. Unlike Chase, Kabbage 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 and have funding in a few days if approved, making it a good option for businesses that need quick access to working capital.

Kabbage does require 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.

Funding Circle

Funding Circle is one of NerdWallet’s top picks for equipment loans, in part because it offers competitive rates and quick funding (within three business days).  You can borrow up to $500,000 for a new equipment purchase, with terms up to seven years.

While Funding Circle does have more lenient lending criteria than big banks like Chase, the online lender does still require a minimum credit score of 660 and at least two years in business to qualify.

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.