Our Take
5.0
NerdWallet rating
The bottom line:
Wells Fargo business loans are a good option for established business owners who are existing Wells Fargo customers or those who want to start a relationship with a large bank lender.
Wells Fargo BusinessLine® Line of Credit
Max Loan Amount
$150,000
Min. credit score
680
Pros & Cons
Pros
- Multiple business loan options available.
- One of the top SBA lenders.
- Competitive interest rates.
- Unsecured business lines of credit include a free rewards program.
Cons
- Strict eligibility requirements.
- Doesn’t offer business term loans or equipment financing.
- Will likely need to apply over the phone or in person.
- Limited information available online.
Full Review
Wells Fargo is one of the largest bank lenders in the U.S. — with an average commercial and industrial loan balance of over $291 billion in 2022. In addition, the bank offers multiple small-business loans, including business lines of credit, SBA loans, commercial real estate financing and health care practice financing.
Current customers with a Wells Fargo business checking account can benefit from an online application process for a specific loan product. Wells Fargo business loans offer competitive rates and terms; however, you’ll need strong credit and several years in business to qualify.
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.
Wells Fargo is best for borrowers who:
- Have established businesses. Although Wells Fargo doesn't provide eligibility information for all its loan products online, you will need a minimum of two years in business to qualify for the Wells Fargo Prime Line of Credit and the BusinessLine line of credit. The Wells Fargo Small Business Advantage line of credit may be an option for businesses that don’t meet that requirement.
- Are current Wells Fargo customers. Small-business owners with a Wells Fargo checking or savings account open for at least one year can apply for an unsecured business line of credit online — instead of visiting a branch to apply.
- Want SBA financing. Wells Fargo is one of the most active Small Business Administration 7(a) lenders — issuing over $427 million in loans in the 2023 fiscal year. The bank is also an SBA-preferred lender, meaning it has the experience and authority to expedite applications through the underwriting process.
- Don’t need quick access to funds. More likely than not, you’ll have to talk to a lending representative and visit a branch to apply for a Wells Fargo business loan. Compared with online lenders — some of which can fund applications in just 24 hours — it may take several business days or weeks to receive financing from Wells Fargo.
Types of Wells Fargo business loans
Wells Fargo offers the following types of small-business loans:
- Commercial real estate loans.
- Health care practice financing.
Wells Fargo business line of credit features
Wells Fargo offers both unsecured and secured credit lines, as well as an SBA line of credit which will be discussed in the next section. Here’s what you can expect from Wells Fargo’s business lines of credit:
Wells Fargo BusinessLine® Line of Credit | Wells Fargo Prime Line of Credit | |
|---|---|---|
Loan amount | $10,000 to $150,000. | $100,000 to $1,000,000. |
Credit score minimum | 680. | 680. |
Estimated APR range | Between Prime plus 1.75% and Prime plus 9.75%, based on business and personal qualifications. | Starting at Prime plus 0.50%, with a minimum rate of 5.00%, based on business and personal qualifications. |
Fees | Annual fee is waived for the first year, then $95 for credit lines up to $25,000 and $175 for lines over $25,000. | Origination fee: 0.50% of line amount, due at account opening and annual renewal. |
Collateral | None; loan is unsecured. | Secured by business assets such as accounts receivable, inventory and equipment. |
Terms | Revolving line of credit, no scheduled annual review required. | One year. Can be renewed annually, subject to credit approval. |
Repayment schedule | Monthly. | Monthly. |
You can make an appointment with a Wells Fargo small-business lending representative, by phone or in person, to learn more about commercial real estate loans and health care practice financing or any of the other loan options.
Wells Fargo SBA loans
Wells Fargo also offers multiple SBA loans, including standard SBA 7(a) loans, SBA 504 loans, and SBA lines of credit.
As an SBA preferred lender, Wells Fargo has substantial experience processing, servicing and issuing SBA loans. This designation also allows Wells Fargo to make final credit decisions without sending applications to the SBA, which speeds up the loan approval timeline.
Wells Fargo SBA loan features
SBA 7(a) loan | SBA 504 loan | SBA line of credit | |
Loan amount | Up to $5 million. | Up to $5 million.* | $5,000 to $50,000. |
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, origination, packaging, processing and other miscellaneous fees may apply. | Guarantee, origination, packaging, processing and other miscellaneous fees may apply. | No annual fee; additional 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 machinery or equipment. | Five years. |
Repayment schedule | Monthly. | Monthly. | Monthly. |
Funding speed | Varies. Average timeline is 30 to 90 days for standard SBA loans. | Varies. Average timeline is 30 to 90 days for standard SBA loans. | Varies. Average timeline is 30 to 90 days for standard SBA loans. |
*The standard maximum for an SBA 504 loan is $5 million. However, Wells Fargo lends up to $10 million for its portion of the loan. The maximum portion funded by a Certified Development Company is $5 million.
» MORE: How to qualify for an SBA loan
Where Wells Fargo stands out
Competitive rates and terms
Wells Fargo offers business loans with competitive rates and terms among its different financing options.
The BusinessLine line of credit, for example, is a revolving line of credit with no scheduled annual review required. Although the interest rate you receive will vary depending on your business’s creditworthiness and other factors, rates on this unsecured business line of credit can range from the prime rate plus 1.75% to the prime rate plus 9.75%.
Top SBA lender
Wells Fargo is an experienced SBA lender, offering multiple types of SBA financing. Wells Fargo issued 2,140 SBA 7(a) loans in the 2023 fiscal year alone.
Although you’ll likely need multiple years in business to qualify for an SBA 7(a) loan or a 504 loan from Wells Fargo, you’ll find more flexibility in applying for the SBA line of credit. Businesses with less than two years in business are eligible — but you’ll still need good credit and strong finances to qualify.
Product-specific perks
Some of Wells Fargo’s business loans offer unique perks.
For example, if you qualify for an unsecured or SBA line of credit, you’re automatically enrolled in a free rewards program. This program allows you to earn a point for each dollar spent on eligible purchases — then, you can redeem your points for travel, gift cards, merchandise and other products.
Where Wells Fargo falls short
Minimal loan options compared with competitors
Compared with competitors like Bank of America and Chase, Wells Fargo has a limited number of business loan options. For example, unlike some bank lenders, Wells Fargo doesn’t offer business term loans, equipment financing or business auto loans.
If you’re looking for any of these specific types of business financing, you’ll need to consider other banks or online lenders.
Hard to qualify and slow to fund
Like most bank lenders, you’ll likely need multiple years in business, excellent credit and strong financials to qualify for a Wells Fargo business loan.
And if you want to apply online and take advantage of a streamlined application process, you’ll need to have a Wells Fargo checking or savings account for at least one year. Plus, the online application is available for the unsecured business line of credit only.
For all other Wells Fargo business loans, you’ll need to contact a lending representative to discuss your financing needs or visit a branch to complete an application. Compared with online lenders offering applications with minimal documentation and funding within days, working with Wells Fargo will be much slower.
Limited information available online
Although not uncommon among bank lenders, Wells Fargo doesn't provide access to the information you may find from online business lenders, such as annual revenue requirements.
And while Wells Fargo may list specific details, like interest rate ranges and average time to fund, for certain products, it doesn’t include all information consistently across the different loan types.
How to apply for a business loan from Wells Fargo
You can apply for a small-business loan from Wells Fargo by calling and working with a lending specialist or scheduling an appointment and visiting a branch location. In addition, if you’ve had a Wells Fargo checking or savings account for at least one year, you can apply for an unsecured business line of credit online.
When you apply for a Wells Fargo business loan, you can expect to provide some, if not all, of the following information:
- Legal business name, address and phone number.
- Date business was first established.
- Ownership type and the number of owners.
- Gross annual revenue.
- Business tax returns.
- Business financial statements.
As the business owner, you’ll also need to provide:
- Name, address and phone number.
- Social Security number.
- Date of birth.
- Citizenship information.
- Personal tax returns.
Wells Fargo may ask for additional information depending on the type of business loan you’re applying for.
Alternatives to Wells Fargo
Bank of America
If you’re looking for a bank lender that offers a wider variety of business loan options, Bank of America is a good choice. Bank of America provides business term loans, lines of credit, equipment financing, auto loans, commercial real estate loans and SBA loans.
Plus, if you have a Bank of America business checking account, you can apply for many of these loan options online and become a member of the Preferred Rewards for Business program to access discounted interest rates and other perks.
Like Wells Fargo, however, you’ll need solid finances and several years in business to qualify for a business loan from Bank of America.
» Learn more: Bank of America business loans review
OnDeck
For a faster and more accessible unsecured business line of credit lender, you might consider OnDeck. OnDeck offers lines of credit up to $100,000 with terms of 12, 18 or
24
months. Interest rates vary but will likely be much higher than a Wells Fargo business line of credit.You can apply for an OnDeck business line of credit online or over the phone, with minimal documentation, and receive funds as soon as the same day. To qualify, you need a minimum FICO score of
625
, at least 12
months in business and at least $100,000 in annual revenue.» Learn more: OnDeck business loans review
Find the right business loan
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.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
New elevated offer
