Chase Business Loans Review 2024
Updated April 4, 2024 at 4:33 pm
Chase offers several small business financing options for established companies, including term loans, lines of credit and SBA loans.
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Chase Business Loans
Vault Verified
Expert take
While Chase doesn’t disclose specific eligibility requirements for its business loan products, it focuses on lending to established businesses with strong financials. Plan on speaking with a Chase business loan specialist to apply since this lender doesn’t offer an online application.
Pros
- Several types and loans available
- SBA Preferred Lender
- Flexible repayment terms
Cons
- No option to apply online
- Limited information on eligibility and loan fees
- Prepayment fees apply for some loans
- Chase business checking account required
Vault’s Viewpoint On Chase Business Loans
Chase stands out for its commanding national presence and popularity as a major credit card issuer. This lender has more than 4,700 branches spread across the lower 48 states (excluding Alaska and Hawaii), and you’ll have to visit one to apply for one of the bank’s small business financing options. That’s because Chase doesn’t have an online application process like many of the best business lenders. Instead, it extends financing to companies that apply directly with a Chase business loan specialist instead.
Chase offers business lines of credit, term loans and commercial real estate financing. It’s also an SBA Preferred lender that helps small companies qualify for loans through the SBA 7(a) Loan Program and the SBA 504 Loan Program. But Chase isn’t the best choice for fast business loans since it can take several days and up to several weeks to get funded.
Chase is relatively tight-lipped about the eligibility requirements and fees for its loans, although its business financing products are definitely for businesses with strong financials and good credit. The lender may also give preference to existing Chase customers as well, particularly anyone who already uses them for business banking.
About Chase Business Loans
Chase offers business lines of credit up to $500,000 with repayment terms up to five years, term loans starting at $5,000 with repayment terms up to seven years, commercial real estate loans starting at $50,000 with amortization options up to 25 years and SBA loans in amounts up to $12.5 million. This means Chase could be an option for businesses that need small or large amounts, provided they meet the lender’s strict eligibility requirements.
While other small business lenders are transparent about their minimum eligibility requirements and loan fees, Chase shares only general information and wants you to speak with a loan specialist about the specifics. Some Chase loan fees that are disclosed include prepayment fees that can apply to commercial real estate loans and term loans for business in amounts over $250,000 and a $200 or 0.25% fee of the approved line of credit (whichever is greater) for its business line of credit. All payments on Chase small business loans are made on a monthly basis, which can be a benefit for business owners who want a streamlined borrowing and repayment process.
Chase Business Loan Details
Line of Credit
The Chase line of credit for business is offered in amounts from $10,000 to $500,000, although it may be possible to qualify for higher loan amounts with a commercial line of credit after speaking with a Chase business loan specialist.
Borrowers can draw money against a traditional business line of credit for up to five years, which is a longer term than many other business lines of credit offer. Commercial lines of credit through Chase are offered in shorter terms of one to two years, with the option to renew or make a balloon payment upon maturity.
| Loan amount | $10,000 to $500,000; potential for larger loan amounts with commercial line of credit |
| Fees | $200 or 0.25% of your approved line of credit (whichever is greater). Waived if 12-month average line utilization is at least 40% |
| Terms | Five years with traditional business lines of creditOne to two years with commercial line of credit |
| Repayment schedule | Monthly |
| Funding speed | Several days to a few weeks |
| APR | Varies |
Term Loans
A Chase business loan can give you a lump sum of money upfront, funding with a draw period of up to one year or a pre-approved advised line that is available for up to one year.
| Loan amount | $5,000 to $500,000 |
| Fees | $0 origination fee Prepayment fees apply for loans greater than $250,000 |
| Terms | Up to five years |
| Repayment schedule | Monthly |
| Funding speed | Several days to a few weeks |
| APR | Varies |
Commercial Real Estate Loans
Commercial real estate loans from Chase offer up to 90% financing and can be conventional or SBA.
| Loan amount | Starting at $50,000 |
| Fees | $0 origination fee Prepayment fees apply for loans greater than $250,000 |
| Terms | Up to 25 years |
| Repayment schedule | MonthlyOption for smaller monthly payments with balloon payment |
| Funding speed | A few weeks or longer |
| APR | Varies |
SBA Loans
Chase SBA loans can be used for equipment financing, the acquisition of a business, real estate purchases and more. Real estate loans offer up to 90% financing.
| Loan amount | Up to $12.5 million |
| Fees | Varies |
| Terms | Up to 25 years |
| Repayment schedule | Varies |
| Funding speed | Varies |
| APR | Varies |
Who Should Get a Business Loan With Chase?
Chase small business financing products work best for certain types of business owners, including:
- Existing Chase customers
- Companies who want a personalized, in-person banking experience
- People who want to work with an SBA Preferred Lender
- Businesses who want financing with a relatively long repayment period
Who Should Consider an Alternative Business Loan to Chase?
Chase business loans may not be the best option for:
- Businesses who need fast funding within a few days of applying
- Newer companies that haven’t been around long
- Business owners with low personal credit scores
- Companies that need alternative financing options
Getting a Business Loan Through Chase
Getting a business loan through Chase requires a visit to a local bank branch to speak with a loan specialist. Because not all branches are fully staffed and some employees may work out of several Chase locations, you will want to call and set an appointment ahead of time.
Beyond finding a location and setting an appointment to speak with a banker, here’s an overview of what you’ll need to qualify for a business loan and move through the application process with Chase.
How to Qualify for a Business Loan Through Chase
Chase appears to target its products to established companies that have strong financials and credit, although it is tight-lipped when it comes to specific eligibility requirements for its business loans. If you want to qualify for a business loan through Chase, you’ll likely need the following:
- Good personal credit: Chase does not disclose a specific minimum credit score requirement for its business funding options. But the lender requires good personal credit to be approved.
- Time in business: Most business loans from large national lenders require at least two years in business to be approved. You’ll still want to speak with a loan specialist at Chase to see if your business is eligible.
- Strong, predictable revenue: Having strong business income can also help you get approved for funding with Chase, although specific income requirements are not disclosed upfront.
- Chase business checking account: You’ll need to have a business checking account with Chase to receive your funding, but you can set this up before or after you’re approved for financing.
How to Apply for a Business Loan Through Chase
You can schedule a meeting online after registering with Chase and waiting for a verification code. While Chase doesn’t list specific documents you’ll need to bring with you to apply for small business financing options, you should plan on having the following ready:
- A business loan
- Personal and business tax returns
- Bank statements
- Profit and loss statements
- Business licenses and registrations
- Accounts receivable and accounts payable
- Articles of incorporation
- Commercial leases
- Franchise agreements
- Contracts with third parties
How Does Chase Stack Up to Competitors?
Other small business lenders offer similar financing options to Chase and are worth exploring. Consider these alternative lenders before you apply.
Chase vs. Wells Fargo
Wells Fargo is another large national bank that offers business financing options you can apply for in-branch with a loan specialist. You can also complete the entire financing process online for business lines of credit in amounts up to $100,000.
Its business lines of credit come with competitive interest rates and loan amounts up to $150,000, and Wells Fargo is clear about its minimum credit score requirement of 680. The lender also offers Prime lines of credit in larger amounts from $100,000 to $1 million for eligible companies with $2 to $10 million in annual sales. Wells Fargo offers the same selection of SBA loans through the U.S. Small Business Administration as Chase with terms up to 25 years and fixed or variable rates.
Chase vs. American Express Business Blueprint™
If you want to borrow from a bank you have heard of but you need more transparency when it comes to eligibility requirements, terms and fees, you can consider a business line of credit from American Express. This line of credit is available in amounts from $2,000 to $250,000 in most scenarios, although Amex says larger credit lines may be available.
The company also discloses its fees online, and it says you need to be in business for at least 12 months with a 660+ credit score and have an average monthly revenue of at least $3,000 in to be approved. Overall, this means Amex business lines of credit may be available to a larger swath of customers than Chase, and particularly newer companies that have lower revenues at the moment.
Chase vs. Accion Opportunity Fund
You can also consider small business loans through the Accion Opportunity Fund (AOF), which is a nonprofit loan company. This lender offers term loans in amounts from $5,000 to $250,000 with competitive rates as low as 7.49% and repayment terms from 12 to 60 months.
AOF is an online lender with a fully digital application and funding process, so it may be a better choice for businesses that don’t want to apply for financing in person. The lender also says it bases approvals on the full financial picture of applicants and looks beyond credit scores, which makes it easier to get approved.
Frequently Asked Questions
Is It Hard to Get a Business Loan from Chase?
Chase does not publish specific minimum eligibility requirements for its loans, and this lack of transparency is a major downside compared to some other lenders. Its business loans are also geared to established companies with strong credit and predictable revenues, so it can be more difficult to get approved with this lender than others.
Should I Get a Chase Business Credit Card Instead of a Loan?
While Chase business loans and lines of credit can offer the financing you need, Chase business credit cards can be worth considering if you need a line of credit for purchases. All business credit cards from Chase offer rewards for spending a selection of other perks, and credit lines can be for $40,000 or higher. Some Chase business credit cards even offer 0% APR on purchases for a limited time.
What Is the Interest Rate On Chase Business Loans?
Chase doesn’t list interest rates for its small business loan products, but it does state that they can be fixed or variable. To find out the rates you’ll pay for a loan through Chase, you’ll have to speak with a loan specialist and apply for financing.
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