businesses with a credit score of at least 650 are eligible for SBA 7(a) loans, making them a versatile and accessible option for many small businesses. With competitive interest rates and high loan amounts, these loans can help businesses achieve their financial goals and grow their operations. Additionally, the long repayment terms provide flexibility and peace of mind for borrowers.
In the current fiscal year of 2025, approximately 25% of SBA microloans have been allocated to startups, which are defined as businesses with less than two years of operation. Interest rates vary, but start at 7.5%. Cash can be available within 12 to 24 hours. Can be used to build business credit. Low minimum credit score requirement.
Interest rates range from 8.49% to 28.99%. Bank loan with competitive interest rates. Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks. Prepayment fees may apply to early repayments. Must be an existing Bank of America customer to apply online. Charges an origination fee.
As a nonprofit lender, Accion has more flexible qualification requirements than banks or credit unions. You may be able to qualify for a loan with a minimum credit score of 620. Accion offers loans of up to $350,000 with repayment terms up to 60 months.
Interest rates range from 11.75% to 13.75%. Loan amounts from $5,000 to $250,000. Slower processing speed compared with online lenders. Charges an origination fee. Not available in all U.S. states. Wells Fargo offers an unsecured line of credit up to $50,000 with a 60-month revolving term. This line of credit is suitable for working capital, emergency financing, and other short-term funding needs. Businesses with less than two years in operation may qualify.
Some key requirements for the Wells Fargo line of credit include a minimum credit score of 680, availability to borrowers with less than 24 months in business, household personal liquid assets less than $500,000, and meeting standard SBA loan requirements.
Pros of the Wells Fargo line of credit include competitive interest rates, no annual fee or prepayment penalties, availability for businesses with less than two years in operation, and no origination fee. Cons include potential longer funding times compared to online lenders, credit lines limited to $50,000, and the need for a Wells Fargo checking account for online bill pay access. Short term loans typically come with higher interest rates compared to longer term loans.
Securing business loans can be a lengthy process, with traditional bank loans taking one to three months to complete the application and funding process. However, if you’re in need of quicker financing, consider the SBA Express loan, which offers loans up to $500,000 and can be approved, processed, and closed by lenders without SBA review.
Online lenders provide another option for low-interest business loans, with some offering financing in as little as two business days. These lenders often have more flexible requirements than banks or SBA loans, making them accessible to a wider range of businesses.
Nonprofit organizations and microlenders are also viable sources for low-interest business loans, particularly for businesses that may not qualify for traditional funding. While loan amounts may be smaller and interest rates higher, these lenders focus on supporting underserved businesses, including women- and minority-owned enterprises.
For those unable to secure low-interest business loans, alternative financing options like business grants, personal loans, and business credit cards can provide affordable funding solutions. Each option has its own requirements and benefits, so it’s essential to explore all possibilities before making a decision.
When evaluating the best low-interest business loans, BW considers factors such as APRs, transparency of rates and terms, flexible payment options, customer service accessibility, reporting to credit bureaus, and responsible lending practices. These criteria help small-business owners make informed decisions about their financing needs.
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