Bank of America Business Loans Review 2025

Who are Bank of America business loans best for?

Bank of America business loans are best for established businesses needing access to many loan types. Additionally, Bank of America offers interest rate discounts to existing business banking customers through its Preferred Rewards program. Higher checking account balances qualify for bigger discounts.

Who might Bank of America not be a fit for?

Businesses that opened recently might find that Bank of America is not a fit. Its cash-secured lines of credit require six months in business, but its term loans require at least two years in business. Unsecured and secured business loans also have higher annual revenue requirements than cash-secured lines of credit. Bank of America’s annual revenue requirement of $250,000 for a two-year secured business loan is higher than some of its competitors.

Funding speed is relatively slow. Bank of America offers funding within a week, but several competitors offer funding within one to three business days.

Types of business loans available

Bank of America offers various loan types, letting you choose one that suits your business needs.

Term loans

Secured and unsecured term loans let you borrow with a fixed or variable rate and repay the money over time. Secured loans require collateral and start at $25,000. They have a $250,000 annual revenue requirement. Unsecured loans start at $10,000 and require $100,000 in annual revenue. Depending on the product, you might be eligible for a variable rate and a waiver for origination fees.

Lines of credit

Secured and unsecured business lines of credit let you borrow up to a set credit limit. The interest rate might be higher than the rate on a term loan, but you pay interest only on your outstanding balance. Making payments on the account increases your available credit.

Bank of America also has a cash-secured line of credit that requires a cash deposit.

Equipment financing

Equipment financing provides $25,000 or more to finance business assets. When the business assets secure the loan, terms can be up to five years. Like with other Bank of America financing options, customers with a business checking account might qualify for a rate discount.

Commercial real estate loans

Commercial real estate loans offer amounts of $25,000 and up with terms of up to 10 or 15 years. You need two years in business and $250,000 in revenue to qualify. Veterans might qualify for 25% off loan administration or origination fees.

Small-business auto loans

Auto loans offer $10,000 or more to finance a business vehicle. Financed vehicles must be no more than five years old, have 75,000 miles or less and have a minimum value of $10,000. Bank of America small-business auto loans include a 30-day rate lock, which guarantees your rate remains the same for 30 days after application approval.

SBA loans

Small-business owners seeking government-backed loans might prefer SBA loans. Bank of America offers SBA 504, 7(a) and Express loans. SBA loans range from $25,000 to $5 million, depending on the type.

Bank of America business loan details

Bank of America offers term loans, lines of credit, equipment financing and other products.

• Loan amounts: Many Bank of America products have a $10,000 minimum, but the cash-secured line of credit starts at $1,000. Generally, no loan maximum is specified, but SBA loans are limited to $5 million.
• Loan cost: Bank of America offers competitive interest rates. Many loan types are eligible for a rate discount of 0.25% to 0.75% through the Preferred Rewards program. An origination fee of $150 often applies.
• Repayment terms: Terms are up to five years for secured business loans and equipment financing. Commercial real estate terms are up to 15 years. 
• Funding speed: Loans are generally funded within one week.
• Business criteria: Loan products have varying requirements. The Bank of America unsecured business loan is an example that requires two years in business, $100,000 in annual revenue and a 700 personal credit score, while a line of credit might require six months in business and $50,000 in annual revenue.

Pros and cons of Bank of America business loans