Best Low-Interest Business Loans in December 2024

If working with large banks is more your style, consider Bank of America — especially if you opt to use it for everyday business banking as well. Existing small business customers have access to online business loan applications, as well as the Preferred Rewards program that offers tiered discounts and perks for businesses that keep an average daily balance of at least $20,000 in their business banking accounts.

Big banks often get a bad rap for customer service, but at least on the small business side of things, you can rest assured that you’ll probably have a good experience with Bank of America. The bank was rated fairly highly in terms of small business customer satisfaction by the independent reviewer J.D. Power in 2023.

Aside from SBA loans, Wells Fargo doesn’t offer much in the way of term loans. But if you’re looking for an affordable and flexible source of funds — for all businesses, new and established — Wells Fargo may be a good option.

It offers three business lines of credit to choose from, with the lowest-level option geared towards businesses that have been open for two years or less. Its Prime Line of Credit, on the other hand, is geared toward larger businesses with at least $2,000,000 in annual sales.

If you’ve got the time and credentials to put together a strong business loan application, chances are an SBA loan will be among your best options for low-interest business loans. The U.S. Small Business Administration (SBA) partners directly with individual lenders who offer these loans, so you’ll have a wide range of sources to choose from.

Each individual lender decides what you’ll need to qualify within the bounds of SBA guidelines. This means that while there technically is no specific minimum requirement for credit scores or time in business, these loans may also be an option for startups — if you can find a lender to approve your application.

Fundbox doesn’t have a true business loan, but instead it offers a hybrid loan/line of credit that may be more useful to startups that may need to draw funds frequently while they’re figuring out their business operations. Fundbox’s business lines of credit allow you to draw against your available credit limit as needed.

However, unlike traditional lines of credit, you’ll choose a repayment plan right away, with a 12– or 24-week term length. Although payments are made on a weekly basis, rather than monthly, you’ll have a clear and quick path to repaying your funds.

Accion Opportunity Fund (AOF) distributed an average loan amount of $46,674 to more than 2,400 borrowers in 2022, most of whom were underrepresented minorities among small business owners. Eight out of ten borrowers were non-white, for example, and 57% of loans were made to low- to moderate-income businesses. The majority of borrowers were men, at 58%, with women making up 34% of borrowers, and 8% of borrowers not being identified by gender.

Unlike a traditional small business lender, AOF operates as a nonprofit, offering business coaching and support programs along with small business loans, with the profits being reinvested in future loans and educational programs.

Technically still a part of the SBA 7(a) loan program, the SBA Express loans may be more appropriate if you only need a relatively small amount of funding. You can still use these funds for a wide range of purposes, including real estate.

The main advantage to an SBA Express loan is that it’s faster to get because the lender has more control over approval, rather than requiring the typically thorough review by the SBA.

If you need a low-interest business loan fast, iBusiness Funding may be your best bet. It takes as few as six minutes to complete and submit an application, one business day to receive a decision, and if approved, your loan funds will be disbursed in as few as 48 hours.

Most lenders charge higher interest rates for fast-turnaround loans, but iBusiness Funding is still relatively affordable. It does, however, make up for the lower rates by charging higher origination fees ranging from 4.49% to 10.49% of your loan amount.

Taycor Financial is an alternative online small business lender that offers a wide array of financing options that may overlap in certain areas, which can be confusing for borrowers looking for a straightforward term loan.

Options for equipment financing are lumped in with working capital loans, for example, and equipment purchases may be structured as a lease or a loan, the implications of which are important to understand. Your financing may also be offered at a low interest rate or you may be charged a factor rate, which can make it difficult to compare financing options.

If you’re early in your entrepreneurial journey and can generate more social clout than financial credentials, Kiva — yes, the microlending platform — may be the perfect fit. It now offers small, interest-free business loans to people in the U.S., but you’ll face a roundabout application process that’s different from any lender.

First, you’ll need to have a buzzworthy business idea or funding need, since Kiva relies on “social underwriting” (TikTok-worthy, in other words). You’ll create a public profile (photos help), which Kiva will review within 15 days. If approved, you’ll enter a “Private Fundraising Period” where you’ll need to gather between five and 35 “lenders,” which can be friends and family, to pledge a minimum of $25 toward your loan. Once that happens, your loan will be listed on Kiva’s public page for 30 days. If enough individual people pledge toward your loan, it’ll be disbursed; if not, your lenders receive their funds back, and you’ll need to find alternative funding.