Bank of America Small Business Loans: 2022 Review


As a traditional brick-and-mortar bank, Bank of America offers term business loans, SBA loans, lines of credit and equipment financing options. With more stringent eligibility criteria than some lenders, Bank of America small business loans may be a good fit if you have an established business and strong personal credit.


Amounts, rates and fees

Bank of America small business loans offer a variety of financing options for small business owners including lines of credit, auto loans, commercial real estate loans, equipment loans, and healthcare practice loans.

Bank of America Small Business Loan Financing at a Glance
Amount Terms Rate Fees
Business Advantage unsecured line of credit From $10,000 Revolving with annual renewal As low as 4.50% None
Secured business line of credit From $25,000 Revolving with annual renewal As low as 3.75% Upfront and renewal fees vary depending on the amount

  • For loans $100,000 or less: $150
  • For loans $100,001 to $250,000: $250
  • For loans $250,001 and above: 0.5% of the line amount
Business Advantage unsecured term loan $10,000 to $100,000 12 to 60 months As low as 4.75% $150, if approved
Secured business term loan From $25,000
  • Up to 4 years when secured by business assets
  • Up to 60 months, for loans secured by a certificate of deposit
As low as 2.49% on loans from $100,000 for the first 12 months on qualifying small business conventional and SBA secure term loans. Must apply by Dec. 31, 2021 and close and fund by April 30, 2022 0.50% of amount financed
Business Advantage auto loan From $10,000 48 to 72 months As low as 2.49% APR No application fee
Commercial real estate loan From $25,000
  • Up to 10 years with balloon payment
  • Up to 180 months with full amortization
As low as 3.00%
  • 0.75% upfront fee on amount financed
  • Additional fees and closing costs such as property insurance, flood hazard insurance and/or appraisal may apply
Equipment loan From $25,000 Up to 60 months if secured by business assets As low as 3.00% 0.50% of the amount financed
Health care practice loans Up to $5,000,000 Depends on the type of financing Differs based on loan purpose and term Varies depending on type of loan, loan terms, and amount financed; discounts available to members of select professional organizations and the military
SBA loans $25,000 to $5,000,000 Up to 300 months 2.49% on loans from $100,000 for the first 12 month. Must apply by Dec. 31, 2021 and close and fund the loan by April 30, 2022 SBA fees:

  • 2% for loans of $150,000 or less
  • 3% for loans of $150,001 to $700,000
  • 3.5% for loans of $701,001 to $1 million, plus 3.75% of loans over $1 million

Fee and interest discounts

Veterans and existing Bank of America business customers may be eligible for one of more of the following free and interest rate discounts.

Preferred Rewards for Business: If you have an active Bank of America business checking account and a an average daily balance of $20,000 or more in qualifying BofA business accounts or investment accounts over three months, then you may be eligible for the following discounts on interest rates with the Preferred Rewards for Business program:

  • Gold: 0.25% discount on each business loan product.
  • Platinum: 0.50% discount on Business Advantage loans and lines of credit; 0.35% discount on commercial real estate loans and Business Advantage auto loans; 0.30% on practice solutions loans.
  • Platinum Honors: 0.75% discount on Business Advantage loans and lines of credit; 0.50% discount on commercial real estate loans and Business Advantage auto loans; 0.35% on practice solutions loans.

Veteran discount: You may be eligible for a 25% discount on loan administration and origination fees if you’re a veteran, a servicemember on active duty or part of the U.S. Armed Forces reserves or national guard. To qualify, you must submit and be approved for a new small business loan on or after Nov. 1, 2019. This discount does not apply to the Business Advantage auto loan, Business Advantage term loan and Business Advantage lines of credit, as well as fees on renewal of lines of credit or fees charged by third parties, such as the SBA.

Business Advantage secured and unsecured line of credit

The Business Advantage lines of credit can help small businesses cover short-term cash flow needs like payroll, inventory and operating expenses. A business line of credit offers access to your revolving credit, which only requires repayment when you use the money. In contrast, a traditional business loan provides you with a lump sum upfront that you need to pay in predetermined increments, whether you use the funds or not.

Lines of credit are similar to small business credit cards: These products allow you to take only what you need from your credit limit, and they’ll only charge interest on the amount you use, not the amount approved. A secured line of credit requires collateral, while an unsecured line of credit does not. While business credit cards are convenient for small expenses in the short term, lines of credit provide long-term financing for larger amounts at lower interest rates.

Business Advantage unsecured line of credit:

  • Minimum and maximum amount: From $10,000
  • Repayment term: Revolving with annual renewal
  • Repayment schedule: Monthly payments
  • Interest rates: from 4.50%
  • Fees: None
  • Typical time to funding after approval: Depends on the speed of documentation back and forth

Business Advantage secured line of credit:

  • Minimum and maximum amount: From $25,000
  • Repayment terms: Revolving with an annual renewal
  • Repayment schedule: Monthly payment
  • Interest rates: As low as 3.75%
  • Fees: Upfront and renewal fees of $150 for amounts up to $100,000; $250 for amounts over $100,000.01 to $250,000; 0.5% of the line amount for amounts over $250,000
  • Typical time to funding after approval: Depends on the type of collateral and the speed of documentation back and forth
  • Types of collateral accepted: Blanket lien on general assets or certificate of deposit (may or may ot be required to secure line of credit for amounts of $100,000 or less)

Business Advantage auto loan

If you want to purchase a car, van or light truck for your business, the Business Advantage auto loan might be an option to consider. If you’re looking for commercial vehicles that weigh over 2.5 tons, you would need to consider Bank of America’s equipment loan, not their business auto loan.

Business Advantage auto loan details:

  • Minimum and maximum amount: From $10,000
  • Repayment terms: 48 to 72 months
  • Repayment schedule: Monthly payment
  • Interest rates: As low as 2.49% APR
  • Fees: No application fee
  • Typical time to funding after approval: Depends on the speed of documentation back and forth
  • Requirements: Minimum vehicle value of $10,000, maximum vehicle age of 5 years, less than 75,000 miles

Commercial real estate loan

If you want to purchase land or commercial property for your business needs, a Bank of America commercial real estate loan might be right for you. A commercial real estate loan works very similarly to a personal home mortgage: You receive a loan for the purchase price of your property, minus the down payment and any fees you owe. The key difference between the two is that you would use a commercial real estate loan to buy or build property to produce income.

Commercial real estate loan details:

  • Minimum and maximum amount: From $25,000
  • Repayment terms: Up to 10 years with balloon payment; up to 180 months with full amortization
  • Repayment schedule: Monthly payment
  • Interest rates: As low as 3.00%
  • Fees: 0.75% fee on amount financed
  • Typical time to funding after approval: Depends on the speed of documentation back and forth

Equipment loan

Bank of America’s equipment loan can help you purchase heavy-duty equipment, such as manufacturing lines and printing presses, or general-purchase equipment like office technology. You can also use a BofA business equipment loan to buy commercial vehicles that are greater than 2.5 tons.

Equipment loan details:

  • Minimum and maximum amount: From $25,000
  • Repayment terms: Up to 60 months if secured by business assets
  • Repayment schedule: Monthly payment
  • Interest rates: As low as 3.00%
  • Fees: 0.50% of the amount financed
  • Typical time to funding after approval: Generally in 10 business days

Health care practice loan

Bank of America offers health care practice loans to both established and startup practices. For established practices, Bank of America business loans are available to a wide range of medical specialties. However, financing options for startups are more limited to specific medical specialties, including obstetrics and gynecology, dermatology, ophthalmology and general surgery.

 Health care practice loan details:

  • Minimum and maximum amount: Up to $5,000,000
  • Repayment terms: Depends on the type of financing
  • Interest rates: Differs based on loan purpose and term
  • Fees: Varies depending on type of loan, loan terms and amount financed
  • Typical time to funding after approval: Depends on the speed of documentation back and forth

Bank of America SBA loan

With loans of up to $5,000,000 and repayment times as long as 300 months, SBA loans are commonly used for general operating costs or real estate purchases. They are guaranteed by the U.S. Small Business Administration, but the loan is made by a financial institution that partners with the SBA. Bank of America is a Preferred Lender for SBA loans, which means that the application process is streamlined and your loan may be processed more quickly.


Loan requirements

Bank of America business loans have more stringent eligibility requirements, so this may not be the best fit for newer businesses with weak cash flow. Here is a rundown of the eligibility requirements:

  • Time in business: 2 years in business under current ownership
  • Annual revenue
    • For secured loans and lines of credit: At least $250,000
    • For unsecured loans and line of credit: At least $100,000
    • For equipment loans: At least $250,000
    • Bank of America looks for businesses to have $1.25 income to support every $1 of debt service

Required documents

For unsecured loans, unsecured lines of credit and auto loans, you can apply online. All other loans require you to schedule an appointment in person or over the phone to apply with a business lending specialist.

For all Bank of America business loans, you must submit the following documents from your business:

  • Name
  • Business street address (no P.O. boxes) and date moved to current address
  • Phone number
  • Tax ID
  • Nature of business
  • Date on which the business was established
  • Business acquisition date of current ownership
  • Number of employees
  • Annual net profit and gross sales
  • Any outstanding obligations (should include lender, current loan balance or credit limit and monthly payment)
  • Any specific information about the equipment, vehicle or real estate you intend to finance (if necessary)

Bank of America business loans also require the following personal information:

  • Name and title of the person opening the account
  • Name and address of the entity for the account
  • Name, date of birth, Social Security number for U.S. citizens or;
    • Passport number and country of issuance for foreign individuals
    • Residential address, country of citizenship, country of residence and percentage of ownership for each beneficial owner and each controlling individual Certification that the information provided on the beneficial owner and/or the controlling manager is accurate
  • Personal income
  • Residence status and monthly housing payment

Pros and cons

Pros Cons
  • Multiple loan and credit options, depending on your industry and need
  • Requires a minimum annual revenue of $100,000
  • Interest rates as low as 3% (2.49% APR for business auto loan)
  • Requires at least 2 years in business
  • Interest rate discounts up to 0.75% for loyal customers
  • Typically requires businesses to have $1.25 in income for every $1 of debt service


Should you apply?

With a wide, flexible range of financing options and an A+ rating with Better Business Bureau, Bank of America small business loans may be a good option for established businesses with at least $100,000 in annual revenue.

Drawbacks of Bank of America small business loans

Bank of America may not be the right fit for a new startup or businesses with an annual revenue under $100,000. If you have a startup or have poor credit, you may want to focus on business credit or finding alternative funding options.


Alternatives to Bank of America small business loans

Readers may want to consider other options before applying for funding. Here’s how Bank of America small business loans stack up:

Bank of America vs. Navy Federal Credit Union

While Bank of America offers a 0.25% discount on interest to veterans and active service members, Navy Federal Credit Union requires that its members be active duty or veterans. If you’re eligible, Navy Federal may be a better option for newer businesses, since it offers term loans for businesses under two years. However, Navy Federal’s term loans and lines of credit are secured, so if you’re looking for unsecured loans, then Bank of America would be a better fit.

Bank of America vs. Wells Fargo Bank

With unsecured lines of credit starting at $5,000 for some businesses, Wells Fargo business line of credit may offer a wider range of funding alternatives than Bank of America’s line of credit options. Plus Wells Fargo’s Small Business Advantage unsecured line of credit offers funding for businesses in operation less than two years, compared to Bank of America’s two-year requirement.

Bank of America vs. Funding Circle

If your business has been in operation for less than two years, or if you struggle to meet Bank of America’s annual revenue requirements, the online lender Funding Circle may be a good option for you. Funding Circle has no minimum annual revenue requirements and offers funding to those with credit scores below 700. But while the eligibility and credit criteria are less strict than Bank of America, Funding Circle business loans do have significantly higher interest rates.