Chase Bank is a large financial institution serving nearly half of all American households through both personal and business banking products.
Chase, which was known as The Chase Manhattan Corporation until it merged with J.P. Morgan and Co. in 2000, has more than 4,700 branches across the United States. Its wide range of conventional and SBA business lending products are available in the 48 contiguous states.
Chase offers a wide range of business lending products, but it doesn’t share many specifics on its website when it comes to fees, rates and credit score requirements.
|Business line of credit||$10,000-$500,000||Renewable 60-months revolving term||Not publicly disclosed||Annual fee of undisclosed amount — can be waived if you have a 40% utilization rate.|
|Commercial line of credit||$500,000+||Initial term of 12-24 months, but can be renewed.||Not publicly disclosed||Not publicly disclosed.|
|Term loans||$5,000+||12-84 months||Not publicly disclosed||Not publicly disclosed|
|Equipment financing||Up to 110% financing||Up to 7 years or 75% of the equipment’s estimated useful life||Not publicly disclosed||Varies depending on location|
|SBA 7(a) loan||Up to $5,000,000||Up to 300 months||Rates vary, subject to SBA maximums||Not publicly disclosed|
|SBA 504/CDC loan||Up to $12,500,000||Up to 300 months||About 3.00%||Not publicly disclosed|
|Commercial real estate loan||$50,000+||Flexible, though terms can be 84 to 120 months||Not publicly disclosed||Not publicly disclosed|
Minimum credit scores and estimated APR ranges for each loan product were not publicly disclosed. A Chase representative shared that this varies based upon applicant and loan size and type.
Chase offers small business term loans of $5,000 or more with terms ranging from 12 to 84 months. Monthly payments are fixed, though Chase does not provide specific interest rates or APRs. Specific fees on these loans are also not publicly available. With such little information, it’s difficult to discern whether Chase’s term loans are competitive.
Chase offers business owners two different lines of credit, with the biggest difference being how much you can borrow.
Business lines of credit are available for amounts of $10,000 to $500,000. They come with a renewable 60-months term. If you have a remaining balance on your line of credit at that point and Chase does not renew it, you will have five more years to pay off your debt. You will pay interest plus at least 1% of the balance due or $100 —whichever is more — on a monthly basis. These lines of credit do come with an annual fee, though the specific amount is not disclosed. If your average utilization rate over the past year is at least 40%, this fee will be waived.
If you need more funding, you may look at Chase’s commercial lines of credit, which start at $500,000. Terms on these larger lines of credit start at 12 to 24 months, and may be renewed at their expiration. Interest-only payments are due monthly.
SBA loans are loans backed by the Small Business Administration (SBA) and made through a partner lender. Chase offers SBA 7(a) loans, a form of term loans that allow you to borrow up to $5,000,000. SBA Express loans are a type of SBA 7(a) loan that allow you to borrow smaller amounts — up to $500,000 at Chase. Terms are available up to 300 months, and specific interest rates offered through Chase are not publicly disclosed.
The SBA charges Chase a guarantee fee of 2% to 3.5%. You may see Chase pass that fee along to you in the form of origination or other fees. You could also end up paying a prepayment penalty if you have a loan term of 15 years or more, and you pay off at least 25% of the principal balance in the first three years of loan disbursement.
With its status as a Preferred Lender with the SBA, Chase is able to make final approval decisions, which may help to expedite the process to receiving your funds.
Chase allows you to use SBA 504/CDC loans for commercial real estate, construction or equipment acquisition purposes. You can also use these loans to refinance debt.
Chase SBA 504 loans max out at $12,500,000, which is notable because these loans are typically only available for amounts of $5 million or $5.5 million. You can borrow up to 90% of your collateral’s value — or the cost of the project. Terms extend up to 20 years. Interest is about 3.00%.
Chase does not publicly share fee amounts on these loans, but the SBA will charge Chase a guarantee fee of 0.50%, and an annual fee of 0.2475%. Chase may repackage these fees before passing on the expense to you as the consumer.
There are also conventional commercial real estate loans available at Chase. These loans start at $50,000. Most businesses with owner-occupied commercial real estate qualify for up to 80% financing. Chase says terms are available between 84 and 120 months, but also says that terms can be flexible.
If you’re borrowing for construction purposes, you can make interest-only payments during the construction period. Interest rates and fees are not disclosed.
Chase allows you to borrow up to 100% of the vehicle or equipment’s cost, plus an additional 10% for soft costs. Soft costs often include things like shipping, assembly or training related to the equipment purchase.
Terms can be flexible according to your cash flow, according to Chase, but maximum terms are seven years, or up to 75% of the vehicle’s or equipment’s useful life. Chase did not provide specific rates for its vehicle and equipment financing, but you are likely to run into various fees depending on where you are based. One of the common fees is a documentation fee.
Chase did not provide specific minimum credit requirements, annual revenue and time in business requirements. Its business lending products are available in the 48 contiguous states. You must apply through a banker at your local in-person branch.
Chase does not list specific document requirements for each lending product. However, it does generally suggest that you come prepared with:
Your personal and business credit reports will be pulled, and for certain SBA loans you will be required to file Form 1919 and submit a personal financial statement.
Wide range of products.
Chase provides very little product information prior to application.
Large loan amounts on all products
Not available in all states.
Comparatively long terms available on term loans. Shorter terms are also available for those who want to potentially save on interest payments.
Longer terms can mean you end up paying more in interest over time, so be careful before signing on for the entire 84 months.
It is difficult to discern if Chase business lending products are right for your business with minimal information publicly available. However, Chase does offer a wide range of products, so whether you need to borrow a lot or a little, you’re likely to find a product that meets your borrowing needs. You won’t know if it’s a competitive product until you apply, and you also won’t know if you’ll qualify unless you specifically ask your banking representative for more detailed guidelines before applying.
While it may be tricky to compare Chase to other lenders without all the information available, comparison shopping is always a good idea before you take out a loan. Here are some alternatives to consider.
TD Bank is another traditional bank that offers a wide range of business financing options. Like Chase, it also doesn’t disclose a lot of detail about its business lending products. TD Bank starts its term loans at $10,000 where Chase starts at $5,000, and TD Bank terms end at 60 months compared to Chase’s max of 84 months. If you’re going to compare products, you might have to put an application in at each individual bank to see which offers more favorable rates and fees.
In contrast to Chase’s full suite of business financing options, OnDeck is an online lender that offers only two products: business term loans and business lines of credit. However, OnDeck is more transparent with its eligibility criteria; both products are available for those with less-than-perfect credit scores (as low as 600) and come with high APRs. While Chase does not disclose its rates and credit score requirements, many traditional brick-and-mortar lenders offer more favorable interest rates, but only to those with higher credit scores. You would have to apply to see if this rule holds on Chase business lending products.
Compared to Chase, Funding Circle is very transparent with its fees and interest rates. While it only offers three products — SBA 7(a) loans, term loans and business lines of credit — it offers reasonable rates considering the minimum credit score requirements for each product, which range from 630 to 700. Chase may or may not offer better rates as a traditional lender, but you’ll have to apply and ensure your credit score is high enough to qualify.