Last reviewed by:
Jill A. Chafin
December 19, 2022
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| Pros | Cons |
|---|---|
Variety of business loan options available SBA Preferred Lender Additional financial products available, such as business checking accounts and credit cards | Website lacks transparency about fees, terms and eligibility requirements SBA loans aren’t available in all states Shorter terms for certain loans in comparison to competitors |
Headquartered in Cleveland, KeyBank has $181 billion in assets with over 1,000 full-service branches in 15 states.
As an SBA Preferred Lender, KeyBank has provided more than $2 billion in SBA-guaranteed funding to small businesses since 2015. In addition to SBA loans, KeyBank also offers a diverse range of conventional small business loans, including term loans, business lines of credit, commercial real estate loans and equipment financing.
Who is KeyBank for?
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Term loans | $10,000 to $500,000 | 12 to 84 months | Not publicly disclosed | Not publicly disclosed |
| Business line of credit | $10,000 to $500,000 | Renewable 12-month (revolving term) | Not publicly disclosed | Not publicly disclosed |
| Commercial real estate loan | $10,000 to $1,000,000 | Up to 240 months | Not publicly disclosed | Not publicly disclosed |
| Equipment financing | Not publicly disclosed | Not publicly disclosed | Not publicly disclosed | Not publicly disclosed |
| SBA 7(a) loan | Up to $5,000,000 | Up to 300 months* | Rates vary, subject to SBA maximums* | Not publicly disclosed |
| SBA 504 loan | $100,000 to $12,000,000 | Up to 240 months* | About 3.00%* | Not publicly disclosed |
KeyBank offers options for short-term or long-term business loans for amounts between $10,000 to $500,000. Repayment terms range from 12 to 84 months. The fixed and adjustable interest rates are stated as competitive, however KeyBank doesn’t disclose past or current APR numbers.
You can apply for either a secured or unsecured term loan. The main difference is that a secured loan requires collateral — which a KeyBank representative stated is required for all loans over $100,000. Unsecured loans typically come with higher interest rates and lower credit limits.
The business line of credit is a flexible form of financing that businesses can access when they need funds. With KeyBank, you can borrow between $10,000 to $500,000 with a renewable 12-month term. KeyBank offers both secured and unsecured lines of credit. You’ll also have the option to make interest-only monthly payments.
Although KeyBank doesn’t publicly list its interest rates, they have professional advisors who can assist you in determining which, if any, business line of credit is right for your business’s immediate needs.
If you’re looking to purchase or refinance commercial real estate, KeyBank offers commercial real estate loans from $10,000 to $1,000,000. Repayment terms extend up to 240 months and fixed and variable interest rates are available, although KeyBank doesn’t disclose any figures. Additionally, KeyBank specifies that the loan proceeds need to be completely disbursed at closing — multiple draws aren’t permitted with this type of loan.
You can acquire, upgrade or replace essential equipment for your business with an equipment loan. This type of loan can ultimately help optimize your business’s cash flow while preserving your lines of credit. KeyBank doesn’t disclose loan amounts for this product, but its website states that it offers up to 100% equipment financing with no down payment, plus they provide assistance with disposing of your older equipment. Unfortunately, KeyBank doesn’t release any information on interest rates or maximum amounts.
As a SBA Preferred Lender, KeyBank partners with the U.S. Small Business Administration (SBA) to offer SBA loans. KeyBank offers 7(a) loans, the most common type of SBA loan. Known for its flexible purposes, KeyBank offers 7(a) loans up to $5,000,000. Although KeyBank doesn’t list expected terms or rates, the SBA stipulates a maximum length of 300 months for SBA loans.
KeyBank also offers several types of 7(a) loans to meet a range of financing needs, including the SBA Express loan up to $350,000, the Working CAPLine with a revolving credit limit up to $1 million and the SBA International Trade loan up to $5 million.
KeyBank offers the SBA 504 loan, which can be used for business development purchases such as machinery, buildings or commercial real estate. These loans consist of three parts: a low-cost down payment from the borrower, a SBA-guaranteed portion from a certified development company (CDC) and the remaining funds from KeyBank. Depending on your business type, you can borrow between $100,000 and $12,000,000. Once again, KeyBank doesn’t disclose specific loan details, however, SBA 504/CDC loans typically come with a 10-year or 20-year term with an approximate 3.00% interest rate.
One major drawback to keep in mind is that KeyBank SBA loans are only available in the following states: Alaska, Colorado, Connecticut, Idaho, Indiana, Maine, Massachusetts, Michigan, New Jersey, New Hampshire, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont and Washington.
Even though KeyBank doesn’t provide specific requirements in advance — such as credit score ranges, annual revenue or time in business — it’s best to be prepared by gathering the typical small business loan requirements.
For SBA loans, KeyBank requires that your for-profit business meets some or all of the following:
KeyBank doesn’t break down requirements for each lending product. However, here is a general list of documents you may be expected to provide:
Comparing other banks to KeyBank is a challenge since so many important details are not provided. However, it’s generally a good idea to consider several small business lenders before moving ahead. With enough research, you can feel confident with a KeyBank business loan or perhaps score a better deal elsewhere.
Here are some alternatives worth checking out.
| KeyBank | OnDeck | TD Bank | |
|---|---|---|---|
| Minimum credit score | Not publicly disclosed | 625 | None |
| Loan products offered |
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|
|
| Time in business | Three years | One year | 0-3 years, depending on loan type and amount |
| Starting APR | Around 3.00% for a SBA 504/CDC loan Conventional loan APRs not publicly disclosed | Starting at 29.90% | Around 3.00% for a SBA 504/CDC loan Conventional loan APRs not publicly disclosed |
| Maximum loan size | $12,000,000 for 504/CDC loans | $250,000 | $5,500,000 (or no limit if using loan for a first mortgage) |
| Minimum annual revenue | No minimum specified, but needs to be less than $5 million | $100,000 or more | No minimum specified, but needs to be less than $15 million |
Although OnDeck only offers two business loan products — a short term loan and a business line of credit — it has a couple of advantages when compared to KeyBank. For example, OnDeck offers loans for businesses who have been in operation for just one year, as opposed to KeyBank’s requirement of three years. As an online lender, OnDeck’s credit score requirement of 625 or higher may also be lower than KeyBank; traditional brick-and-mortar banks tend to offer lower APRs but require higher credit scores as a tradeoff.
However, OnDeck only offers loan amounts up to $250,000, which is only half the amount KeyBank offers for term loans and lines of credit. Furthermore, OnDeck’s APR rates start fairly high at 29.90%. In the end, OnDeck might be worth pursuing if you’re looking to borrow a small amount, you’ve been in business for over a year and your credit score is around 625.
TD Bank offers a range of business loan products, including health care practice lending. There is no minimum credit score for its business loans, although a higher score will secure you a better rate. Similar to KeyBank, there are no APR rates listed. It is noteworthy that TD Bank offers loans regardless of how long you’ve been in business, compared to KeyBank’s three-year requirement. However, certain loans and amounts with TD Bank will require that you’ve been in business for at least three years.
If you’re looking for maximum borrowing power, TD Bank falls short with a $5,500,000 limit, compared to KeyBank’s $12,000,000. Overall, TD Bank could be a better option if you haven’t been in business very long and reside near a TD branch.
