PNC Small Business Loans Review


What Is Pittsburgh National Corporation?

Pittsburgh National Corporation (PNC), headquartered in Pittsburgh, Pa., is one of the largest banks in the country. PNC has retail branches located in 20 states, mostly in the Midwest and along the East Coast.

PNC offers several options for businesses, including term loans, business lines of credit and Small Business Administration (SBA)-backed loans.

In this article, we will specifically cover PNC small business term loans, then look at alternative options in a future article.


Features of PNC small business banking

If you live in a state where you have access to a PNC bank branch and your business qualifies for a loan, here is what you can expect:

  • Loan options to suit your business needs. PNC offers a wide range of products for financing your business, such as term loans and equipment loans.
  • High standards for preventing fraud. PNC takes cyber security very seriously, ensuring your personal information — and your money – is secure 24/7.
  • Cash Flow Insight. PNC’s innovative suite of online tools can help you manage your business cash flow with confidence. With Cash Flow Insight, you can track your spending, visualize actual and projected transactions, pay vendors electronically and more.

PNC small business loans

PNC offers several term loan products for businesses, including:

  • Business Equity Installment Loan: Pulls equity out of residential or owner-occupied commercial real estate to fund business growth.
  • Business Vehicle Loan: Financing of up to 100% for business vehicles.
  • Choice Credit for Business Term Loan: An unsecured, term loan of $10,000 to $100,000.
  • Commercial Real Estate Loan: Used for purchasing or refinancing owner-occupied, commercial real estate. Generally uses equity in real estate as collateral.
  • Secured Term Loan: Longer term financing for one-time business expenses, such as equipment and machinery purchases.
PNC Business Loan Comparison
Loan product Loan amount Loan term APR Range/ Factor Rate Fees Time to funding
Choice Credit for Business Term Loan $10,000 to $100,000 Up to 48 months, fixed monthly payments. No collateral required. Monthly payments deducted from PNC business checking account. 6.28% to 15.79% Origination fee of 0.50% of loan amount. Not specified. According to PNC’s FAQ section, once the loan is approved, the borrower will be asked to go to an assigned PNC branch to sign appropriate documents, after which funds will be disbursed to the borrower’s PNC business checking account.
Secured Term Loan $10,000 to $3 million. Up to 7 years, secured by business assets such as machinery or equipment. Monthly payments deducted from PNC business checking account. Fixed or variable rate based on the highest prime rate published for the last day of the preceding calendar month in the “Money Rates” section of the Wall Street Journal. Annual fee of $175. Not specified. Borrowers sign documents at the designated PNC branch. Funds are disbursed to the borrower’s business checking account with PNC.
Commercial Real Estate Loan $50,000 to $3 million Up to 10 years, with up to a 20-year amortization.
Payments are deducted monthly.
Fixed or variable, based on WSJ prime. Origination and annual fees may apply. Not specified. Funds disbursed to PNC account upon document signing.
Business Vehicle Loan $10,000 to $250,000 Up to 60 months, secured by vehicle(s). Not specified. Origination and annual fees may apply. Not specified.
Business Equity Installment Loan $10,000 to $3 million Up to 20 years for residential property equity loans. Up to 10 years for commercial property equity loans. Monthly payments are deducted from PNC business checking account. Fixed or variable rate based on WSJ prime. Origination and annual fees may apply. Funds disbursed upon signing documents.

Rates current as of 06/10/2018

Each owner with at least 25% interest in the business is required as a guarantor.


Requirements for PNC business loans

Loan product Annual revenue Min. business or personal credit score required Time in business
All Not specified, but the bank generally requires upward and stable financial trends including profits and historical profits. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) must be more than projected annual principal and interest payments. Not specified, but the bank requires a clean personal credit history, with no recent 30-day late payments or evidence collection accounts, charged off accounts or foreclosures.

On the business side, no evidence of bankruptcy, unsatisfied tax liens, judgments or lawsuits. In general, the business should have a history of paying all obligations on time.

Minimum of 3 years.

PNC also offers SBA-guaranteed loans, including:

  • SBA 7(a) Loans: The SBA’s most popular program can be used for anything from renovations to real estate or franchise purchases, inventory, equipment, working capital, and refinancing. The maximum amount for 7(a) loans is $5 million.
  • SBA 504 Loans: Used for larger projects such as commercial real estate purchases, major renovations, or purchasing heavy construction or manufacturing equipment. Maximum range for these loans is $5 million and $5.5 million.
  • SBA Express: Features loan amounts up to $350,000 and an application process that’s streamlined compared with other SBA offerings. You can use this loan for commercial real estate purchases, equipment, franchise financing, or working capital — and you can arrange for a term loan or line of credit.
  • SBA Export Express: Offers loan amounts of up to $500,000 to help export companies develop their businesses internationally. You can get this loan as a line of credit or term loan.
  • SBA Veterans Advantage: Features an upfront, guaranty fee that is 50% less — on loans between $125,001 and $5 million — for veteran-owned businesses.

SBA loans can be an excellent option for any business that qualifies, although they can take a little longer to close because there is government involvement. The SBA caps interest rates at prime plus 2.25% to prime plus 6.5%, depending upon the type of loan.


Eligibility considerations:

  • To apply online, businesses must have an account with PNC.
  • Owners’ personal debt payments should allow for 60% of income to go toward living expenses and taxes.
  • Companies operating in volatile or cyclical industries must show a longer time in business with a strong financial performance.
  • PNC requires borrowers to pay back loans through PNC business checking accounts.
  • Unless the loan is unsecured, PNC requires collateral, including marketable assets such as equipment or real estate worth 1.25% of the loan amount.

PNC loans — ineligible industries

PNC does not specify any industries that are ineligible for a small business loan. If, however, you are operating outside one of the 20 states with PNC branches — Alabama, Delaware, District of Columbia, Florida, Georgia, Kentucky, Indiana, Illinois, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia and Wisconsin — please call 1-800-762-5684 for assistance.


How to apply for a business loan with PNC

PNC customers can apply online for Choice Credit for Business, Secured Term, and Business Vehicle loans. Those who aren’t current PNC customers must apply for a loan at a PNC branch. Once the bank receives your application, a loan coordinator will review it and submit it to the underwriting department. Once that process is complete, the loan coordinator will contact the borrower with a loan decision.

Required loan documents:

  • Legal business name, address, phone number and email.
  • Type of business, year established, date acquired by current owner and Industry Code (NAICS).
  • Business Tax ID or Social Security number (sole proprietors only), annual sales/gross revenue and number of employees.
  • Government-issued photo identification for verification purposes.
  • Information about each business owner — name, home address, phone number, date of birth, email address and Social Security number. Title, citizenship and ownership percentage required for one owner only.

Pros/cons

Pros Cons
  PNC offers many business loan solutions to fit your needs.   Tough underwriting requirements.
  Depending on the borrower’s credit, rates and terms are competitive with other major lenders and more favorable than alternative lenders.   Potentially lengthy application process, depending on loan type.
  PNC is a stable institution that offers all the services you would expect from a major commercial bank.   Not available in some states outside the PNC geographical footprint.

Should you get a business loan from PNC?

Established, profitable business owner within PNC’s geographical footprint who have stellar credit records will benefit the most from working with PNC. Companies interested in securing a business loan with the SBA might also consider a loan from PNC.

As with other major traditional banks, it can be very time consuming to secure a business loan from PNC. The application process is extensive and may require a meeting with a retail banker.


How PNC stacks up

PNC does not specify the fees it charges for several loans, so be sure to talk with your banker about what your fees will be to understand the total cost of your loan.

PNC is a great option if you’re running a stable business and are seeking a wide variety of services and products. It’s also a solid choice if you want to explore SBA loans. PNC, however, might not be a good choice for startups or those with less-than-perfect credit.

Compare small business loan offers