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.
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:
PNC offers several term loan products for businesses, including:
| 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.
| 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 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.
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.
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:
| 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. |
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.
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.
