TD Bank Small Business Financing: 2022 Review


TD Bank is the American subsidiary of Toronto-Dominion Bank — itself among the largest banks in North America — and has over 1,100 locations along the East Coast. The Canada-based lender has operated in the U.S. since 2007.

TD Bank offers a full suite of business lending products, including financing options for restaurant franchisees and health care practitioners. It doesn’t publicly share rates and specific fees, however, which makes it difficult to compare to the competition.


Overview: Amounts, rates and fees

TD Bank offers a wide range of business lending products — both conventional and backed by the Small Business Administration (SBA).

TD Bank Small Business Financing at a glance

AmountTermsStarting rateFeesMin. credit score
Term loan$10,000-$1,000,00012 to 60 monthsNot shared publiclyOrigination fees (amount not disclosed)None
Line of credit$25,000 to $500,000Renews annuallyVariableOrigination fees (amount not disclosed)None
Commercial real estate loanUp to $1,000,00060-months term, up to 20-year amortizationNot shared publiclyOrigination fees (amount not disclosed)None
SBA 7(a) loanUp to $5,000,000Up to 300 monthsRates vary, subject to SBA maximumsPackaging fees, amount not disclosedNone
SBA 504 CDC loanNo limit if you are using the loan for a first mortgage. Max of $5 million to $5.5 million if you are using the loan for a second mortgageUp to 240 monthsAbout 3.00%Packaging fees, amount not disclosedNone

Term loans

TD Bank doesn’t share its term loans’ interest rates, but the rates are fixed and the loans do come with an origination fee. Payments are due monthly and term lengths can be between 12 and 60 months. You can borrow anywhere between $10,000 and $1,000,000, but the application process is much easier and can be completed online if you borrow under $100,000. Otherwise, you’ll need to apply in person.

These loans are typically used for equipment or vehicle financing, business expansion, renovations or lump-sum working capital. They are secured, with equipment, inventory or cash typically serving as collateral. You can qualify for a rate reduction if you set up your automatic monthly payments to come out of a TD Business Checking account.

Lines of credit

TD Bank also offers variable-rate lines of credit from $25,000 to $500,000. A line of credit is a lending product that offers flexible financing when you need it. After you’ve drawn from your line of credit, you can repay your debt and then borrow against it again in the future.

There is an origination fee and rates are based on the prime rate plus a risk-based margin. When you draw from your line of credit, payments will be due monthly.

Lines of credit at TD Bank are typically secured by business assets or accounts receivable, and are usually used to cover expenses like cash flow, payroll or inventory.

SBA 7(a) loans

TD Bank also offers lending products backed by the SBA, including its flagship SBA 7(a) loan. SBA 7(a) loans act for the most part like other term loans, in that you’ll have fixed, monthly payments over a set amount of time. The standard term on an SBA 7(a) loan is 10 years, though terms can go for as long as 300 months. You can borrow up to $5,000,000, though there is a 10% down payment required. Plus, as an SBA Preferred Lender, TD Bank may offer borrowers faster decision and funding timelines.

There’s an annual fee for SBA loans, in addition to a guaranty fee of 2% to 3.5% of the guaranteed part of the loan. These fees are typically incurred by the lender, but you are likely to see them passed along to you through what TD Bank refers to as its “packaging fee.”

SBA CDC/504 loans

SBA CDC/504 loans are typically used for real estate purchases, construction, equipment purchases or refinancing. A 10% down payment is required and there are no limits on loan amounts if you’re using the money for a first mortgage. If you’re using the loan for a second mortgage, you can borrow up to $5 million or $5.5 million, based on your industry.

As of April 2022, SBA 504 loans typically come with interest rates of approximately 3.00%. You can secure a loan with terms of 10, 20 or 25 years. There’s a one-time guaranty fee of 0.50%, and an annual fee of 0.2475%. These fees are charged to TD Bank by the SBA, but you’re likely to see them passed along to you at closing through TD Bank’s packaging fees.

Commercial real estate loans

If you want a commercial real estate loan from TD Bank that isn’t backed by the SBA, you should know that the borrowing limit is $1,000,000. 60-months terms are available, with up to 20 years’ amortization, though TD Bank doesn’t make the fixed rates for this loan product publicly available. Payments are also fixed and are due monthly. You can expect to be charged an origination fee.

Restaurant franchise financing

If you want a loan or other financing for your restaurant franchise that’s not backed by the SBA, TD Bank does offer restaurant franchise financing. Lending products are available for a minimum of $5,000,000; these can exceed $100,000,000.

These products are most commonly used for franchise acquisitions, buyouts, partnership buy-ins and commercial real estate. Rates and other information are not shared publicly.

Health care practice lending

TD Bank has slightly different standards for health care practice lending. Loans are available for physician, dental, eye care and veterinary practices for up to $20,000,000. Rates aren’t shared publicly.

These loans are typically used for:

  • Practice mergers and acquisitions
  • Partnership buy-ins or buy-outs
  • Expansions
  • Relocations
  • Equipment and technology
  • Commercial real estate financing
  • Refinancing

In addition, working capital lines of credit are available for physicians.


Requirements: Are you eligible?

Business loan requirements will vary depending on if you’re applying for a conventional lending product or one backed by the SBA. The following requirements are for conventional lending products offered by TD Bank:

  • Minimum credit score: None, though those with excellent credit can expect the best rates.
  • Time in business: There is technically no required time in business to qualify for TD Bank business lending products. However, if you are applying for a term loan or line of credit, you will be asked for:
    • One year of business tax returns (or accountant-certified financial statement) for amounts of $100,000 to $150,000
    • Two years of business tax returns (or accountant-certified financial statement and one year of personal returns) for amounts of $150,000 to $250,000
    • Three years of business tax returns (or accountant-certified financial statement and two years of personal returns) for amounts above $250,000
  • Annual revenue: For term loans and lines of credit, products are available for businesses with less than $15 million in annual revenue.

You won’t qualify for business lending from TD Bank if you operate in one of these industries:

  • Internet gambling
  • State-legalized marijuana
  • Payday lending

In order to apply, you will need to live within 100 miles of a TD Bank branch. You can find locations here.

Your accountant or broker cannot apply on your behalf, unless you operate in what the lender calls a “specialized health care” industry.

Required documents

Required documentation will depend on if you’re engaging with TD Bank’s conventional lending products or SBA lending products. For business term loans and lines of credit, you can expect to be asked for the following paperwork:

  • Personal identification
  • Business plan
  • Business financial statements
  • Personal financial statements for all borrowers
  • Business federal tax returns (two to three years for loans more than $100,000)
  • Personal federal tax returns (one to two years for loans more than $100,000)
  • Tax ID number
  • Beneficial owner form for any owner who won’t provide a personal guarantee on the loan and/or for each authorized signer of a nonprofit.
  • Entity guarantee form if your business has ownership by another business

Pros and cons of TD Bank

ProsCons

  Relatively large loan amounts depending on your industry, collateral and loan type.

  Lack of publicly shared information when it comes to rates and fees. 

 Specialized financing options for restaurant franchises and health care practices.

  TD Bank locations are only located in 15 states along the eastern seaboard, and you must be located within 100 miles of one in order to apply.

  No minimum credit score or time in business requirements.

  You’ll be responsible for any appraisal fees if you withdraw your application early.


Review: Should you apply?

If you’re borrowing less than $100,000, you can apply online. However, if you’re borrowing more than $100,000, you’ll need to download an application and apply in-person at a TD Bank branch.

Because rates and exact fees aren’t shared, it can be difficult to tell if TD Bank is a good match for you. Applying with multiple lenders and comparing quotes is recommended so you can find the lender who’ll give you the most agreeable terms. Still, if you own a restaurant franchise or a health care practice, it may be reassuring to know that TD Bank has dedicated financing options for your specific industry.


Alternatives to TD Bank small business loans

Depending on factors like your location and the amount you want to borrow, you may want to compare TD Bank to its competitors.

TD Bank vs. Navy Federal

Loans from Navy Federal Credit Union are often much smaller with much shorter loan terms. Most business lending products at Navy Federal have terms of five years or less; the only lending product at TD Bank with such short terms is its term loans. Plus, Navy Federal doesn’t offer specialized lending products for restaurant franchises or health care practices like TD Bank. But while Navy Federal business lending has a larger geographic footprint, you’ll need to have military affiliation in order to qualify for credit union membership.

TD Bank vs. PNC

TD Bank and PNC offer similar business lending products — and they both disclose few details regarding rates and fees. The loan amounts on offer are also similar, though PNC’s do go a little higher. For example, TD Bank business lines of credit max out at $500,000, while you can get up to $3,000,000 from PNC. Small business loans are also available up to $3,000,000 at PNC, while the TD Bank maximum is typically $1,000,000 for term loans.

TD Bank vs. OnDeck

OnDeck offers comparatively smaller loans and lines of credit when held up to TD Bank. Term loans are available up to $250,000 over a max of 24 months, while business lines of credit max out at $100,000. Notably, though, OnDeck is much more transparent about its rates and fees than most other business lenders, including TD Bank. For example, OnDeck explicitly states that its minimum required credit score is 600.