Truist Small Business Financing: 2022 Review


In 2019, SunTrust and BB&T Banks entered into a merger, forming a new entity known as Truist. For over a year, SunTrust and BB&T maintained their own product lines, but in early 2022 all products will be consolidated under the Truist name. Truist small business lending products tend to have longer terms than its competition, but most of its loans are capped at $250,000 if your business makes less than $2 million per year.


Overview: Amounts, rates and fees

Truist offers term loans, SBA loans, auto and commercial vehicle loans, real estate loans and lines of credit.

Truist doesn’t publicly share its credit requirements, fees or interest rates, but it does offer a 0.25% to 0.50% interest rate deduction on small business lending products for customers who have a Dynamic business checking account.

Truist Financing At a Glance

Financing productAmountTermsStarting ratesFeesMin. credit score
Term loanUp to $100,000Up to 60 monthsNot disclosedNot disclosedNot disclosed
Auto small business loanUp to $250,000Up to 75 monthsNot disclosedNot disclosedNot disclosed
Commercial vehicle and equipment loanUp to $250,000Up to 84 monthsNot disclosedNot disclosedNot disclosed
Real estate loanUp to $250,000Up to 180 monthsNot disclosedNot disclosedNot disclosed
Line of creditUp to $100,000 without collateral Up to $250,000 with collateral12 to 36 months without collateral Up to 60 months with collateralNot disclosedNot disclosedNot disclosed
SBA LoansUp to $5,000,000 with SBA 7a loans In excess of $5M with SBA 504 loansUp to 300 monthsRates vary, subject to SBA maximumsNot disclosedNot disclosed

Term loans

Truist issues fixed-rate term loans that have terms of up to 60 months, with payments on your term loan due monthly. You can borrow up to $250,000, but if you’re borrowing $50,000 or more, Truist will need to verify your business assets. And if you need to borrow more than $100,000, you will need to secure your loan with collateral. Should collateral be required in order to qualify, you’ll need to apply through Truist’s branch network.

Even on unsecured loans, Truist claims its rates are low, while noting that you need to be creditworthy to qualify. However, it doesn’t make these rates or credit qualifications publicly accessible before application.

If you have borrowing needs in excess of $250,000 and revenue over $2 million, you can look at Truist’s commercial lending products.

Small business auto loans

You can borrow up to $250,000 with Truist auto loans for small businesses. You’re able to finance up to 100% of the vehicle’s cost, which means you may not have to make a down payment. If you’re financing passenger or commercial vehicles, you can finance an extra 10% for soft costs, such as:

  • Equipment add-ons
  • Delivery fees
  • Taxes
  • Tag and licensing fees

However, extended warranties, maintenance contracts and GAP insurance aren’t included under soft costs.

Payments will be due monthly, and terms can be available for up to 75 months. Refinancing options are also available.

Commercial vehicle and equipment loans

Truist’s commercial vehicle and equipment loans for small businesses operate very similarly to its small business auto loans. First, the equipment serves as collateral on the loan, just as a vehicle would serve as collateral on an auto loan.

Commercial vehicle and equipment loans also allow for 100% financing, as well as an additional 10% financing for soft costs on construction and agricultural equipment. Payments are due monthly, and you can borrow up to $250,000.

Where commercial vehicle and equipment loans differ is in the length of their terms. While auto loans can only have terms up to 75 months, those of commercial vehicle and equipment loans can go up to 84 months.

Small business real estate loans

For a Truist small business real estate loan, you’ll need to make at least a 15% down payment. Terms can be as long as 180 months, and you can borrow up to $250,000. You can borrow more if you have at least $2 million in annual revenue, but you’d have to look at Truist’s commercial lending products.

You’ll also need to look at commercial lending if you want to purchase a multifamily investment property or start new construction. To be considered multifamily, there must be at least five units in the property. One- to four-family units fall under small business commercial real estate loans, as long as you’re not living in one of the units yourself.

These loans are secured, as the real estate you’re purchasing will serve as collateral. Payments are due monthly.

Line of credit

Truist offers revolving lines of credit to small business owners. These loans have variable rates that Truist claims are low, though rates aren’t shared publicly on their site.

If you don’t want to put up collateral, you can borrow up to $100,000, with terms between 12 and 36 months. If you do secure your line of credit with collateral, you can borrow up to $250,000 with terms of up to 60 months. If you are borrowing more than $50,000, you’ll need to provide proof of your business assets, whether or not your loan is secured.

With a Truist line of credit, you will have the option to access your funding via transfers to your checking account or by writing checks against your line of credit. This is made even more convenient if you have a Truist Dynamic business checking account — then, you’ll qualify for the interest rate discount that’s anywhere between 0.25% to 0.50%.

SBA loans

You can get two types of SBA loans through Truist: SBA 7(a) loans and SBA 504 loans.

SBA 7(a) loans can be used for almost anything, including costs associated with restructuring leadership or acquisition. Loan amounts are available up to $5,000,000, and your down payment could be as low as 10%.

SBA 504 loans are typically used for commercial real estate or equipment purchases. These loans can exceed $5M, and have repayment terms of up to 25 years at either fixed or variable rates.

Truist may also offer SBA Express and SBA Specialty products, such as the Export-Express program and disaster recovery loans, but details may vary depending on the borrower.



Requirements: Are you eligible?

The requirements to qualify for small business loans from Truist aren’t transparent. Truist doesn’t publicly list minimum credit score or time in business requirements for its small business lending products. Truist doesn’t list minimum revenue requirements for small business products either, but if you have at least $2 million in revenue, you’ll qualify for its commercial lending products.

Required documents

For most small business lending products, you can technically apply online, but it may be difficult to navigate to the application on Truist’s website. If you find yourself in this situation, you can call customer service at 844-487-8478 or talk to someone at your local branch office. If you are able to navigate to the online application, be prepared with:

  • Your personal street address
  • Your personal phone number
  • Your Social Security number
  • Name and email address of all co-applicants or guarantors
  • Name and email address of everyone who owns 20% or more of the business
  • Basic information about the business operations


Pros and cons of Truist

ProsCons

  Interest rate discount available for Dynamic business checking customers.

  Difficult to apply online for most products. 

 Term lengths tend to be generous.

  Difficult to compare to other lenders until after you have an offer for your loan or line of credit. 

 Fairly wide array of lending products available.

  Borrowing is capped at $250,000. Beyond that, you’ll need to prove at least $2M in revenue and qualify for commercial lending options.


Review: Should you apply?

Truist is a merger between two major banking institutions with long reputations, making it a little easier to trust than newer, pop-up financial institutions. While the website could use some improvements, if you can find an online application for your specific lending product, the online application process in and of itself appears to be fairly streamlined.

Truist loans may be particularly attractive to those who want longer loan terms. However, since they’re capped at $250,000 before you have to prove $2M or more in annual revenue, those looking to borrow larger amounts with lower revenue streams may want to look elsewhere.



Alternatives to Truist small business loans

It’s difficult to compare Truist to other lenders, as its rate ranges and fees aren’t disclosed. But when you look at term lengths and the amounts you’re allowed to borrow, you’ll find that Truist’s offerings can either stand out or fall short depending on the lending product.

Truist vs. Bank of America

Compared to Bank of America, terms on small business auto loans can stretch for three months longer at Truist, and equipment loans can be paid off over a much longer period of time — 84 months versus 60 months at Bank of America. Bank of America does offer health care practice loans, which Truist doesn’t, but otherwise the two competitors offer comparable products. In addition, they both do a similar volume of SBA lending.

Truist vs. Wells Fargo

Truist offers several products you won’t find at Wells Fargo: Small business term loans, auto loans and commercial equipment loans. However, Wells Fargo does offer health care practice loans, which Truist doesn’t. Limits are much higher on secured lines of credit at Wells Fargo, where you can borrow up to $500,000 versus the $250,000 limit at Truist. Following the same trend, Wells Fargo allows you to borrow up to $1,000,000 for real estate loans, while Truist only allows you to borrow $250,000. Plus, you could potentially have longer to pay back that money, too, as terms max out at 240 months at Wells Fargo versus only 180 months at Truist. Wells Fargo also does significantly more volume when it comes to SBA lending: In 2021, it lent over $57 million more than Truist.

Truist vs. Navy Federal

Based on available data, small business term loans and lines of credit are comparable at Truist and Navy Federal, but cannot currently be compared across domains such as interest rate or fee schedules. Auto loan terms are longer at Truist — up to 75 months instead of the 60-month max offered at Navy Federal. And you may prefer Truist’s small business real estate loans, as repayment terms stretch to 180 months. At Navy Federal, your loan will be amortized over 20 years, but you’ll only have five to pay it back. That means at the end of your loan, you’ll either need to refinance or make a huge balloon payment. Navy Federal doesn’t offer a dedicated commercial equipment loan or SBA lending options, but you will find those options through Truist.