U.S. Bank Business Loans Review
Not disclosed
$5,000 to $12,375,000
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Pros and cons of U.S. Bank
| Pros | Cons |
|---|---|
| Quick online application for smaller loan amounts with opportunity to apply for larger loans with an appointment 125% equipment financing available to help cover shipping costs and fees U.S. Bank’s Preferred SBA lender status can make getting SBA loans quicker | Rates and business requirements not shared publicly Limited information available on the website |
U.S. Bank small business loans review
We probably don’t need to tell you that U.S. Bank is a massive financial institution, as you’re likely already familiar with its name even if you’ve never used one of its products. This bank is so recognizable because it’s the fifth largest in the country in terms of assets held.
U.S. Bank offers a quick, online application process for loans and lines of credit of $250,000 or less. But it isn’t overly transparent about its rates and fees on business lending products, so it’s a good idea to shop around to ensure you’re being offered the best rates.
- Borrowers who appreciate working with a live agent. More than half of U.S. Bank’s lending products require an interview with a live banker.
- Business owners with a decent credit history. As a traditional bank, U.S. Bank is unlikely to be a good option for a bad credit business loan.
- SBA borrowers with modest real estate needs. U.S. Bank allows you to use SBA 7(a) loans for real estate purposes, and is willing to add up to $2,000,000 to the maximum loan amount to allow you to do so. SBA 7(a) loans do not come with balloon payments, unlike some of U.S. Bank’s conventional commercial real estate loans.
U.S. Bank small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Unsecured term loans | $5,000 to $50,000 | Up to 48 months | Not disclosed | No origination fee Prepayment penalty |
| Secured term loans | $5,000 to $250,000 or higher | Up to 60 months | Not disclosed | No origination fee Prepayment penalty |
| Lines of credit | Up to $250,000 or higher | Not applicable | Not disclosed | Annual fee |
| Equipment financing | Up to $2,500,000 | Starting at 24 months | Not disclosed | Not disclosed |
| Commercial real estate loans | Not disclosed | 60 to 180 months, amortization up to 300 months | Not disclosed | Not disclosed |
| SBA 7(a) loans | Up to $5,000,000 | Up to either 84 or 120 months depending on loan purposes | Rates vary, subject to SBA maximums* | Not disclosed |
| SBA 7(a) real estate loans | Up to $7,000,000 | Up to 300 months | Rates vary, subject to SBA maximums* | Not disclosed |
| SBA 504 loans | Up to $12,375,000 | Up to either 120 or 300 months depending on loan purposes | About 3.00%* | Not disclosed |
*Terms and rates based on SBA guidelines
Business term loans
U.S. Bank offers a number of different business term loans. First, there are the term loans you can apply for online, or “Quick Loans” as they’re dubbed at U.S. Bank. You can get either a secured or unsecured term loan in this manner. The unsecured term loans don’t require collateral. You can borrow anywhere between $5,000 and $50,000 with terms of up to 48 months.
You can also get a secured business loan, which does require collateral, but you’ll get lower rates and terms of up to 60 months. You’ll also gain the ability to borrow more — up to $250,000. If you need to borrow even more and have adequate collateral, you can apply for a conventional secured business loan by making an appointment with a U.S. Bank representative.
Business lines of credit
U.S. Bank offers four different business lines of credit, each with a different maximum borrowing amount:
- Business reserve line: Up to $5,000 to act as overdraft protection on your U.S. Bank business checking account.
- Cash flow manager: Up to $250,000 to manage your business cash flow.
- Business equity line of credit: Must put up business real estate as collateral. Terms of up to 60 months with interest-only payment options are available.
- Business line of credit: For materials, equipment or inventory. Interest-only payment options are available.
You’ll need to make an appointment with a banker to apply for any line of credit except the cash flow manager, which can be applied for online. While U.S. Bank does share that there is a max term of 60 months for its business equity line of credit, typically with a line of credit your term acts a lot more like it would on a business credit card. The goal is to pay it off as quickly as possible to avoid paying cumulative interest.
Equipment financing
U.S. Bank offers equipment financing for large business machinery, like commercial vehicles, construction equipment or medical equipment. You can get equipment loans for up to 125% of the costs, which is a fancy way of saying that you get additional funds to cover expenses like installation, taxes and shipping.
If you apply online, you can get up to $249,999 in equipment financing, but you can get up to $2,500,000 if you apply with a banker. Payments are flexible, as they can be made monthly, quarterly, seasonally, semiannually or annually.
Commercial real estate loans
U.S. Bank offers conventional commercial real estate loans that can be used to expand or remodel your existing properties, or to finance multi-unit investment properties. Business loan interest rates can be either fixed or variable. Loan terms can be either 60, 120 or 180 months, but amortization can stretch out over 25 years. This means that if your term ends before amortization, plan to either refinance at the end of your term or get stuck with a large balloon payment.
SBA 7(a) loans
SBA 7(a) loans are backed by the Small Business Administration, and U.S. Bank offers them in two packages. You can borrow up to $5,000,000 if you’re using the SBA 7(a) loan for any of the following purposes:
- Working capital
- Equipment
- Debt refinancing
- Business acquisition
- Tenant improvement
- Partner buyout
If you use the loan to purchase, refinance or build commercial real estate, you may be eligible for U.S. Bank to throw another $2,000,000 on top, for a grand total of up to $7,000,000.
Real estate 7(a) loans can extend up to 300 months. 7(a) loans for working capital and inventory can last up to 84 months, and up to 120 months for all other purposes. There are no balloon payments.
SBA 504/CDC loans
SBA 504 loans are a type of SBA loan specifically for larger real estate purchases. You can also use the funding for refinancing or new construction, which in some cases includes equipment. The max SBA 504/CDC loan amount at U.S. Bank is $12,375,000. Terms on equipment max out at 10 years, while you can borrow over the course of 25 years for all other loan purposes.
Medical practice loans
U.S. Bank offers financing options for dentists, veterinarians and eye care practices. You can secure financing for acquiring or buying into an existing practice, refinancing your current practice or expanding or relocating your current practice. Terms and other details vary depending on why you need to borrow. For example, practice expansion loans are capped at 180 months, and commercial real estate loans can have terms up to 300 months. For all practice loans, you’ll need to apply directly with a banker.
U.S. Bank borrower requirements
U.S. Bank is not overly transparent with its business loan requirements. Because it’s a larger, brick-and-mortar bank, it’s safe to assume that those requirements may be higher than they would be with online lenders.
The minimum credit score and revenue requirements aren’t disclosed online, and you’ll need to contact U.S. Bank directly to learn if you qualify.
Required documents
When you apply for a business loan with U.S. bank, come prepared with:
- Your business tax returns
- Your personal tax returns
- Financial statements for your business
- Your business’ articles of incorporation
Depending on your application, you may be asked for additional documentation once the process gets started.
Alternatives to U.S. Bank
| U.S. Bank | Bank of America | PNC Bank | |
|---|---|---|---|
| Minimum credit score | Not disclosed | 700 for unsecured lending products, not disclosed for other products | Not disclosed |
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| Starting interest rate | Not disclosed |
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| Minimum annual revenue | Not disclosed |
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U.S. Bank vs. Bank of America
Compared to U.S. Bank, Bank of America offers a wider suite of business financing options. Specifically, they have business auto loans, SBA Express loans and cash-secured lines of credit, all of which are absent at U.S. Bank.
Bank of America’s SBA 504 loan maximum is markedly higher at $20,000,000 compared to U.S. Bank’s max loan size of $12,375,000.
While Bank of America is far more upfront about its starting rates, that doesn’t necessarily mean they’re lower. The best way to find out what you might be eligible for would be to inquire with both banks.
U.S. Bank vs. PNC Bank
PNC Bank also offers more business loan products than U.S. Bank. PNC Bank’s additional products include business auto loans and SBA Express loans.
Loan sizes on unsecured term loans are larger at PNC Bank, though both financial institutions are tight lipped about their rates. Applying at both banks would be the best way to determine which is best for your circumstances.