Bank of America Business Loans: Review, Requirements and Alternatives

Bank of America offers small businesses an unsecured line of credit from $10,000, an unsecured term loan from $10,000 with 1- to 5-year terms, SBA loans from $25,000, equipment financing from $250,000 and vehicle loans. For its unsecured products it requires 2 years in business under the same ownership and $100,000 in prior-year revenue (per its site, checked October 2026). It is a solid option for established businesses, especially existing customers; for new businesses or owners with low credit, it usually is not a fit.

Below we walk through each product, the requirements and fees the bank publishes, the pros and cons, and the alternatives if you do not qualify or need money faster. We do not invent customer reviews: this is our assessment based on what the bank itself publishes. Leer en español.

What business loans Bank of America offers

Bank of America splits its customers by size: its small-business segment is for companies with up to $1 million in revenue, and its mid-size segment covers $1 million to $50 million. These are the financing products it publishes for small businesses (per its site, checked October 2026):

The Business Advantage lines, term loan and auto loan have online applications. The SBA, secured, real estate and equipment products are handled by talking with a bank specialist.

Fees and terms it publishes

• Business Advantage line: a $150 annual fee, waived the first year; no origination fee and no cash-advance fees. It advertises a variable introductory rate of prime + 0% for the first 7 billing cycles as a limited-time offer.
• Term loan: a $150 origination fee if approved. It advertises a 0.50% rate reduction for new accounts as a limited-time offer.
• Relationship discounts: Preferred Rewards for Business members can get rate discounts. The lowest tier requires keeping at least $20,000 combined in qualifying accounts at the bank.
• Auto loan: the vehicle must have under 75,000 miles, be no more than 5 years old and be worth at least $10,000. The bank runs a hard inquiry on the co-applicant.
• Everything is subject to credit approval. The bank does not publish a minimum credit score.

All of these terms come from its site, checked October 2026. Limited-time offers change, so confirm them when you apply.

Pros and cons

Our take: if your business is more than two years old, sells more than $100,000 a year and already banks with Bank of America, it is worth asking there first. If you are short on time in business, revenue or credit, the likely answer is no, and that does not mean you will not qualify somewhere else.

Who should apply at Bank of America (and who should not)

A good fit for:

• Businesses with 2+ years under the same owner and $100,000+ in annual revenue.
• Existing bank customers with healthy balances who can use rate discounts.
• Businesses seeking an SBA loan where every owner is a U.S. citizen or U.S. national.
• New businesses that want to start building history with the cash-secured line.

Think twice if:

• You have been open less than 2 years or sell less than $100,000 a year.
• Your personal credit is low; the bank does not publish a minimum, but banks tend to be strict.
• You need the money this week.
• You need equipment that costs less than $250,000.

If you have already been turned down, read what to do after a bank rejects your business loan. To compare with other banks, see the best banks for small business loans.

Line of credit or term loan? How to improve your odds

Within Bank of America, the choice between the line and the term loan comes down to what the money is for:

• Business Advantage line if your costs arrive in pieces: seasonal inventory, payroll in a slow month, a repair. You draw what you need and, once you repay it, it is available again. Keep in mind the rate is variable.
• Term loan if it is a one-time expense with a clear date: a remodel, a machine or a move. Fixed payments over 1 to 5 years and a $150 origination fee.

A big bank usually weighs several things at once: your personal and business credit history, your tax returns, your average balances, your current debts and how long you have banked with them. Some practical ways to improve your odds:

1. Run your sales through your business account at the bank for several months before applying. A bank looks more kindly on a customer whose deposits it already knows.
2. Clean up your taxes. If your returns show little profit because you wrote off everything, the bank will struggle to see your ability to repay.
3. Pay down your card balances before you apply; high utilization weighs on your score.
4. Start with the secured line if you are new: it is a way to build history with the bank and later move to an unsecured line.

To see how a line helps your history, read how to build business credit with a line of credit.

How to apply, step by step

1. Confirm you meet the minimum time under the same owner and revenue for the product you want.
2. Gather your documents: business tax returns, bank statements, ID, EIN and company documents.
3. Apply online for the line or term loan, or ask to speak with a specialist for SBA, equipment or real estate financing. The bank's site also has an "En español" link.
4. Ask about Preferred Rewards discounts if you keep balances at the bank.
5. Read the full offer: rate, term, fees, whether the rate is variable and what happens if you pay early.

If you plan to request an SBA loan with them, get ready with our guide on how to qualify for an SBA loan.

Alternatives to Bank of America

Merchant Fund Express is our recommended funder when the bank is not a fit: decisions often come in 2 to 4 hours, it accepts credit from FICO 500 and it looks at your sales and deposits, not just your score. In most cases it does not require collateral, it offers Spanish-speaking support and it accepts applicants with an ITIN (no SSN needed). You can apply here for free without affecting your credit. To understand the difference, read approval by bank deposits vs. credit score.