When small business owners search for a traditional bank loan, two names consistently dominate the conversation: JPMorgan Chase and Bank of America. Both are among the largest financial institutions in the United States, both offer a range of business lending products, and both have the credibility that comes with decades of serving commercial clients. But when it comes to the chase vs bank of america business loan question, the differences between these two institutions are meaningful - and understanding them can help you make a smarter financing decision.
This guide breaks down Chase and Bank of America business loans side by side, covering their available products, approximate rates, qualification requirements, and the key scenarios where one lender may outperform the other. If you are evaluating your options for business financing, this comparison gives you a clear-eyed view of what each bank actually offers.
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Before diving into specifics, it helps to understand the fundamental positioning of each bank. Chase operates through JPMorgan Chase, one of the world's largest financial institutions by assets. Bank of America, similarly, ranks among the top four U.S. banks. Both institutions have extensive small and mid-sized business lending programs, robust branch networks, and digital banking platforms that make day-to-day account management convenient.
The key distinction between the two often comes down to product emphasis and relationship requirements. Bank of America has historically placed greater emphasis on its small business customers through programs like Preferred Rewards for Business, which unlocks rate discounts based on banking relationship tiers. Chase, meanwhile, tends to emphasize lending for established businesses through its business banking division, with particular strength in equipment and commercial lending for mid-market companies.
| Feature | Chase | Bank of America |
|---|---|---|
| Minimum Credit Score (general) | 680+ | 670+ |
| Minimum Time in Business | 2+ years | 2+ years |
| Relationship Rewards Program | Chase Business Complete Banking | Preferred Rewards for Business |
| SBA Lending | Yes - SBA Preferred Lender | Yes - SBA Preferred Lender |
| Online Application | Partial (some products) | Yes (most products) |
| Funding Speed | Weeks to months | Weeks to months |
Key Context: According to the Federal Reserve, small business loan approval rates at large banks typically run between 13% and 20% - significantly lower than those at alternative and online lenders. Both Chase and Bank of America are large banks, meaning their approval criteria are similar in stringency.
JPMorgan Chase offers a broad array of business lending products through its Chase Business Banking division. The product lineup covers most common business financing needs, though access and eligibility often require an existing banking relationship with the institution.
Chase term loans for businesses are designed for established companies with strong credit profiles. Loan amounts typically range from $5,000 up to $500,000 or more depending on business size and creditworthiness. Repayment terms vary from one to seven years for standard term loans, with longer terms available for commercial real estate and equipment-backed financing. Interest rates are generally fixed, though Chase's exact rates are not publicly disclosed and depend on a number of underwriting factors.
Chase offers revolving lines of credit for businesses that need ongoing access to working capital. Lines typically start at $10,000 and can extend to several hundred thousand dollars for qualifying businesses. The revolving structure means you only pay interest on what you draw, making it useful for seasonal cash flow management, inventory purchasing, and bridging temporary revenue gaps.
As an SBA Preferred Lender, Chase participates in the SBA 7(a) and SBA 504 loan programs. SBA Preferred Lender status means Chase can process SBA loan applications in-house without waiting for SBA review on routine underwriting decisions, which can shorten the timeline somewhat compared to non-preferred lenders. SBA loans through Chase come with the government's guarantee structure, which translates to lower down payments and longer repayment terms than conventional bank loans.
Chase Business Banking provides equipment loans and equipment leases for businesses investing in machinery, vehicles, technology, or other capital assets. Equipment financing through Chase can be structured to align payments with the productive life of the asset and may include options to purchase at lease end.
For business owners looking to purchase or refinance commercial property, Chase offers commercial real estate loans through its commercial banking division. These products are generally better suited to mid-market businesses than to early-stage small businesses, as the underwriting requirements tend to be more demanding.
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Apply Now →Bank of America has built a reputation as one of the more small-business-friendly major banks, largely due to its Preferred Rewards for Business program, which provides rate discounts and fee waivers tied to your average business banking balance. The product range is comparable to Chase, with some notable differences in structure and accessibility.
Bank of America offers secured and unsecured business term loans. Unsecured options are available for smaller loan amounts, while larger loans typically require collateral such as real estate, equipment, or other business assets. Loan amounts start as low as $10,000 and can extend to several million dollars for established businesses. Fixed and variable rate options are available, and businesses enrolled in Preferred Rewards for Business can receive a rate discount of 0.25% to 0.5% depending on their tier.
Bank of America's business lines of credit come in both secured and unsecured formats. Unsecured lines are available up to approximately $100,000, while larger secured lines use business or personal assets as collateral. Like Chase, these are revolving facilities that give you ongoing access to capital as you repay what you draw.
Bank of America is also an SBA Preferred Lender and participates in SBA 7(a) and 504 programs. The bank has historically ranked among the top SBA lenders by volume, which means experienced SBA staff and established processes. Their SBA loan products are well-suited to businesses acquiring commercial property, equipment, or looking to refinance existing high-cost debt.
Equipment financing through Bank of America covers most types of business equipment with loan and lease structures available. The bank often bundles equipment financing with its broader business banking relationship, which can be advantageous if you maintain your primary checking and savings accounts there.
Industry Context: According to CNBC's small business coverage, large bank loan approval rates for small businesses remain well below those of alternative lenders, averaging under 20%. Business owners who do not meet the stringent credit and revenue requirements of major banks often find better success with specialized business lenders.
| Loan Product | Chase | Bank of America |
|---|---|---|
| Business Term Loans | Yes - from $5,000 | Yes - from $10,000 |
| Business Line of Credit | Yes - from $10,000 | Yes - secured and unsecured |
| SBA 7(a) Loans | Yes - Preferred Lender | Yes - Preferred Lender |
| SBA 504 Loans | Yes | Yes |
| Equipment Financing | Yes | Yes |
| Commercial Real Estate | Yes | Yes |
| Relationship Rate Discounts | Limited | Yes - up to 0.50% off |
| Online Application | Partial | Broader online availability |
Neither Chase nor Bank of America publishes their exact business loan interest rates publicly. Both banks use risk-based pricing, meaning your specific rate depends on factors including your credit score, time in business, annual revenue, collateral quality, and the overall lending environment at the time of application.
That said, industry data from sources like the Federal Reserve's Survey of Terms of Business Lending provides some benchmarks. For established businesses with strong credit profiles in a moderate interest rate environment, conventional bank term loan rates for small businesses have typically ranged from approximately 6% to 12% APR. Lines of credit often carry slightly higher variable rates. SBA 7(a) loans carry rates tied to the prime rate plus a spread set by the SBA, and these are among the most transparent in the market because the SBA publishes maximum allowable spreads.
Bank of America's Preferred Rewards for Business program offers a meaningful rate advantage if you qualify. Businesses with average combined qualifying balances of $20,000 or more in Bank of America business checking, savings, and Merrill investment accounts receive rate discounts on new loans. Gold tier ($20,000-$49,999 average balance) offers a 0.25% interest rate reduction, while Platinum tier ($50,000-$99,999) and Platinum Honors tier ($100,000+) offer reductions up to 0.50%. Over the life of a multi-year loan, these savings can be significant.
Chase does not offer a comparable tiered rate discount program for business loans, though existing Chase business banking customers may receive preferential treatment in the underwriting process. Chase tends to emphasize relationship banking, and long-standing customers with strong account histories may find the approval process smoother - though this does not necessarily translate to lower rates.
Both banks will charge origination fees, which vary by product and loan size. SBA loans carry SBA guarantee fees that are set by the government, not the individual bank.
This is often where the reality of working with large banks becomes apparent. Chase and Bank of America both maintain rigorous underwriting standards that favor businesses with established credit histories, strong revenues, and at least two years of operating history.
Chase's general requirements for business loans include a personal credit score of at least 680 (some products require 700 or higher), at least two years in business, demonstrated business revenue consistent with the requested loan amount, and a business checking account with Chase (required or strongly preferred for most products). Chase also conducts a review of business and personal tax returns, business financial statements, and business bank statements as part of the standard underwriting process.
Bank of America's requirements are similar: a minimum personal credit score of approximately 670-700 depending on the product, two or more years in business, annual revenues consistent with the loan request, and an active Bank of America business checking account. Like Chase, Bank of America requires standard financial documentation including tax returns, profit and loss statements, and business bank statements.
Important: A Federal Reserve Small Business Credit Survey found that the most common reasons large banks cite for declining small business loan applications include insufficient credit history, insufficient collateral, and low revenue or cash flow. These are structural challenges that no amount of relationship-building can overcome if your business does not meet the core criteria.
The answer depends heavily on your specific situation. Neither Chase nor Bank of America is universally better - each has distinct advantages in specific circumstances.
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Chase vs Bank of America - Business Lending Overview
~17%
Large bank approval rate for small business loans (Federal Reserve, 2023)
2+ Years
Minimum time in business typically required by both Chase and BofA
0.50%
Maximum rate discount available through BofA Preferred Rewards for Business
Weeks
Typical funding timeline at large banks vs. days for alternative lenders
The reality is that Chase and Bank of America are best suited to businesses that already have strong financial profiles - established credit, multiple years of operation, consistent revenues, and often an existing banking relationship. If your business does not fit this profile - whether because you are newer, have had credit challenges, or need faster funding - looking beyond these two large banks is not just reasonable, it is often the smarter move.
Alternative business lenders, including specialized business financing companies like Crestmont Capital, offer several advantages that large banks simply cannot match:
According to Forbes, more small business owners are turning to alternative lenders as large bank approval rates remain constrained. The gap between large bank approval rates (typically 13-20%) and alternative lender approval rates is substantial.
Crestmont Capital is rated the #1 business lender in the United States, and for good reason. We specialize in working with small and medium-sized businesses that need fast, flexible financing - not the weeks-long process and stringent requirements typical of large banks like Chase and Bank of America.
Whether you have been turned down by a major bank, need funding faster than the traditional bank timeline allows, or simply want to explore your full range of options before committing, Crestmont Capital provides access to a full suite of commercial financing solutions including:
We work with businesses across every industry, and our advisors understand the unique financing needs of different sectors. You can apply now in minutes and receive a decision far faster than you would at a traditional large bank. Also see our comparison of Wells Fargo vs alternative lenders for additional context on how the major banks compare to other funding sources.
A manufacturing company with eight years of operation, $2.1M in annual revenue, and $45,000 in average daily Bank of America balances applies for a $175,000 term loan to purchase new equipment. This business would likely qualify for Bank of America's Preferred Rewards Platinum tier, earning a 0.25% rate reduction. The existing relationship, clean financials, and strong credit profile make Bank of America a strong choice in this scenario.
A logistics company with six years of operation, $3.8M in revenue, and an existing Chase business banking relationship wants to purchase a small warehouse. Chase's commercial banking division handles this type of transaction regularly and has established processes for commercial real estate loans. The existing Chase relationship and the size of the transaction make Chase a natural first call here.
A restaurant owner who has been operating for 18 months with $650,000 in annual revenue needs $80,000 for kitchen equipment upgrades. Neither Chase nor Bank of America is likely to approve this loan - both require a minimum of two years in business. An alternative lender specializing in restaurant financing would be the more practical route.
A service business with a 625 personal credit score applies to both Chase and Bank of America after going through a difficult year. Both banks are likely to decline. Alternative financing options through Crestmont Capital, which can work with credit scores in this range, would be the appropriate next step. Learn more about business loans for bad credit to understand all available options.
A retail business owner needs $50,000 within a week to stock up on holiday inventory. Neither Chase nor Bank of America can typically process and fund a business loan within one week. A working capital loan from an alternative lender - which can fund in 24-72 hours - is the only viable option in this timeframe.
A professional services firm wants to consolidate its banking with a single institution. Both Chase and Bank of America offer comprehensive product suites that make this possible. The choice here often comes down to branch accessibility, fee structures, and which bank has the stronger presence in the owner's geographic market.
Chase generally requires a personal credit score of at least 680 for most business loan products, with some products preferring 700 or higher. The exact minimum depends on the specific product, loan amount, and other factors in your application. A higher credit score typically results in better rates and a smoother approval process.
Bank of America generally requires a personal credit score of approximately 670-700 depending on the product. Like Chase, the specific threshold depends on the loan type, amount, and other underwriting factors. The Preferred Rewards program does not reduce the minimum credit score requirement but can improve your rate once approved.
In most cases, both banks strongly prefer or require that you have an active business checking account with them. Chase typically requires a Chase business checking account for most business loan products. Bank of America similarly prefers existing customers and requires a Bank of America business checking account for most products.
Neither bank publicly discloses standard rate tables for business loans. Both use risk-based pricing. Bank of America offers a structural rate advantage through its Preferred Rewards for Business program (up to 0.50% rate discount for qualifying balance tiers). For businesses that do not qualify for Preferred Rewards, the rates are likely comparable between the two banks.
Business loan approval timelines at large banks are measured in weeks, not days. For standard term loans and lines of credit, expect a process of two to six weeks from application to funding. SBA loans take longer - often 60 to 90 days or more. If you need faster funding, alternative lenders can typically provide approvals in 24-48 hours and funding within days.
Bank of America has a broader online application process, allowing you to start and often complete applications for many products digitally. Chase's online application options are more limited for business loans - many products require in-branch meetings or working with a business banking relationship manager.
A rejection from a large bank does not mean you cannot get funded. Alternative lenders, including Crestmont Capital, can often approve businesses that major banks decline. You should request the specific reason for denial and explore alternative lending options. Many business owners are successfully funded through alternative lenders after being turned down by large banks.
Yes, both Chase and Bank of America are SBA Preferred Lenders authorized to make SBA 7(a) and 504 loans. Preferred Lender status means these banks can approve routine SBA loans in-house without waiting for the SBA to conduct its own review. However, SBA loans still require extensive documentation and can take 60-90 days or more to close even at Preferred Lenders.
Preferred Rewards for Business is Bank of America's relationship rewards program that provides benefits based on your combined average daily balance across qualifying accounts. Tiers include Gold ($20,000-$49,999), Platinum ($50,000-$99,999), and Platinum Honors ($100,000+). Benefits include interest rate discounts on new loans (up to 0.50%), credit card rewards bonuses, and fee waivers.
Entry-level term loans and lines of credit can start as low as $5,000-$10,000. Mid-range business loans for established companies typically fall between $100,000 and $500,000. Larger commercial real estate and equipment loans can exceed $1 million. SBA 7(a) loans have a government maximum of $5 million.
Both banks require two to three years of business and personal tax returns, recent business bank statements, a current profit and loss statement, a balance sheet, business formation documents, and a personal financial statement. For larger loans or commercial real estate, additional documentation such as business plans, lease agreements, and property appraisals may be required.
In most cases, no. Both Chase and Bank of America require at least two years in business for their standard lending products. Startups should explore SBA Microloans, CDFI lenders, business credit cards, or alternative business lenders who specialize in early-stage companies.
Crestmont Capital is often a better fit for small businesses that need faster access to capital, have been in business for less than two years, have credit scores below 680, or cannot qualify for the stringent requirements of large banks. Crestmont Capital offers broader qualification criteria, faster approvals, and a full range of financing products.
Financial reporting from Bloomberg and Reuters has noted that large banks have tightened lending standards in recent cycles, particularly for small and mid-sized businesses. This trend has driven growth in the alternative lending sector, as businesses seek faster and more accessible capital solutions beyond the traditional bank model.
The most meaningful structural difference is Bank of America's Preferred Rewards rate discount program (up to 0.50% off). Bank of America offers a somewhat more digital-friendly application experience, while Chase emphasizes relationship banking. Repayment terms, collateral requirements, and loan amount ranges are broadly similar between the two institutions.
The chase vs bank of america business loan comparison ultimately reveals two strong institutions with broadly similar offerings but distinct advantages in specific contexts. Bank of America wins on relationship rewards with its Preferred Rewards for Business program, while Chase has strong standing for commercial and mid-market lending. Both are credible choices for well-qualified businesses - but both also come with approval processes that are lengthy, requirements that are stringent, and approval rates that leave many small businesses without the funding they need.
If your business meets the qualification criteria of these major banks and you have time for their approval process, either institution is worth exploring. But if you need faster access to capital, do not yet have the credit history these banks require, or have been turned down before, do not wait. Crestmont Capital works with businesses like yours every day - providing the fast, flexible financing that lets you take advantage of opportunities when they arise. Explore all your small business financing options today.
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Apply Now →Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.