How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 9 low-interest business loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Bank of America Business Advantage Unsecured Term Loan | 5.0/5 Best for Bank low-interest business loans | Undisclosed | 700 | Read Review |
SBA 7(a) loan with Fundera by NerdWallet | Best for Government low-interest business loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Fast low-interest business loans | $500,000 | 660 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 5.0/5 Best for Low-interest business loans for bad credit | $250,000 | 570 | Read Review |
SBA Microloan with Fundera by NerdWallet | Best for Low-interest business loans for startups | $50,000 | 620 | with Fundera by NerdWallet |
Wells Fargo Small Business Advantage® Line of Credit | 5.0/5 Best for Low-interest business lines of credit | $50,000 | 680 | Read Review |
Triton Capital - Equipment financing with Fundera by NerdWallet | 4.0/5 Best for Low-interest equipment loans | $250,000 | 575 | with Fundera by NerdWallet |
SBA CDC/504 loan | Best for Low-interest commercial real estate loans | $5,000,000 | 680 | Read Review |
Huntington National Bank - Lift Local Business Program | Best for Low-interest business loans for women, veterans and minority groups | $150,000 | Undisclosed | Read Review |
Here are 9 low-interest business loans
Best for Bank low-interest business loans
Best for Government low-interest business loans
Best for Fast low-interest business loans
Best for Low-interest business loans for bad credit
Best for Low-interest business loans for startups
Best for Low-interest business lines of credit
Best for Low-interest equipment loans
Best for Low-interest commercial real estate loans
Best for Low-interest business loans for women, veterans and minority groups
I'M INTERESTED IN:
Our pick for
Bank low-interest business loans
Bank of America offers a flexible term loan that can be used for a range of purposes. Interest rates vary, but start at 8.50%.
Bank of America Business Advantage Unsecured Term Loan
Max loan
Undisclosed
Min. Credit score
700
Our pick for
Government low-interest business loans
SBA 7(a) loans are available in amounts up to $5 million. These loans have long repayment terms and competitive interest rates. You can use a 7(a) loan for working capital, equipment purchases, renovations and more.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Fast low-interest business loans
You can get an online term loan from Funding Circle in amounts up to $500,000 with repayment terms up to seven years. Funding can be available in as little as two days.
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
Our pick for
Low-interest business loans for bad credit
Accion is a nonprofit lender that has more flexible qualification requirements than banks and credit unions. You may be able to qualify for a loan with a minimum credit score of 570.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-24.99%
Our pick for
Low-interest business loans for startups
The SBA microloan program targets traditionally underserved borrowers, including startups. Thus far in fiscal year 2024, nearly 25% of SBA microloans have been issued to startups.
SBA Microloan
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Low-interest business lines of credit
Wells Fargo’s unsecured line of credit has interest rates as low as the prime rate plus 4.5%. Businesses with less than two years in operation may be able to qualify.
Wells Fargo Small Business Advantage® Line of Credit
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
Our pick for
Low-interest equipment loans
Triton Capital offers low-interest loans that can be used to purchase equipment and machinery for your business. Loans are available up to $250,000 and funding can be available in just a few days.
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
575
Apr range
5.99-34.99%
with Fundera by NerdWallet
Our pick for
Low-interest commercial real estate loans
The SBA 504 loan program offers low interest rates on loans used to purchase major fixed assets.
SBA CDC/504 loan
Max loan
$5,000,000
Min. Credit score
680
Apr range
5.00-7.00%
Our pick for
Low-interest business loans for women, veterans and minority groups
Huntington’s Lift Local Business Program is designed specifically to support woman- veteran- and minority-owned businesses. The program offers affordable rates and fees, with more flexible qualifications than other bank loans.
Huntington National Bank - Lift Local Business Program
Max loan
$150,000
Min. Credit score
Undisclosed
What is a low-interest business loan?
🤓 Nerdy Tip
In addition to your credit score and business financials, other factors such as the federal funds rate, current market conditions and lender policies, can also influence the interest rate you’re offered.How do low-interest business loans work?
Types of low-interest business loans
Term loans
Business lines of credit
SBA loans
Microloans
Equipment loans
Pros and cons of low-interest business loans
Lower interest rates mean the cost of borrowing money is smaller, so your total repayment amount and monthly payments are usually lower.
Because a low-interest loan is a cheaper form of capital, it can aid your business growth.
Can be harder to qualify for if you don’t have good credit and strong finances.
Lower rates can be riskier for lenders, so they may require higher collateral to counter the risk.
Where to get a low-interest business loan
Banks and credit unions
SBA lenders
Online lenders
Nonprofit organizations and microlenders
How to get a low-interest business loan
1. Evaluate your qualifications
- Credit score: 650 or higher.
- Time in business: Two years or more.
- Annual revenue: $100,000 or more.
2. Research your options
3. Compare loan offers
Alternatives to low-interest business loans
- Business grants. Small-business grants are essentially free financing, since you don’t have to repay the money you receive. Grants can be a particularly good option for businesses focused on technology, research and development, and projects in their local community. However, finding and applying for business grants is often time-consuming and competitive, so this type of financing may not be suitable for all businesses.
- Personal loans. If you have good personal credit, but you're just starting your company, you might use a personal loan for your business. Instead of relying on your time in business and revenue, personal loan providers will focus on your income and personal credit history. These loans also tend to have lower APRs than many online alternative lenders, but defaulting on them could hurt your personal credit score and put your personal assets at risk.
- Business credit cards. Business credit cards are a good option for financing recurring or everyday purchases. You can use your credit card to pay for business expenses, plus you can earn rewards — like cash back — for your spending. You’ll want to make sure that you can pay your bill every month, however. Otherwise, you’ll start accumulating interest on your balance. To qualify for a business credit card, you’ll typically need good personal credit, but you don’t need to have an established business history.
Frequently asked questions
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.