Securing a business loan with the lowest interest rate in the U.S. largely depends on factors such as your credit score, business history, annual revenue, and the availability of collateral. Here’s an overview of the top business loan options offering competitive interest rates as of 2025:
Top Business Loans with Low Interest Rates
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SBA 7(a) Loan
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Interest Rate: Prime rate + 2.25% to 4.75%
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(With the current prime rate of approximately 8.5%, total rates range from 10.75% to 13.25%)
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Loan Amount: Up to $5 million
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Term: Up to 25 years
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Ideal For: Established businesses with strong credit
Pros:
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Lower interest rates compared to other options
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Long repayment periods
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Supported by the U.S. government
Cons:
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Lengthy and complex application process
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Strict eligibility requirements
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SBA Microloan
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Interest Rate: 8% to 13%
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Loan Amount: Up to $50,000
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Term: Up to 6 years
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Ideal For: Startups and small businesses requiring smaller funding
Pros:
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Flexible use of funds
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Often paired with business counseling
Cons:
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Limited loan amounts
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Challenging to qualify without a solid business plan
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Bank Term Loans (e.g., Wells Fargo, Bank of America, Chase)
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Interest Rate: 6% to 12% (for borrowers with strong credit)
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Loan Amount: Ranges from $10,000 to over $1 million
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Term: 1 to 10 years
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Ideal For: Established businesses with excellent credit and financial stability
Pros:
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Competitive interest rates
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Access to large funding amounts
Cons:
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Strict approval requirements
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Extensive documentation needed
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Credit Unions and Community Banks
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Interest Rate: 5% to 10%
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Ideal For: Local or newer businesses with decent credit profiles
Pros:
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Personalized customer service
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Generally lower rates compared to major banks
Cons:
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Slower application and approval process
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May require membership or local ties
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Online Lenders (e.g., Fundbox, Bluevine, Credibly)
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Interest Rate: 10% to 35%
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Funding Speed: Often same-day or within a few days
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Ideal For: Businesses needing quick funding or with average credit
Pros:
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Rapid approval and disbursement
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Less stringent qualification criteria
Cons:
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Higher interest rates compared to traditional lenders
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Shorter repayment terms
Tips for Securing the Lowest Rates
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Improve Your Credit Score: Aim for a score of 680 or higher to qualify for better rates.
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Show Strong Financials: Demonstrating higher revenue and profitability reduces perceived risk.
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Provide Collateral: Offering assets can lower the lender’s risk, leading to reduced rates.
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Prioritize SBA and Credit Union Loans: These typically offer the most favorable rates.
Best Overall Choice for Low Interest Rates
The SBA 7(a) Loan stands out as the most cost-effective option for established businesses with strong credit, offering both lower interest rates and longer repayment periods.