Chase Business Loans Review


What is Chase?

Chase Bank is a large financial institute serving nearly half of all American households with services that include personal banking, credit cards, small business loans, mortgages and payment processing.

Chase, which was known as Chase Manhattan Corporation until it merged with J.P. Morgan and Co. in 2000, has more than 5,000 branches across the United States. In March of this year, Chase was ranked fourth out of 100 by the Small Business Administration (SBA) on their list of the most active 7 (a) lenders in the United States.


Features of Chase Business Loans

With roots traced as far back as 1799, Chase is no stranger to the banking industry. Today, Chase has processed more than 1,307 loans valued at more than $322 million. Here’s what you can expect when you take out a Chase business loan:

Preferred SBA lender. Chase is a preferred SBA lender which means they can process SBA loans more quickly than non-preferred lenders. That’s good news because SBA loans can take weeks or months to process.

Full service. Chase offers just about every banking service imaginable from cash management to payment processing services.

Loan variety. Chase offers multiple loan options from traditional term loans and lines of credit to commercial real estate and equipment financing. To balance the longer processing and paperwork of a traditional lender, they offer loans like the SBA Express Term Loan and the Chase Business Quick Capital loans that take less time to process, which means borrowers receive their funds faster.

It’s important to note, that unlike online alternative business lenders, borrowers will have a lot of paperwork to complete in order to apply for a loan (SBA loans in particular), which will delay processing time.


What does Chase offer?

Chase offers a variety of short- and long-term small business loans for businesses with up to $20 million in yearly revenue. Most loans are repaid monthly and are deducted directly from the borrower’s Chase business checking account.

Loan product Loan amount Loan term APR range/ factor rate Fees
Term loan $5,000 + 12 – 84 months Fixed and adjustable rates Not provided by the lender
Business line of credit $10,000 to $500,000 Not provided by the lender Variable rate (indexed to the prime rate) $150 for lines of credit up to $50,000; $250 for lines of credit greater than $50,000 and up to $250,000; and $500 for lines of credit greater than $250,000 up to $500,000
Commercial line of credit More than $500,000 12 – 24 months Variable rate (indexed to LIBOR). Interest-only monthly payments; balloon payment when the line expires No annual fee
SBA 7 (a) loan program Up to $5 million Working capital up to seven years; equipment up to 10 years; real estate up to 25 years Fixed and variable rates Guarantee fee
SBA Express Term Loan Up to $350,000 Working capital up to seven years; equipment up to 10 years; real estate up to 25 years Fixed and variable rates Guarantee fee
SBA 504 Loan Program $200,000 to no limit 10 years for equipment or  20 years for real estate Fixed for 20 years Guarantee fee
SBA Express Line of Credit Up to $350,000 Revolving, lines up to three years Variable rate SBA fees can be financed
Chase Business Quick Capital Up to $200,000 Not provided by the lender Not provided by the lender Not provided by the lender
Commercial Real Estate Financing Starting at $50,000 5 or 10 year terms, amortization plus 25 years Fixed and adjustable rates Not provided by the lender
Equipment Financing Starting at $10,000 7 years or 75 percent of the equipment’s estimated useful life Fixed or variable rates Not provided by the lender

Rates current as of 6/6/2018


Additional eligibility factors

Business owners must have a Chase business checking account to apply for a loan.


How to apply for Chase financing

You’ll have to visit a local branch in order to apply for a business loan with Chase. That may be easier said than done, depending on where you live. While Chase is a national brand, branches aren’t evenly spread across the country. You can use this tool to see if there’s a branch near you.

If you’re looking for a much faster loan process, consider visiting their website. The Chase Business Quick Capital application can be filled out online in three quick steps and, if signed by 5pm that business day, funds will be in your Chase business checking account the same day. Here’s what you need to apply:

  • Business tax returns
  • Personal tax returns
  • Profit and loss statement
  • Business licenses and registration
  • Additional documents may be required

*Chase Business Quick Capital Loans are currently only available for selected business deposit clients of Chase Bank.


Pros/cons

Before selecting the bank you would like to do business with, it’s important to weigh the pros and cons. Business loans at Chase have very attractive rates, which means many business owners will be interested in applying for those loans. Here is a quick snapshot of the pros and cons to a Chase business loan.

Pros Cons
 Longer terms, which allow for lower monthly payments   Must have a Chase business checking account to apply for a loan
  Offers options for fast funding through the Chase Business Quick Capital Loan   Tougher eligibility for those with poor credit history or lacking in credit history
  Full-service lender and experienced SBA lender   Must apply for loan in person

Should you get a Chase business loan?

As with many banks, business owners with strong credit scores, a long financial history and suitable collateral, will stand a better chance of being approved for a loan and get the best rates. Chase does have multiple funding options available, including small business credit cards, giving borrowers a solution that will fit their business needs.

Although traditional banks often have much longer loan approval processes than online lenders -making it tough for owners who need quick cash- the Chase Business Quick Capital loan can be processed and approved much more quickly.


Fine print

Most of Chase’s interest rates will vary depending on the type of loan, loan amount, and the business owner’s finances and assets. However, the rate of SBA loans is capped by the SBA. For example, the cap for the SBA 7 (a) loans is prime +2.25 percent to prime + 4.75 percent. For term loans, try and lock down a fixed rate for the life of the loan so you’ll always know how much you pay back each month.

Some SBA loans require a guarantee fee and Chase also charges origination fees (fees that cover the cost of processing a loan) on some non-SBA loans. Although it helps that Chase is a preferred lender, you should still be prepared to provide a lot of documentation for SBA loans.

While businesses with longer financial histories, especially profitable ones, are preferred for bank loans, putting down extra collateral could improve your chances of securing a loan.


The bottom line: How Chase stacks up

Chase’s size allows it to provide a wide variety of loans and business banking services. As the 4th most active SBA lender in the United States, Chase is very knowledgeable on SBA loans, which is a big help since those loans require a lot of work on the part of the borrower.

It’s a good idea to get at least a couple of different quotes for loan rates and terms to make sure you’re getting the best fit for your needs. A loan marketplace like LendingTree makes this simple because our short online form requires just a few basic answers and will generate multiple loan options in one place.

Compare small business loan offers

The information related to the offers below have been collected by LendingTree and has not been reviewed or provided by the financial institution prior to publication.