Skip to content

Best Low-Interest Business Loans of July 2024

By Randa Kriss
Last updated on July 24, 2024
Edited bySally Lauckner
✅Fact checked and reviewed
Low-interest business loans are available from bank, SBA and online lenders. You'll need good credit and strong finances to qualify.

with Fundera by NerdWallet

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Traditional lenders, like banks and credit unions, tend to offer the lowest interest rates on business loans. To qualify for one of these small-business loans, however, you’ll need to be an established business with strong credit and excellent finances. If you can’t qualify for a bank loan, SBA and online lenders can also offer low-interest business loans and their requirements may be a little more flexible.

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 7 of the best low-interest business loans

LenderNerdWallet Rating▼Max loan amount▼Min. credit score▼Next steps

SBA 7(a) loan

with Fundera by NerdWallet

Best for Government-backed financing

$5,000,000650

with Fundera by NerdWallet

Bank of America Business Advantage Unsecured Term Loan

Read Review
5.0/5

Best for Bank term loans

Undisclosed700
Read Review

Wells Fargo Small Business Advantage® Line of Credit

Read Review
5.0/5

Best for Business lines of credit

$50,000680
Read Review

Accion Opportunity Fund - Small Business Working Capital Loan

Read Review
5.0/5

Best for Bad credit

$250,000570
Read Review

SBA Microloan

with Fundera by NerdWallet

Best for Startups

$50,000620

with Fundera by NerdWallet

Funding Circle - Online term loan

with Fundera by NerdWallet

4.5/5

Best for Fast funding

$500,000660

with Fundera by NerdWallet

Triton Capital - Equipment financing

with Fundera by NerdWallet

4.0/5

Best for Equipment financing

$250,000575

with Fundera by NerdWallet

Here are 7 of the best low-interest business loans

Best for Government-backed financing

U.S. Small Business Administration

Max Amount

$5,000,000

Min. Credit Score

650

Best for Bank term loans

Bank of America

Max Amount

Undisclosed

Min. Credit Score

700

Read Review

Best for Business lines of credit

Wells Fargo

Max Amount

$50,000

Min. Credit Score

680

Read Review

Best for Bad credit

Accion

Max Amount

$250,000

Min. Credit Score

570

Read Review

Best for Startups

U.S. Small Business Administration

Max Amount

$50,000

Min. Credit Score

620

Best for Fast funding

Funding Circle

Max Amount

$500,000

Min. Credit Score

660

Best for Equipment financing

Triton Capital

Max Amount

$250,000

Min. Credit Score

575

I'M INTERESTED IN:

Our pick for

Government-backed financing

SBA 7(a) loans are available in amounts up to $5 million. These loans have long repayment terms and interest rates that range from 11.5% to 15%. You can use a 7(a) loan for working capital, equipment purchases, renovations and more.

SBA 7(a) loan

Read Review

with Fundera by NerdWallet

Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
11.50-15.00%
7(a) loans are issued by private lenders and backed by the SBA. They offer long repayment terms and low interest rates.
Lowest interest rate

Max loan

$5,000,000

Min. Credit score

650

Apr range

11.50-15.00%

7(a) loans are issued by private lenders and backed by the SBA. They offer long repayment terms and low interest rates.
Read Review

with Fundera by NerdWallet

Our pick for

Bank term loans

Bank of America offers a flexible unsecured term loan that can be used for a range of purposes. Interest rates vary, but start at 8.50%. Members of Bank of America’s Preferred Rewards program may also qualify for an interest rate discount.

Bank of America Business Advantage Unsecured Term Loan

5.0
NerdWallet rating 
Read Review
Max Loan Amount
Undisclosed
Min. credit score
700
Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
5.0
NerdWallet rating 

Max loan

Undisclosed

Min. Credit score

700

Bank of America’s term loan offers competitive interest rates and flexible repayment terms — with no collateral required.
Read Review

Our pick for

Business lines of credit

Wells Fargo’s unsecured line of credit is available in amounts up to $50,000 with a five-year revolving term. Interest rates range from 13% to 15%. Businesses with less than two years in operation may be able to qualify.

Wells Fargo Small Business Advantage® Line of Credit

5.0
NerdWallet rating 
Read Review
Max Loan Amount
$50,000
Min. credit score
680
Est. APR
13.00-15.00%
Wells Fargo offers an unsecured line of credit that’s designed for borrowers with less than two years in business.
5.0
NerdWallet rating 

Max loan

$50,000

Min. Credit score

680

Apr range

13.00-15.00%

Wells Fargo offers an unsecured line of credit that’s designed for borrowers with less than two years in business.
Read Review

Our pick for

Bad credit

Accion offers loans of up to $250,000 with repayment terms of five years. Interest rates range from 8.49% to 24.99%. As a nonprofit lender, Accion 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

5.0
NerdWallet rating 
Read Review
Max Loan Amount
$250,000
Min. credit score
570
Est. APR
8.49-24.99%
Accion is a good option for businesses that haven't been able to secure traditional financing. The lender targets its funding efforts toward minority, women and low-to-moderate-income entrepreneurs.
5.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

570

Apr range

8.49-24.99%

Accion is a good option for businesses that haven't been able to secure traditional financing. The lender targets its funding efforts toward minority, women and low-to-moderate-income entrepreneurs.
Read Review

Our pick for

Startups

The SBA microloan program provides traditionally underserved borrowers (including startups) with affordable financing up to $50,000. Although interest rates are set by individual lenders, they typically range from 8% to 13%. Thus far in fiscal year 2024, 25% of SBA microloans have been issued to startups.

SBA Microloan

Read Review

with Fundera by NerdWallet

Max Loan Amount
$50,000
Min. credit score
620
Est. APR
8.00-13.00%
SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.

Max loan

$50,000

Min. Credit score

620

Apr range

8.00-13.00%

SBA microloans are small-sized loans funded by the U.S. Small Business Administration and issued through approved intermediaries, typically nonprofit and community lenders.
Read Review

with Fundera by NerdWallet

Our pick for

Fast funding

You can get an online term loan from Funding Circle in as little as two days. Loans are available in amounts up to $500,000 with repayment terms up to seven years. Interest rates range from 15.22% to 45%.

Funding Circle - Online term loan

4.5
NerdWallet rating 
Read Review

with Fundera by NerdWallet

Max Loan Amount
$500,000
Min. credit score
660
Est. APR
15.22-45.00%
Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
May fund quickly
4.5
NerdWallet rating 

Max loan

$500,000

Min. Credit score

660

Apr range

15.22-45.00%

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.
Read Review

with Fundera by NerdWallet

Our pick for

Equipment financing

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. Interest rates range from 5.99% to 34.99%.

Triton Capital - Equipment financing

4.0
NerdWallet rating 

with Fundera by NerdWallet

Max Loan Amount
$250,000
Min. credit score
575
Est. APR
5.99-34.99%
Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.
4.0
NerdWallet rating 

Max loan

$250,000

Min. Credit score

575

Apr range

5.99-34.99%

Triton Capital offers fast equipment loans up to $250,000 for businesses in a range of industries.

with Fundera by NerdWallet

How Much Do You Need?

Fundera by NerdWallet

4.5 Excellent

4.5 Excellent

bbb accredited business sealgoddady verified and secure seal

What is a low-interest business loan?

A low-interest business loan is a business loan with rates that are lower than average interest rates. Low-interest business loans are usually easiest to get when you have strong personal credit, business history or assets.
Some lenders, like certain CDFIs, however, may have special programs that offer lower interest rates to target demographics that wouldn’t normally qualify for the lowest rates.

🤓 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.
» MORE: How to get the best interest rate on your business loan

Types of low-interest business loans

These are some of the most common types of low-interest business loans:

Pros and cons of low-interest business loans

Pros

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.

Cons

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

Banks and credit unions typically offer the lowest rates on business loans — as well as long repayment terms and large loan amounts. To qualify, however, you’ll need to meet strict eligibility requirements. Business bank loans are also usually slow to fund.
It can be helpful to start your loan search by contacting a bank with which you have a previous relationship. Some banks, especially local or community institutions, may be more flexible with their requirements if they’re already familiar with your business.

SBA lenders

SBA lenders, usually banks and credit unions, offer SBA loans in addition to their own business loans. The government guarantee reduces the risk for these lenders, making them more likely to work with small businesses.
SBA loans generally have low interest rates, long repayment terms and large loan amounts — similar to bank loans. Although SBA loans may be somewhat easier to qualify for, you’ll still need a good credit and financial history to get financing.
These loans are also slow to fund, taking anywhere from one to three months to complete the application and funding process.
If you’re looking for an expedited option, the SBA Express loan can offer loans up to $500,000. All SBA Express lenders have the authority to approve, process and close loans without the SBA’s review.
» MORE: How to choose between SBA loans and conventional bank loans

Online lenders

Some online lenders can offer low-interest business loans. And with streamlined application processes, certain lenders can offer financing in as little as two business days.
Typically, online lenders have more flexible requirements than bank or SBA loans. However, to qualify for the lowest rates and most competitive terms from an online lender, you’ll need to be an established business with good credit and strong finances.
Of course, there are online lenders that are willing to work with newer businesses or those with fair or bad credit. Note though, that interest rates on these loans can range significantly — anywhere from 6% to 99% — so you should always compare several different financing options and think carefully about how much debt you can realistically afford.

Nonprofit organizations and microlenders

Nonprofit organizations and microlenders can be another source for low-interest business loans.
Depending on the lender and products offered, loan amounts can be smaller and interest rates may be higher than bank or SBA loans, but these lenders can be a good option if you can’t qualify for those types of funding.
Nonprofits and microlenders tend to focus their lending efforts on traditionally underserved businesses, including women- and minority-owned businesses and those located in low-income communities. Some organizations also work with startups or businesses with bad credit (a score of below 630).
For example, CDC Small Business Finance is a nonprofit that specializes in financing for new and underserved businesses in Arizona, California and Nevada, as well as Atlanta, Dallas-Fort Worth, Detroit, Miami and Washington, D.C. Loans range from $10,000 to $350,000, with terms from six to 10 years and interest rates ranging from the prime rate plus 4.5% to 5%.

Alternatives to low-interest business loans

If you can’t qualify for one of these low-interest business loans — or you simply want to explore alternative options — there are other types of affordable financing you can consider. Here are a few possibilities.
  • 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.
Last updated on July 24, 2024

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms. - Flexible payment options. - Fast funding times. - Accessible customer service. - Reporting of payments to business credit bureaus. - Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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.

Learn more