11
Best Low-Interest Business Loans Of 2026
Featured Partner Offers
1
OnDeck
$5,000 to $250,000
Varies by loan
625
2
AdvancePoint Capital
$10,000 - $2 million
Lower than the national average
620
Compare the Best Low-Interest Business Loans of 2026
Best Low-Interest Business Loans of 2026: A Closer Look
Best for No-Fee Business Loans
Chase Small Business Loan
APR range
Not disclosed
Loan amounts
$5,000 to $500,000
Minimum Credit Score
Not disclosed
Not disclosed
$5,000 to $500,000
Not disclosed
Chase Bank is a subsidiary of J.P. Morgan Chase, the largest bank in the United States by total assets. Chase Bank offers traditional bank loans that businesses can apply for online and at physical locations.
Why We Like It
Chase Bank term loans have no origination fee, which could be a significant money saver.
What We Don’t Like
Chase Bank may charge a prepayment penalty fee if your term loan is for $250,000 or more and you pay it off early.
Who It’s Best For
Chase Bank loans are best for established business owners who value an in-person borrowing experience because of its brick-and-mortar locations. Also, stronger credit may be necessary to qualify.
- No origination fee
- Relationship banking rate discounts
- Multiple loan types available
- Prepayment penalties for loans $250,000 or more
- Doesn’t disclose interest rates
- Highest loan amounts require in-person application
Lender Details
Eligibility
- Minimum credit score: Not disclosed
- Time in business: two years
- Minimum annual revenue: Not disclosed
Turnaround time
The funding turnaround time for a loan may range from a few days to a few weeks.
Best for Business Lines of Credit
Fundbox
Loan amounts
$1,000 to $250,000
APR range
4.66% to 25%
Minimum Credit Score
600
$1,000 to $250,000
4.66% to 25%
600
Fundbox provides fast and flexible capital through business lines of credit. Each draw from your line of credit operates like an installment loan with a fixed repayment schedule.
Why We Like It
We love that Fundbox can provide financing to newer operations, since it requires just six months in business and a minimum annual revenue of $30,000.
What We Don’t Like
The Fundbox homepage doesn’t share many specifics about loans available. Users have to dig into Fundbox help center and contact the lender to learn more about loan terms and costs.
Who It’s Best For
Fundbox is best suited for newer businesses that want access to a source of funds to borrow from and repay on an ongoing basis.
- Low minimum credit score, time-in-business and revenue requirement
- Offers a free financial tool to help manage historical and predicted cashflow
- Available to businesses based in all 50 states and 5 major U.S. territories
- High Maximum APR of 25%
- May need to sign a personal guarantee to access your funds
- Late payment and non-sufficient funds fees may apply
Loan Details
- Minimum credit score: 600
- Minimum annual revenue: $30,000
- Minimum time in business: 3 months
Funding Speed
Funds may arrive within two business days of requesting a credit line draw.
Best for Long-Term Business Loans
NewtekOne
Loan amounts
$1,000 to $15 million
APR range
6%
Minimum Credit Score
650
$1,000 to $15 million
6%
650
NewtekOne provides small and large loans to help businesses expand, increase working capital, refinance existing debt and fill other financial gaps.
Why We Like It
We appreciate that NewtekOne offers large loans with loan terms ranging from five to 25 years, giving businesses the option to spread out payments for larger purchases.
What We Don’t Like
It may take 30 to 45 days to get loan funding from NewtekOne, so it’s not the best option if you need money quickly.
Who It’s Best For
NewtekOne business loans are best suited for owners with strong credit who want to borrow large sums of money over an extended repayment period.
- High loan amounts
- Loan terms up to 25 years
- Strong credit necessary
- At least two years of tax returns are required
- Funding can take 30 to 45 days
Loan Details
- Minimum credit score: 650 for established businesses; 700 for new startups
- Minimum annual revenue: Not disclosed
- Minimum time in business: 2 to 3 years
Funding Speed
Loan funding may take 30 to 45 days.
Best for Startup Business Loans
PayPal Small Business Loan
APR range
Flat fee
Loan amounts
$5,000 to $100,000
Minimum Credit Score
580
Flat fee
$5,000 to $100,000
580
PayPal is well-known for its online payment platform, boasting over 434 million active customer and merchant accounts. For business account users, PayPal offers installment loans with flexible eligibility requirements and quick funding.
Why We Like It
We love that PayPal accepts borrowers who have been in business for just Nine months and have an annual revenue of $33,300. These minimum requirements could make it a viable option for new founders seeking startup capital.
What We Don’t Like
PayPal isn’t as transparent as other lenders about how it determines fees, making it difficult to gauge costs before applying. Another drawback: Although there is no penalty for prepayment, there is also no fee reduction or discount for paying off loans early.
Who It’s Best For
PayPal may be an ideal choice for micro-businesses and startups that need quick funding to launch their idea or take their startup to the next level.
- No late fees
- Next-day funding possible
- Flexible eligibility criteria
- Early repayment won’t result in savings
- Unclear details on financing charges
- Next-day funding only available on $5,000 to $100,000
Lender Details
Eligibility
- Minimum credit score: 580
- Time in business: Nine months
- Minimum annual revenue: $33,300
Turnaround time
Funding may be available as soon as the next day.
Best Business Loans for Limited Credit
Accion
Loan amounts
$5,000 to $250,000
APR range
As low as 8.49%
Minimum Credit Score
600
$5,000 to $250,000
As low as 8.49%
600
Accion Opportunity Fund (AOF) is a nonprofit lender dedicated to providing educational resources, business advising and affordable business loans to underserved communities.
Why We Like It
We love that AOF loans have flexible eligibility requirements and adjustable term lengths of up to five years. What’s more, AOF operates education programs, business accelerators and boot camps in collaboration with other companies. These business resources could be a boon for owners needing support to expand or overcome business obstacles.
What We Don’t Like
The time frame for applying and receiving funding from AOF can take two weeks or longer. Loans also have an origination fee of 3% to 5%.
Who It’s Best For
AOF is best for borrowers with limited credit or fair credit who need funding and can benefit from business coaching and other business support services.
- Business coaching and education resources
- Flexible eligibility criteria
- Customizable repayment terms
- Origination fee
- Loan funding can take up to two weeks
Loan Details
- Minimum credit score: 600
- Minimum annual revenue: $50,000
- Minimum time in business: One year
Funding Speed
The borrowing process may take two weeks or longer.
Low Interest on a Business Loan
Low-interest business loans may have rates as low as 4.6%. However, rates given to borrowers can vary widely depending on external factors, such as the overall rate environment, and internal factors, including a business’s financial strength and creditworthiness.
The median rate for a fixed-rate loan at urban banks was 7.33% in Q1 2025 and 7.99% for a variable-rate loan, according to Federal Reserve Bank of Kansas City data.
On the other hand, business loan interest rates can exceed 50% APR in some instances. Inputting loan terms and interest rates into a business loan calculator is a good way to estimate the payments and potential long-term costs associated with different loan options.
Many lenders also allow you to prequalify for loans, which can help you review costs and compare options before settling on a loan.
Factors That Determine Your Interest Rate
When determining your interest rate, lenders review your business’s financial health. Below are key factors lenders review during the application process.
- Business credit: A history of making on-time payments to other creditors can indicate your business is a low financial risk, which can qualify you for better loan rates.
- Personal credit: Lenders also look at the personal credit score of business owners, especially if you don’t yet have business credit. Having good personal credit is likely required to get a low rate.
- Business performance and operating history: Having many years in business and revenue shows financial stability and longevity. Certain lenders accept minimum annual revenue as low as $30,000, while others only approve borrowers with a yearly revenue of over $100,000.
- Collateral: Using collateral, such as property or equipment, to secure a business loan can result in a lower interest rate, as the lender can seize the property if you default, thereby reducing the lender’s risk. Meanwhile, unsecured loans may have higher rates.
- Market conditions: Factors outside of your control also influence business loan interest rates, including the broader interest rate environment.
Small Business Administration (SBA) Loans
Where do SBA loans fall into the mix? SBA loans are offered through SBA-approved lenders.
The administration sets limits on the rates lenders can charge for SBA loans. At present, the limits are as follows for the popular 7(a) program:
| LOAN AMOUNT | MAX RATE |
|---|---|
|
$50,000 or less
|
Base rate plus 6.5%
|
|
$50,001 to $250,000
|
Base rate plus 6.0%
|
|
$250,001 to $350,000
|
Base rate plus 4.5%
|
|
Greater than $350,000
|
Base rate plus 3.0%
|
Like with conventional loans, SBA lenders have some flexibility to assign rates within the allowable range based on your business’s credit risk and financial strength.
Which Lenders Offer Low-Interest Business Loans
Several types of lenders offer low-interest business loans, including the following:
- Banks: Traditional banks may provide low rates on SBA loans and non-SBA business loans, but often with strict eligibility requirements. You’re more likely to get a bank loan if you have several years of business experience, excellent credit and a solid business plan.
- Credit unions: Credit unions may offer short-term and long-term business loans to qualified members.
- Online lenders: Alternative non-bank lenders that operate primarily online may offer competitive loan rates to a wide range of businesses, including startups that have been in operation for less than a year.
How To Compare Low-Interest Business Loans
Even when you need money quickly, pausing to compare loan costs before borrowing is the best way to avoid getting caught in an expensive loan that puts your business in a debt chokehold. Below are the factors to compare when reviewing loan options.
- Qualifying criteria: Some lenders list credit and revenue requirements on their websites. Review the criteria to shortlist loans that align with your business needs.
- Interest rates: Business loan rates may go up to 100% or higher in some cases. Some lenders include their rates on their websites, allowing you to compare business loan interest rates before applying.
- Fees: Fees for business loans can include origination fees and miscellaneous additional charges, such as late payment fees or prepayment penalties. Compare costs to find the most affordable way to borrow.
- Repayment terms: Business loan terms can range from six months to several years. Payments are often due monthly, but can be due daily or weekly as well. Consider your goals to determine which term length and repayment option best suits your needs.
- Funding speeds: Obtaining a business loan can take several days or many months. Shop for the lowest-cost option with a funding timeframe that meets your needs.
- Financial tools: Verify whether a lender offers loan management tools that are compatible with your money management software. Syncing data between platforms can make financial reporting less cumbersome.
- Customer service: If you need to communicate with your lender on an ongoing basis, responsive customer service could stack one lender higher on your shortlist.
How To Qualify for the Lowest Interest Business Loans
When funds are scarce, securing a business loan can make it possible to maintain and expand your business. Below are steps to get the funding you need.
- Build business credit. Business owners can establish positive business credit history by opening business bank accounts and credit cards or tradelines with vendors.
- Strengthen personal credit. The best interest rates are typically offered to borrowers with very good or excellent credit (a credit score of 740 or higher). Paying down personal debt is one way to increase your credit score and get a better interest rate.
- Bring $100,000 or more in revenue to the table. Most lenders expect you to have at least $100,000 in annual revenue, but having an even higher yearly revenue of $250,000 or $300,000 may expand your loan options.
- Keep a business plan on file. Not all lenders require a business plan, but traditional banks usually want to know your business’s background and why your business is worth investing in, so it’s worth drafting one.
- Search for lenders. When you’re ready to borrow, review various online, bank and credit union loans to find a few viable ones to pursue.
- Compare options and apply. When you have a few offers, compare interest rates, fees and terms to find your best deal. Afterward, complete the full application and sign documents to finalize the loan and get funding.
Pros and Cons of a Low-Interest Business Loan
There are both advantages and disadvantages to borrowing money for your business, even when the loan has a low interest rate. Below are the pros and cons of low-interest loans.
| PROS | CONS |
|---|---|
|
Loan funds can increase cash flow or expand the business
|
Lenders may have high credit and revenue requirements for the lowest rates
|
|
Low rates can keep payments manageable
|
Business owners may be held personally liable for debt that the business can’t repay
|
|
Some lenders provide quick applications and fast funding (as soon as the same day)
|
Traditional bank loans tend to offer low rates but have longer application processes
|
|
Many lenders don’t require collateral
|
Excessive debt accumulation can cash-strap a business, even when interest rates are low
|
Alternative Financing Options
Methodology
We reviewed popular lenders based on 29 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 25%
- Customer experience: 20%
- Eligibility and accessibility: 10%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our loans rating and review methodology.