Finding the best business loan with the cheapest interest rate in the U.S. depends on a few key factors, like your credit score, how long you’ve been in business, annual revenue, and whether you have collateral. But here’s a breakdown of some of the top options with low interest rates as of 2025:
Top Business Loans with the Lowest Interest Rates
1. SBA 7(a) Loan
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Interest Rate: Prime rate + 2.25% to 4.75%
(Current Prime = ~8.5% → Total = 10.75% to 13.25%) -
Loan Amount: Up to $5 million
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Term: Up to 25 years
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Best For: Established businesses with good credit
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Pros:
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Low rates
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Long repayment terms
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Backed by the U.S. government
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Cons:
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Lengthy application process
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Strict eligibility criteria
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2. 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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Best For: Startups and small businesses needing smaller amounts
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Pros:
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Flexible use
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Often comes with business counseling
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Cons:
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Smaller loan amounts
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Harder to qualify without a solid plan
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3. Bank Term Loans (e.g., from Wells Fargo, Bank of America, Chase)
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Interest Rate: 6% to 12% (for well-qualified borrowers)
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Loan Amount: $10,000 to $1 million+
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Term: 1 to 10 years
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Best For: Established businesses with strong credit and finances
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Pros:
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Competitive rates
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High loan amounts
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Cons:
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Tougher approval
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Requires strong documentation
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4. Credit Unions and Community Banks
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Interest Rate: 5% to 10%
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Best For: Local businesses, newer businesses with decent credit
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Pros:
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Personal service
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Often lower rates than national banks
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Cons:
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Slower process
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May have membership requirements
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5. Online Lenders (like Fundbox, Bluevine, Credibly)
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Interest Rate: 10% to 35%
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Speed: Fast funding, often same-day
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Best For: Businesses needing quick cash or with fair credit
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Pros:
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Fast approval and funding
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Easier to qualify
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Cons:
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Higher interest rates
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Shorter terms
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How to Get the Lowest Rate
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Improve Credit Score: Aim for 680+
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Show Strong Financials: Higher revenue and profit = lower risk
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Offer Collateral: Lowers risk for the lender
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Apply with SBA or Credit Unions First: Their rates are usually best
Best Overall Option for Low Rates
SBA 7(a) Loan — hard to beat for established businesses with good credit.