Bank of America Small Business Loans

Bank of America offers different Small Business Loans; they are easier to qualify for, have fixed assets, flexible terms, and low down payments. The bank meets all the SBA guidelines and also offers guidance on small business loans.


  1. The business should be owned by you.
  2. Your business should be legally recognized as a partnership, sole proprietorship, LLC, or corporation.
  3.   Your business cannot qualify for conventional credit

Offer for a Limited time (30 September, 2021)

Get a 1.99 % interest rate on qualifying small businesses for six months and receive SBA secured loans. Loans start from $100,000. Offer valid till 31 January, 2022.

Offer for a Limited time (30 September, 2021)

  1. Benefits from no upfront fees on secured loans and no appraisal fees on the commercial real estate secure loan.
  2. Loans start from $ 100,000. Apply now.

Benefits for Veterans

  1. 25 % discount on the administration of loan.
  2. Offer eligible only for Veterans of the US army. 

Loans from $ 25,000 - $ 300,000


  1. Inventory or Working Capital.
  2. Purchase of equipment.


  1. seven years for inventory and working capital; however, the term can also be increased to twelve years.
  2. Ten-year term on equipment.
  3. Down payment: 10%

Loans from $ 350,000


  1. Buying equipment.
  2. Refinancing or buying real estate.
  3. Funds and other improvements.


  1. Ten-year term on equipment
  2. 25-year (with amortization) term on real estate
  3. The draw period for construction starts as soon as the project begins.
  4. Down payment: 10%.

Loans from $ 200,000 to $ 5 Million


  1. Buying equipment.
  2. Buying real estate.
  3. Funds and other improvements.
  4. Expansion or purchase of a business.
  5. Inventory or working capital.


  1. Ten-year term on equipment
  2. 25-year term with aromatization on real estate.
  3. The draw period for construction starts as soon as the project begins.
  4. Ten-year term for acquisition of businesses.
  5. Seven-year term for inventory and working capital.
  6. Down payment: 10%.

Advantages of SBA Loans

  1. Come with a guarantee from the government.
  2. Extremely favorable and flexible terms.
  3. More time to pay.
  4. Affordable.

Lenders that Handle SBA Loans

  1. Standard Lender: This lender must be qualified and should submit transactions for analysis and review. Once the transactions have been approved, the lender will receive a guarantee.
  2. Preferred Lender: This lender is more qualified than the standard lender. The loan approval time can also be reduced as the SBA only checks the lender's justification for eligibility.

Types of Loans offered by Bank of America Loans

There are many types of loans offered by Bank of America, and they have been discussed below.

1.     Commercial Real Estate

Purchase your preferred land that is needed for your business to grow. Then, leverage the equity and invest in your business.

2.     Equipment Loans

Buy the tools that are necessary for your business to succeed. 

3.     Secured Business Line of Credit

Support the ongoing operations of your business by securing a business line of credit. The line of credit is secured by a deposit certificate or a blanket lien on your assets.

4.     Secured Business Loans

The secured business loan will allow you to expand your business or refinance debt. This loan also allows you to choose the collateral of your choice.

Lending Criteria for Bank of America

All banks set a certain criteria that businesses need to follow to be eligible for a loan.

Revenue and Liability and Assets Sheet

Revenue is an essential part of the qualification process, and it is also part of the liability and assets sheet. The balance sheet usually comprises liability, assets, and equity. The revenue of a business should be reasonable; Bank of America asks for a minimum revenue of $ 250,000.

What Can you do?

You can take some necessary steps to increase your revenue, and the first basic step is to cut down on the liability. Pay off your credit and spend a certain amount on personal debt every month.

Cash Flow/Income to Debt Ratio

The balance sheet is essentially an overview of your entire business, and the income to debt ratio provides a monthly overview of the business. Every month, after the deduction of expenses, the remaining amount shows your ability to pay the loan payment.

Lenders sometimes might even do a comparison of receivable and payable accounts. Lenders are most interested in reviewing the month in which the business filed a request for the loan. 

Below is a list of information that the lender will go through:

What Can you do?

Accounts receivable include only goods and services that the business has been invoiced; you need to make sure that you invoice them as soon as possible. You can also get your financial information reviewed by the CPA. Also, pay your bills quickly, proving to the lenders that you are eligible for the loan.

Two or More Years in the Business

For small businesses, applying for a loan is not that simple. The main qualification that a small business needs to achieve is that it should be active for two years or more. However, some banks offer loans that don't require these qualifications, but you will still need to show your tax returns of the last two years to the lenders.

What Can you do?

Organize business tax returns, get rid of all the irregularities. Try to collect all the information about tax returns in one place on a CD or a hard drive. Prepare a business report for submission and get copies of the credit score.


Some lenders might not require collateral or assets from a business, but most of them do, and you will need to list your assets on the loan application. A lender is interested in assets that they can easily seize and sell to cover the obligation of the loan. These assets are:

If you fail to pay the loan on time, the lender will control all these assets and sell them. A UCC (Uniform Commercial Code) might be filed to claim receivable and payable accounts.

What Can you do?

This is a scary situation, and the best way to avoid it is to stay away from it. However, those who start a business are usually confident and brave. Of course, taking a loan is risky, but the business only grows if the owner takes calculated risks.

Bank of America Interests, Fees, and Loan Options

Bank of America offers four main types of loans:

  1. Small Business Loans


  1. Commercial Real Estate
  1. Equipment Loans


  1. Secured Business Loans

Bank of America Application

Apply for Small Business Loan

  1. You can apply for a Business auto loan online
  2. If you use online banking for small businesses, you can even apply for unsecured business loans.
  3. You can schedule an appointment to apply for a business loan.
  4. Your business must have been active for two years to be eligible for a Bank of America business loan.

Required Information

  1. Various business documents such as organizing documents, filing documents, articles of incorporation, and resolution certificates.
  2. Tax ID, Address, and Name of Business.
  3. When was the business form? The industry of the business?
  4. Date of birth of the owners, address, and Social security number.

Summary of Bank of America Loan Options

As we have discussed, Bank of America offers four main types of loans for businesses. The variation in the loans, the flexibility of the terms, and the interest rate make this bank a credible lender. Therefore, make sure that you prepare all the required information before applying for a loan.

To learn more about business loans, please check out this website.