Chase Bank Business Loans Review
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- Date Established
- New York, NY
- Suited for small to large businesses
- Suited for start-ups
- Low interest rates
- Stringent borrower qualifications
- Poor public reputation
Chase Bank (JPMorgan Chase Bank, N.A.) is a national bank based in New York City. It is currently one of the four largest banks in the United States.
While banks like Chase have tightened their lending standards since 2008, the company still offers a competitive array of products small businesses can take advantage of, assuming you’re in a region served by a Chase branch. Unlike with many of its smallest competitors, you’ll need to apply for Chase business loans in person.
Table of Contents
Business Lending Products
Chase prefers to do most of their loan application processing in-branch, so you won’t find definitive qualifications online. While we can’t tell you exactly what Chase’s prerequisites for business funding are, it’s a safe bet to say you’ll stand a better chance of qualifying for funding if your credit is at least in the mid-to-high 600s. You’ll also want to have a good debt-to-asset ratio, factoring in not just your income, but your frozen assets as well. In most cases, you’ll also need to have a banking account with Chase to qualify.
|Time in business:||Varies by product|
Terms & Fees
Small businesses seeking loans from Chase have several funding options. In this review, we’ll take a look at Chase’s lines of credit, business terms loans, and SBA loans. While Chase has some of the best business lending rates out there, they disclose almost no information about them up front.
Lines Of Credit
These are the terms and fees for Chase’s lines of credit:
|Borrowing amount:||$10,000 – $500,000 (business)|
|Term length:||12 – 24 months (commercial)|
|Interest rate:||Variable (commercial indexed to LIBOR)|
|Additional fees:||$150, $250, or $500 (annual fee for business lines)|
Businesses looking to be able to draw small amounts of money at their discretion may want to consider a business line of credit. Chase offers lines of credit in two sizes: one for smaller businesses and one for larger corporations.
A revolving line of credit is a little bit like a credit card (actually, a credit card is technically a type of a revolving line of credit, but nevermind that). It’s an account that lets you borrow, at will, up to your credit limit. You can use as much or as little of it as you want, only paying interest on the amount you use.
As convenient as that is, be aware that there are sometimes maintenance costs associated with lines of credit. If you’re going with the smaller Chase Business Line of Credit, you’ll pay a tiered, annual fee based on the credit limit of the account as follows:
- Up to $50,000 has an annual fee of $150.
- $50,001 to $250,000 has an annual fee of $250.
- Over $250,000 has an annual fee of $500.
The Chase Commercial Line of Credit has no annual fee but is approved initially for only a 12 to 24-month term. When it expires, you’ll have the option to renew.
|Lender||Borrowing Amount||Draw Term||Draw Fee||APR||Next Steps|
|$6K - $100K||6 months||None||Starts at 13.99%||Apply Now|
|$2K - $5M||Varies||Varies||Varies||Apply Now|
|$5K - $5M||6 months||1.50% per draw||21% - 65%||Apply Now|
|$1K - $100K||12 weeks||None||12% - 54%||Apply Now|
Business Term Loans
These are the terms and fees for Chase Business Term Loans:
|Borrowing amount:||Starts at $5,000|
|Term length:||12 - 84 months|
|Interest rate:||Unknown (fixed and adjustable)|
|Origination fee:||Closing fee|
Chase doesn't divulge a lot of information about their business term loans, so you'll need to hash most of the details out with a lending agent at your local branch. Chase is, however, known for having competitive rates on their business loans.
As these are medium- and long-term loans, you can expect monthly payments (automatically deducted from your Chase Business Checking Account), a closing fee, and a down payment.
These are the terms and fees for Chase SBA loans:
|Borrowing amount:||Up to $5 million (SBA 7(a) loans)|
Up to $350,000 (SBA Express Term loans, SBA Express LoC)
No maximum (SBA 504 loans)
|Term length:||Up to 7 years (SBA 7(a))|
Up to 7 years, 10 years or 25 years (SBA express for working capital, equipment and real estate respectively)
Up to 10 or 20 years (SBA 504 equipment or real estate, respectively)
Up to 3 years (SBA Express LoC)
|Interest rate:||See current rates|
|Additional fees:||0-3.75% (SBA guarantee fee)|
Unknown (Chase fees)
|Collateral:||Not required for loans < $25,000|
Chase is an approved SBA lender that offers SBA 7(a), 504, and Express products. SBA loans help businesses without a strong history to access lending at lower rates -- and with longer terms -- than they would otherwise be able to by guaranteeing a percentage of the debt. Keep in mind that you'll be dealing with both the SBA's rules and Chase's own policies for SBA loans.
SBA 7(a) loans are usually the easiest to qualify for and can be used for a number of different purposes. The SBA guarantees up to 75 percent of the loan, up to a maximum of $3.75 million for you big spenders. SBA 504 loans are usually earmarked for business construction and real estate acquisition. The SBA only guarantees up to 50% of these types of loans, but there's no borrowing limit with Chase's version of the loan.
Businesses that need money more quickly or irregularly may want to consider SBA Express. Available as both term loans and revolving lines of credit, these expedited loans are guaranteed up to 50 percent by the SBA. They're capped at $350,000, but if your company exports goods you may qualify for a $500,000 limit through the Export Express sub-program.
Gigantic, world-spanning, mega-bank it may be, but Chase is actually pretty old-fashioned when it comes to its business lending. All of its business loan products must be applied for in person at your local branch.
This won't be too difficult in most of the country's major metropolitan areas, but there's a pretty big chunk of the country that doesn't have access to a Chase branch. Chase branches are most prolific in:
- New York
They can also be found more sparsely or in pockets in:
- Washington DC
- New Jersey
- West Virginia
Chase has announced plans to enter into the following markets in 2019:
- North Carolina (Charlotte and Raleigh)
- South Carolina (Greenville)
- Kansas (Kansas City)
- Tennessee (Nashville)
- Rhode Island (Providence)
- Missouri (St. Louis)
You can use the company's branch locator to find the nearest one to you.
Sales & Advertising Transparency
Chase's website provides some very basic amount of information about their products, but very little in the way of rates or fees. As you might expect for a site representing such a large company, it's a bit of a labyrinth, with lots of links to sub-menus and tables. Expect to spend a little time tracking down the information you need.
Customer Service & Technical Support
Since so much of Chase's business transactions are done locally, your experience will be as good as the service offered by your local branch.
On a company-wide level, however, Chase (like many large banks) has had its recent share of consumer-related scandals and no shortage of customer complaints.
You may have heard that the big national banks aren't exactly known for good behavior. Chase won't do much to change that. Chase currently rates an F with the BBB for failure to respond to complaints, as well as taking a long time to respond to the complaints that they do respond to.
Negative Reviews & Complaints
You'll find no shortage of customer complaints on BBB or elsewhere regarding Chase. Common complaints include.
- Billing issues: A number of customers had issues related to service and overdraft charges. Most of these were related to personal checking and savings accounts.
- Advertising issues: Customers reported that, in some instances, their accounts were not credited with the promotional offers they received.
- Scandal-prone: From price-fixing to lending discrimination to selling bad credit card debt, Chase has made a lot of headlines for the wrong reasons.
Positive Reviews & Testimonials
Chase tends to fare a lot better when you're looking at specific products than at the corporation as a whole. Chase receives praise for:
- Low rates: Chase's business loans are often cited as being very competitive.
- Accessibility: Chase has over 5,300 branches in the U.S., making them one of the more easily accessible banks in the country.
- Breadth of products: Chase is big enough to offer a flexible range of services to qualifying businesses.
Despite its size, Chase is still a pretty traditional bank when it comes to business lending. Depending on your credit rating, cash flow, and geographic location this can make Chase an ideal choice or put them completely out of reach.
Businesses that can access credit from Chase will find agreeable, flexible terms and competitive rates. But, as is the case with many of the financial sectors biggest players, you're dealing with a massive, often impersonal company that has a history of playing fast and loose with laws and regulations. There's no way (or reason) to soft-pedal it: those issues can put Chase's customers at risk. But if you have an established relationship with the bank and are satisfied with the service, you'll be able to make that judgment call yourself.
Don't think you can qualify for a loan from Chase? You still have alternatives! Check out our small business lender comparison chart to get an idea of what's out there. If you prefer to stick with banks, here are a few of Chase's biggest competitors.
To evaluate multiple low-interest lenders at once, it’s a good idea to use a free loan matchmaking service, often called a “loan aggregator.”
Merchant Maverick has partnered with Lendio (read our review) to offer one such service: the Merchant Maverick Community of Lenders. By filling out one application, you can be matched to multiple potential lenders. Check your eligibility below.
• Free loan aggregation service; requirements vary by area and lender.
Learn more about the Community of Lenders