PNC Bank Small Business Loans Review
- Suited for small to large businesses
- Low interest rates
- Stringent borrower qualification
- Only operates in 19 states
PNC Bank Small Business Loans Overview
PNC Bank is a nationally chartered American bank based out of Pittsburgh, PA. It has branches in 19 states and Washington, D.C. and is among the largest banks operating in the U.S.
Established businesses with good credit that are based in the Mid-Atlantic, Southeast, or Upper Midwest regions may appreciate PNC’s easy (for a bank) application processes and breadth of services. Just be aware that you’ll need to be a business banking customer to take advantage of many of PNC’s perks.
Not sure if PNC Bank is the right lender for you? Read on.
Table of Contents
Business Lending Products
Here are the borrower qualifications for getting a loan from PNC Bank:
|Time in business:||3 years|
It also helps to be located within PNC’s retail footprint. The states PNC currently operates in are:
- New Jersey
- New York
- North Carolina
- South Carolina
- Washington D.C.
- West Virginia
Terms & Fees
PNC offers several financial products to small businesses.
Choice Credit Business Term Loans
These are the terms for PNC’s Choice Credit Business Term Loans:
|Borrowing amount:||$10,000 – $100,000|
|Term length:||Up to 4 years|
|Interest rate:||Fixed rate|
|Origination fee:||$175 annual fee|
For businesses looking for the speed of an alternative lender in an established traditional bank, PNC’s Choice Credit business term loans may be an ideal compromise. After filling out an abbreviated application and meeting the necessary qualifications, you can get your funds in as quickly as a day or two.
Since it’s an unsecured loan, you won’t have to worry about collateral; however, you’ll need to have a PNC Bank business checking account. Monthly payments are automatically deducted from that account.
PNC doesn’t disclose Choice Credit interest rates, but they are fixed for the life of the loan.
These are the terms and fees for PNC’s Secured Term Loans and Business Equity Installment Loans:
|Borrowing Amount:||$10,000 – $3,000,000|
|Term length:||Up to 7 years (Secured Business Loan)
Up to 20 years (secured with residential real estate)
Up to 10 years (secured with commercial real estate)
|Interest rate:||Prime rate+|
|Origination fee:||$175 annual fee|
|Collateral:||Equipment or other fixed business assets (Secured Term Loans)
Residential or owner-occupied commercial real estate (Business Equity Loans)
If you’re looking for a lower rate and can offer real estate as collateral, you may want to consider a Secured Term Loan. If you’re approved, PNC will set a fixed or variable interest rate based on the highest prime rate published in the Money Rates section of the Wall Street Journal for the last day of the previous month.
The Business Equity Installment Loan is a very similar product to the Secured Term Loan, but if you have some real estate burning a hole in your pocket, you can use it as collateral. In addition to potentially affecting your rates, you can get longer loan terms: 10 years for commercial real estate, 20 years for residential.
Like the Choice Credit loans, payments are automatically deducted from your PNC business checking account for both of these products.
Lines Of Credit
Here are the terms for PNC’s Choice Credit for Business Line of Credit, Secured Line of Credit, and Business Equity Line of Credit products:
|Credit limit:||$20,000 – $100,000 (Choice)
$100,000 – $3 million (Secured)
$10,000 – $1 million (Business Equity)
|Term length:||Annual terms (Secured, Choice)
7-year revolving credit period (Business Equity)
|Interest rate:||Variable, based on prime rate|
|Origination fee:||$175 annual fee|
|Collateral:||None (Choice Credit)
Business assets (Secured)
Real estate (Business Equity)
PNC offers three types of lines of credit to small businesses. For the most part, these mirror the terms of its installment loans while allowing you to draw upon your credit at will, paying interest only on the amount that you use. As a bonus, your line of credit will also serve as overdraft protection for your PNC business checking account. Funds can be accessed by check or transferred between accounts online or by telephone.
Choice Credit For Business Line of Credit is an unsecured line of credit with a simple and fast application process. Monthly payments are 1.5 percent of the balance (minimum of $100).
If you need a greater credit limit or longer revolving credit periods, you may want to consider the Secured Line of Credit or the Business Equity Line of Credit. As a perk, these products feature automated interest-only payments during their revolving credit periods. You can, of course, make a payment toward the principal if you so choose.
These are the terms and fees for PNC’s SBA loans:
|Borrowing amount:||$250,000 – $5 million (SBA 7(a) business and real estate loans)
No maximum for 1st mortgage, $5.5 million for 2nd (SBA 504 loans)
|Term length:||Up to 25 years (SBA 7(a))
Up to 20 years (SBA 504)
|Interest rate:||See current rates|
|Origination fee:||0-3.5% (SBA fee)
Unknown (bank fees)
|Collateral:||Varies by product|
PNC is an approved SBA lender and offers both SBA 7(a) loans and SBA 504 loans, as well as SBA Express, SBA Export Express, and SBA Veterans Advantages loans. Rather than directly issue the loan themselves, the SBA guarantees a percentage of a loan offered by institutions like PNC.
Be prepared to make a down payment of around 10 percent for a 7(a) loan, as well as provide assets or real estate for collateral. The length of the SBA loan will vary depending on the purpose of the loan. For example, 7(a) loans can last up to seven years for working capital, 10 years for purchases, and 25 years for real estate. If you’re borrowing less than $125,000, there’s no SBA guarantee fee.
Businesses that need money quickly can also apply for an SBA Express Loan. Those loans are capped at $350,000 but have an expedited application and approval process.
PNC distinguishes itself from a lot of other traditional banks by allowing you to apply for most of its products online. You will, of course, have to be a current PNC Bank Business Banking customer first. If you aren’t, you can still apply in person at a PNC branch.
To expedite your application, you’ll want to have basic information about your business handy, including your Industry Code (NAICS), your annual sales and revenue, number of employees, and personal information of at least one owner.
If you don’t live in one of the states PNC physically operates in, the bank recommends you call its toll-free number for assistance.
Sales & Advertising Transparency
PNC is pretty middle-of-the-road when it comes to transparency. The bank provides some basic information about all its products but is not especially consistent about what is disclosed, especially when it comes to rates and fees.
Customer Service & Technical Support
As is usually the case with bigger lending institutions, PNC’s customer service gets mixed reviews from its clientele. Most of the complaints revolve around fees.
You can reach customer service through PNC’s website, through the bank’s toll-free number, or through social media. PNC has a presence on Facebook, LinkedIn, Pinterest, YouTube, and Twitter.
Negative Reviews & Complaints
PNC Financial Services Group has an A- rating with the BBB. You can also look up your individual branch on the site to search for more specific customer reviews. Here are some of the complaints customers had:
- Unresponsive Customer Service: A lot of customers state that complaints went unanswered by the company.
- Fees: As is common with banks, many customers complained about being charged unexpected fees. PNC also doesn’t fully disclose its fee structure on its site, which may leave applicants unprepared.
- Harder To Qualify: Customers used to the lax standards of alternative lenders will have to remember that they’re dealing with a traditional bank, which tends to be more conservative in its practices.
Positive Reviews & Testimonials
PNC Bank’s business loans tend to receive moderately high scores from review sites. Here are some of the things people liked about PNC’s business loan services:
- Good Rates: PNC’s rates start around prime for many of its financial products.
- Versatile Products: PNC offers both unsecured and secured financing, as well as several variations of installment loans and lines of credit.
- Online Applications: Though there are some limitations, the ability of existing customers to apply online is a perk that many of PNC’s banking competitors still lack.
PNC offers some modern conveniences to small businesses looking for loans or lines of credit from a traditional source. If you can meet the fairly significant qualifications and live near a branch in the Mid-Atlantic, Southeast, or Upper Midwest, PNC can be a solid choice for your lending needs. Just make sure to inquire about the fee structure of your product.