U.S. Bank Business Loans Review
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- Date Established
- 1863
- Location
- Minneapolis, MN
Pros
- Suited for small to large businesses
- Low interest rates
- Few additional fees
Cons
- Stringent borrower qualification
- Fair public reputation
- Only operates in 25 states
Overview
U.S. Bank, headquartered in Minneapolis, MN, is the fifth largest bank in the United States, serving 25 states with over 3,000 branches.
For many parts of the country, U.S. Bank will be the biggest financial player in town, offering low interest rates to businesses that can meet its credit requirements. Whether the bank is the best lending option for your business will depend on where you are headquartered, how long you’ve been in business, your credit rating, and your revenue.
Read on and see if U.S. Bank is the right solution for your company.
Table of Contents
Business Lending Products
- Business term loans
- Lines of credit
- SBA loans
- Commercial lending
- Healthcare practice loans
Borrower Qualifications
Below are the qualifications for U.S. Bank loans. The bank doesn’t set an explicit minimum credit rating, but you can expect to have a hard time securing a loan if your credit falls below the mid-600s.
| Time in business: | 2 years |
| Credit score: | Unknown |
| Revenue: | Varies by product |
For relaxed credit requirements, consider Lendio:
Terms & Fees
Rating: Excellent
U.S. Bank offers several lending products to small businesses.
Secured Business Loans
These are the terms for U.S. Bank’s business term loans:
| Borrowing amount: | Up to $1 million |
| Term length: | Up to 80 months |
| Interest rate: | 3.49% and up (lower with automatic payments from U.S. Bank account) |
| Origination fee: | $75 |
| Collateral: | Assets, equipment, or vehicles |
U.S. Bank’s Business Loans is a catch-all category that includes funding used to pay for expansion, expenses, and equipment (the bank also offers equipment financing specifically).
These loans feature fixed monthly payments for up to five years with some flexibility in what you use for collateral. Full amortization can last up to seven years. In the case of equipment purchases, you may be able to use the purchased equipment as collateral itself.
U.S. Bank does offer lower interest rates when you elect to make automated payments from a U.S. Bank Business Checking account, but it’s not required.
Lines Of Credit
These are the terms and fees for U.S. Bank’s lines of credit:
| Credit limit: | Up to $250,000 (Cash Flow Manager) Up to $500,000 (Business Equity) $100,000 – $2,000,000 (Business) |
| Term length: | Annual terms (all) Up to 5 years (Business Equity) |
| Interest rate: | Unknown |
| Annual fee: | Unknown |
| Collateral: | Commercial property (Business Equity and Business) |
Businesses looking for something more versatile than a one-time term loan may prefer to establish a line of credit. Lines of credit allow you to access capital in a similar manner to that of a credit card, but with substantially lower interest rates. You only pay interest on the credit you’re using. This makes them a good choice for businesses looking to smooth out their cash flow (or even just to have a bit of an insurance policy). Be aware that lines of credit usually have annual fees and need to be renewed.
U.S. Bank offers three variations on the line of credit to businesses. Cash Flow Manager Line of Credit is the quick and easy version, offering a simplified application and same day credit decisions. The credit limit taps out at $250,000 but doesn’t require collateral. Note, you can also apply for this product through the SBA Express program.
If that isn’t enough, businesses with real estate equity can leverage it in the form of a Business Equity Line of Credit. U.S. Bank will offer you a secured line of credit for up to 75 percent of your property’s value. Payments are interest-only. Just be aware that this arrangement is for a maximum of five years.
Larger businesses can also apply for a secured line of credit in the form of a Business Line of Credit. This arrangement can be secured with a greater variety of assets than the Business Equity Line of Credit.
SBA Loans
These are the terms and fees for U.S. Bank’s SBA loans:
| Borrowing amount: | $250,000 – $5 million (SBA 7(a) business and real estate loans) Up to $7 million (SBA 7(a) pari passu) Up to $11.25 million (SBA 504 loans) |
| Term length: | Up to 7, 10 or 25 years (SBA 7(a)) 7 – 10, 10 – 20 years (SBA 504 equipment or real estate, respectively) |
| Interest rate: | See current rates |
| Origination fee: | 0-3.5% (SBA fee) Unknown (bank fees) |
| Collateral: | Varies by product |
U.S. Bank is an approved SBA lender and offers both SBA 7(a) loans and SBA 504 loans. These loans are partially guaranteed by the SBA, allowing businesses that may otherwise encounter a tough lending market to get credit at reasonable rates and terms.
Expect to have 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 SBA loans will vary depending on what you’re applying the money to. For example, 7(a) loans can last up to seven years for working capital, 10 years for purchases, and 25 years for real estate.
Application Process
Rating: Excellent
While bigger banks tend to be more conservative with their application processes than alternative lenders, U.S. Bank is on the flexible end of the range, though you’ll still need to speak with a specialist to complete your application.
U.S. Bank does give you more options for making that first contact. For example, you can submit a contact form, after which a specialist will contact you. You can also reach the lender by phone or go down to your local branch.
Turnaround will depend on the product you’re applying for.
Compare with Lendio:
Note that U.S. Bank currently operates in 25 states, primarily on the West Coast, in the Mountain States, and in the Upper Midwest. Branches are located in the following states:
- Washington
- Oregon
- California
- Idaho
- Nevada
- Arizona
- Montana
- Wyoming
- Utah
- Colorado
- New Mexico
- North Dakota
- South Dakota
- Nebraska
- Minnesota
- Iowa
- Missouri
- Arkansas
- Wisconsin
- Illinois
- Indiana
- Kentucky
- Tennessee
- Ohio
- Florida
Sales & Advertising Transparency
U.S Bank won’t win any awards for transparency, but it does provide a decent amount of information on its website, as long as you’re willing to click around a bit to find it.
For a large bank, I found them more forthcoming with information than most.
Customer Service & Technical Support
U.S. Bank’s customer service gets mixed reviews from clients, which shouldn’t come as much of a surprise for a financial institution of this size.
Customer service can be reached via the bank’s toll-free number. You can find direct numbers for regional support on U.S. Bank’s customer service page.
User Reviews
Rating: Excellent
Negative Reviews & Complaints
U.S. Bank maintains an A- rating with the BBB. Customers complained about:
- Impersonal Treatment: Many customers complained about the bank being unresponsive to their complaints.
- Billing Issues: Like most major banks, a large percentage of U.S. Bank’s customers complained about overdraft fees.
- Harder To Qualify: Compared to alternative lenders, companies seeking equipment financing from U.S. Bank will have a higher bar to clear in terms of credit rating.
Positive Reviews & Testimonials
Advantages of financing with U.S. Bank include:
- Deep Pockets: Larger corporations and businesses that need seven-figure financing will be able to find it here.
- Well-Established: U.S. Bank is one of the larger and more stable financial institutions in the country.
- Accessible Branches: U.S. Bank is accessible in a large part of the country, including those states not served by the Big Four. Even in the digital age, sometimes it’s just easier to take care of business in person. Customers in the 25 states served by U.S. Bank branches should have an easy time finding a branch. If you’re on the East Coast, Michigan, or the Gulf States, you’ll probably have to look elsewhere.
Final Verdict
I’d think of U.S. Bank as a small large bank, offering many of the advantages of the nation’s largest financial institutions while avoiding many–although not all–of their worst traits. Additionally, the bank’s presence in states underserved by the big four can make them an excellent choice for businesses headquartered there.
Need alternatives?
Looking for a loan or line of credit and want an alternative to U.S. Bank? See how it compares to other bank lenders.
Check out these lenders:
Don’t qualify for a bank loan? You can still get funding through alternative sources.
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.
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| Borrower requirements: • Free loan aggregation service; requirements vary by area and lender. | |
| Compare offers Learn more about the Community of Lenders | |
Erica Seppala
Erica is a writer based in Greenville, South Carolina. She is a graduate of Limestone College. Initially determined to be an accountant, she put away the calculator and picked up a laptop to pursue her dream of being a writer. Erica has spent the past 10 years writing blogs and articles for hundreds of private clients, and she loves sharing her love of research and the written word with everyone around her.
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