A Quick Guide to Chase Small Business Loans
The type of loan that you need or can get depends on several factors, such as your credit score and the intended use. Whether you need funding for working capital or expansion, Chase offers several types of small business loans that you can take advantage of.
In this guide, we will cover the details of the Chase small business loans to help you determine if there is an option that suits your business’s budget and needs. As you submit your loan application, to get a convincing loan request letter that will help you secure the funding.
Types of Chase Small Business Loans
Chase is a commercial bank that offers a variety of business loans—both for large and small enterprises—for multiple purposes, like startup costs, expansion, working capital, and equipment purchase.
Below are the types of small business loans offered by Chase Bank:
- Line of credit (LOC)
- Term loans
- Draw loans
- Advised line of credit
- Small Business Administration (SBA) loans
Line of Credit
A line-of-credit loan works like a credit card. With a line of credit, your business is awarded a credit limit on the basis of cash flow and credit score. Business credit allows you to access quick cash whenever you need it up to your credit limit. You will only pay interest on the amount you use.
Here is everything you should know about the Chase small business line of credit:
- Amount awarded ranges from $10,000 to $500,000
- You get a waiver on the annual fee if your usage is 40% or more
- The interest rate varies depending on your credit report and collateral
- You can select a monthly repayment date based on your cash flow
- You should pay at least 1% of your balance and the accumulated interest every month
- The line of credit is valid for five years unless it’s renewed
A term loan gives you a large amount of money upfront, and you repay with interest over an agreed period. Chase small business term loans are best if you need to access large funding fast. The specific interest rate that you get depends on the loan amount and your business credit score.
Below is an outline of Chase small business term loans features:
- Minimum loan amount of $5,000
- Fixed monthly payments
- Variable and fixed interest rates
- Repayment periods of 12 to 84 months
A draw loan allows you to borrow money for a certain period, and you start repaying the amount borrowed along with interest after the end of the set period. Chase small business draw loans are offered for up to 12 months, after which you should repay a fixed amount every month.
Advised Line of Credit
Advised loans help you cover your business purchases for a certain period, usually one year. Chase offers a pre-approved period of up to 12 months, and rates and terms are determined every time you want to make a purchase.
Small Business Administration (SBA) Loans
Small Business Administration (SBA) loans are partially guaranteed by the SBA and offered by partner lenders—credit unions and banks, like Chase. Since Chase is a Preferred Lender for SBA loans, you can take advantage of small business loans of up to $5 million through this bank.
SBA loans are best for small businesses or startups that require low interest rates and large amounts of funding. Since the SBA guarantees the loans, there is minimal risk to lenders, meaning they are more likely to approve loans—even for startups.
Every SBA loan has its own terms, including how you can use the funds, as shown in the table below:
|SBA Loan||Appropriate Use|
|SBA 7(a) Loan Program||You can use these loans for various purposes, such as:
|SBA 504 Loan Program||These loans can be used for:
You cannot use SBA 504 loans for working capital, debt repayment, and rental real estate investment
Chase Small Business Loan Requirements
Chase doesn’t offer online loan applications or a lot of details about application procedures on the official website. To get a small business loan from Chase, you need to visit a local branch. A small business loan expert will inform you about the requirements, terms, and application processes.
You can start by gathering the general documents requested by lenders, such as:
- Personal credit history
- Business credit scores
- Business financial documents and projections
- Personal resume
- Business plan
Get the Help You Need To Secure a Small Business Loan
Do you meet the eligibility criteria for a particular loan? You need to ensure that you have all the documents before submitting your loan application. One of the important documents that can decide the outcome of your loan application is a request letter. A well-written loan request letter informs the lender why your business deserves the loan.
Improve your chances of getting the loan you need by letting DoNotPay help you find the right lender and draft a professional and convincing loan request letter in a minute. All you have to do is:
- Find the Business Loan Request Letter tool
- Answer a brief questionnaire
- Upload the required documents
It’s that simple! DoNotPay will automatically generate your letter and forward it to the lender in your stead.
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