Best low-interest business loans in December 2025
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Compare the best low-interest business loans in December 2025
Bankrate's list of top picks for the best low-interest business loans show what type of loan each lender is best for, plus loan amount and APR ranges to help make your decision as a business owner simpler.
| LENDER | BEST FOR | LOAN AMOUNT | APR |
|---|---|---|---|
| Long-term loans | Up to $5 million | Up to 15.50% | |
| Startups | Up to $50,000 | 8.00% to 13.00% (average) | |
| Secured business loans | $250,000 to $10 million | Starts at 5.25% | |
| Bad credit | $10,000 to $500,000 | 5.99% to 74.99% | |
| Bank term loans | Starts at $10,000 | As low as 7.00% | |
| Unsecured line of credit | $5,000 to $150,000 | Between Prime + 1.75% to Prime + 9.75% | |
| Fast line of credit | Up to $250,000 | Starts at 7.80% (simple interest) | |
| Accessible loans | $5,000 to $250,000 | From 8.49% (simple interest) | |
| Equipment financing | Up to $10 million | 9.49% to 34.00% (simple interest) | |
| Interest-free microloans | $1,000 to $15,000 | N/A |
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A closer look at our top low-interest business loans
SBA 7(a) loans: Best for long-term loans
Overview: The U.S. Small Business Administration (SBA) provides affordable SBA business loans with high loan amounts, financing terms as long as 25 years and some of the best business loan rates for long-term loans. With multiple SBA 7(a) loan types to choose from, like the SBA Express loan and SBA CAPLines, most small business owners can find a loan to meet their financing needs.
SBA microloans: Best for startups
Overview: SBA microloans are available to startup businesses up to $50,000 are available with repayment terms of up to seven years. In addition to the time in business requirement, they tend to have more lenient credit score requirements, and lenders often offer mentoring alongside the funding. Interest rates generally range from 8% to 13%, and borrowers will typically have to offer collateral and sign a personal guarantee.
SMB Compass: Best for secured loans
Overview: SMB Compass is a small business financing company that offers nine different types of business loans, including business lines of credit, invoice financing, bridge loans and equipment financing. Loan amounts range from $10,000 to $10 million depending on the type of financing you choose. Asset-based loans have interest rates starting at 5.99 percent, while other loans like business lines of credit start at 7.99 percent. You can prequalify without a hard credit check, and certain loans allow you to access your funds as soon as 24 hours after approval.
Triton Capital: Best for bad credit
Overview: Triton Capital offers working capital, SBA loans and equipment loans for small business owners, even those with fair credit who may struggle to get approved elsewhere. Loan amounts range from $10,000 to $350,000, with interest rates starting at a competitive 7.99%. Triton has simplified its loan process, allowing applicants to go from application to funding in as little as 24 hours.
Bank of America: Best for bank term loans
Overview: Bank of America is one of the largest banks in the country, offering a wide variety of business loans for different needs, including unsecured lines of credit and term loans that don’t require collateral. Secured term loans have interest rates as low as 7%, with loan amounts starting at $25,000. Unsecured term loans start at $10,000 with fixed rates as low as 7.50% and repayment terms of up to 60 months. Preferred Rewards for Business members can save up to 0.75% on their interest rate.
Wells Fargo: Best for unsecured lines of credit
Overview: Wells Fargo offers two types of unsecured lines of credit, one for businesses that have been open for at least two years and one for new companies. There are no annual fees for new businesses, but established businesses that are new customers can get the annual fee waived in the first year. Rates start as low as 9.25 percent for established businesses with revolving credit from $10,000 to $150,000. New business owners can borrow $5,000 to $50,000 at rates starting at 12.00 percent. Approvals come with automatic enrollment in Wells Fargo’s free rewards program.
Bluevine: Best for fast line of credit
Overview: Fintech company Bluevine provides lines of credit with instant access after approval. Business owners will also receive a free Bluevine business checking account. Credit lines up to $250,000 are available, with rates starting at 7.80% simple interest. Bluevine reports repayment history, helping business owners establish or improve their business credit score to make future lending easier with more favorable terms.
Accion Opportunity Fund: Best for accessible loans
Overview: Nonprofit lender Accion Opportunity Fund lends primarily to women, people of color and low-to-moderate income business owners. Accion offers a working capital loan and a truck equipment loan with flexible rates starting at 8.49% and loan amounts of $5,000 to $250,000. Accion looks beyond your credit score to determine eligibility, granting funding to business owners who aren’t typically eligible with traditional lenders.
Creditfy: Best for equipment financing
Overview: Creditfy offers multiple business financing options, including equipment financing, bridge loans, business term loans and invoice financing. Equipment loans up to $5 million can be funded in as little as 24 hours after approval, with terms up to seven years and monthly rates as low as 1.06% (or 12.72% annually). Full financing without a down payment is available, and Creditfy boasts a 90% approval rate. Pre-approval is available without a hard credit check.
Kiva: Best for interest-free microloans
Overview: Kiva is a nonprofit offering small businesses microloans up to $15,000 with no fees or interest. Term lengths range from six months to three years. Rather than requiring a minimum credit score or standard loan requirements, applicants crowdsource funding from family and friends before publicly opening up funding to a wider range of lenders.
How to qualify for a low-interest business loan
Business loans with the best rates are reserved for businesses with excellent credit and a proven track record of generating revenue and maintaining sufficient cash flow. Depending on the type of loan, businesses with the best qualifications can get a loan with rates as low as 7%. New businesses and business owners with bad credit likely won’t see rates this low, but they can take steps like providing collateral and comparing multiple loan offers to find the best rates.
Each lender sets its own requirements for business loans. To find the best low-interest small business loan and avoid being denied funding, make sure your business meets the lender's eligibility requirements before applying. Common requirements include:
- Sufficient monthly or annual revenue
- At least 6 months in business
- Personal credit score of 600 or higher
To get a low-interest loan, the requirements may be higher, such as two or more years in business, an annual revenue of $250,000 and personal credit scores of 700 or higher.
Where to get a low-interest business loan
Term loans, business lines of credit and equipment financing can all have low-interest options. To dive deeper into these options, check out Bankrate's guide to business loan types.
Although rates can vary depending on where you get funding, banks and credit unions, SBA lenders, online lenders and nonprofit lenders may all be able to offer you the lowest rate.
Banks and credit unions
Banks and credit unions offer some of the lowest interest rates on small business loans. Currently, average interest rates for bank business loans range from 7.31% to 7.61%, according to data from the Kansas City Federal Reserve Bank.
Even though the application process is slower than online lenders, the lower rates make them more appealing. Having an existing relationship with the bank is the most common reason why businesses choose to apply at a bank over other financing options.
SBA lenders
SBA loans are offered through banks, credit unions and nonbank lenders like CDFIs or MDIs. Because they are guaranteed by the SBA, they pose less of a risk to lenders, which often leads to more favorable terms, including lower interest rates.
Although lenders can determine the exact rates on their SBA loans, they cannot exceed the maximum interest rate limits set by the SBA for most of its loan programs. For reference, current SBA 7(a) loan rates range from 10.50% to 13.50%.
The drawback of SBA loans is that they can take a very long time to get approved and funded — anywhere from 30 to 90 days. In addition, not every business will be eligible for this funding.
Microloans are business loans offered in small loan sizes, such as $50,000. These often come from nonprofits or government entities like the SBA and have very limited eligibility requirements and low interest rates. Even startups and business owners with credit scores of 500 or lower may qualify for low-interest microloans.
Online lenders
Business owners who don’t qualify for the best rates at banks and credit unions may still be able to get a low-interest loan through an online lender. Current averages for online business loans range from 9% to a staggering 75%, so there's no guarantee working with an online lender will lead to a low interest rate. Like with a traditional bank loan, your interest rate on an online loan will still be determined by your personal credit score, business financial history and collateral offered.
Online lenders tend to have faster and more streamlined applications and can fund your account in one to three days. You’ll want to compare multiple loan offers to ensure you’re getting the lowest interest rate possible with an online lender.
Community Development Financial Institutions
Community Development Financial Institutions (CFDIs) are special entities that focus on a broad base of low-income communities, such as urban or rural areas, Native American and other underserved minority communities. If you’re running a business in an eligible community, it can be a great way to get a low-cost loan or business grant.
Minority Depository Institutions
Like CDFIs, Minority Depository Institutions (MDIs) help communities that have historically lacked adequate access to financial opportunities found elsewhere. But MDI’s are institutions that are 51% or more owned by “socially and economically disadvantaged individuals” and serve minority communities, including Black, Latino/Hispanic, Native American and Asian American communities.
MDIs may have programs that offer business loans for minorities and other underserved communities. They can also be a good source of SBA loans, as a 2019 FDIC study found that MDIs originate more SBA loans to borrowers in these disadvantaged communities.
Red flags to watch out for
- Upfront fees. Avoid paying application or other fees before your loan is approved. You might pay a fee and never hear from the lender again.
- Early repayment penalties. If there’s a chance you want to pay your loan off early and save on interest costs, make sure to avoid loans that penalize you for good financial habits.
- Lack of clarity. If you have questions about terms and conditions and a lender isn’t helpful, get help from an attorney or look elsewhere before signing.
- Pressure tactics. Look for lenders that give you time to compare offers and don’t push you to make a decision before you’re ready.
Alternatives to low-interest business loans
If you aren't able to qualify for the best rates, consider these other options:
Business grants
Business grants are a source of funds that you don’t have to repay, but that fact makes them highly competitive. Be prepared to explain your business to the grant organization and what you plan to use the funding for. You can narrow down your competition by applying for grants designed for specific businesses or industries.
Crowdfunding
Crowdfunding lets you raise money from everyday people or investors who offer small amounts of funding. You can use this to pre-sell a product, get paid in advance and use the cash to start your company and make the goods you’ve sold. However, you need a good network, community of investors or a unique business model that captures attention to make this funding option successful.
Peer-to-peer lending
Peer-to-peer lending relies on individual people offering small amounts of money to fund a loan. They can be easier to qualify for than typical loans but may have high rates and fees depending on your creditworthiness. You can usually find this funding option through peer-to-peer lending platforms like Kiva.
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