If you’re an entrepreneur who dreams of running and growing your small business, setting up a business bank account to manage your company’s money should be one of your first steps. But opening business bank accounts means choosing a bank, which raises the question: What is the best bank for small business?
To aid in your search for a bank, Seek Business Capital conducted a study to try and answer this question. The study was conducted by analyzing the 100 most active SBA lenders in the United States by lending volume as of Sept. 30, 2019, sourced from the U.S. Small Business Administration. Each of the 100 lenders were then evaluated against criteria that focused on the following:
- Number of SBA loans approved
- Total dollar amount approved for SBA loans
- Average SBA loan amount, based on total approval amount divided by number of SBA loans
- Lending products available from the bank: business term loans, commercial real estate loans, equipment financing and business lines of credit
- Business bank accounts, namely business checking and savings accounts, including respective fees and minimum requirements
Additional business services like merchant services, payroll services, payment processing and HR solutions were considered in the ranking as well. The total number of SBA loans approved was given double the scoring weight.
If you’re seeking a small-business bank that offers excellent lending products, bank accounts and business services, you’re in the right place. Read on to find out the best banks for small business.
10 Best Banks for Small Businesses
The study produced a list of the 10 best banks for small business that is comprised of both big-name banks like Wells Fargo and more specialized business banks. The more specialized banks make up for lack of size with services and excellent track records of small-business lending — especially in securing larger SBA loans on average than some of the bigger banks. Check out each best bank for small business that made the final top-10 list from the study.
Here are the 10 best banks for small businesses:
1. Huntington National Bank
- SBA approval count: 3,594
- Total SBA approval amount: $640 million
- Average SBA loan amount: $178,077
Although Huntington National has significant consumer and commercial banking programs, its massive suite of financing solutions and business services shows that it’s equally committed to small-business owners.
Huntington National Bank is a major regional bank, especially dominant in the Midwest. Huntington National Bank is also a Preferred SBA Lender, which allows it to expedite the SBA loan process and get small businesses funded quickly.
What’s more, Huntington National Bank provides non-SBA funding in various forms, from term loans to equipment financing to dental practice loans. The bank’s merchant and payroll services are also top-of-the-line. Read on to find out what makes Huntington National Bank the best bank for small business.
Huntington National Bank Small Business Lending
Huntington National Bank is the largest originator of SBA loans in 2019, with 3,594 loans approved. This is equivalent to an average of $178,077 per approved SBA loan. While the average SBA loan amount is a little on the low side, with over 3,500 SBA loans approved, Huntington National Bank is a bank that can truly reach a wide range of small businesses from across the country and get them the funding they need.
Huntington National Bank offers a variety of small business loan options. You can go the traditional route and get a business term loan. Or you can choose a real estate loan, which is available for purchasing a building, construction or refinancing owner-occupied real estate. And if you need to address cash flow or inventory issues, you could take out a business line of credit.
On a more granular level, Huntington National Bank has loans designed specifically for dental and veterinary practices. Huntington especially shines in terms of its equipment financing, including both financing for purchasing equipment as well as a specialized network of third-party equipment leasing companies to satisfy your needs.
Huntington National Bank Small-Business Banking Accounts
Huntington National Bank offers four small-business checking accounts: Business Checking 100, Unlimited Business Checking, Unlimited Plus Business Checking and Business Analyzed Checking.
The best features of Business Checking 100 are its affordability, coming with no minimum balance requirement and no monthly fee. The account includes merchant services, payroll services and fraud tools, with 100 monthly transactions before a charge per transaction applies.
The other business checking accounts offer unlimited transactions, but come with monthly fees of $20 for Ultimate Business Checking, $20 for Business Analyzed Checking and $40 for Unlimited Plus Business Checking.
Huntington National Bank’s other business bank accounts include Business Premier Savings, Business CD and Business Premier Plus Money Market Account. The Business Premier Savings account is more affordable than other small-business banks, with a monthly fee of only $4 that’s waived with an average balance of $300. With a business savings account, you also get several benefits like Huntington’s digital tools, a Huntington Debit MasterCard BusinessCard and more.
Other Business Banking Features at Huntington National Bank
Huntington National Bank provides tons of tools and services to help small-business owners manage their company’s finances and more. A standout feature is Huntington’s Business Hub, which includes tools such as:
- Spend Analysis: A tool that helps you better understand what you’re spending where and how you can modify your spending.
- Look Ahead Calendar: A calendar that allows you to have a brief monthly view of your business’s future expenses and income to help you organize in-flows, out-flows and plan ahead.
- Cash Flow Forecast: A forecast that allows you to monitor your small business’s cash reserves in the present and for the future. You can analyze real and projected views of cash flow in and out of your accounts, enabling you to adjust accordingly.
Huntington Merchant Services provides POS solutions for small businesses of all types. As with many other of the best banks for small business, Huntington National Bank has partnered with Clover and Payeezy to offer both in-store and online payment solutions.
The bank also provides a series of services to help you with payables management — such as making business transactions and payroll services — and receivables management — such as cash and deposit management and billing. Huntington National Bank’s payroll services are robust as well, including everything from payroll tax administration to outsourcing HR tasks like employee screenings.
Meanwhile, the bank’s Payment Center is a one-stop online portal for managing your business transactions, handling both automatic clearinghouse and wire transfer transactions. All of these business banking services help make Huntington National Bank the best bank for small business.
The Bottom Line: Business Banking With Huntington National Bank
With a strong lending program, affordable business bank accounts and a plethora of additional, useful services, Huntington National Bank is the No.1 best bank for small business. The bank has the most SBA approved loans of any bank in the study and in the country. The various tools, technology, resources and services that Huntington National Bank has to offer cover a broad range of small-business needs.
The bank doesn’t just offer state-of-the-art merchant services, but serious analytical and data tools to help you understand and manage your finances. Combined with the plentiful and diverse lending products it offers, Huntington National Bank is the top best bank for small business.
2. Wells Fargo
- SBA approval count: 3,149
- Total SBA approval amount: $786.39 million
- Average SBA loan amount: $249,728
Wells Fargo has roughly $1.3 trillion in deposits, which makes it the third-largest bank in the U.S. in terms of total deposits. It’s one of the few truly national brick-and-mortar banks, found in well over 30 of the 50 U.S. states. With such resources and infrastructure at its disposal, Wells Fargo is able to bring a lot of value to the table for small businesses and their owners.
Wells Fargo Small-Business Lending
Unlike most traditional banks, Wells Fargo offers more than just medium-term loans and lines of credit. It offers a wide variety of lending products, including short-term loans, SBA loans, equipment finance, commercial real estate loans, vendor financial services and more. Within these product categories, Wells Fargo tends to offer more than one lending product.
Wells Fargo offers three different types of small-business term loans. The most basic is a Wells Fargo Unsecured Business Loan. This business term loan comes with terms of one- to five-years, loan amounts of $10,000 to $100,000 and fixed rates ranging from 7% to 22.99% APR.
Wells Fargo also has three options for small-business lines of credit. The standard Wells Fargo Business Line of Credit is unsecured and has revolving credit lines ranging from $5,000 to $100,000. Interest rates start as low as the Prime rate plus 1.75%.
Wells Fargo’s equipment financing via its Equipment Express loan is also excellent. The bank provides customized construction equipment financing for contracts, equipment dealers and manufacturing; Information technology equipment financing; and transportation financing for trucks, trailers, buses, motorcoaches and other vehicles for business purposes. Wells Fargo even has railcar leasing and financing. Plus, it sells used equipment directly from its inventory.
Wells Fargo Small-Business Banking Accounts
Wells Fargo offers four different business checking accounts, which vary according to your business’s needs and size. These include Business Choice Checking, Platinum Business Checking, Simple Business Checking and Analyzed Business Checking.
The most affordable account is the Simple Business Checking, with a minimum opening deposit of $25 and $10 monthly fee that you can get waived by maintaining a $500 average balance. The downside with this account is that you only get 50 transactions for free before you get charged per transaction. If your small business has a heavy rate of transactions, then try opting for the Platinum Business Checking account.
Outside of business checking, Wells Fargo offers a Business Market Rate Savings, Business Platinum Savings and Business Time Accounts or CDs. The Business Market Rate Savings account is designed for new and growing businesses, coming with a monthly fee of only $6 with an average balance of $500 to waive it. The Business Platinum Savings is geared more toward established businesses, with a monthly fee of $15 that’s waived with a minimum daily balance of $10,000.
What’s great is that, with either account, your savings APY is better than most competitors: Business Market Rate Savings has a 0.03% APY and the Business Platinum Savings has a 0.10% APY.
Other Business Banking Features at Wells Fargo
Wells Fargo has small businesses covered with many of its financial and administrative needs. Wells Fargo partners with ADP to provide full-service payroll solutions, so you can run payroll on your computer, phone or through the ADP mobile app. ADP can also handle your HR needs through their HR HelpDesk platform.
Wells Fargo also has merchant services like payment processing, though you will have to apply for the ability to accept credit card payments and have less than $500,000 in annual sales.
For POS systems, Wells Fargo customers can equip themselves with Clover POS devices. Clover products are designed to be catered to your needs: If you want a cash register set up, then go with the Clover Station. For wireless, mobile POS sales, check out the Clover Go card reader. Wells Fargo also offers Clover Mini and Clover Flex POS devices.
The Bottom Line: Business Banking With Wells Fargo
Across the board, Wells Fargo has especially favorable products and services for small businesses. It has one of the most robust lending platforms, offering a wide array of lending and credit solutions beyond just simple term loans or lines of credit.
For small businesses involved in construction or manufacturing, the ability to buy used equipment from the bank’s inventory is appealing. With its truly national reach and over 3,000 approved SBA loans in 2019, Wells Fargo is a great choice for you and one of the best banks for small business.
3. TD Bank
- SBA approval count: 2,915
- Total SBA approval amount: $272.67 million
- Average SBA loan amount: $93,541
TD Bank is primarily found in the East Coast of the U.S., with physical branches in 15 states, from Maine to Florida. TD bank offers a full range of business services, including business banking accounts, business credit cards, merchant services and different types of business loans. TD’s small-business and commercial banking products and services cover a diverse range of solutions, offering much more than other banks typically can provide.
TD Bank Small-Business Lending
TD Bank offers multiple options for small-business funding. It offers term business loans, ranging from $10,000 to $1 million, with standard terms of three to five years. TD business lines of credit are ideal for expenses like rent, inventory, payroll and daily operations, and are available with limits of $25,000 to $500,000.
For commercial real estate purchases or refinancing, TD offers commercial mortgage loans of up to $1 million. Indeed, TD Bank’s commercial real estate solutions are one of its best features, providing a full suite of commercial lending options and real estate industry specialists to work with you.
In addition to these products, TD Bank also provides asset-based lending services, which helps small businesses leverage their assets and maximize liquidity when they need to finance important operations. Equipment financing is also available, covering a broad range of industries, from retail and wholesale to health care to transportation and warehousing.
Lastly, TD Bank is a Preferred SBA Lender, which means its SBA loan turnaround time is expedited. In 2019, TD Bank amassed 2,915 approvals for SBA loans, the third-most of any small-business bank considered in the study.
TD Bank Business Banking Accounts
TD Bank offers small-business and commercial banking accounts. TD Bank’s TD Business Savings is a standard business savings account, but it does have generally more favorable terms and rates than competitor’s options. The TD Business Savings account can be opened with only $25, has a monthly fee of $5 that can be waived with a minimum balance of $500 and has a 0.05% APY, which is better than many competing business savings accounts.
In terms of business checking accounts, TD Bank has four options: TD Business Simple Checking, TD Business Convenience Checking Plus, TD Business Premier Checking and TD Business Interest Checking Plus.
Naturally, the cheapest account is the TD Business Simple Checking, with a $10 monthly fee and no minimum balance requirement, but only up to 200 transactions per statement cycles before your business starts getting charged for each additional transaction.
The TD Business Convenience Checking Plus allows up to 500 transactions per statement cycle free, along with a $25 monthly fee and $1,500 minimum balance to waive it.
With TD Business Interest Checking, you’ll pay $15 a month, get up to 200 transactions with no charge and an interest-bearing account with 0.05% APY.
Other Business Banking Features at TD Bank
Beyond great lending products and business bank accounts, TD Bank also boasts a wide range of merchant solutions and other business services. Through Paycor, TD Bank can manage your small business’s payroll and HR needs, which can range from basic paying of wages and tax preparation to recruiting and onboarding employees, employee learning and automating benefits administration.
TD Bank, through a partnership with Clover, provides a series of POS devices to fit your small business. If your sales are mainly in-store and you want a full-sized machine, you can get the Clover Station all-in-one POS system.
For a smaller POS system, there’s Clover Mini and Clover Flex, which is a wireless POS device. And if you want an ultra-mobile POS system, you can get Clover Go for your business, which can be used anywhere there’s Wi-Fi or cellular service.
The Bottom Line: Banking With TD Bank
TD Bank has a full-service bank that is an ideal choice for small businesses located on the eastern seaboard. Across the board, TD Bank’s offerings for businesses, including checking account, savings account, merchant services and business loans, are top-of-the-line.
Although the SBA loans that TD Bank funds average a little over $93,000 per loan, the fact that TD is responsible for over 2,900 SBA loan approvals is impressive and an auspicious sign for small businesses who need a bank and want to get the best lending terms. TD Bank brings a lot to the table for small-business owners, which is why it ranks among the best banks for small business.
4. Live Oak Bank
- SBA approval count: 913
- Total SBA approval amount: $1.35 billion
- Average SBA loan amount: $1.47 million
Live Oak Bank is one of the premier SBA lenders in the U.S., garnering the highest amount in approved SBA loans for 2019. Live Oak, however, is not a traditional brick-and-mortar bank. Instead, it’s a direct bank with no physical branches other than a few corporate offices.
While it does offer personal banking services, Live Oak’s main mission is “to create an unprecedented banking experience for small-business owners nationwide, through service and technology,” according to its website. Because of this mission, Live Oak is considered one of the best banks for small business.
Live Oak Bank Small-Business Lending
Based on SBA data, Live Oak Bank is the No. 1 SBA loan lender in terms of total approval amount. In 2019, Live Oak Bank tallied an impressive $1.35 billion in total SBA approved loans, far ahead of the No. 2 lender, Wells Fargo.
Also, the average SBA loan from Live Oak Bank was about $1.47 million, which is very much on the high end of the banks analyzed in the study. Live Oak Bank also shines in terms of its impressive lending products. Live Oak Bank offers many different loan and financing products, including:
- Term business loans
- Commercial real estate construction loans
- Business lines of credit
- Asset-based lending, such as accounts receivable and invoice factoring
Depending on the industry your business is in, Live Oak can offer additional products and services. Live Oak Bank offers working capital loans, service contractor loans and venture capital financing.
Live Oak Small-Business Banking Accounts
Live Oak Bank does not offer a business checking account, which is its one negative mark in the study. However, it does offer a great business savings account. Live Oak Bank’s Business Savings account beats most other big bank’s equivalents: The account has no monthly maintenance fee, no minimum balance requirement and no minimum opening deposit. It also has a 1.10% APY, which is 12 times the national average.
Other Business Banking Features at Live Oak
Another notable feature of Live Oak Bank small-business lending is its industry-focused lending solutions. Live Oak Bank has lending experts specialized in a vast array of industries — everything from solar energy financing to movie theaters and fitness centers.
The bank knows how to cater its lending to the needs of businesses and particulars of the industry it’s in. This is why, rather than simple blanket business loans, Live Oak Bank provides financing specifically designed for your industry, such as energy infrastructure loans, wine and beverage loans and tons of other tailored financial products.
The Bottom Line: Business Banking With Live Oak Bank
Live Oak Bank is easily one of the top SBA lenders around, amassing a total SBA approval count of 913, all while not having a physical presence, as some other competing banks do. The total amount of SBA loans approved by Live Oak Bank in 2019 dwarfs the other best banks for small business.
One area where Live Oak Bank falters, however, is in its lack of merchant and business-related services, which can be valuable for small-business owners. It also doesn’t have a business checking account. But if you’re looking for one of the most experienced small-business lenders, Live Oak Bank is an excellent choice.
5. U.S. Bank
- SBA approval count: 2,756
- Total SBA approval amount: $423.92 million
- Average SBA loan amount: $153,817
U.S. Bank is a major brick-and-mortar bank that’s heavily located out West, but now has branches east of the Mississippi River. It has branches in 27 states and offers personal and business banking as well as wealth management and higher-level services.
As one of the best banks for small business, U.S. Bank benefits from its geographic presence and accessibility, great track record with SBA loan approvals, lending products and the vast array of business services it has to offer.
U.S. Bank Small-Business Lending
U.S. Bank offers two types of business loans. First, there are Quick Loans, which are traditional fixed-rate loans of up to $250,000 in funding, typically used for general working capital, equipment or purchasing new and used vehicles.
The other type is a standard business term loan, in which small-business owners can borrow up to $1 million to purchase new and used equipment and vehicles. These can be unsecured loans or secured by collateral.
U.S. Bank also has other funding options. For more flexibility, you can get business lines of credit of up to $250,000. With business loans for real estate, U.S. Bank can provide owner-occupied commercial loans and investment property loans. For companies that need major equipment to operate, U.S. Bank has equipment loans of up to $500,000, with up to 125% in financing when including soft costs. You can also lease new and used equipment as well.
As an SBA Preferred Lender, U.S. Bank really stands out with its high loan approval count: 2,756 SBA loans approved in 2019. In total, U.S. Bank amassed just under $424 million in approved SBA Loans. U.S. Bank can provide SBA Express loans up to $250,000, which have an extremely short turnaround time for applications and funding.
U.S. Bank Business Banking Accounts
US Bank isn’t as big as competitors like Wells Fargo, Chase and Bank of America, but it still covers a vast amount of the U.S. with physical branch locations. As a full-service personal and business bank, U.S. Bank has plenty of small-business bank accounts.
The bank offers four levels of business checking accounts, Silver, Gold, Platinum and Premium. Silver business checking is the cheapest, with no monthly fee and no minimum balance requirements. The affordability comes at the cost of only 125 free transactions per month, which might be fine for many small businesses. Platinum allows up to 500 free transactions, plus charges less per transaction beyond this: $0.40 instead of $0.50 for Silver.
U.S. Bank also has business money market accounts, business CDs and business savings accounts. The bank only offers one business savings account with fairly standard fees and rates, with a 0.01% APY and no increased rates for larger balances. This makes business savings accounts one area in which U.S. Bank isn’t as good as its competitors in providing variety. If you do want to earn more interest and have check-writing ability, look into the business money market options.
Other Business Banking Features at U.S. Bank
Like other big brick-and-mortar banks, U.S. Bank can provide a full range of merchant services and payment solutions. The bank’s Any Pay, Any Way, Any Where tools opens you up to a broader scheme of acceptable payments, from credit cards to mobile apps.
You can enable retail, online, e-commerce, POS systems and mobile payments through U.S. Bank’s merchant services. The bank can also assist small-business owners with inventory management tools, financial statement analysis and expanding commerce solutions, such as helping your business get online and mobile, email marketing and online reputation management.
The Bottom Line: Business Banking With U.S. Bank
U.S. Bank has many small-business needs covered with its extensive array of lending products, business bank accounts and other services. Its business savings account is wanting, but that’s only one weak area among its otherwise impressive business account offerings.
U.S. Bank provides the principal forms of business lending sought after, such as SBA loans, term business loans, lines of credit, equipment financing and more. And with its large size and high SBA loan approval count, you can count on U.S. Bank’s experience in working with small- business owners.
6. Chase Bank
- SBA approval count: 1,890
- Total SBA approval amount: $471.74 million
- Average SBA loan amount: $249,596
Chase Bank is a truly national bank, with physical locations in 39 states plus the District of Columbia. Chase is the consumer-facing arm of JPMorgan Chase, while JPMorgan mainly focuses on investment banking.
Chase has more than $2.7 trillion assets under management, according to its 2019 earnings release for the second quarter, making it the largest bank in the U.S. by asset-size. With such resources and money at its disposal, Chase offers a ton of personal and business banking services and products. In terms of small-business lending, Chase is especially strong in the variety of business services beyond just banking.
Chase Small Business Lending
Chase offers a series of loan options for small-business owners. These include term loans with fixed and variable rate options, draw loans with a draw period up to 12 months followed by a fully amortizing repayment term and advised lines of credit with a pre-approved period allowing you to make purchases for up to 12 months.
When it comes to equipment loans, Chase can provide 100% financing plus up to 10% in soft costs. Chase also provides commercial real estate loans, with up to an 80% loan-to-value ratio for most owner-occupied commercial real estate.
Additionally, Chase offers standard business lines of credit, which can range from $10,000 to $500,000 on a renewable five-year revolving term. What’s convenient for small-business owners is that you can choose your monthly payment date that fits with your cash flow.
In terms of SBA lending, Chase’s SBA loan approval count of 1,890 for 2019 is the fifth-most in the study. The average SBA loan amount is about $250,000, but the high approval account is a good sign that a lot of small businesses are getting access to the funding they need.
Chase Small-Business Banking Accounts
Chase breaks down its business checking accounts into three accounts, each representing a different size and level of business. The Chase Total Business Checking account is designed for small and growing businesses and comes with a monthly fee of $15. The Chase Performance Business Checking account is for medium-sized businesses and comes with a $30 monthly fee, but includes more features and fees are waived. The Chase Platinum Business Checking account is for larger businesses with larger monthly transactions, with a $95 monthly fee and a lot more cash management and other services. For all accounts, these monthly fees can be waived by maintaining the minimum daily balance requirement.
Chase has two business savings account products and a business certificate of deposit. The Chase Business Total Savings is best for business with lower savings balances and comes with a $10 monthly fee that’s waived if you maintain a minimum balance of $1,000. Chase Business Total Savings has a 0.01% APY on all balance amounts. The Chase Business Premier Savings is designed for larger businesses, has a monthly fee of $20 and has tiered interest rates, so your APY rises to 0.04% with higher balances.
Other Business Banking Features at Chase
Chase has a fully stacked collection of merchant services for small businesses to take advantage of. Chase payment process services, including mobile and standalone POS terminals for businesses making sales in person.
For online sales, Chase has virtual POS terminal and e-commerce solutions. You can also adapt your existing POS system or device to Chase’s payment processing. Chase is also partnered with several software platforms that help small businesses manage payments, financial estimates, invoices and the like.
Chase business services also include convenient features like QuickDeposit, which allows you to deposit money at any time, manage your finances online and scan checks using the Chase Mobile app or scanner. Chase QuickPay with Zelle means you can get paid or send payments immediately without the need for cash or checks.
The Bottom Line: Business Banking With Chase
Small businesses can benefit from the national presence Chase and its excellent record of SBA lending. Beyond SBA loans, Chase brings a lot of value to the table for small businesses, providing several forms of funding instead of merely term loans and lines of credit. On top of its variety of lending products, Chase offers merchant and business services that other small business banks can’t match, especially in terms of technological solutions.
7. First Home Bank
- SBA approval count: 1,470
- Total SBA approval amount: $369.15 million
- Average SBA loan amount: $251,125
First Home Bank has physical locations only in Florida, but this bank is easily one of the top SBA lenders in the U.S. Out of the top 100 SBA lenders, First Home Bank’s 1,470 SBA loan approvals rank as the sixth-highest amount.
In addition to SBA loans, the bank provides business checking accounts, business savings accounts, term business loans and more. First Home Bank is a leader when it comes to SBA loans, so if you’re located in Florida, which is one of the best states to start a business, check out this bank for your small-business needs.
First Home Bank Small-Business Lending
First Home Bank is an SBA Preferred Lender, meaning the SBA has given it the authority to approve SBA loan applications on an expedited basis. Typically, the SBA loan process can take a few weeks, but a preferred SBA lender like First Home Bank speeds up the turnaround.
Beyond SBA loans, First Home Bank offers a slew of lending products designed for small businesses. The bank offers commercial real estate loans for purchasing a commercial investment property, office condo or commercial real estate project. There are also commercial term loans available and commercial lines of credit to address working capital and inventory management needs, plus construction loans as well. First Home Bank’s heavy equipment financing caters to small fleets and owner-operators, which is ideal for small-business owners.
First Home Bank Business Banking Accounts
First Home Bank offers four different types of business checking accounts: Free Business Checking, NOW Business Interest Checking, Commercial Interest Checking and Classic Business Checking.
The Free Business Checking account is great for small-business owners who want to save on banking fees as it comes with no minimum balance requirement and no monthly fee. Your business gets up to 250 transaction items per statement cycle. There’s also the Classic Business Checking account, which also has no minimum balance requirement, but requires $100 to open and charges a $15 monthly fee.
First Home Bank offers its Business Savings Account to small businesses. There is a $100 minimum opening deposit, as well as a $3 monthly fee, unless it’s waived by maintaining a $100 minimum daily balance. The bank also offers a Business Money Market account and Business Certificates of Deposits.
Other Business Banking Features at First Home Bank
First Home Bank provides useful merchant services through its partner company Partner Payments. Through Partner Payments, First Home Bank is able to offer a full suite of payment processing services for small-business needs.
Partner Payments services accept multiple forms of payment and come with no monthly minimum or cancellation fee. Small businesses can also utilize Partner Payments’ Loyalty Rewards and Gift Cards services to increase customer visits, repeat customers and sales. You can also get business credit cards through First Home Bank, which offers Business World, Business World Elite and Business Platinum credit cards from MasterCard.
The Bottom Line: Business Banking With First Home Bank
First Home Bank is a solid option for small-business loans, boasting a high number of SBA loan approvals and a full line of credit-based products. There’s basically one business savings account, but there’s plenty of options when it comes to business checking accounts, whether you want a free checking account or an interest-bearing checking account.
The main limitation with First Home Bank is its branch locations are restricted to Florida. But if you live in the area, this bank is an ideal option for small-business owners.
8. M&T Bank
- SBA approval count: 1,449
- Total SBA approval amount: $178.89 million
- Average SBA loan amount: $123,455
M&T Bank, formerly known as Manufacturers and Traders Trust Company, is a major regional bank primarily with physical locations toward the East Coast. M&T Bank has funded thousands of SBA approved loans in 2019 alone and offers a slew of business bank accounts, as well as business services to handle merchant service needs, cash management and much more.
M&T Bank Small-Business Lending
With 1,449 in approved SBA loans in 2019, M&T Bank boasts one of the highest rates of SBA approvals of any bank, both in the study and out of all SBA lenders. With a total SBA approval amount of $178.89 million, that works out to about $123,455 per SBA loan. Moving beyond SBA loans, M&T offers several types of business financing.
M&T Bank provides unsecured business installment loans, ranging from $10,000 to $100,000, mainly for intermediate-term financing. The bank also has secured term business loans, designed for long-term working capital and business expansion, starting at $10,000 and up. This type of loan is secured by non-real estate assets.
M&T Bank has you covered in terms of real estate loans. It offers owner-occupied commercial real estate loans for purchasing, expanding or refinancing a business location. You can also get an investment real estate loan to finance or refinance the purchase or renovation of a property for investment purposes. On top of that, equipment financing and leasing is available as well.
M&T Bank Small-Business Banking Accounts
M&T Bank offers a ton of business banking accounts for you to choose from. In terms of business checking accounts alone, the bank has six different options:
- M&T Simple Checking for Business
- M&T Tailored Business Checking
- M&T BizFlex Checking
- Commercial Checking
- Non-Profit Checking
- M&T Business Interest Checking
The most basic account, M&T Simple Checking, is the most affordable of checking accounts open to for-profit businesses. It charges a $10 monthly fee unless you maintain an average balance of $2,500 or more. That’s compared to $20 a month with M&T Tailored Business Checking and M&T Business Interest Checking, $27 for Commercial Checking and $50 for M&T BizFlex Checking.
You might, however, want to go for the non-basic checking account since you’re allowed only up to $100 transactions per month before being charged with the M&T Simple Checking. Plus, if you want to earn interest, paying $20 a month for the M&T Business Interest Checking is a solid deal.
Beyond business checking, M&T Bank offers two business savings accounts and a money market account. The Commercial Savings Account has a $5 monthly fee that can be waived with a $300 daily balance. The M&T Market Advantage for Business Savings has a $12.50 monthly fee unless you have a $10,000 daily balance. What is nice about this business savings account is that it has tiered interest rates, so a higher balance means you’re earning more.
M&T Bank also offers the Commercial Money Market Savings, with a $12.50 monthly maintenance fee. The fee can be waived as long as you carry an average daily ledger balance of $10,000.
Other Business Banking Features at M&T Bank
M&T Bank also has a lot to offer in terms of its other business banking services. The merchant service solutions it provides are excellent, including payment acceptance options, electronic payment technologies for mobile and countertop POS systems, fraud tools and even industry-specific payment processing services.
M&T Bank is also great on the cash management front. The bank handles payables management, such as account reconciliation services, automated check payments and M&T BizPay to help you manage and pay business expenses. On receivables management, the bank has you covered with remote check deposit, M&T Mobile Deposit for Business, cash vault services and more.
The Bottom Line: Business Banking With M&T Bank
If you’re a small-business owner who wants a small-business bank with a fully built-out infrastructure to handle your needs, then M&T Bank is a great choice. Besides being a premier SBA lender, M&T Bank has the products and services to help you get financed for a variety of purposes, be it purchasing new equipment, buying investment property for your business or straightforward business term loans and lines of credit. Added to all this is M&T Bank’s vast resources when it comes to merchant services and other solutions many small businesses need.
9. Bank of George
- SBA approval count: 65
- Total SBA approval amount: $162.37 million
- Average SBA loan amount: $2.50 million
Bank of George is based in Las Vegas and has a reputation as a major lender for business enterprises. As an SBA Preferred Lender, Bank of George is a leader in getting SBA approved loans and funding small businesses. And the bank isn’t just a great SBA lender: It has a whole package of lending solutions for all types of businesses and their unique needs.
Bank of George Small-Business Lending
Bank of George is a Preferred SBA Lender that can get expedited turnaround on SBA loan applications and funding. The most impressive fact about Bank of George is the average amount of each approved SBA loan, which stands at nearly $2.5 million per loan.
On the other hand, part of the reason for this large loan amount is that Bank of George secured 65 SBA loan approvals. While this number is low, it’s an encouraging sign to small-business owners that they can potentially get larger SBA loan amounts by going to Bank of George.
On the non-SBA loan front, Bank of George stands out. It can provide straightforward business term loans and business lines of credit to help with business expenses like working capital, inventory, seasonal fluctuations, facility improvements and more. Equipment loans are available as for, with competitive rates on new or used equipment plus customized terms tailored to your unique needs.
Bank of George also does accounts receivable and inventory financing, which use your outstanding invoices or receivables and inventory at act as collateral for financing. Both of these forms of funding can help you maintain a steady cash flow. Bank of George also has loans catered specifically to medical and professional businesses, too.
Bank of George Small-Business Banking Accounts
Bank of George has you covered in terms of business bank accounts. The bank offers three types of business checking accounts, including Prestige Checking for low transaction volumes, Executive Checking for medium transaction volumes and Presidential Checking for high transaction volumes.
The most popular account is Prestige Checking, which has a $10 monthly fee that can be waived by having a minimum balance of $5,000. This account allows for up to 100 transactions a month for free before charging $0.25 per transaction afterward. Executive Checking offers up to 299 transactions and also charges a $10 monthly fee. The highest-level account, Presidential Checking, has no minimum balance requirements and unlimited monthly transactions with only $500 required to open the account.
Bank of George offers one business savings account, the aptly named Business Savings Account. The account charges a $10 maintenance fee, but per quarter, not per month. The fee can be waived with an average balance of $500, which is also the minimum to earn interest.
Other Banking Features at Bank of George
Although Bank of George is excellent in terms of its business lending and business accounts, its additional business services lack a bit compared to the other best banks for small business. The bank does not have a full suite of services like payroll or payment center solutions.
It does, however, offer some merchant services for small businesses, like lockboxes, safe deposit boxes, night depository, courier and armored car services, business Visa debit cards and merchant credit card services.
The Bottom Line: Banking With Bank of George
Bank of George’s strongest feature is the average loan size of SBA loans approved. With an average of $2.5 million per SBA loan, no other bank comes close to providing small businesses with such large amounts of funding.
Bank of George’s other lending products are excellent in terms of their diversity, competitive terms and design, especially loans tailored to specific industries and business types. However, if you want a business bank to cover your merchant service needs, it makes sense to go elsewhere.
- SBA approval count: 551
- Total SBA approval amount: $311.72 million
- Average SBA loan amount: $565,740
KeyBank has over 1,000 full-service branches spread across 15 states, with bank locations stretching from Alaska to Maine. As such, KeyBank is one of the largest banks in the U.S, with $145 billion in assets at the end of 2019.
KeyBank offers a slew of personal bank accounts as well as business checking and savings accounts. KeyBank offers many different small-business banking solutions, from lending products to point-of-sale services.
KeyBank Small-Business Lending
KeyBank offers a variety of small-business loan options. These include terms loans, investment property commercial real estate loans, owner-occupied refinancing, equipment financing and leasing and lines of credit. The bank also offers secured personal loans that you can use for business purposes. Business lines of credit and term loans may be eligible for SBA guarantee.
Last year, KeyBank garnered 551 approvals for SBA loans, with an average SBA loan amount of over $560,000. Both numbers are solid and by having branches in 15 states, KeyBank is very accessible to small-business owners.
KeyBank Business Banking Accounts
KeyBank offers three different business checking accounts: KeyBank Basic Business Checking, KeyBank Interest Checking and Key Business Reward Checking.
The most affordable checking account is the KeyBank Basic Business, which has a $5 monthly fee that’s waived when you maintain an average balance of $1,000. The most popular business checking account, according to the KeyBank site, is the Key Business Reward Checking. This one costs a little more, coming with a $25 monthly fee that can be waived by maintaining $7,500 average balance, but you also get 500 combined transactions each monthly statement period. With the Basic Business Checking, you only get 200 combined transactions, which is low to moderate in volume.
KeyBank’s main business savings account is the Key Business Saver Account. Its monthly fee of $4 is cheaper than its business checking counterpart, as is the minimum balance required to waive the fee, which is $300. The interest rate on Key Business Saver Accounts increases with higher balances, from 0.01% to 0.02%.
Other Banking Features at KeyBank
KeyBank provides a variety of merchant services, such as POS services, integrated cash registers and online e-commerce services.
KeyBank’s POS terminals are provided by Clover and include Clover Mini, Clover Mobile and Clover Go POS products. All of these POS terminals accept magnetic strip and chip credit and debit cards, plus Apple Pay.
KeyBank’s integrated cash register product, Clover Station, includes everything from accepting and making payments to managing employee timesheets.
For small-business owners who want to launch or grow their business online, KeyBank offers Clover Online Store to handle your e-commerce needs. KeyBank also offers Payeezy Gateway for setting up an online store and accepting a wide variety of payment options.
The Bottom Line: Business Banking With KeyBank
KeyBank’s large geographic presence is a great attribute, making it widely available to many small-business owners across the U.S. Its variety of lending products, including business term loans, commercial real estate loans, equipment financing and business lines of credit, cover most lending needs of the average small-business owner.
While its business savings account maxes out with an APY of 0.02%, the KeyBank Business Interest Checking account offers a 0.10% APY once you have a balance of $10,000 or more. KeyBank’s suite of merchant services rounds out this bank as one of the best banks for small business.
The Bottom Line
These 10 banks offer some of the best services, products and conditions for small businesses to address their multitude of needs. Though traditional banks can have stricter standards for lending, having a full-service bank back you up has a lot of advantages over an alternative lender who can only help you with the financing. This is why business bank accounts and merchant services played an important role alongside business lending to help determine the best banks for small business.
Whether you decide to try out one of the 10 banks listed here or another lender, your best option always depends heavily on what you need and what you want for your small business. Before choosing a small-business bank, you’ll need to figure out what kind of and how much financing you need now and how much for the future. You need to have your cash flow mapped out and have forecasts to know what kind of financial services you’ll need.
As you figure out these issues, always have both your business’s current situation and future goals in mind. These are some of the best methods to help you determine which bank to go to for your small business needs.
Information is accurate as of Feb. 27, 2020. Rates, terms and offers are subject to change and may not be available at this time.