Best Business Loan with Low Interest Rate in US

Finding a business loan with a low-interest rate is crucial for minimizing costs and maintaining cash flow. The best loan for your business will depend on factors like your credit score, business history, industry, and the type of financing you need. Here are some of the best business loans with low-interest rates in the U.S. for 2025:

1. SBA 7(a) Loan

Best for: Established small businesses that need funding for a variety of purposes.
Interest Rate: Typically 5% to 10% (rates depend on the prime rate and the loan term).
Loan Amount: Up to $5 million.
Repayment Terms: 10 to 25 years (depends on the loan purpose).
Eligibility: Must be a U.S.-based small business, with good credit, a solid business plan, and two years of financial history.
Pros:
- Lower rates compared to other types of small business loans.
- Flexible use of funds (working capital, equipment, real estate, etc.).
- Longer repayment terms, making monthly payments more manageable.
Cons:
- Lengthy application process with strict eligibility requirements.
- Requires a personal guarantee and collateral in some cases.

2. SBA Microloan

Best for: Small businesses or startups looking for smaller loans.
Interest Rate: 7% to 13% (based on the microloan lender).
Loan Amount: Up to $50,000.
Repayment Terms: Up to 6 years.
Eligibility: New or existing small businesses (often nonprofits or community-based lenders). Good credit and a solid business plan are usually required.
Pros:
- Lower interest rates compared to traditional bank loans.
- Can be used for a variety of business purposes, including inventory, equipment, and working capital.
Cons:
- The loan limit of $50,000 may not be enough for larger businesses.
- Requires a more detailed application process.

3. Traditional Bank Term Loans

Best for: Established businesses with good credit and a solid financial history.
Interest Rate: Typically 4% to 13%, depending on creditworthiness, the size of the loan, and market conditions.
Loan Amount: Varies by lender, typically $10,000 to $1 million or more.
Repayment Terms: 1 to 5 years (may vary based on the loan).
Eligibility: Typically, requires at least two years of business history, strong financials, and good credit (usually 650+).
Pros:
- Fixed interest rates and longer repayment terms.
- Can borrow larger sums of money for expansion or major projects.
Cons:
- Rigorous application process.
- Requires good credit and collateral, making it difficult for startups or those with bad credit.

4. BlueVine Business Line of Credit

Best for: Businesses looking for flexible access to working capital.
Interest Rate: Starting at 4.8% (for lines of credit).
Loan Amount: $5,000 to $250,000.
Repayment Terms: 6 to 12 months.
Eligibility: Minimum 6 months in business, $120,000 in annual revenue, and a credit score of at least 600.
Pros:
- Fast and easy online application process.
- Draw funds when needed, only paying interest on the amount borrowed.
Cons:
- Shorter repayment terms (6-12 months).
- Requires a relatively high minimum revenue to qualify.

5. Lendio (Marketplace for Small Business Loans)

Best for: Businesses that want to compare multiple loan options in one place.
Interest Rate: Starts around 6%, but can vary widely depending on the loan provider.
Loan Amount: $1,000 to $5 million.
Repayment Terms: 1 to 10 years.
Eligibility: Varies depending on the loan provider, but generally requires a business to be at least 1 year old and have decent credit.
Pros:
- Lendio allows you to compare various loan types and interest rates, helping you find the best deal.
- Offers different loan types including SBA loans, short-term loans, lines of credit, and more.
Cons:
- The application process might take longer as you're applying for multiple loans.
- Rates and terms vary widely based on your business profile.

6. Funding Circle Term Loan

Best for: Established small businesses looking for a fixed-rate loan with a quick process.
Interest Rate: Starting at 4.99% (depending on creditworthiness and loan terms).
Loan Amount: $25,000 to $500,000.
Repayment Terms: 6 months to 5 years.
Eligibility: Must be in business for at least 2 years, have annual revenue of $150,000+, and a good credit score.
Pros:
- Fixed rates, with no prepayment penalties.
- Transparent fees and terms.
- Relatively quick approval process (typically within a few days).
Cons:
- Requires good credit and significant business history to qualify.

7. Kabbage Line of Credit

Best for: Small businesses that need flexible, revolving credit lines.
Interest Rate: Starting at 6% to 24% annually.
Loan Amount: $1,000 to $250,000.
Repayment Terms: 6 to 12 months (with automatic weekly payments).
Eligibility: 1+ year in business, at least $50,000 in annual revenue, and a credit score of 640+.
Pros:
- Fast online application and quick approval.
- Flexible access to funds with no long-term commitment.
Cons:
- High APR for businesses with lower credit scores.
- Weekly payments could be challenging for businesses with fluctuating cash flow.

8. OnDeck Term Loan

Best for: Businesses in need of fast financing with fixed rates.
Interest Rate: Starting at 9.99%.
Loan Amount: $5,000 to $250,000.
Repayment Terms: 3 to 36 months.
Eligibility: At least 1 year in business, $100,000 in annual revenue, and a personal credit score of 600+.
Pros:
- Quick approval (within 1 business day).
- Fixed rates and transparent fees.
Cons:
- Higher interest rates for businesses with lower credit scores.
- Shorter repayment terms (up to 36 months), making monthly payments higher.

9. Fundbox Line of Credit

Best for: Businesses that need quick access to a revolving line of credit.
Interest Rate: Starting at 4.66% per month.
Loan Amount: Up to $150,000.
Repayment Terms: 12 or 24 weeks.
Eligibility: At least 6 months in business, $25,000 in monthly revenue, and a credit score of 600+.
Pros:
- Fast application process with quick access to funds.
- Flexible repayment terms (weekly payments).
Cons:
- Short repayment terms (up to 24 weeks).
- High fees and rates for businesses with lower credit scores.

10. Accion Opportunity Fund

Best for: Entrepreneurs with limited access to traditional lending institutions.
Interest Rate: 7% to 10%.
Loan Amount: $5,000 to $250,000.
Repayment Terms: 1 to 5 years.
Eligibility: Focuses on underserved entrepreneurs, including minorities and women, and offers loans to businesses with a lower credit score.
Pros:
- Lower interest rates for underserved communities.
- Support for startups and businesses with limited access to traditional financing.
Cons:
- Limited to certain borrower groups.
- Application process may require additional documentation.

Key Factors to Consider:

Loan Terms: Understand the loan term (length of time to repay) and how it affects monthly payments.
Interest Rate: Consider whether the loan has a fixed or variable interest rate, as this can impact your long-term costs.
Qualification Requirements: Lenders will look at your business's credit score, time in business, annual revenue, and more.
Fees and Additional Costs: Some loans come with origination fees, prepayment penalties, or other charges that can affect your overall costs.
Repayment Flexibility: Look for loans that allow flexible repayment terms to suit your cash flow.

Conclusion:

The SBA 7(a) Loan offers the lowest interest rates and is ideal for established small businesses with solid financials. For startups or businesses with smaller funding needs, the SBA Microloan or Accion Opportunity Fund may be a better fit, offering lower interest rates for underserved groups. If you need more flexible access to funds, options like BlueVine and Kabbage are excellent choices, though they may come with higher interest rates for businesses with lower credit scores. Always compare loan terms, interest rates, and eligibility requirements to find the best option for your business.