Boa Small Business Loan: Comprehensive Guide to Bank of America Financing Options for Entrepreneurs

Jordan Brooks

Jordan Brooks

— 3 min read
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Estimated Reading Time

7 minutes

Key Takeaways

  • BoA provides a variety of small business loans, both traditional and SBA-based.
  • At Fit Small Business, we can help you navigate the thickets of business lending.
  • SBA loans feature favorable terms and can be available to borrowers who do not qualify for conventional loans.
  • You need to be prepared with good financials and good documentation in order to apply.
  • Get in touch with a local branch and/or your business banking specialist at BoA.

Table of Contents

BoA Small Business Loan: Opportunities with the Bank of America

As the world of business continues to grow and change, small businesses are presented with opportunities and challenges, both of which require financial support. This week we take a look at a popular financial instrument: the Bank of America Small Business Loan. Learning about the options offered by BoA can provide a wealth of new opportunities to begin and sustain your business.

A Closer Look at Bank of America Small Business Loans

Bank of America (BoA) is a leading player in the world of business loans, and they offer a number of different loans for businesses at particular stages in their life. These could be traditional loans, lines of credit, and SBA loans backed by the government. BoA's dedication to small businesses is reflected in the array of products that they provide that are designed to fulfill financial requirements.

Types of Small Business Loans Available

  • Business Advantage Term Loan: Ideal for businesses with steady operations and good credit. What is a Good Candidate: When considering a candidate, BoA likes to see a personal credit score in excess of 700 and at least 2 years in business with at least $100,000 in gross revenues.
  • SBA Loans: BoA provides different SBA loans such as 7(a), 504, and Express loans. Up to 90% of project costs are financeable with these measures and loans are partly guaranteed by the federal government, allowing for flexible terms.
  • Cash-Secured Line of Credit: This product is a little easier to qualify for since it does not require a lengthy time in business and lower revenue. It would be a great option for a personal line of credit, with a lot of flexibility.

Eligibility and Requirements

Knowing what it takes to secure a BoA small business loan is imperative for business owners. Here’s a summary:

  • For traditional loans, at least two years in business and $100,000 a year in revenue.
  • Personal loans and personal lines of credit commonly require a personal credit score of 700+.
  • 2 to 3 years of business history, at least a 680 personal credit score.
  • Their loan terms and time to funding for SBA loans tend to be on the longer side.
  • Get your tax returns organized (both personal and business), your profit and loss statements, and the like, so things run smoothly.

A Closer Look at SBA Loans

SBA loans are structured to have competitive terms and features that can serve your clients’ financing needs:

  • Loan Structure: Usually consists of a minimum bank portion of $200,000, 10% client capital injection, 40% Certified Development Company participation.
  • Pros: They have smaller down payments, longer repayment schedules, and possibly lower interest rates than traditional loans.

Application Process and Requirements

The review process for a BoA small business loan is extensive and quite document-heavy:

  • Present thorough financial records for the business and its principals.
  • Rates differ depending on creditworthiness, with lower scores possibly being charged at a higher rate.
  • To facilitate faster approval, provide details on business performance and owner financials.

FAQ

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