Are U.S. Bank Business Loans Any Good?

(May 2024)

Are U.S. Bank Business Loans Any Good?

In This Article

Our Verdict

Consider a US Bank Business loan if you want a bank which grants with low interest rates and offers varieties of lending options; know that US Bank also grants SBA Loans.

US Bank is available in only 26 States of the United States and Washington DC; the States are Arizona, Arkansas, Colorado, Wyoming, California, Idaho, Illinois, Nebraska, Nevada, Kansas, Kentucky, Minnesota, Missouri, Montana, Iowa, Indiana, North Carolina, North Dakota, South Dakota, Utah, Oregon, Tennessee, Texas, Wisconsin, Ohio and New Mexico.

Note that US Bank will not likely offer the kind of customer satisfaction you desire; that this is typical of banks with a lot of customers, they often struggle to maintain high levels of customer satisfaction. Apart from the business loans, US Bank also offers SBA loans, as an SBA Preferred Lender; approach the bank’s in-house experts to walk you through the SBA loan process.

Here’s other relevant information you need to know:

US Bank (US Bancorp).

Corporate Headquarters U.S. Bank

800 Nicollet Mall

Minneapolis, MN 55402

United States of America

Phone Number: 800-712-5407

Fax Number: 800-200-8772

www.usbank.com

Pros

  • Loan amount up to $10,000,000 for Customers
  • Quick loan available
  • Wide range of financing options
  • SBA Preferred loan
  • Low starting APR
  • Low Interest rates for customers with good credit
  • 5% discount on autopay

Cons

  • Payment of prepayment fees
  • Non availability of vital information on website
  • Only available in 26 States of the United States
  • Less than average customer service
  • Payment of $150 as loan fee

Who This Product Is Best For

Think US Bank business loan if your business is such that:

  • Domicile in one of the 26 States where US Bank is available
  • Is in need of SBA Preferred loan
  • Will prefer to complete loan application online
  • Wants to set up automatic repayment system
  • Is interested in loan that grant low or zero starting APR
  • Wants a very quick disbursement of loan
  • Has existing US Bank account and needs a loan more than $100,000

Who This Product Isn't Right For

  • Consider another business loan option if you are a business owner who: Is not located within the 26 States where Us Bank has branch
  • Want to complete loan application online
  • Don’t want to pay prepayment fee
  • Want to avoid payment of loan fee
  • Prefers to have all the information you need on the website.

What This Product Offers

●     Term loans

Reach out to Us Bank if you need a business loan with fixed term to meet a pressing business need. Depending on the volume of funds you need, you have the option of both secured and unsecured term loan with US Bank.

●     SBA loans

Think of a US Bank when you are in need of SBA Preferred loan; choose the option that best suits you among the SBA 504 and the different types of the SBA 7(a) loans.

●     Medical practice loans

Approach Us Bank for medical practice loans if you are a dentist, optometry or a veterinarian to get support for your practice and other things that relate to it.

●     Equipment loan

Consider a US Bank Equipment loan when you need finances to purchase equipment to advance your business and provide better services.

●     Business Line of Credit

If you need a larger sum in a line of credit up to $1, 000, 000 for the purchase of equipment and other business inventories, consider Us Bank business line of credit. Know that this is line of credit form of equipment loans.

●     Cash Flow Manager

Choose the option of the US Bank Cash flow Manager, a type of line of credit, which makes funds available for use for the everyday running of your business.

●     Business Equity Line of Credit

Choose the option of the US Bank Business Equity Line of Credit, a type of line of credit, which makes large funds available using the residue value of the business as collateral.

●     Business Reserve Line of Credit

Choose the option of the US Bank Business Reserve Line of Credit, a type of line of credit, which makes funds available to protect your business from overdraft.

●     Commercial Real Estate

Consider Us Bank Commercial real estate when your business wants to buy property for the use of the business or for the purpose of investment.

●     Quick Loans

Think of Us Bank Quick Loans when you need funds urgently to grow your business. Know that the need you want to meet with the funds is not the determining factor for approval. 

Product Details

Term Loans

Choose from the two types of business term loans available on Us Bank platform.  Know that with secured loans, you stand the chance of losing your collateral if you don’t pay. Understand that the good side of the secured term loan is that you get low interest rates and can borrow higher amounts with longer repayment terms.

Know also that U.S. Bank gives 0.5% to customers on automatic payments set up from a U.S. Bank business checking account.

If you need an unsecured loan for your business, know that you can only qualify for it as a US Bank customer and the maximum loan amount available for you is $50,000 while you can get as much as $250,000. Know that if you take an unsecured loan, the interest rates is in the average of 9.49% and an average of 8.49% for a secured loan; you have to repay the loans between 24 to 48 months for an unsecured loan and 24 to 84 months for a secured loan.

SBA Loans

Check with Us Bank If you are so much about the SBA loans. Get your lending decision quicker with Us Bank because it is SBA Preferred Lender.

Know that with Us Bank SBA loans you have other options of SBA 504 and the two types of SBA 7(a). If your business needs a commercial real estate loan which needs an amount which is not more than $12,375,000 with the repayment expectations of 300 months, approach US Bank for SBA 504. Take up SBA 7(a) loans if you need funds for real estate loans for up to $5,000,000; note that you can get an additional $2 million directly from U.S. Bank with 25-year terms. Note that the terms to repay the type of SBA 7(a) loan you apply for is dependent on whether it is General SBA 7(a) or SBA 7 (a) Vehicle; the terms for repayment are 10 years and 120 months respectively.

Business Line of Credit

Like the equipment loans, know that what the Us Bank refers to as Business line of credit is actually the equipment line of credit. If you desire to open a line of credit for the purchase of equipment and business inventories, choose the option of US Bank business line of credit.

Know that this line of credit requires that you use it as a revolving credit line to borrow from as you need it. Keep in mind that if you choose this option you can only as much as the maximum business credit line of $1,000,000.

Cash Flow Manager

Choose the option of the type of line of credit which the. U.S. Bank refers to as “Cash Flow Manager,” when you want to guarantee funds for the day to day running of your business.

Know that this line of credit requires that you use it as  a revolving credit line to borrow from as you need it. Keep in mind that if you choose the unsecured version, you can only get the maximum business credit line of $100,000 instead of $250,000 which you get when you opt for a secured credit line. Know that the APR for the Cash flow Manager line of credit is a limited time rate of 1.99% and that you will pay a loan fee of $150 which you will only have exemption from paying if the line of credit you take is less than $50,000.

Business Equity Line of Credit

Take the US Bank Business Equity Line of Credit, using the residue value of the business as collateral when the amount of the line of credit you need for your business is a bit higher than what an unsecured line of credit can handle.

Know that with this line of credit depending on the value of the residue on your business, you can get up to $500,000 on a revolving loan term of 5 years.

Business Reserve Line of Credit

Choose the option of the US Bank Business Reserve Line of Credit, when you need short term cash to cover transactions that exceeds the amount in your business checking account. Know that the maximum amount you have access to in this line is $5000 yet it solves a great deal of business emergencies, overdraft and sudden shortage of funds.

Don’t worry about payment of annual fee but know that the APR on this line of credit is a fixed rate of 21.99%. 

Equipment Loan

If you need to obtain certain equipment for your business, approach the U.S Bank to choose from the different equipment financing options it offers. Know that the loan amount available for Us Bank equipment loan is quite high; you can get up to $1 million. Take note however that if you urgently need funds to purchase a vehicle and you apply for “quick loan” the maximum amount available is $100,000.

Apply for equipment loans with terms up to 60 months to stand the chance of getting equipment financing without payment of deposit.  Take the advantage of the flexible payment which is monthly, seasonal or semi-annual options. Understand that the APR for this loan varies and it begins from 7.49%

Quick Loans

Consider Us Bank Quick loans for any urgent need to advance your business; the need can be anything that relates to business administration and day to day running of the business. 

Take the US Bank Quick loan between $5000 to the maximum of $250,000 with a repayment term of not more than 84 months. Note that to get an amount more than $50,000, the Quick loan must be a secured one with your collateral being an asset of the business; however, if the amount is less than $50,000 and an unsecured quick loan, be ready to pay an interest rate in the region of 7.99%.

Where This Product Stands Out

●     Wide Range of Financing

Think of any financial need your business have, chances are that US Bank Business loan has packages that covers it.

Know however that if you are in need of higher loan amount, you are likely going to take more risk by applying for a secured loan.

●     Gives Discount on Autopay

To get a lower interest rate, make use of the monthly repayment on autopay. US Bank gives 0.5% discount to you if you set an autopay.

Deploy the funds you safe from the autopay discount to augment the charges on your US Bank business loan.

●     Quick Disbursement of Funds

Think of US Bank business loan when you have a pressing business need that cannot wait for too long; the bank’s quick loan disbursement is one of its stand out attributes as it is possible to get funds as soon as the same day.

●     SBA Preferred

Do you seek a bank which offers one of the best SBA loan products? Reach out to US Bank as its SBA 504 and SBA 7(a) loan offers quite huge amount of funds for small businesses. Know that the terms for these SBA loans are quite much giving your business enough time to repay.

Where This Product Falls Short

●     Available in Limited States

Don’t apply at US Bank business loan, if your business does not situate in any of the 26 States where the bank is physically present.

Know that Us Bank does not give the option of online application for business loan but retains the traditional system of brick and mortar banking.

●     Loan Fee Payment

Avoid US Bank if you have strong avarice for payment of loan fee despite payment of interest on the same loan. Know that if you are intending to take US Bank line of credit, especially when the amount is more than $50,000, the bank charges you a loan fee of $150 apart from the interest you pay on any amount you draw.

●     Lack of Online Loan

If you don’t have time visiting US Bank for loan application, if you prefer to apply and complete your loan process online, don’t think about US Bank at all; the bank still retains the traditional brick and mortar banking system and does not support online banking.

●     Prepayment Penalty

Do you intend to repay the loan even before it is due and you don’t want to pay a penalty for that early payment of loan? Note that US Bank business loan does not match this expectation. Understand that this bank charges prepayment fee on early repayment of loan. 

How to Qualify for This Product

Reach out to US Bank for specific details relating to each type of business loan because each loan types has its own peculiarities in criteria;

Keep in mind that to qualify for this product it is essential to get the following information right

  • Involve All Owners with 20%

To apply for any business loan with the US Bank, involve all the Shareholders with at least 20% stakes in the business in the process of the loan application before US Bank grants same.

  • Prepare Relevant Information

Get your basic information like full address and email ready, including business and personal tax identification number

  • Credit Score

Keep in mind that US Bank’s official minimum credit score for business loan is also not visible likewise the minimum annual revenue and time in business.

Pay particular attention also to the annual revenue of the business and your years in the business.

How to Apply for This Product

To apply for any of the US Bank business loans, visit any of the branch of the bank close to you and reach out to its representatives. Prepare to supply some information to the bank which includes the following information;

  • Full name,
  • Full address,
  • Phone number,
  • Social security number
  • Business
  • Financial health—for example, income, taxes, and debts.
  • Collateral, if you’re opting for any secured business loan product.
  • Guarantor or co-borrower.

Alternatives to This Product

PNC

If you are in need of a bank that can give equally a large sum for your business with wider spread in the United States, consider PNC as a good option. Take advantage also of PNC offers of a more robust secured line of credit and term loan of up to $3,000,000.

TD. Bank

Approach TD Bank for business loan with fairly low interest rates. Get as much as $50,000 in loan amount with this product and pay as low as 6.99% interest rates.

Truist Bank

Approach Truist Bank for business loan when you don’t want to pay loan fees for your loan or business line of credit.

Know that Truist has low amount of funds than US Bank but with better interest rates.

Customer Reviews

Don’t expect a reasonable customer service from US Bank as the customer reviews from about 700 customers through both BBB and TrustPilot shows a dismal ratings of 1.11 and 1.2 of 5 respectively.

Methodology

We reviewed US Bank business loans based on 20 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated US Bank business  loans based on the weighting assigned to each category:

  • Loan cost: 35%
  • Loan details: 25%
  • Customer experience: 20%
  • Eligibility and accessibility: 10%
  • Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and the geographic availability of the lender.

Finally, we evaluated US Bank business loans, customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.

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