Our Verdict
Being an SBA-preferred lender, KeyBank prides itself on helping small business owners with over $2 billion since 2015. Not only SBA loans, but KeyBank also offers various kinds of lending options starting from term loans, and commercial real estate, to lines of credit and equipment financing. KeyBank has its headquarters in Cleveland and boasts a huge $181 billion worth of assets including over 1,000 branches in 15 contiguous states.
Pros
- Availability of diverse kinds of loan products
- SBA favorite
- Adequate branches
Cons
- Lacks transparency on fees, terms, and criteria for eligibility
- Don’t allow online lending services
- Some loans are short terms
Who This Product Is Best For
KeyBank is good for business owners who:
- Want to build and enlarge their businesses.
- Has the ability to use effective collateral for loans above $100,000
- Are looking for a bank with all-in-one loan financing services
- Want additional financial services like checking accounts and credit accounts.
- Already have a checking account with KeyBank
Who This Product Isn't Right For
KeyBank may be bad for business owners who:
- Prefer banks with a wide range of availability in more than 15 states
- Who prioritizes applying for loans online
- Are looking for loans with longer terms
- Want clarity about fees, duration, and qualification requirements.
- Don’t have their businesses in KeyBank’s serviced states.
What This Product Offers
- Term loans: This loan offers a lump sum amount at a fixed rate. KeyBank provides it as a long-term and short-term loan as well as a secured and unsecured loan.
- Business lines of credit: With this loan, you can tap into the amount you need to maintain cash flow in your business at any time.
- Commercial real estate: This loan allows you to invest or buy real estate property such as land acquisition, or building expansion for your business.
- Equipment financing: Here, you can use this loan to buy, upgrade, or replace the equipment that is essential for your business.
- SBA loans: KeyBank offers different kinds of SBA loans like SBA 504, and SBA 7(a).
Product Details
Term loans
This loan can be secured or unsecured with terms ranging from 12 to 84 months. The main distinguishing feature here is that the secured loan above $100,000 attracts collateral.
Loan Amount | $10,000 to $500,000 |
Repayment period | 12 to 84 months |
APR | Not specified |
Origination fees | Not specified |
Business lines of credit
KeyBank’s lines of credit are available as both secured and unsecured. You need to meet the bank’s loan officer to discuss which credit line is best for you.
Amount | $10,000 to $500,000 |
Repayment schedule | Renewable after the end of the draw period (12 months) |
APR | Not specified |
Fees | Not specified |
Commercial real estate
KeyBank’s Commercial real estate provides loan amounts between $10,000 and $1,000,000 and the repayment term can be up to 240 months. KeyBank doesn’t reveal any figure for the APR. You will have to meet with a KeyBank representative to discuss the actual fee and APR.
Amount | $10,000 to $1,000,000 |
Repayment period | 240 months |
Apr | Not specified |
Fees | Not specified |
Equipment financing
No information is disclosed about this loan amount, APR, and fees. However, the bank does state that its equipment financing is 100% with no upfront payment.
Amount | Not specified |
Repayment term | Not specified |
APR | Not specified |
Fees | Not specified |
SBA Loans
These are government-backed loan products that KeyBank offers as SBA preferred lender. KeyBank provides an SBA 7(a) loan which is an affordable and most common type of SBA loan. KeyBank also provides SBA 504 which is good for business development. Other forms are SBA Express loan and working CapLine.
Products | Amount (up to) | APRs |
SBA 7(a) loans | $5,000,000 | Not specified |
SBA Express loan | $350,000 | Not specified |
CapLine | $1,000,000 | Not specified |
SBA 504 | $12,000,000 | Not specified |
Where This Product Stands Out
Various kinds of lending products
KeyBank gives multiple options for business owners who want to take out loans. Its packages include business term loans, lines of credit, equipment financing, SBA, and commercial real estate. With these options above, you can choose the best financing option for your business. For instance, you can use commercial real estate to expand your business by acquiring land or investing in real estate. Lines of credit can give you a sizeable amount of cash flow you need to keep your running capital alive.
Competitive APRs
Just like other traditional bricks and mortar banks, KeyBank offers more competitive APRs than online lenders. Although KeyBank doesn’t disclose the rates per loan Product, KeyBank’s representative does say it can be as low as 7.49%. This rate is by far lower than OnDeck APRs which is 29.90%. In addition, KeyBank offers business financing amounts much more than TD Bank and OnDeck. For example, KeyBank has a maximum borrowing limit of $12,000,000 compared to TD Bank and OnDeck which are $250,000 and $5,500,000, respectively.
Same day funding
If you are already a KeyBank banking customer with a checking account, it’s possible to get your loan cash on the same business date you applied. However, not without meeting the following criteria; you need a FICO score of 650 or more, you must have completed all verification needed, and finally, the bank must approve your loan application before 2 pm.
Where This Product Falls Short
Not good for businesses with poor credit score
KeyBank doesn’t reveal its minimum credit score requirements. However, according to the bank representative, KeyBank tends to consider business owners and businesses with FICO scores of 740 and above. To establish this fact, KeyBank’s annual report reveals that most of the borrowers who meet its criteria for business term loans possess FICO scores of not less than 750.
Operating only in some states
Although KeyBank provides multiple business financing products, it’s only available for borrowers in selected states where its operation covers. The states are; Alaska, Connecticut, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont, and Washington. Borrowers and businesses outside these states may find it difficult to get KeyBank financing services.
Requires more years of operation
Compared to other traditional banks that require 6 months to 2 years in business, KeyBank demands that borrowers must have a business in operation for 3 years or more to qualify for most of its loan products.
How to Qualify for This Product
It’s a tradition that most banks including KeyBank don’t like to disclose or break down the requirements for each of their lending products. Yet, there are some information you can get by meeting the bank’s representatives. For example, KeyBank’s criteria for an SBA loan requires a business net worth of $15 million and bi-annual revenue of $5 million. However here are the common documents you may need to stand a chance for qualification.
Tax Returns
Get your personal and business tax returns ready to prove your company’s revenue, tax deductions and tax payments.
Financial Statements
Your business financial statements must reflect your business history. Present a financial document that reveals your business has been operating for the past three years.
Business Documents
Your business document must include invoices to customers, both paid and unpaid. Your business legal papers like bye-laws and articles of incorporation. In addition, provide your business identification number and VAT number including your company’s location.
Collateral Documents
Most secured loans require collateral. In KeyBank’s case, you may have to provide collateral when applying for the bank’s secured business term loan and secured business line of credit.
How to Apply for This Product
A KeyBank representative failed to be specific on its application requirements. Nevertheless, they said your financial circumstances may affect this and you can speak with a KeyBank small business banker to walk you through the requirements that you need. Note that KeyBank doesn’t allow business loan applications online. If you live in any of the 15 states with KeyBank’s coverage, you may have access to any of its 1000 branches. But, irrespective of the situation, here are the common documents you are to submit in addition to other lender-specific requirements:
- Social security number and government-backed ID
- Proof of collateral (for secured loans)
- Business licenses and permits that show your business operates in the US
- Balance sheet to show your profits and losses.
Note that information in these documents must be at least 3 years or more.
Alternatives to This Product
OnDeck
Unlike KeyBank which offers business financing products to businesses of 3 years and above, OnDeck provides lending options for businesses under one year. It also considers the credit score requirement of 625 relatively lower than KeyBank’s 750 and above. However, OnDeck offers just two business loans which are short-term loans and business lines of credit. The maximum limit for a loan amount is $250,000 which is just half of what KeyBank offers.
TD Bank
TD Bank offers different kinds of lending products to business owners with no minimum credit score. Yet, the better your score the better the rate you get on loan amount. TD doesn’t care about your time in business before it approves your application. Nevertheless, there are certain loans and amounts on TD Bank that require your time in business to be three years and above.
LendingClub
LendingClub offers business loan products with a fair credit score as low as 600. In fact, If you have a lower score you can get a cosigner to boost your chance of securing business loan approval. However, Despite offering a lower interest rate than KeyBank, you need a higher credit score to enjoy this.
Customer Reviews
Base on the reviews on Better Business Bureau’s website, KeyBank gets a rating of 1 out of possible five stars. This rating is based on barely 100 reviews on the BBB platform. Consumer Financial Protection Bureau on the other hand finds KeyBank to be doing well as the agency only received few complaints for the past 3 years. Most of the complaints are either charged fees or hidden interest.
Methodology
We reviewed *this product* based on 20 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated *this product* 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 time in business requirements and the geographic availability of the lender. Finally, we evaluated *this product* customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
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