Chase Small Business Loan: A Complete Guide for US Entrepreneurs

For American entrepreneurs and business owners, securing the right funding is an essential step toward expansion, managing cash flow or investing in new opportunities. As one of the largest banks in the U.S., JPMorgan Chase offers a range of financing products. This guide provides a clear, straightforward look at the Chase Small Business Loan program, designed for growing businesses in the U.S.

We will break down the different types of loans available, clarify the Chase small business loan requirements and walk through the Chase small business loan application process.

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Table of contents
Does Chase Offer Small Business Loans? Understanding Chase's Small Business Loan Options Term Loan Business Line of Credit Commercial Real Estate Financing SBA Loans Pros and Cons of a Chase Small Business Loan Chase Small Business Loan Requirements Navigating the Chase Small Business Loan Application Process Understanding Interest Rates and Payments Frequently Asked Questions (FAQ)

Does Chase Offer Small Business Loans?

Yes, Chase provides several financing options tailored to small businesses.¹ The primary loan categories include:

• Term Loans: A lump sum of capital paid back over a set period with fixed monthly payments.
• Business Lines of Credit: A revolving credit line for flexible access to cash.
• Commercial Real Estate Financing: Loans specifically for purchasing, renovating, or refinancing business properties.
• SBA Loans: Government-guaranteed loans that often have favorable terms.

Chase structures its lending products to meet different business needs, from short-term cash flow management to large-scale capital investments. Here’s a closer look at each option.

Understanding Chase's Small Business Loan Options

Term Loan

A Term loan from Chase provides your business with a single, lump-sum payment upfront.¹ Loan amounts start as low as $5,000, with repayment terms extending as long as seven years.²

Chase also offers variations like a Draw Loan, which includes a draw period of up to one year, and an Advised Line, which pre-approves you for a commitment amount.²

Business Line of Credit

A business line of credit works much like a credit card, offering a revolving source of funds you can draw from as needed. Chase offers lines of credit up to $500,000 with a five-year revolving period and a subsequent five-year repayment term.³ The key difference from a term loan is its flexibility; you only pay interest on the amount you use and can borrow and repay funds repeatedly up to your credit limit.³

Commercial Real Estate Financing

For businesses looking to buy, build, or refinance their physical location, Chase offers Commercial Real Estate Financing. These are term loans secured by the property itself, with terms extending up to 25 years.¹ Loans start at $50,000 and can cover up to 90% of the property's value, depending on the financing option.⁴

SBA Loans

SBA loans facilitated by Chase can provide up to $5 million for working capital, expansion or equipment purchases.⁵ The government guarantee reduces risk for the lender, often resulting in more favorable terms, lower down payments and longer repayment periods for the borrower.

Now that we’ve outlined the different loan options Chase provides, let’s weigh the advantages and disadvantages.

Pros and Cons of a Chase Small Business Loan

Pros	Cons
With term loans, lines of credit, real estate financing and SBA loans, Chase offers a solution for most established business needs.¹	The Chase small business loan application process often requires a visit to a physical branch.3
Existing Chase for Business customers may be eligible for interest rate discounts on new loans over $500,000.3	The two-year business history requirement can be a significant barrier for startups.
SBA Preferred Lender status can streamline the application process for government-backed SBA loans, which are often more accessible for small businesses.1	While some loans are unsecured, larger loan amounts or certain products often require collateral.6

After considering the pros and cons, let’s see what you’ll need to qualify for a Chase small business loan.

Chase Small Business Loan Requirements

Qualifying for a Chase small business loan requires meeting several criteria.

Core Eligibility

The most significant requirement for loans and lines of credit under $500,000 is time in business. Chase requires that your business:

• Be at least two years old.³
• Has been under the same majority ownership for at least two years.³

Financial Health

Chase evaluates the financial stability of both your business and its owners. Key factors include:

Credit Reports: Lenders will review the personal and business credit reports of any owner with a 20% or greater stake.³

Financial Statements: Be prepared to provide recent business financials, including a profit and loss statement and a balance sheet.⁶

Documentation Checklist

The Chase small business loan application process requires thorough documentation. Gathering these items in advance will help streamline your application:

Tax Returns: Personal and business tax returns for the previous three years for all principal owners.⁶

Financial Statements: A current profit and loss statement, balance sheet, and income statement.⁶

Legal Documents: This may include your business license, articles of incorporation or organization, partnership agreements, and the deed or lease for your business premises.⁶

Business Loan Proposal: A document outlining how much you need, how you plan to use the funds, and how you will repay the loan.⁶

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Navigating the Chase Small Business Loan Application Process

The Chase small business loan application process typically involves direct interaction with the bank.

1. Preparation: Before contacting the bank, gather all necessary financial and legal documents.

2. Contact Chase: The next step is to connect with a Chase representative. If you have an existing Business Relationship Manager, that is your first point of contact. Otherwise, you will need to visit a Chase branch to get started.³

3. Application and Review: You will work with a banker to complete the official application. Chase will then conduct a hard inquiry on your personal and business credit reports.³

4. Decision and Funding: If approved, you will sign a loan agreement. For term loans, funds are disbursed in a lump sum; for lines of credit, the funds become available to draw from your Chase Business Banking account.

After completing the application process, the next critical factor to consider is how interest rates and repayment terms will affect your loan.

Understanding Interest Rates and Payments

Interest Rates

The Chase small business loan interest rate you receive will depend on the loan type, your business’s financial profile, and market conditions.

Variable Rates: Many Chase products, particularly lines of credit, have variable interest rates tied to an index like the Prime Rate or the Secured Overnight Financing Rate.³ This means your payment amount can change over time.

Fixed Rates: Term loan products are often available with fixed interest rates, providing the stability of a predictable monthly payment.²

Relationship Pricing: Businesses with significant deposit balances at Chase may qualify for an interest rate discount of 0.4% to 1.2% on new loans or lines of credit over $500,000.³

Fixed Monthly Payments

One of the key benefits of a Chase term loan is the structure of its repayment. You will make fixed monthly payments that include both principal and interest over the life of the loan.² This predictability is valuable for financial planning and helps ensure you can consistently manage your payments.

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Frequently Asked Questions (FAQ)

What qualifies me for a small business loan from Chase?

To qualify, your business generally has to be at least two years old and under the same majority ownership for that period.³ You and any other principal owners will also need strong personal and business credit reports, a consistent history of on-time payments, and solid business financials like a profit and loss statement.⁶

What are the Chase small business loan requirements for startups?

Chase's lending products are generally not designed for startups. The requirement for a business to be at least two years old makes it very difficult for new ventures to qualify for a traditional Chase loan or line of credit.³ Startups may have better luck exploring SBA loans or looking at lenders that specialize in financing new businesses.

Can an LLC get a small business loan from Chase?

Yes, a Limited Liability Company (LLC) can get a small business loan. You’ll need to provide your LLC's legal documents during the application process.⁶ Additionally, any individual who owns 20% or more of the LLC will be required to personally guarantee the loan.³

What is the easiest small business loan to get?

The "easiest" loan depends heavily on your business profile. For established businesses with an existing relationship with Chase, a Business Line of Credit might be relatively straightforward to obtain. Generally, SBA loans are considered more accessible for a wider range of small businesses because the government guarantee reduces the lender's risk.

Who is the Ideal Candidate for a Chase Small Business Loan?

A Chase small business loan is a strong option for established U.S.-based businesses with at least two years of operating history and a solid financial track record. The variety of products, the stability of a major bank, and the potential for favorable terms through its SBA partnership make it a competitive choice for funding growth.

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Sources:

1. Business Loans: Small Business | Chase
2. Small Business Term Loans | Chase
3. Business Lines of Credit | Chase
4. Commercial Real Estate Loans and Financing | Chase
5. Business Loans: SBA Financing | Chase
6. Business Loan Application Checklist | Chase