Chase Startup Business Loan: A Guide for US Founders

Launching a US startup requires capital to innovate and scale. For many founders, the search for reliable business financing leads to major national banks like Chase. This guide explains how Chase business loans could be a viable option for your startup venture. We also explore how smart financial management with Wise can help you manage your loan capital and international operations more efficiently.

Need to send and receive cross-border business payments?
Try Wise Business ->

Key Takeaways

What Chase Business Loans Offer for Startups

Chase provides several traditional financing products designed to support business growth and manage cash flow. Each is built around a different funding need, so the right fit depends on whether you're covering ongoing working capital gaps or making a single, larger investment.

Chase Business Line of Credit

A Chase business line of credit gives you revolving access to funds, much like a credit card. You draw from the line as needed, pay interest only on what you've borrowed, and free up credit again as you pay down the balance.¹ Rates are variable and tied to the Prime Rate, with margins set based on your credit profile and loan amount.²

Key features include the following:

• Credit limits: Lines range from $10,000 up to $500,000, with commercial lines available for larger amounts.
• Structure: A five-year revolving period is followed by a five-year repayment period, giving customers time to repay the full amount they've borrowed.
• Collateral: Chase only offers secured lines of credit, so you'll need to pledge business assets to qualify.
• Annual fee: $200 or 0.25% of the approved line (whichever is greater), capped at $750. The fee is waived after year one if average utilization hits at least 40%.
• Relationship Pricing Program: Customers with qualifying deposit balances may be eligible for interest rate discounts of 0.4% to 1.2% on new loans or lines of credit above $500,000.

To qualify, your business generally needs at least two years of operating history under the same majority ownership, clean personal and business credit reports, and a primary business address in any U.S. state except Alaska or Hawaii. Anyone with 20% or more ownership must personally guarantee the debt.

• Best for: Managing working capital, smoothing out seasonal revenue fluctuations, covering inventory purchases, and funding short-term expenses you expect to repay within the revolving period.

Chase Business Term Loans

For larger, one-time investments, such as purchasing equipment or vehicles, financing an expansion, or consolidating higher-interest debt, Chase offers term loans that deliver a lump sum of capital upfront with a predictable monthly payment schedule. Term loans typically carry lower interest rates than lines of credit and can be structured with either fixed or variable rates, depending on the product you choose.

Key features include the following:

• Loan amounts: Starting as low as $5,000, with standard term loans available up to $500,000 and Small Business Administration (SBA) loans extending as high as $5 million.3
• Repayment terms: As long as seven years for standard term loans, with fixed monthly principal and interest payments that make budgeting predictable.
• Rate options: Fixed rates lock in a consistent payment for the life of the loan, while variable rates are tied to an index such as the Prime Rate or the one-month Secured Overnight Financing Rate (SOFR).
• Product variations: Chase offers a standard term loan, a draw loan with a draw period of up to one year before repayment begins, and an advised line that pre-approves you for a commitment amount you can draw against for up to a year.
• Eligibility: Like the line of credit, standard term loans under $500,000 require at least two years in business under the same majority ownership.

Chase is also an SBA preferred lender, which can speed up underwriting if you're pursuing an SBA 7(a) loan, SBA 504 loan, or SBA Express line of credit for amounts up to $500,000.

• Best for: Fixed asset purchases, equipment and vehicle financing, real estate improvements, and long-term expansion projects where you want a single disbursement and a clear, fixed repayment schedule.

Wise Business Could Help Your Company Save on Global Payments

Can Your Startup Qualify for a Chase Business Loan?

While Chase supports businesses of all sizes, their underwriting process is rigorous. To qualify, founders generally need the following:

• Time in Business: While some products are available to newer businesses, Chase typically prefers companies with a proven track record.
• Documentation: You must provide personal and business tax returns, profit and loss statements, and a balance sheet.
• Creditworthiness: A strong personal credit score is a critical factor, especially for younger startups where the business's credit history is still being established.

Key Considerations for Startup Founders

Fixed vs. Variable Rates

Startups must decide between the stability of a fixed-rate term loan and the flexibility of a variable-rate line of credit. Chase provides tools to help founders determine which structure fits their projected cash flow.

Relationship Banking

Chase often provides more competitive terms to businesses that maintain a **Chase Business Complete Banking** account. Building a relationship with a local business banker can also help navigate the loan approval process.

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to 140+ countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

Use Wise Business >>

Final Thoughts

Chase offers some of the most robust lending products in the US, but they require a high level of financial organization from the founder. By combining a Chase loan with a **Wise Business** account, your startup can achieve a balance of traditional financial stability and modern, global efficiency.

Frequently Asked Questions

Does Chase offer loans to new businesses?

Chase offers financing to businesses at various stages, but most conventional loans require a history of revenue. SBA loans are often the most accessible path for newer companies.

What is the maximum I can borrow?

Loan amounts vary by product. Lines of credit can go up to $500,000, while SBA and term loans can be significantly higher depending on your business's financials and collateral.

How do I apply?

For many smaller lines of credit, you can apply online. Larger term loans or SBA financing usually require a meeting with a Chase business banker.

Sources:

1. Business Term Loans: Rates and Features | Chase
2. Business Line of Credit | Chase
3. SBA Loans: Small Business Administration Financing | Chase
4. Business Banking and Loan Resources | Chase