Wells Fargo Small Business Loan: 2025 Guide

For American entrepreneurs and business owners, securing the right financing is a critical step toward expansion, managing cash flow and seizing new opportunities. A Wells Fargo Small Business Loan is a popular option. As a financial institution operating in 36 states plus Washington, D.C., Wells Fargo offers a range of products designed to meet the diverse needs of growing businesses.¹

This guide will provide a comprehensive overview of Wells Fargo's business financing options, with a focus on their flexible lines of credit. We will break down the Wells Fargo small business loan requirements, explore the Wells Fargo small business loan interest rate structures and detail exactly how to get a Wells Fargo small business loan.

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Table of contents

Understanding Wells Fargo's Small Business Loan Options Small Business Advantage Line of Credit Wells Fargo BusinessLine® Line of Credit Wells Fargo Prime Line of Credit SBA Loans Wells Fargo Small Business Loan Interest Rate Pros and Cons of a Wells Fargo Small Business Loan How to Get a Wells Fargo Small Business Loan: A Step-by-Step Guide Understanding the Wells Fargo Small Business Loan Requirements The Application Process The Role of a Business Checking Account Frequently Asked Questions (FAQ)

Understanding Wells Fargo's Small Business Loan Options

While Wells Fargo has offered traditional term loans in the past, its current focus for small business financing is primarily on business lines of credit and U.S. Small Business Administration (SBA) loans. A line of credit offers a revolving source of funds that a business can draw from as needed, providing greater flexibility than a one-time lump-sum loan.

Small Business Advantage Line of Credit

The Wells Fargo Small Business Advantage Line of Credit is an unsecured line tailored for the day-to-day capital needs of a growing company. It offers credit limits of up to $50,000 and provides access to funds on a revolving basis.² This means you can borrow, repay and borrow again up to your credit limit. A key feature is the automatic enrollment in the Wells Fargo Business Rewards program, which allows you to earn points on qualifying purchases with no annual fee.³

Wells Fargo BusinessLine® Line of Credit

Similar to the Small Business Advantage product, the BusinessLine® Line of Credit is another unsecured line with credit limits reaching $150,000.² It also provides flexible, revolving access to capital. The main distinction between this and the Small Business Advantage line often comes down to the qualification criteria and the range of potential interest rates, which are determined by your business and personal credit profiles.²

Wells Fargo Prime Line of Credit

For more established businesses with annual sales between $2 million and $10 million, the Wells Fargo Prime Line of Credit is a secured option with limits from $100,000 up to $500,000,000.³ This line of credit is secured by business assets, such as accounts receivable, inventory, or equipment.⁴ It is designed for companies with significant working capital requirements and has a one-year term that can be renewed.¹

SBA Loans

Wells Fargo is a preferred SBA lender, partnering with the federal agency to offer SBA 7(a) and 504 loans.¹ These government-backed loans can be a great alternative for businesses that may not qualify for conventional bank financing.

Now that you have an overview of the options available, it's essential to understand the costs associated with them. The Wells Fargo small business loan interest rate is a primary factor in determining the overall cost of your financing.

Wells Fargo Small Business Loan Interest Rate

The interest rates for Wells Fargo’s business lines of credit are variable, meaning they are calculated based on the U.S. Prime Rate plus a margin. This margin is determined by the bank's evaluation of your personal and business credit risk.

Small Business Advantage Line of Credit: Rates range from Prime + 4.50% to Prime + 6.50%.²

BusinessLine® Line of Credit: Rates range from Prime + 1.75% to Prime + 9.75%.²

Wells Fargo Prime Line of Credit: Rates start at Prime + 0.50% and are subject to a minimum floor rate of 5.00%.⁵

With a clear understanding of the potential costs, it's time to weigh the overall benefits and drawbacks. Here is a balanced look at the pros and cons of choosing a Wells Fargo Small Business Loan.

Pros and Cons of a Wells Fargo Small Business Loan

Pros	Cons
Established Lender: Wells Fargo is a major national bank with a significant physical presence and extensive experience in business lending.	Strict Eligibility Criteria: Like most large banks, Wells Fargo has stringent requirements for credit scores, time in business, and revenue.
Variety of Options: Offers both unsecured and secured lines of credit, as well as SBA loans, to cater to businesses of different sizes.	Personal Guarantee is Required: All business lines of credit require a personal guarantee from the owners, which places personal assets at risk.4
Preferred SBA Lender: As a top SBA lender, Wells Fargo provides a direct path to valuable government-backed loan programs.	Limited Term Loan Options: The bank has discontinued some of its direct term loan programs, which may not suit businesses seeking a lump-sum payment.6

If you've weighed the pros and cons and decided that a Wells Fargo Small Business Loan is the right move for your company, the next step is preparing a strong application.

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How to Get a Wells Fargo Small Business Loan: A Step-by-Step Guide

Securing financing from a major bank requires thorough preparation. Wells Fargo assesses applications based on a time-tested framework known as the five Cs of credit.

Understanding the Wells Fargo Small Business Loan Requirements

To determine your creditworthiness, lenders evaluate the following five factors:

1. Character: This refers to your track record of handling past credit obligations. Both your personal and business credit histories are reviewed. Wells Fargo typically looks for a personal FICO® Score of at least 680 from all guarantors.⁴

2. Capacity: Your business’s ability to generate enough cash flow to repay the loan on top of its existing financial commitments.

3. Capital: The financial health of your business, specifically assets that can be easily converted to cash to weather unexpected financial challenges.

4. Collateral: For secured loans like the Prime Line, this includes business assets (equipment, inventory, etc.) that you pledge to back the loan.

5. Conditions: The purpose of the loan and the broader economic and industry conditions that could affect your business' ability to repay it.

The Application Process

1. Prepare Your Documentation

Gathering all your documents beforehand will streamline the process. For unsecured lines of credit, you will need:⁴

• Legal business name, address and phone number
• Business Tax ID or Social Security number
• Date the business was established and its ownership type
• Gross annual revenue
• Personal information for each guarantor (name, address, SSN, date of birth, citizenship, ownership percentage and annual household income)

For the Wells Fargo Prime Line, you will need additional documentation:⁴

• Two years of personal and business tax returns
• A Personal Financial Statement (form provided by the bank)
• Two years of company-prepared, year-end financial statements

2. Submit Your Application

You can apply for the unsecured line of credit products online or in person at a Wells Fargo branch. To apply for the Prime Line of Credit, you must call Wells Fargo to begin the process.⁴

3. Await the Decision and Funding

After you apply for an unsecured line, Wells Fargo will send you a written notification with its decision. If approved, the notice will include your approved credit limit. The process for the Prime Line is more involved and can take up to two weeks after all documents are submitted. An underwriter will work with you directly to finalize the requirements.⁴

The Role of a Business Checking Account

While not always mandatory, having an established business checking account with Wells Fargo can significantly improve your chances of approval. It gives the bank a transparent view of your company's revenue and cash flow, making it easier to assess your capacity to repay a loan. It also simplifies the management of your funds, allowing for quick and easy transfers between your checking account and your line of credit.

To provide further clarity, here are answers to some of the most frequently asked questions.

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Frequently Asked Questions (FAQ)

What is the minimum credit score for a Wells Fargo small business loan?

Wells Fargo typically requires a personal FICO® Score of at least 680 from any owner who is providing a personal guarantee on the loan.⁴ However, the bank considers the full credit profile, so other factors from the five Cs of credit also play a significant role in the final decision.

Is collateral required for all Wells Fargo financing?

No. The Small Business Advantage Line of Credit and the BusinessLine® Line of Credit are both unsecured, meaning they do not require you to pledge specific collateral.⁴ The Wells Fargo Prime Line of Credit is a secured product and requires business assets like accounts receivable, inventory or equipment as collateral.⁴

How is a business line of credit different from a term loan?

A term loan provides a single lump sum of cash upfront, which you repay in regular installments over a predetermined period. A business line of credit provides a revolving credit limit that you can draw from as needed. You only pay interest on the amount you use, and as you repay the balance, your available credit is replenished.

What does it mean to give a personal guarantee?

A personal guarantee is a legally binding promise from a business owner to repay a business debt personally if the business is unable to do so. This means that if your business defaults on the loan, the lender can legally pursue your personal assets, such as your home, car or personal savings, to satisfy the debt. Wells Fargo requires personal guarantees on its business lines of credit.⁴

Does having a business partner affect my loan application?

Yes. If your business partner has a significant ownership stake (e.g., 20% or more) in the Small Business Advantage Line, they will likely be required to act as a personal guarantor.⁴ In that case, their personal credit history and financial standing will be evaluated as part of the application. A partner with a strong credit profile can strengthen the application, while a partner with a poor credit history could hinder your ability to get approved.

A Wells Fargo Small Business Loan can be an excellent tool for U.S.-based businesses ready to take the next step. By preparing your financial documents and understanding the bank's requirements, you can position your company for a successful application and secure the capital needed for sustainable growth.

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Sources:

1. Best Banks for Small-Business Loans | NerdWallet
2. Unsecured Business Lines of Credit | Wells Fargo
3. Business Credit | Wells Fargo
4. Frequently Asked Questions for Business Line of Credit | Wells Fargo
5. Prime Line of Credit | Wells Fargo
6. Credit to be Closed | Credit.org