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Business Financing FAQs

Get the answers you need to common questions about small business financing

Applying for financing
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What information do you need to submit an application?

You’ll need some basic business and personal information to submit an application. See what you'll need to apply.

Can I apply online for a small business loan or line of credit?

Yes. If you have a Small Business Online Banking login you can apply for an unsecured business loan and unsecured business line of credit online.

You can apply for all small business financing products by scheduling an appointment by phone or in person with a business lending specialist.

Once a loan or line of credit is approved, how long does it take to receive funds?

Our team will work closely with you to make sure your financing is in hand as soon as possible. Factors such as type of loan, type of collateral and the speed of documentation back and forth can affect the overall timeline.

Do I need to have an account with Bank of America in order to apply for small business financing?

No, you can apply with a business lending specialist without a Bank of America account. To apply online for an unsecured business loan and unsecured business line of credit you’ll need to login with your Small Business Online Banking login.

Does Bank of America fund new business startups?

Bank of America business financing requires that your business be under current ownership for at least 2 years. If you have not been in business for 2 years, learn more about SBA Loans.

If I change my mind about my financing (for example, wanting to finance a different type of equipment) before I complete my application, do I have to start the application process again from the beginning?

While each specific situation is different, in most cases we can make those adjustments to your application as needed with very minimal impact to your application timeline.

Learn more about small business financing options
Unsecured Business Line of Credit
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Is there a minimum or maximum amount I can apply for?

Our unsecured line of credit includes amounts $10,000 - $100,000. There is no interest until you use the funds and no collateral required.

How can I apply for an unsecured business line of credit?

To apply you can:

  • Apply online with your Small Business Online Banking Login

  • Call us at 866.543.2808 (Mon-Fri 8 a.m.-10 p.m. ET)

  • Schedule an appointment – select a convenient time to meet by phone or in person

What determines my interest rate?

Your interest rate may differ based on your credit worthiness, business overall relationship with Bank of America and line amount.

How does an unsecured line of credit differ from a business credit card?

Business credit cards are great for small, everyday business expenses. An unsecured line of credit provides longer-term financing in larger amounts with lower interest rates.

Will I pay any interest on my line of credit if I have a zero balance?

No. You only pay interest on any amount you draw from your line of credit. Once your line of credit is paid down to a zero balance, no more interest will accrue.

Learn more about unsecured lines of credit
Unsecured Business Loan
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What are the requirements to get an unsecured business loan from Bank of America?

Business financing requires that your business be under current ownership for at least 2 years with a minimum annual revenue of $100,000.

How is my interest rate determined?
Your interest rate may differ based on your credit worthiness, business overall relationship with Bank of America, loan amount and loan term.

What do I need to apply?
You’ll need some basic business and personal information to submit an application. See what you'll need to apply

How can I apply for an unsecured business loan?

To apply you can:

  • Apply online with your Small Business Online Banking Login

  • Call us at 866.543.2808 (Mon-Fri 8 a.m.-10 p.m. ET)

  • Schedule an appointment – select a convenient time to meet by phone or in person

How do I access my funds once my loan is approved?

If your financing request is approved, a business lending specialist will let you know about the various ways you can access your funds after the loan documents are signed, including small business online banking.

Learn more about unsecured business loans
Secured Business Line of Credit
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Is there a minimum or maximum amount to a business line of credit?

Our flexible revolving credit lines start at $25,000. There is no specific maximum to a Bank of America business line of credit. All approvals are subject to current credit policy and regulatory requirements.

What determines my interest rate?

Your interest rate may differ based on your credit worthiness, business overall relationship with Bank of America and line amount.

How can I secure my business line of credit?

You may not be required to secure your line of credit for amounts of $100,000 and less. Lines of credit greater than $100,000 will be generally required to be secured by collateral such as a blanket lien on general assets or a certificate of deposit. Other collateral may be considered. If you secure your line of credit with a certificate of deposit, you can borrow up to 100% of the value of the CD.

Will I pay any interest on my line of credit if I have a zero balance?

No. You only pay interest on any amount you draw from your line of credit. Once your line of credit is paid down to a zero balance, no more interest will accrue.

What are the requirements to get a business line of credit from Bank of America?

Business financing requires that your business be under current ownership for at least 2 years and minimum annual revenue of $250,000.

What do I need to apply?

You’ll need some basic business and personal information to submit an application. See what you'll need to apply

Can I apply online for a business line of credit?

A business lending specialist can assist you by phone or in person with any loan or line of credit application. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

Learn more about secured business lines of credit
Secured Business Loan
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What are the requirements to get a business loan from Bank of America?

Business financing requires that your business be under current ownership for at least 2 years and minimum annual revenue of $250,000.

How is my interest rate determined?

Your interest rate may differ based on your credit worthiness, business overall relationship with Bank of America, loan amount and loan term.

What do I need to apply?

You’ll need some basic business and personal information to submit an application. See what you'll need to apply

Can I apply online for a business loan?

A business lending specialist can assist you by phone or in person with any loan or line of credit application. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

How do I access my funds once my loan is approved?

If your financing request is approved, a business lending specialist will let you know about the various ways you can access your funds after the loan documents are signed. These methods vary depending on the type of financing you're getting.

Should I choose a fixed or variable interest rate?

It all depends on your specific business situation and your tolerance for risk. A fixed interest rate provides the security of knowing what your interest rate and payment will be throughout the life of your loan. A variable interest rate loan may give you a lower rate and payment amount initially, but there’s a chance that the rate and payment amount may rise or fall in the future. Many term loan products only offer a fixed rate.

How can I reduce the amount of my monthly term loan payments?

Extending the number of months you take to pay off a term loan will lower your monthly payment. However, it will take you longer to pay off the debt and the total cost of borrowing the money will be higher. The type of collateral you pledge to secure your loan may have an impact on your interest rate, too.

Learn more about secured business loans
Servicing Your Loan or Line of Credit
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Can I change the monthly due date of my loan or lease payment?

Yes, you can. Call us at 888.287.4637 (Mon–Fri 7 a.m.–7 p.m. ET or Sat 7 a.m.–4 p.m. ET). One of our business lending specialists can help.

Can I pay my loan off early?

Yes, but a prepayment fee may apply. This can vary depending on the type of financing you’re getting, so be sure to check when you’re applying whether a prepayment fee applies in your specific situation.

I'm getting ready to sell my business. Is my loan, lease or line of credit assumable by the buyer?

No, it isn't. Please notify us immediately so that we can work with you to clear your debt obligation. 888.287.4637 (Mon–Fri 7 a.m.–7 p.m. ET or Sat 7 a.m.–4 p.m. ET).

How can I get a letter showing the amount of interest I paid last year?

You can get an interest paid letter in 3 ways:

  • For immediate written confirmation of interest paid last year, sign in to Bank of America Online Banking, select your loan from the Accounts Overview page and click on the View/Print Letter link to the right of Interest Paid Last Year information on the Summary tab.

  • Dial our automated phone service, authenticate yourself and choose the interest information option offered at the beginning of the menu selection choices. You will then receive a verbal confirmation of your interest paid last year.

  • Call us at 888.287.4637 (Mon-Fri 7 a.m.–7 p.m. ET or Sat 7 a.m.–4 p.m. ET). One of our business lending specialists can provide you with a faxed or mailed copy of your interest paid last year information.

Who can I call if I have labels about my business loan or line of credit that aren't answered online?

We have business lending specialists standing by to assist you with whatever labels you may have. Call us at 888.287.4637 (Mon-Fri 7 a.m.–7 p.m. ET or Sat 7 a.m.–4 p.m. ET).

Small Business Auto Loans
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What types of vehicles can I purchase with a Business Advantage Auto Loan?

You can purchase automobiles, vans or light trucks with a Business Advantage Auto Loan.

If I'm approved, how long is my loan offer good for?

Your loan approval and interest rate are locked in for 30 calendar days from the date of your original loan submission.

How is my APR (annual percentage rate) determined?

Your interest rate may differ based on your credit worthiness, overall business relationship with Bank of America and loan amount.

What do I need to apply?

You’ll need some basic business and personal information to submit an application. See what you'll need to apply

How do I apply for a small business auto loan?

To apply you can:

What steps do I need to take once I’ve been approved for my auto loan?

If you’re purchasing from a franchise dealer:

  1. Find an authorized dealer near you (note that purchasing from a Bank of America authorized dealer} can help streamline your car buying process).
  2. Choose your car and present your printed approval letter at the dealership. Your approval letter can be accessed at bankofamerica.com/loanstatus (if you don’t see your approval letter, contact a loan specialist using the phone number provided).
  3. Sign documents and drive home in your new car.

You can also purchase a vehicle from a dealer that’s not part of our authorized dealer program if the dealer sells cars for auto manufacturers such as Ford®, General Motors®, Chrysler®, Honda® and others. In this case, speak with one of our loan specialists using the phone number provided to you with your approval, submit any documents requested by the loan specialist (including your dealer purchase agreement) and coordinate payment of funds to the dealer with the loan specialist.


Don’t hesitate to contact a loan specialist using the phone number provided to you with your approval if you have questions at any point in the process.


If you’re purchasing from one of our approved independent dealers (CarMax®, Hertz Car Sales®, Enterprise Car Sales or Carvana):

For CarMax® or Hertz Car Sales®:

  1. Choose your car and present your printed approval letter at the dealership. Your approval letter can be accessed at bankofamerica.com/loanstatus (if you don’t see your approval letter, contact a loan specialist using the phone number provided).
  2. Sign documents and drive home in your new car.

For Enterprise Car Sales or Carvana:

  1. Speak with one of our loan specialists using the phone number provided to you with your approval.
  2. Submit documents requested by the loan specialist (including your dealer purchase agreement).
  3. Coordinate payment of funds to the dealer with the loan specialist.
  4. Drive home in your new car.

If you’re refinancing an existing car loan

  1. Speak with one of our loan specialists using the phone number provided to you with your approval.
  2. Submit documents requested by the loan specialist (including your dealer purchase agreement).
  3. Payment will be sent to the lien holder.

We’ll provide you detailed next steps on how to complete the title process once the loan is complete.

What financing options do I have if I want to lease my vehicle?

Bank of America has 2 lease options for heavy-duty commercial vehicles (typically greater than 2.5 tons in size):A TRAC lease gives you the option at the end of your term to return the vehicle or purchase it for a guaranteed amount), or a lease purchase allows you to own the vehicle at the end of your term for $1. For additional information, please contact a business lending specialist at 866.543.2808 (Mon-Fri 8 a.m.-10 p.m. ET) or make an appointment.

Is there a limit on the number of Business Advantage Auto Loans my business can have?

Yes, your business is limited to 4 Business Advantage Auto Loans concurrently. Any Bank of America motor vehicle financing the individual co-borrower may have does not count against this limit. If your business has a need for more than 4 loans or vehicles, please contact a business lending specialist at 866.543.2808 (Mon-Fri 8 a.m.-10 p.m. ET) or make an appointment.

Learn more about business auto loans
Commercial Real Estate Loans
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What are Bank of America commercial real estate loans used for?

A Bank of America commercial real estate loan lets you purchase or refinance an owner-occupied business property or expand or remodel an existing facility. If you own property free and clear, you can also use a commercial real estate loan to leverage your equity to finance a variety of business needs.

How does Bank of America define owner-occupied business property?

Owner-occupied Commercial Real Estate (OOCRE) is typically determined by a combination of the percentage of occupancy > 50% and the percentage of rent paid by the borrower/guarantor/affiliate on the transaction being > 50%, subject to the regulatory definition.

How is a Bank of America commercial real estate loan secured?

A Bank of America commercial real estate loan is secured by the property you're purchasing or renovating.

Can I use commercial real estate to secure a line of credit?

Yes, although some state and property type restrictions may apply.

What fees are involved if I use commercial real estate to secure a line of credit?

Upfront fee is 0.75% of the amount financed. Additional fees and closing costs such as property insurance, flood hazard insurance and/or appraisal may apply. You’ll be provided a list of fees at closing.

Will I need to pay for a property appraisal?

Yes, appraisal fees are part of closing costs, which may also include such items as flood certificate, title fees and filing fees. Fees per loan vary and you will be provided with a detailed list of all fees before closing.

Can I use a Bank of America commercial real estate loan to draw equity from the property I own?

Bank of America can provide you with a business equity loan that allows you to leverage the value you've built in your property. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment to discuss your specific needs.

How can I apply for a commercial real estate loan?

A business lending specialist can assist you by phone or in person with any loan or line of credit application. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

Learn more about commercial real estate loans
SBA Loans (Small Business Administration Loans)
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What is a Small Business Administration (SBA) loan?

The SBA is a federal agency that helps established businesses grow and helps new businesses get started. As a borrower, you’re not borrowing from the SBA, you’re borrowing from a financial institution like Bank of America that works with the SBA to provide loans to small business customers.

Is an SBA loan only for a new business?

No. Bank of America provides SBA loans to many established businesses so they can grow and expand.

What's the difference between an SBA loan and a business loan from Bank of America?

A conventional business loan from Bank of America is solely the bank’s risk and subject to Bank lending guidelines. An SBA loan is a business loan that splits the risk between the Bank and the SBA, which guarantees a portion of those loans. SBA loans are subject to the lending guidelines of both the SBA and Bank of America.

Is an SBA loan from one bank the same as from another bank?

No. An SBA loan must be approved by the issuing bank, and each bank has its own lending criteria. An SBA Preferred Lender is likely to provide you with better terms and a smoother application and closing process than a bank that is not an SBA Preferred Lender.

Is Bank of America an SBA Preferred Lender?

Yes. This means we meet all Preferred Lender Program eligibility criteria, including a proficiency in processing and servicing SBA-guaranteed loans. As an SBA Preferred Lender, we're part of the SBA's effort to streamline the procedures necessary to provide financial assistance to the small business community.

How can I apply for an SBA loan from Bank of America?

A business lending specialist can assist you by phone or in person with any loan or line of credit application. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

Learn more about SBA Loans
Equipment Loans and Line of Credit
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What are Bank of America equipment loans and leases for?

A Bank of America equipment loan or lease lets you borrow so you can purchase industrial and general-purpose equipment, specialized machinery and commercial-purpose vehicles generally larger than 2.5 tons (smaller vehicles such as vans and delivery trucks are typically financed through a Bank of America Business Advantage auto loan).

I'm not sure whether I should buy or lease equipment. Can you help?

Yes. Our equipment financing page includes information about the advantages and disadvantages of buying or leasing equipment. A business lending specialist can assist you by phone or in person. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

What's the difference between a lease purchase and a true tax lease?

There are several differences and advantages to each type of lease. With a lease purchase, at the end of the lease you will own the equipment for $1. You may also be able to take advantage of Section 179 benefits. With a true tax lease, we are able to take the tax benefit of equipment ownership in the form of depreciation and, in turn, offer you a reduced borrowing cost and reduced monthly payment. The depreciation benefit and the less than full amortization characteristics of a tax-oriented lease reduce your monthly payments well below the fully amortizing loan payments over the same time period. In addition, monthly lease payments are typically tax deductible for federal income tax purposes (consult your tax advisor).

What does residual value mean?

The residual value of an item (such as a vehicle) is the amount you will pay to purchase that item at the end of the lease and is based on estimated fair-market value. Lower monthly payments usually mean a higher residual value, so think about how much you can afford each month and your plans for the item at the end of the lease term.

Do you provide financing for agricultural equipment?

Yes. A business lending specialist can assist you by phone or in person with any loan or line of credit application. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

Do you provide equipment loans for healthcare practices?

Yes. Please visit our small business practice loans page, which will provide you with information about medical, dental and veterinary equipment loans.

How can I apply for equipment financing?

A business lending specialist can assist you by phone or in person with any loan or line of credit application. Call us at 866.543.2808 (Mon-Fri 8 a.m. – 10 p.m. ET) or make an appointment.

Learn more about business equipment loans
Practice Solutions Loans
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What are your practice loan interest rates?

Our practice loan rates are very competitive and vary depending on loan purpose and term, so we recommend you call 800.497.6076 to speak with a Practice Specialist who can assist you with your specific financing needs. We can also provide you with an option to lock in your rate so that you won’t have to worry about potential rate increases and your rate will be guaranteed at closing.

What loan terms do you offer?

Loan terms vary based on the type of financing you’re seeking. Call 800.497.6076 to speak with a Practice Specialist about your financing needs.

What loan fees do you charge?

Fees and discounts can vary significantly depending on the type of loan, the amount being financed and the desired terms of the loan. Call 800.497.6076 to speak with a Practice Specialist who can provide you with an accurate estimate of the fees associated with your specific financing needs.

Are there any fee discounts offered to endorsed group members?

Bank of America is endorsed by more dental, veterinary and medical associations than any other specialty lender. Endorsed group members receive a 50% discount on administration fees associated with a funded loan.

What dental, medical and veterinary associations endorse Bank of America?

Dental
American Association of Oral and
Maxillofacial Surgeons
Arizona Dental Association
California Dental Association
Connecticut State Dental Association
Florida Dental Association
Georgia Dental Association
Illinois State Dental Society
Indiana Dental Association
Massachusetts Dental Society
Michigan Dental Association
New Hampshire Dental Society
New Jersey Dental Association
New York State Dental Association
North Carolina Dental Society
Ohio Dental Association
Oregon Dental Association
Seattle King County Dental Society
Tennessee Dental Association
Texas Dental Association Perks Program
Virginia Dental Association

Veterinary
American Animal Hospital Association
American Veterinary Medical Association

Medical
American Academy of Dermatology
American Academy of Family Physicians
American Society of Plastic Surgeons

Do you offer working capital?

Yes, working capital is included with certain loan types, such as startup and practice acquisition. We also provide business lines of credit and business credit cards to provide short-term working capital needs to established practice owners.

Do you offer 100% financing?

Yes, we offer up to 100% financing based on the type of financing you are seeking. Call 800.497.6076 to speak with a Practice Specialist about your financing needs.

What is the maximum amount I can borrow?

We offer loan amounts up to $5 million. Reach out to a Practice Solutions Specialist for any loan amount requirements.

What are the loan approval requirements?

In most cases, an application is all you need to complete your approval requirements. A Practice Solutions Specialist will make you aware if any additional documentation is needed.

Which medical specialties do you finance?

The specialties we finance vary depending on whether you are seeking financing for an established practice or starting up a practice from scratch:

Established practices: We offer financing for a wide range of specialties. Call 800.497.6076 to speak with a Practice Specialist and discuss your particular specialty and financing needs.

Startup practices: We offer financing for startups in the areas of allergy & immunology, anesthesiology, colon & rectal surgery, dermatology, emergency medicine, endocrinology, family practice, gastroenterology, general surgery, internal medicine, medical genetics, nephrology, neurological surgery, neurology, OB/GYN, oncology, ophthalmology, optometric, orthopedic surgery, otolaryngology, pathology, pediatrics, physical medicine / rehab, plastic surgery, podiatric surgery, preventative medicine, pulmonary, radiology, rheumatology, thoracic surgery, urgent care (family & internal medicine only), urology and vascular surgery.

Can I make a loan payment online or over the phone?

You cannot make a payment online, but check payments can be processed instantly over the phone by calling 888.852.5000

I'm thinking of starting my own practice. Will you offer any business support in my first year?

Absolutely. Our Practice Heartbeat© program is specifically designed to help you develop the vital practice management skills you’ll need to succeed. Because we work with health care professionals all across the country, we know what it takes to manage a practice in the most efficient, cost-effective manner. Our Practice Specialists will help you set and achieve your business objectives, track your progress, deliver a comprehensive evaluation of your practice and offer business strategies to help you improve. Practice Heartbeat is 100% complimentary when you undertake start-up financing or are purchasing a practice for the first time. Learn more about Practice Heartbeat©.

I'm currently in a residency. Am I eligible for a loan?

If you are in a medical or veterinary residency, you're not eligible for a loan until you've completed your residency.
If you are in a dental residency, you're eligible for a loan while in your residency.

Learn more about practice loans

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