Best Small Business Loans in Tennessee 2023: Finest Selection

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Best Small Business Loans in Tennessee

In 2023, the landscape for small business loans in Tennessee is expected to remain competitive and diverse, offering entrepreneurs various financing options to support their ventures. With the continued growth of online and alternative lenders, small businesses will have even more opportunities to access tailored financing solutions that best suit their needs. 

Discover a world of funding solutions for your Tennessee LLC, from short-term cash boosts and flexible credit lines to tailor-made financing options. Gain access to diverse lenders, loan products, and cutting-edge fintech platforms for speedy, efficient, and accessible small business loans in Tennessee. Let LLCBase guide you through the exciting journey of setting up your business – we’ve got your back every step of the way.

Small Business Loans

What is a Small Business Loan

A small business loan provider is a financial institution, lender, or service that offers financing solutions specifically designed for small businesses in Tennessee. These providers facilitate access to capital for small businesses, helping them meet various financial needs such as working capital, equipment purchases, expansion, and other growth-related expenses. Small business loan providers can include Tennessee banks, credit unions, online lenders, and alternative financing companies. They offer a range of loan products, such as term loans, lines of credit, invoice financing, and merchant cash advances, each tailored to meet small businesses’ unique needs and requirements.

10 Best Small Business Loans in Tennessee

We will discuss Tennessee’s ten best small business loans, including eligibility criteria, loan amounts, annual percentage rates (APRs), and required minimum credit scores. Business loans provide financing options for business owners who want to start an LLC in Tennessee. We’ll also provide the pros and cons of each business loan to help you make the best decision for your Tennessee LLC.

1. OnDeck – Best for Short-term Loans

OnDeck is a leading online lender specializing in providing small businesses with short-term loans and lines of credit. With a simple application process, fast approval times, and flexible repayment options, OnDeck is an ideal choice for businesses seeking quick access to capital for short-term needs, such as working capital, inventory purchases, or unexpected expenses.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 29.9%

Minimum Credit Score: 625

Pros
  • Fast approval process
  • Flexible repayment options
  • Offers both term loans and lines of credit
Cons
  • High-interest rates for those with lower credit scores
  • Requires a personal guarantee
  • Not ideal for long-term financing
  • Unavailable in Nevada, North Dakota, or South Dakota.
Apply to OnDeck

2. Lendio – Best for Lender Comparison

Lendio is a small business loan marketplace that connects borrowers with a vast network of lenders, allowing business owners to compare loan options from various providers. By offering a wide range of loan products and personalized recommendations, Lendio helps businesses find the best financing solutions tailored to their unique needs and financial situation.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 560 or higher

Loan Amounts: $500 – $5,000,000

APR: starts at 3%

Minimum Credit Score: 560

Pros
  • Access to a vast network of lenders
  • One application for multiple loan options
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees
Apply to Lendio

3. QuickBridge – Best for Fast Funding

QuickBridge is an alternative lender that provides fast and flexible funding solutions to small businesses. With a simple application process, quick approval, and funding often within 24 hours, QuickBridge is an excellent choice for businesses needing immediate capital to address short-term financial needs or seize growth opportunities.

Eligibility Criteria

  1. At least nine months in business
  2. Minimum monthly revenue of $8,000
  3. Personal credit score of 850 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10-factor rates

Minimum Credit Score: 850

Pros
  • Fast funding, often within 24 hours
  • Simple application process
  • Early payoff discounts
Cons
  • Requires daily or weekly repayments
  • Short loan terms (up to 15 months)
  • Not ideal for startups or businesses with low revenue
Apply to QuickBridge

4. American Express Business Blueprint™ – Best for Lines of Credit

American Express Business Blueprint™ offers a range of financial solutions, including term loans and lines of credit, exclusively to American Express cardmembers. With flexible repayment options, competitive rates, and no origination or prepayment fees, this program provides businesses with the financial flexibility and support they need to grow and succeed.

Eligibility Criteria

  1. Must be an American Express cardmember
  2. Good credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $250,000

APR: Varies by loan term

Minimum Credit Score: 640; good credit history is required

Pros
  • Flexible repayment options
  • No origination or prepayment fees
  • Offers both term loans and lines of credit
Cons
  • Only available to American Express cardholders
  • Limited to businesses with strong financial performance
  • Requires a personal guarantee
Apply to Amex

5. BlueVine – Best for Flexible Lines of Credit

BlueVine is an online lender that offers flexible lines of credit and invoice factoring solutions to small and medium-sized businesses. With fast approvals, competitive rates, and the ability to draw funds only when needed, BlueVine’s lines of credit provide businesses with the financial flexibility they need to manage cash flow and seize growth opportunities.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 6.2%

Minimum Credit Score: 625

Pros
  • Fast approval and funding
  • No prepayment penalties
  • Only pay interest on the funds you use
Cons
  • Not available for some industries
  • Requires a lien on business assets
  • Higher APRs for those with lower credit scores
  • Unavailable to businesses in North and South Dakota, Puerto Rico, and other U.S. territories
Apply to BlueVine

6. National Funding – Best for Small to Mid-Sized Businesses

National Funding is a trusted alternative lender that offers a variety of loan products, including working capital loans, equipment financing, and merchant cash advances, designed to meet the unique needs of small to mid-sized businesses. With flexible terms, high approval rates, and a quick application process, National Funding is a reliable financing partner for businesses seeking tailored funding solutions.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 600 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10%-buy rates

Minimum Credit Score: 600

Pros
  • Flexible loan terms and repayment options
  • High approval rates
  • Quick application process
Cons
  • Not transparent about APRs
  • Requires a personal guarantee
  • Not ideal for startups or businesses with low revenue
Apply to National Funding

7. Fundbox – Best for Small to Mid-Sized Businesses

Fundbox is an innovative financial technology company that provides lines of credit and invoice financing solutions to small and medium-sized businesses. With a fast and straightforward application process, transparent pricing, and flexible repayment options, Fundbox helps businesses manage cash flow challenges and unlock growth opportunities.

Eligibility Criteria

  1. At least two months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 600 or higher

Loan Amounts: $1,000 – $150,000

APR: Start at 4.66%

Minimum Credit Score: 600

Pros
  • Fast funding, often within 24 hours
  • No prepayment penalties
  • Transparent pricing and fees
Cons
  • Short loan terms (up to 12 months)
  • Requires weekly repayments
  • Not suitable for startups or businesses with low revenue
Apply to Fund Box

8. TD Bank – Best for Healthcare Professionals

TD Bank offers specialized financing solutions designed exclusively for licensed healthcare professionals, including dentists, veterinarians, and physicians. With flexible repayment terms, relationship-based pricing, and a deep understanding of the healthcare industry, TD Bank is a trusted financing partner for healthcare practices seeking to grow, expand, or modernize their operations.

Eligibility Criteria

  1. Licensed healthcare professionals
  2. Good personal credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $5,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 660; good credit history is required

Pros
  • Specialized financing options for healthcare professionals
  • Flexible repayment terms
  • Relationship-based pricing for existing customers
Cons
  • Limited to healthcare professionals
  • Requires a personal guarantee
  • Not transparent about APRs and fees
  • Only located in 16 states
Apply to TD Bank

9. Funding Circle – Best for Established Business

Funding Circle is a leading online lender that offers affordable and transparent term loans to established small businesses. With competitive interest rates, longer loan terms, and no prepayment penalties, Funding Circle provides businesses the capital they need to invest in long-term growth opportunities and strengthen their financial position.

Eligibility Criteria

  1. At least two years in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 660 or higher

Loan Amounts: $25,000 – $500,000

APR: 7.49% to 24.99%

Minimum Credit Score: 660

Pros
  • Competitive interest rates
  • Longer loan terms (up to 5 years)
  • No prepayment penalties
Cons
  • Requires a lien on business assets
  • Not ideal for businesses with low revenue or credit scores
  • Longer application process compared to other lenders
Apply to Funding Circle

10. Biz2Credit – Best for Loan Options

Biz2Credit is a small business financing platform that connects borrowers with a wide range of loan options from an extensive network of lenders. With a personalized approach to loan recommendations and various loan products, Biz2Credit helps businesses find the right financing solution to meet their unique needs and financial goals.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 575 or higher

Loan Amounts: $25,000 – $6,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 575

Pros
  • Wide range of loan options
  • Access to a network of lenders
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees
Apply to Biz2Credit

FAQs

What are the best small business banks in Tennessee?
The best small business banks in Tennessee can vary based on your specific needs, but some popular options include First Horizon Bank, Pinnacle Financial Partners, and Regions Bank.
Are there any local community banks in Tennessee that cater to small businesses?
Yes, there are many local community banks in Tennessee that specialize in working with small businesses. Some examples include Farmers State Bank of Alto Pass, TriStar Bank, and Community Bank & Trust.
What kinds of loan options do small business banks in Tennessee offer?
Small business banks in Tennessee generally offer a range of loan options, including business loans, lines of credit, SBA loans, and more.
How can I determine which Tennessee bank is the best fit for my small business?
You should evaluate each bank based on factors like interest rates, loan terms, fees, customer service, and overall reputation.
Are there any Tennessee-based banks that have received awards for their small business services?
Yes, several Tennessee-based banks, including First Horizon Bank and Regions Bank, have received awards for their small business services.
Do small business banks in Tennessee offer online banking?
Yes, many small business banks in Tennessee offer online banking services.
Can I apply for a small business loan from a bank in Tennessee online?
Yes, most banks in Tennessee allow you to apply for a small business loan online.
Can non-Tennessee residents apply for small business loans from banks in Tennessee?
Yes, non-Tennessee residents are generally eligible to apply for small business loans from banks in Tennessee.
Are there special incentives or programs for veterans who own small businesses in Tennessee?
Yes, there are several banks throughout Tennessee that offer lending programs for veteran-owned businesses.
Is there a minimum credit score requirement to qualify for a small business loan from a Tennessee bank?
Yes, most banks in Tennessee require that small business loan applicants have a certain credit score. The minimum score requirement varies by bank.
Does it cost anything to apply for a small business loan from a Tennessee bank?
Some banks do charge a fee to process small business loan applications; however, many don’t charge application fees.
How long does it take for a Tennessee bank to review a small business loan application?
The processing time for small business loan applications in Tennessee varies depending on the bank, but it typically ranges from a few days to a few weeks.
Can I use funds from a small business loan for any purpose?
No, most small business loans come with specific restrictions on how the funds can be used. Be sure to read the fine print before accepting any loan offers.
Can I repay my small business loan early without incurring any penalties?
Some banks in Tennessee allow small business loan borrowers to repay their loans early without penalty; others do charge prepayment fees.
Are there any Tennessee banks that specialize in financing startups?
Yes, several banks throughout Tennessee are specifically geared towards startup financing, including Nashville-based Willow Oak Asset Management.
Are there any Tennessee-based credit unions that cater to small businesses?
Yes, there are several credit unions in Tennessee that offer small business services, including Tennessee Valley Federal Credit Union and Ascend Federal Credit Union.
Can I open a small business bank account online with a Tennessee bank?
Yes, many small business banks in Tennessee allow you to open accounts online.
How can I find a reputable small business bank in Tennessee?
You can identify potential banks by asking other entrepreneurs for recommendations, researching online reviews, or contacting the Tennessee Small Business Development Center.
Are there any Tennessee banks that only lend to certain types of businesses?
Yes, certain banks in Tennessee only work with businesses in specific industries or with specific characteristics.
What is the Tennessee Small Business Loan Program?
The Tennessee Small Business Loan Program provides new and existing small businesses with access to capital at affordable rates, with reasonable fees and minimal participation requirements.
Are there any government-backed small business loan programs in Tennessee?
Yes, small businesses in Tennessee are eligible for a variety of government-backed loan programs, including those offered by the SBA and the USDA.
Are there any Tennessee banks that offer free business checking?
Yes, several banks throughout Tennessee offer free business checking accounts, including Community Bank & Trust and BancorpSouth.
Will banks in Tennessee work with businesses that have low credit scores?
Some banks in Tennessee may be willing to work with businesses that have low credit scores, but you may have to pay higher interest rates or put up collateral.
Can I use personal credit to apply for a small business loan from a Tennessee bank?
It is possible to provide a personal guarantee to secure a small business loan from a bank in Tennessee, but it’s generally not recommended.
Can I get assistance with preparing my loan application from a Tennessee small business resource?
Yes, the Tennessee Small Business Development Center and SCORE both offer free assistance with preparing loan applications.
Are there tax incentives for small businesses in Tennessee that work with certain banks?
Some banks in Tennessee may offer tax incentives, but these may be subject to change over time.
What resources are there to help me learn more about doing business in Tennessee?
The Tennessee Small Business Development Center, SCORE, and the Tennessee Governor’s office all provide resources for small businesses looking to operate in the state.
How can I find out if my potential small business bank in Tennessee is FDIC-insured?
You can check with the FDIC to determine if a bank in Tennessee is insured.
Does First Tennessee Bank have any small business lending products specific to Tennessee?
First Tennessee Bank offers various small business lending products to businesses located within the state of Tennessee, including secured and unsecured business loans.
Can Pinnacle Financial Partners help with my small business banking needs in other states besides Tennessee?
While Pinnacle Financial Partners is headquartered in Tennessee, they do have branches in other southeastern states and may be able to assist with your small business banking needs there.
How do I apply for a small business loan through Regions Bank in Tennessee?
You can begin the application process for a small business loan from Regions Bank in Tennessee by visiting their website or visiting a local branch.
Are there any credit unions that cater specifically to small businesses in Tennessee?
Yes, Tennessee Valley Federal Credit Union offers small business banking products and services to companies located in Tennessee.
Does SunTrust offer small business banking solutions in Tennessee?
Yes, SunTrust offers small business banking solutions to entrepreneurs located in Tennessee as well as in other states.
What type of small business banking services does BB&T provide to Tennessee businesses?
BB&T provides a variety of small business banking services to companies in Tennessee, including business checking accounts and credit card processing.
How does Capital Bank assist small businesses in Tennessee with their banking needs?
Capital Bank offers small business checking accounts, business loans, and merchant services to entrepreneurs located in Tennessee.
What sets First Tennessee Bank apart from other banks for small businesses in Tennessee?
First Tennessee Bank has been providing small business banking services in Tennessee for over 150 years and offers personalized banking solutions to entrepreneurs.
Does Pinnacle Financial Partners have a broad range of lending options for small businesses in Tennessee?
Yes, Pinnacle Financial Partners provides a variety of lending options for entrepreneurs in Tennessee, including SBA loans, real estate loans, and equipment financing.
Can I use my Pinnacle Financial Partners business checking account outside of Tennessee?
Yes, Pinnacle Financial Partners is part of the SUM network, which means you can use your business checking account at other banks within the network without paying fees.
What kinds of small business loans does Regions Bank offer to companies in Tennessee?
Regions Bank offers small business loans to Tennessee companies, including lines of credit, term loans, and small business administration (SBA) loans.
Are there any community-based banks in Tennessee that cater to small businesses?
Yes, Volunteer State Bank is a community-based bank in Tennessee that offers personalized banking services to small businesses in the region.
Does SunTrust offer any customized small business banking solutions in Tennessee?
Yes, SunTrust offers customized small business banking solutions to entrepreneurs in Tennessee, including merchant services and business loans.
Can BB&T assist small businesses in Tennessee with all their banking needs?
Yes, BB&T offers a wide range of small business banking products and services to cater to all of a company’s banking needs.
Does Capital Bank offer online banking options to small businesses in Tennessee?
Yes, Capital Bank offers online banking options to make it easier for small businesses in Tennessee to manage their finances.
What benefits does First Tennessee Bank offer to their small business customers?
First Tennessee Bank offers a variety of benefits to small business customers, including lower fees and personalized service.
Does Pinnacle Financial Partners have a mobile app for small business customers in Tennessee?
Yes, Pinnacle Financial Partners offers a mobile banking app specifically designed for small business customers in Tennessee.
What kinds of small business credit cards does Regions Bank offer in Tennessee?
Regions Bank offers a variety of small business credit cards in Tennessee, including cards with cashback rewards and cards with no annual fee.
How long has Tennessee Valley Federal Credit Union been offering small business services in Tennessee?
Tennessee Valley Federal Credit Union has been offering small business banking services and products in Tennessee for over 69 years.
Does SunTrust provide access to business lines of credit for Tennessee companies?
Yes, SunTrust offers business lines of credit to Tennessee companies, which can help with short-term funding needs.
Can BB&T help Tennessee small businesses with merchant services?
Yes, BB&T offers merchant service solutions to help Tennessee small businesses process credit card payments.
What are the minimum requirements to open a Capital Bank small business checking account in Tennessee?
To open a small business checking account at Capital Bank in Tennessee, you will need to provide certain documents and meet minimum balance requirements.
How does Volunteer State Bank support small businesses in their local communities in Tennessee?
Volunteer State Bank offers personalized service to small businesses in their local Tennessee communities and does not charge high fees commonly associated with larger banks.
What differentiates First Tennessee Bank from other small business banks in Tennessee?
First Tennessee Bank offers differentiating products and personalized service to small businesses in Tennessee, with branches located throughout the state to better reach customers.

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Conclusion

As Tennessee, also known as The Volunteer State continues to foster a vibrant entrepreneurial ecosystem, having access to the right financial partners and resources will be crucial in navigating this thrilling ride. By exploring various small business loan options and staying attuned to the ever-evolving financing landscape, entrepreneurs can achieve their dreams and contribute to the ongoing prosperity of the Tennessee economy.

When looking for the best small business loans in Tennessee, it’s essential to consider your unique needs and financial situation. Whether you’re forming a Tennessee LLC or growing your existing LLC in Tennessee, each of these lenders offers something different to help you achieve your goals. Be sure to compare loan options, eligibility criteria, APRs, and repayment terms to find the right fit for your business. Visit LLCBase for more information about starting an LLC in Tennessee.

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