If approved, Chase’s commercial line of credit has a five-year drawdown period. Once you start borrowing, you’ll make monthly repayments equal to 1% of your outstanding balance or $100 (whichever is greater). Once the drawdown period ends, you are no longer allowed to borrow from the account and you will repay the amount you borrowed over the next five years.
There is an annual fee; however, it is canceled if you borrow at least 40% of your line of credit on average. Contact Chase to find out your annual fee.
Beyond traditional term loans, Chase offers two other options: draw loans and advised lines. Drawdown loans allow you to borrow over the course of a year and repay it as a term loan when finished; the advised lines are similar, but the rate you are charged for the term loan varies depending on when you make each purchase.
SBA loans offer better terms but can take several weeks to process. Chase can help expedite this because it is an SBA Preferred Lender, which means it can make final lending decisions without sending the approval request to an outside third party.
Chase offers three types of SBA loans: SBA express loans for small business needs (up to $500,000); SBA 7(a) loans for general purposes (up to $5 million); and SBA 504 loans for larger purchases (up to $12.5 million).
Chase offers flexible equipment finance loans. You may be able to get a loan with no down payment, and Chase offers additional financing of up to 10% of the purchase price for “soft costs”. So if you need accessories or have other costs associated with running your equipment, this could be a good option.
Commercial real estate loans
Chase offers two types of commercial real estate loans: conventional home loans and SBA home loans. You will need to put at least 20% down on most loans. Also, if you are building a new place, you may be able to get a construction loan that offers interest-only payments during the construction phase.