PNC Bank Business Loans Review: July 2023

PNC Bank Business Loans Review: July 2023

Pros Explained

  • Variety of loan options: Businesses can choose from secured and unsecured loans for everyday purchases, equipment, or commercial property. As a preferred SBA Lender, PNC can underwrite SBA loans rapidly.
  • Large loan amounts: For large financing needs like machinery, equipment, or real estate, you can borrow up to $3 million with a PNC Bank business loan or up to $5 million with an SBA loan.
  • Availability of qualification criteria: PNC provides a detailed list of eligibility criteria for its business loans, making it easier to gauge if you may qualify.

Cons Explained

  • No online application: To apply, you’ll have to call or visit a bank branch Monday through Friday between 8 a.m. and 6 p.m. ET.
  • Limited rate and fee information published online: You’ll have to spend more time shopping around and comparing terms between lenders to track down the best terms.
  • Autopay and PNC business checking account required: If you don’t already have a business checking account with PNC bank, you’ll have to open one. You’re required to put loan payments on autopay, which may change your accounting practices.
  • Minimum three years in business required for traditional loans: PNC may have other credit options—like a credit card or line of credit—for businesses that have been operating for less time.

Types of Business Loans Offered by PNC Bank

PNC Bank offers several small business loan options to meet a variety of small business needs.

  • Working capital for everyday operations: PNC’s Unsecured Small Business Loan offers amounts between $20,000 and $100,000 with no collateral and a fixed rate with terms between two and five years.
  • For financing equipment or machinery: The Secured Small Business Loan amount ranges from from $100,001 to $3,000,000. Loans have a fixed or variable rate with terms between two and seven years.
  • For purchasing or refinancing commercial property: Opt for PNC’s Small Business Real Estate Loan which ranges from $100,001 to $3,000,000. Rates are fixed or variable with a term between five and 15 years, up to 25-year amortization.
  • For purchasing a new or used vehicle for your business: Finance up to 100% of a vehicle with a Secured Vehicle Finance Loan. Amounts range from $10,000 to $250,000 and PNC offers a fixed rate term between two and six years.

SBA Loans

PNC also provides access to SBA loans for a variety of purposes. These loans are backed by the U.S. Small Business Administration and offer flexibility for borrowers who may not qualify for traditional small business loans.

  • Veteran-owned small businesses can borrow up to $350,000 to start or expand a business.
  • For large financing needs, SBA 7(a) loans feature loan amounts up to $5 million. Businesses can finance real estate, expansions, franchise purchases, equipment, working capital, or debt refinancing. There’s no prepayment penalty for loans with terms under 15 years.
  • For longer repayment, SBA 504 loans offer terms up to 25 years with a down payment as low as 10%.
  • For quick funding for small projects, SBA Express loans offer a simpler application process and are available for up to $350,000.
  • To expand a global business, SBA Export Express loans are available in amounts up to $500,000 for businesses that export internationally.

Time to Receive Funds

Contact a PNC bank branch for details on loan processing, rates, and terms.

Borrower Requirements

PNC Bank business loans are subject to credit approval and require automatic deduction from a PNC business checking account. You must have been in business for a minimum of three years for a traditional loan. While PNC Bank doesn’t disclose the minimum credit score, it does provide a list of criteria which can help you determine whether you qualify.

  • Strong personal and business credit history: That means no recent late payments, high balances, or significant defaults. The business can’t have bankruptcy or other serious actions stemming from unpaid debts.
  • Healthy business finances: The business should show profits and upward or stable financials. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) should be greater than annual forecasted principal and interest payments.
  • Low personal and business debt: The owner’s debt-to-income ratio should be 40% or lower. In addition, the owner should have a strong personal net worth. Business liabilities should be under four times the business’ net worth.
  • Positive history with PNC Bank: This means no previous late payments on PNC loans and little or no overdraft activity on any PNC bank account.
  • Experience and strong financials for volatile or cyclical businesses
  • Strong, marketable collateral for loans that require it

PNC may consider other financial and non-financial factors to determine whether to offer a loan.

PNC Bank Business Loan Features

  • Business education resources: PNC’s website includes lots of business education information.
  • Online and mobile banking: Businesses can access banking services and loan information online or via the bank’s mobile app.

Customer Service

You can reach telephone support Monday through Friday 8 a.m. to  9 p.m. ET and 8 a.m. to 5 p.m. ET on Saturday and Sunday. You can also visit a branch in person or send a message on Twitter.

Customer Satisfaction

PNC Bank has an A+ rating with the Better Business Bureau, but it isn’t accredited. Customers rate the bank 1.1 out of 5 stars, though the majority of these are from consumers. The bank has a below average score of 666 on J.D. Power’s 2022 U.S. Small Business Banking Satisfaction Study. TrustPilot users give the bank 1.3 stars out of 5.

Applying for a PNC Bank Business Loan

You can apply for a PNC Bank business loan over the phone or in person, Monday through Friday between 8 a.m. and 6 p.m. ET.

Consider your financing needs and review the bank’s loans. When you apply, you’ll need to let your banker know the amount you want to borrow, the loan type, reason for the loan, and details about any collateral you’re offering.

Provide basic information about your business and each business owner. You’ll have to provide:

  • Name and address
  • Type of organization and year established
  • Business tax ID
  • Annual sales
  • Number of employees

Provide copies of financial documents. You’ll need either recent business and personal tax returns or financial statements to show your financial standing.

Verify your identity. A driver’s license or other identifying document will do.

If you have a special loan promotion offer, have your code available when you speak with a loan officer.

Alternative Business Loan Lenders

Kapitus OnDeck Bluevine
LOC Amount Up to $250,000 Up to $250,000 Up to $250,000
Loan Terms 3-18 months Up to 24 months 6-12 months
Recommended Minimum Credit Score 650 625 625

Final Verdict

PNC Bank business loans are an option for established businesses that have good credit, high borrowing needs, and a location in one of 29 states where PNC has bank branches. PNC is rated low on small banking satisfaction by J.D. Power low ratings, which may be something to consider as you’re evaluating options.

What Types of Business Loans Does PNC Bank Offer?

PNC Bank offers both secured and unsecured installment business loans loans, real estate loans, and vehicle loans. Traditional business loans are available in amounts from $10,000 to $3,000,000 for terms up to 25 years depending on the loan.

Is PNC an SBA-Approved Bank?

Yes, PNC is a SBA Preferred Lender, which means it can approve and expedite SBA loan applications faster when compared to non-preferred lenders.

How Long Does It Take PNC to Approve a Loan?

Though PNC doesn’t disclose its approval timing, you may be able to prevent delays by having all the necessary documents and information ready before applying.

What Credit Score Do You Need For a PNC Bank Loan?

While PNC Bank doesn’t provide a specific minimum credit score, the qualification criteria hints that you’ll need an excellent credit score to qualify. For instance, you can’t have any recent late payments, major derogatory accounts, or high debt balances. Likewise, the business can’t have serious actions like bankruptcy or foreclosure in its record.