Small Business Loans 2025: Approval Odds, Interest Rates, and Collateral

Updated for 2025 • Essential information for entrepreneurs seeking small business loans: approval criteria, current rates, and collateral requirements.

1) Approval Trends

Approval rates for small business loans in 2025 average 60% at large banks, 70% at community banks, and 80% at online lenders.

2) Interest Rates

• Banks: 7%–11%
• Credit Unions: 6%–9%
• Online Lenders: 9%–20%

3) Collateral

• Real estate or business property often required.
• Some lenders accept equipment, inventory, or accounts receivable.

4) Loan Comparison

Lender	Max Loan	APR	Approval Time
Wells Fargo	$500k	7%–12%	2–4 weeks
BlueVine	$250k	9%–18%	1–3 days
Community Bank	$1M	6%–10%	1–2 weeks

5) Conclusion

Entrepreneurs should compare lenders, balance speed vs cost, and prepare collateral. In 2025, online lenders offer speed while banks remain cheaper but slower.

Labels: Finance