PNC Business Loan Review
Janet Schaaf is a freelance writer, editor and proofreader who considers reader advocacy to be her calling. After taking a few roads less traveled, Janet completed a bachelor’s degree in English Literature from the University of Missouri-Kansas City, with English Department Honors. She has been correcting grammar and checking facts since she could string a sentence together. For the past three years, Janet has focused on making personal finance topics understandable and relatable. Loan terms and credit card agreements can look overwhelming, but understanding what you’re agreeing to is paramount in grasping the impact debt can have on your life.
 | Starting rate: Not publicly disclosed Best for: Small business owners with an immaculate credit history over the past five years, high borrowing needs and the ability to provide collateral. |
Pros and cons of PNC
| Pros | Cons |
|---|---|
Relatively large loan amounts, especially when you provide collateral Some leeway on the time-in-business requirement, which is typically three years, but can be less in select circumstances Large suite of SBA lending products No disclosure on minimum credit score requirements, but quite a few credit history requirements shared | No disclosure of rates, making it extremely difficult to determine how their products hold up against the competition No disclosure of most fees; be particularly careful to note these costs when presented with a loan offer Minimum credit score or annual revenue requirements not disclosed |
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PNC small business loans review
PNC is a huge bank with a long history. The current PNC Financial Corp. is the result of a 1983 merger between two banks dating back to the nineteenth century: Pittsburgh National Corporation and Provident National Corporation. There are physical PNC branches in 28 states and Washington, D.C., with most locations in the Midwest, Southwest, California and the East Coast. PNC offers a robust selection of traditional small business loan products, including several different SBA options.
Who is PNC for?
- Borrowers with an excellent credit report. PNC will comb through your credit history looking for things like late payments, charge offs and tax liens over the past five years.
- Business owners with high borrowing needs. PNC’s maximum loan amounts tend to be higher than its competitors.
- Business owners with collateral. To secure the highest loan amounts, you will need to put up collateral. Secured lending products also tend to have lower interest rates and longer loan terms.
PNC small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Term loan (unsecured) | $20,000 to $100,000 | 24 months to 60 months | Not publicly disclosed | Not publicly disclosed |
| Term loan (secured) | $100,001 to $3,000,000 | 24 months to 84 months | Not publicly disclosed | Origination fee May be additional fees that are not publicly disclosed |
| Line of credit (unsecured) | $20,000 to $100,000 | Revolving | Not publicly disclosed | Annual fee of $175 May be additional fees that are not publicly disclosed |
| Line of credit (secured) | $100,001 to $3,000,000 | Revolving | Not publicly disclosed | Annual fee of 0.25% of the total line of credit May be additional fees that are not publicly disclosed |
| Commercial real estate loan | $100,001 to $3,000,000 | 60 to 180 months (up to 25-year amortization) | Not publicly disclosed | Origination fee May be additional fees that are not publicly disclosed |
| Vehicle finance loan | $10,000 to $250,000 | 24 to 72 months | Not publicly disclosed | Not publicly disclosed |
| SBA 7(a) loans | Up to $5,000,000 | Up to 300 months | Rates vary, subject to SBA maximums* | Not publicly disclosed |
| SBA 504 loans | Up to $5,000,000 or $5,500,000, depending on the purpose of the loan | Up to 300 months | About 3.00%* | Not publicly disclosed |
| SBA Express | Up to $350,000 | Up to 120 months for SBA Express loans issued as lines of credit Up to 300 months for SBA Express loans issued as term loans | Rates vary, subject to SBA maximums* | SBA Guaranty Fee Prepayment penalties on terms of 15 years or more |
| SBA Export Express | Up to $500,000 | Up to 84 months on lines of credit Up to 300 months on term loans | Rates vary, subject to SBA maximums* | Not publicly disclosed |
*Terms and rates based on SBA guidelines
Term loans
PNC offers two types of term loans for small businesses: secured and unsecured. Unsecured loans are for smaller amounts at PNC — between $20,000 and $100,000. While PNC doesn’t share its rates publicly, interest rates on unsecured term loans tend to be higher than those offered on secured term loans. If you need to borrow more than $100,000, you will need a secured loan, which can have longer terms of up to seven years, but requires you to put up collateral.
Line of credit
Business lines of credit are revolving funding, which means they function somewhat similarly to a credit card. You’ll borrow money when you need it and only make payments when you have an outstanding balance.
Like the term loans, PNC’s unsecured lines of credit and secured credit lines differ in the amounts you can borrow and whether collateral is required. They also vary a bit in fees and payments: Unsecured lines have a $175 annual fee and require the minimum due to be equivalent to the greater of $100 or 1.5% of the balance owed. Secured lines of credit carry an annual fee of 0.25% of the credit line, and PNC requires interest-only payments on any amount owed on a monthly basis. It’s wise to make principal payments as quickly as possible, though, as the longer you leave this balance unpaid, the more interest you’ll rack up.
Vehicle financing
You can borrow anywhere from $10,000 to $250,000 for a commercial vehicle with PNC, financing up to 100% of the vehicle costs. Loan terms can range from 24 months to 72 months. While PNC doesn’t publicly share rates on any of its products, the interest rates on equipment loans are fixed with payments due monthly out of your business checking account.
Commercial real estate loans
PNC’s commercial real estate loans require owner-occupied commercial real estate as collateral. You can borrow anywhere between $100,001 and $3,000,000 with terms ranging between 60 months and 180 months, with up to 25 years amortization. If you have an amortization period longer than your loan term, you may be able to refinance at the end of your loan term. If you cannot, there will be a balloon payment due at the end of the loan term.
SBA 7(a) loans
SBA 7(a) loans are notable for their generous repayment terms and comparatively low interest rates. The maximum loan size at PNC is $5,000,000. PNC is charged annual fees and guaranty fees between 2% and 3.5% by the SBA, and it may pass those fees on to you as a consumer.
These loans may also come with a prepayment penalty if your term is more than 15 years and you pay off more than 25% of the loan balance within the first three years of loan disbursement. However, max loan terms are only 10 years unless you’re borrowing for real estate needs. Then, the max term can jump up to 300 months.
SBA 504/CDC loans
SBA 504/CDC loans are typically used for commercial real estate needs or financing heavy equipment, construction, major renovations or debt refinancing. The max amount on these loans tends to be $5,000,000 unless you are working on an energy efficient or manufacturing project. Then, the max loan amount can be up to $5,500,000.
Interest rates are about 3.00% of the total loan amount — a notable feature in today’s high-interest rate environment. PNC will be charged a 0.4405% annual fee by the SBA, which it is likely to pass on to you via closing costs. Terms can be up to 300 months.
SBA Express loans
One downside of most SBA loans is that the time to funding can be quite long. SBA Express loans expedite that process, enabling the SBA to respond to your application within 36 hours. But in exchange for a faster turnaround time, maximum loan sizes are $350,000 at PNC. Other lenders may issue SBA Express loans up to $500,000, but expect to offer collateral for amounts above $350,000. There may be prepayment penalties charged if you have a loan term exceeding 15 years.
PNC does pass along guaranty fees to borrowers on SBA Express loans unless the business is veteran-owned. In these instances, these fees can be waived.
SBA Export Express loans
If you run a business that exports products internationally, you can get an SBA Export Express loan for up to $500,000 at PNC. These loans can be issued as loans or lines of credit, with terms on lines of credit maxing out at seven years. PNC does not share which fees associated with these loans are passed on to consumers, but it is highly likely that they will be included in your closing costs.
PNC borrower requirements
| Minimum annual revenue | Not disclosed |
| Minimum time in business | 3 years in most cases |
| Minimum credit score | Not disclosed |
For most business lending products, PNC requires three years of business history. If you have a newer business, though, the bank may be able to work with you on creative funding solutions.
PNC isn’t overly transparent with a specific credit score requirement, but it does share other credit underwriting requirements for business loans. It wants to see a clean credit history over the past five years, with no history of late payments, charge-offs, foreclosures, tax liens, judgements, lawsuits or accounts in collections.
While there is not an explicit revenue requirement shared publicly, PNC says that it wants to see upward or stable trends in terms of revenue, and your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) should be more than the projected principal and interest payments on the loan.
Required documents
When you apply for a business loan with PNC, make sure to have the following information and required documents on hand:
- Business name and address
- Business type and year established
- Business tax ID
- Annual sales
- Number of employees
- Most recent business tax return
Additionally, you’ll need the following information for each owner of the business:
- Home address
- Social Security number
- Title
- Ownership percentage
- Personal financial and historical information
- Most recent personal tax return
If you are applying for a loan that requires collateral, you will also want to include any information about the collateral in your loan application.
Alternatives to PNC
| PNC | KeyBank | Truist | |
|---|---|---|---|
| Minimum credit score | Not disclosed | Not disclosed | Not disclosed |
| Loan products offered |
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| Minimum time in business | 3 years in most instances | 3 years | None, but extra paperwork is required for businesses with less than 2 years in business |
| Starting APR | Not disclosed | Not disclosed | Not disclosed |
| Maximum loan size |
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| Minimum annual revenue | Not disclosed | Not disclosed |
It is not uncommon for larger, traditional banks to not disclose rates or certain underwriting requirements. Unfortunately, that means any product comparisons prior to application are going to be incomplete. That said, let’s look at how PNC stacks up against the competition across the metrics that are available.
PNC vs. KeyBank
Overall, many loan amounts are similar at PNC and KeyBank, but PNC generally lends larger amounts of money. Examples include secured term loans, secured lines of credit and commercial real estate loans. Both banks offer SBA 7(a) and SBA 504/CDC loans, but if you want an SBA Express or Export Express loan, you will want to turn to PNC. KeyBank has the same three-year time-in-business requirement, but you may find more flexibility with this requirement at PNC.
PNC vs. Truist
Truist may be a better fit for businesses that have smaller borrowing needs, as the max loan amount tops out at $250,000. Truist may also be an easier place to seek funding for those who have been in business less than three years as their time-in-business requirement is more porous, but PNC may be willing to work with you, too, with a little extra paperwork. PNC provides a suite of SBA loan products, while Truist does not.