Yes, business lines of credit exist. The SBA’s 7(a) Working Capital Pilot offers monitored lines of credit with a maximum of $5 million, and Chase sets its own line terms. Ask Chase for its current rate, fees, limit and requirements in writing before you apply, and use the SBA and Federal Reserve figures below to compare what you are offered.
Is there a business line of credit?
Yes. The SBA’s 7(a) loans page, captured October 28, 2026, describes the 7(a) Working Capital Pilot (WCP) as “a pilot loan program that offers monitored lines of credit within the 7(a) loan program.” The WCP line goes up to $5,000,000, and the page names manufacturing, wholesale and professional services as industries it is built for. If you want to see how a line compares with a term loan, the guide to working capital loans vs lines of credit walks through the difference.
Chase business line of credit requirements
Chase’s own requirements are in its business lending documents, and a Chase business banker can give you the written list. The SBA’s line program lists the following conditions, and they make a useful checklist for any lender:
- Be an operating business that operates for profit and is located in the U.S.
- Be small under SBA size requirements.
- Be creditworthy and show a reasonable ability to repay the loan.
- Be unable to get the desired credit on reasonable terms from non-government sources.
- For the WCP line: have at least one year of operating history, and produce timely, accurate financial statements, accounts receivable and accounts payable agings, and inventory reports.
SBA procedural notices from February 2026 (effective March 1, 2026) also require lenders to analyze credit history and repayment ability using the same processes they use for similar non-SBA commercial loans, so the lender’s review is the step where your file is tested. Whatever the lender decides, the SBA’s rules do not promise approval.
Can my LLC get a line of credit?
An LLC can apply for an SBA-backed loan if the business meets the program rules. The SBA 7(a) loans page does not list entity type among its eligibility rules; it tests whether the business operates for profit, its size, its credit and its ability to repay. The owners matter. A February 2026 SBA procedural notice (effective March 1, 2026; SOP 50 10 8 revisions) says SBA financing is limited to businesses whose 100% direct and indirect owners and required guarantors are U.S. citizens or U.S. nationals with a principal residence in the U.S., its territories or possessions, and that entity owners must be created, organized or incorporated in the U.S. Chase’s own rules for LLCs are in its lending documents, so ask the banker.
How much does a $50,000 or $1,000,000 business loan cost?
Cost has two parts: the interest rate and the fees. As of October 28, 2026, the SBA’s 7(a) loans page lists these maximum rates for WCP lines, expressed as the base rate plus a spread:
| Loan amount | SBA maximum interest rate |
|---|---|
| $50,000 or less | Base rate + 6.5% |
| $50,001 to $250,000 | Base rate + 6.0% |
| $250,001 to $350,000 | Base rate + 4.5% |
| $350,001 and greater | Base rate + 3.0% |
The base rate is the rate your lender names. The SBA notice gives Prime, SOFR and Treasury rates as examples. The Federal Reserve’s H.15 release, dated October 27, 2026, notes that prime is “one of several base rates used by banks to price short-term business loans.” On October 28, 2026, the Fed’s statement kept the federal funds target range at 3-3/4 to 4 percent.
For a $50,000 loan, the SBA-capped rate is base rate plus 6.5% on a WCP line. The SBA microloan page offers a smaller route: microloans go up to $50,000, the average is about $13,000, interest rates “Generally, between 8%-13%,” and the maximum term is seven years. Microloans cannot pay existing debts or buy real estate.
For a $1,000,000 loan, the cap on a WCP line is base rate plus 3.0%, and the maximum WCP term is 60 months. The SBA 7(a) loans page does not show a monthly payment for a $1,000,000 loan. The page says payments stay the same on fixed-rate loans, and on variable-rate loans the lender may change the payment when the rate changes. Ask the lender for the full payment schedule in writing.
How hard is it to get a $100,000 loan, or qualify for $200,000?
The Federal Reserve’s 2026 Report on Employer Firms, based on the 2025 Small Business Credit Survey, found that 38% of firms applied for a loan, line of credit or merchant cash advance in the prior 12 months. Of applicants, 42% received the full amount they sought, 36% received some or most, and 22% received none. Applicants at small banks were fully approved 57% of the time. The survey reflects all applicants, not a $100,000 loan specifically, and the Fed notes it is a convenience sample, not a random one.
For a $200,000 request, the WCP cap is base rate plus 6.0%, and the qualifying tests are the ones above: operating history of at least one year on the WCP line, clean financial statements, and a credit and repayment review. A business under a year old does not meet the WCP’s one-year rule, so ask any lender what it requires for a new business.
Which SBA loan fits your use?
No single loan is best for every business. The three SBA programs differ by size and purpose:
| Program | Maximum | What it is for | Cost detail on SBA pages |
|---|---|---|---|
| 7(a) loans | $5,000,000 | Working capital, real estate, equipment, refinancing and more | Lender-set; payment stays the same on fixed-rate loans |
| 7(a) WCP line | $5,000,000 | Monitored lines of credit | Base rate + 6.5% to base rate + 3.0%, by loan size; 60-month maximum term |
| 504 loans | $5.5 million in the body text; $5 million in the page summary | Long-term, fixed-rate financing for major fixed assets | For loans approved October 1, 2026 to September 30, 2027: 0.50% upfront guaranty fee and 0.203% annual service fee on the outstanding balance, per the SBA’s FY 2027 504 fee notice |
| Microloans | Up to $50,000; average about $13,000 | Working capital, inventory, supplies, furniture, machinery, equipment | Generally 8%-13%; maximum seven-year term |
What are the interest rates right now?
Chase’s rate on its own line is set in its offer, so get it in writing. The market context: the NFIB’s September 2026 report says the average interest rate paid on short-maturity loans was 8.2% in September, up 0.7 points from August and close to the historical average of 8.3%. In the same report, 8% of owners said they paid a higher rate on their most recent loan, up 4 points from August.
What about merchant cash advances?
A merchant cash advance (MCA) gives you cash now in exchange for a share of future sales. The FTC describes MCA companies as providing funds “in exchange for a percentage of the businesses’ revenue,” and says the provider “will make daily withdrawals from the business’s bank account until the obligation has been met” (FTC press release, January 2022). Texas’s H.B. 700, in the Senate Research Center’s analysis of the May 22, 2025 engrossed version, describes MCAs as “structured as ‘sales-based financing'” and says they are “currently not disclosed as loans.” Whether a given MCA counts as a loan under state law is a question for state regulators and courts; the New York Attorney General’s Yellowstone settlement page, last updated April 16, 2026, notes that the lawsuit alleged the company was “providing loans rather than MCAs.” If you are weighing one, compare it with a revenue-based financing vs traditional business loans comparison, and ask for the total payback in dollars in writing before you sign.
How do I spot a scam and use my rights?
The FTC has brought cases against business-funding sellers that show the warning signs. In its January 2022 release, the FTC said one provider required personal guarantees and upfront fees after saying it would not. In its February 2024 release, the FTC described contracts that used confessions of judgment, which let the company seek an uncontested court judgment. The FTC’s November 2025 release says a court entered a final order on October 1, 2025 banning Seek Capital and its CEO from offering business financing, after the court found misrepresentations about lender relationships, 0% interest terms and upfront fees. Watch for these signs:
- Promises of special lender relationships or guaranteed access to cash.
- Upfront fees, or fees charged when you try to cancel.
- Personal guarantees you were told you would not have to sign.
- Confession of judgment clauses.
- Daily or weekly debits you did not expect.
For more on contract warning signs, see small-business contract scams. Check the Better Business Bureau and Trustpilot pages for any lender you are considering, and read the newest complaints first. The Fed’s survey found that 60% of firms that borrowed from online lenders reported higher-than-expected borrowing costs, compared with 37% at small banks and 32% at large banks, and that high interest rates and unfavorable repayment terms were the most common challenges at online lenders.
Before you apply
- Get Chase’s current rate, fees, limit and requirements in writing from a Chase business banker.
- Ask any lender for the full payment schedule for the amount you want.
- For an MCA, get the total payback in dollars and the fee structure in writing before you sign.
- Use the SBA’s Lender Match tool to find participating SBA lenders.
- Check the BBB and Trustpilot pages for the lender.
This is general information, not personal financial advice. Rates are as of the dates shown, and prices and terms change.
By USPatriotNews.com Editorial Team
