Our goal at Lending Valley is to provide all small business owners access to the best loans possible for their business. You can rest assured we will get you the best rates in the market!
For small business owners in the U.S., finding the right loan can feel like navigating a maze. Interest rates, repayment terms, collateral, and eligibility all make the process confusing. Truist Bank, one of the largest financial institutions in the country formed from the merger of BB&T and SunTrust, simplifies this by offering a range of small business lending options. These are tailored to meet diverse financial needs, from working capital gaps to long-term growth goals.
This guide breaks down Truist’s small business loans—what they are, how they work, their benefits, drawbacks, eligibility criteria, and the process to apply. Whether you’re a startup or an established business, this guide will help you determine whether Truist is the right fit for your financing needs.
Truist Financial Corporation was established in December 2019 through the merger of BB&T and SunTrust Banks. Headquartered in Charlotte, North Carolina, Truist operates across 15 states and Washington, D.C., with over 1,900 branches. It offers a wide array of services including personal banking, commercial banking, wealth management, and lending solutions.
For small businesses, Truist focuses on providing accessible financing, flexible repayment options, and dedicated support. The bank’s approach combines traditional banking reliability with modern technology, helping entrepreneurs manage daily operations, scale efficiently, and stay competitive.
Truist offers several financing products designed to meet different business needs and sizes.
| Loan Type / Product | Use Case | Key Highlights |
|---|---|---|
| Line of Credit (Unsecured & Secured) | Managing working capital, bridging cash flow gaps | Unsecured LOC up to $100,000 (12–36 months). Secured LOC up to $250,000 with longer terms. |
| Term Loans (Unsecured / Secured) | Expansion, equipment, or large purchases | Fixed repayment terms; unsecured loans up to $100,000. |
| SBA-Guaranteed Loans | Major expansions, real estate, or high-capital projects | Truist is an SBA-approved lender offering 7(a) and 504 loans. |
| Commercial Real Estate Loans | Purchase or refinance business properties | Loan amounts up to $250,000 or more depending on collateral. |
| Vehicle / Equipment Loans | Buying or leasing business assets | Up to $250,000; flexible repayment structures available. |
For most small businesses, Truist’s offerings are practical for managing operational costs or funding moderate growth—rather than large-scale, multimillion-dollar ventures.
A line of credit (LOC) is among the most flexible financing tools available. Truist provides both unsecured and secured LOCs to meet different borrower profiles.
1. Unsecured Line of Credit
This product allows you to access up to $100,000 without pledging collateral. The term usually ranges between 12 and 36 months, and interest is charged only on the amount you draw, not on the total limit. It’s an ideal choice for short-term operational needs, such as payroll, vendor payments, or emergency expenses.
2. Secured Line of Credit
For larger requirements, Truist offers secured LOCs of up to $250,000. These are backed by assets such as real estate or equipment, which allows longer repayment terms and often lower interest rates. Businesses with stable cash flow and valuable collateral can leverage this to maintain liquidity without depleting reserves.
The revolving nature of both lines of credit means you can reuse the funds repeatedly once repaid—making them a reliable safety net for ongoing cash flow management.
Working with Truist provides several advantages, especially if your business needs flexible, transparent lending options.
Flexibility in Use: Funds can be used for multiple purposes—purchasing inventory, covering payroll, managing seasonal fluctuations, or funding short-term projects—without strict restrictions.
Revolving Access with LOCs: Once approved, your credit line remains available for the term period, and you can borrow and repay as needed without reapplying.
Interest Efficiency: You pay interest only on the portion you draw, helping reduce unnecessary financing costs.
Collateral Options: Businesses with valuable assets can leverage them for higher borrowing limits and better rates, while those without collateral can opt for unsecured products.
SBA Integration: As an SBA-approved lender, Truist provides access to government-backed loans with competitive terms, lower down payments, and partial guarantees.
No Prepayment Penalty: Truist allows early repayment without penalties, giving borrowers the freedom to manage debt responsibly.
Convenient Application Process: Applications can be submitted online, by phone, or at a local branch, with responsive customer support and clear guidance at every step.
Risks, Downsides & Limitations: Despite its advantages, Truist’s small business loans have a few limitations worth noting.
Lower Maximum Amounts for Smaller Businesses: While suitable for modest funding needs, Truist’s standard small business loan limits (often $250,000 or less) may not be enough for large-scale expansions.
Strict Underwriting for Newer Businesses: Startups or companies with less than two years in operation might face stricter evaluation or be eligible for smaller amounts.
Variable Interest Rates: Some lines of credit have variable rates, which can increase with market fluctuations.
Collateral and Personal Guarantees: Secured loans require collateral, and unsecured ones may still require a personal guarantee, putting your personal assets at risk if repayment fails.
Fees and Inactivity Charges: Truist may charge origination fees, maintenance costs, or inactivity penalties. Businesses should review all terms carefully before signing.
Geographical Limitation: Only businesses operating within states where Truist has branches or services are eligible.
Documentation Burden: For higher loan amounts or SBA products, detailed documentation—like financial statements, tax returns, and collateral appraisals—is required.
Truist evaluates multiple factors before approving business loans:
Businesses with strong revenue, positive cash flow, and good credit can often negotiate better rates and terms.
Imagine a small retail store in North Carolina experiencing seasonal cash flow gaps before the holiday season. The owner secures an unsecured line of credit worth $80,000 from Truist. In October, they draw $40,000 to stock new merchandise. By December, after strong holiday sales, they repay the amount plus interest. The credit line resets, ready for future needs like marketing or renovations.
This kind of flexible borrowing allows small businesses to stay agile and financially stable without long-term debt burdens.
1. Prequalification and Assessment: Determine your funding needs and ensure your business operates in a Truist-serviced state.
2. Gather Documentation: Prepare business tax returns, financial statements, and bank statements. Include personal financials if needed.
3. Submit Application: You can apply online, by phone, or at a Truist branch. SBA loans may require coordination with an SBA lending officer.
4. Underwriting and Approval: Truist reviews your creditworthiness, cash flow, and overall financial health. They may request additional details or collateral information.
5. Closing and Funding: Once approved, you’ll sign loan documents and receive funds either as a lump sum (for term loans) or revolving access (for LOCs).
6. Repayment and Renewal: Make timely payments as per the schedule. Before the term ends, Truist may reevaluate your business for renewal or adjustment.
1. What credit score is needed for a Truist small business loan?
A good credit score—typically 680 or higher—improves your approval chances and helps you qualify for better rates. Truist may also consider your business credit score and cash flow stability when reviewing your application.
2. Can startups apply for Truist business loans?
Yes, but funding options for startups are usually limited. Startups with strong personal credit and solid business plans may qualify for smaller unsecured loans or SBA-backed programs.
3. What’s the difference between a Truist term loan and a line of credit?
A term loan provides a fixed amount for specific purposes and requires regular monthly payments. A line of credit, on the other hand, offers revolving access to funds that can be reused after repayment.
4. Are there prepayment penalties?
Most Truist small business loans do not carry prepayment penalties. You can repay early to reduce interest costs without worrying about additional fees.
5. How long does the approval process take?
For smaller loans or lines of credit, approvals may take a few business days. Larger or SBA-backed loans might require additional documentation and take longer for underwriting.
Truist offers small business loans and lines of credit designed to help businesses manage growth, maintain cash flow, and cover operational expenses. Their flexible options, SBA partnerships, and user-friendly process make them an appealing choice for many small business owners.
However, as with any financing option, it’s crucial to assess your repayment capacity and loan purpose carefully. Prepare financial documents, maintain a strong credit profile, and apply strategically to maximize approval chances.
Key Points to Remember:
When used wisely, Truist small business loans can be a reliable financial tool to stabilize your operations, strengthen cash flow, and support your long-term growth strategy.
