Pricing for business loans and lines of credit hinges on the Prime Rate, which Wells Fargo listed at 6.75% as of 12/11/2025 [4]. Variable line rates are commonly indexed to Prime plus a margin, so your effective rate moves with Federal Reserve policy [1][4].
Annual fees vary by lender. Wells Fargo charges no annual fee the first year, then $95 for lines of $10,000–$25,000 and $175 for lines above $25,000 [4]. Chase charges an annual fee of $200 or 0.25% of the line (capped at $750), but waives it when average usage reaches 40%; Chase also charges no application or origination fees on standard lines [1]. For lines over $500,000, Chase applies a 0.15% origination fee with a $3,000 maximum [1].
According to the SBA, government-guaranteed loans offer lower down payments and, for some products, no collateral requirement, which can reduce upfront cost compared with conventional financing [2]. Always compare the all-in cost, factoring in the annual fee, interest margin, and any lien or CD collateral requirements that lenders like Bank of America may impose on lines above $25,000 [3][9].