Key Takeaways
- Traditional banks require citizenship or green card for most business loans
- Bankable accepts EAD with no citizenship requirement for any funding product
- Banks take 4–12 weeks for decisions; Bankable takes 24–48 hours
- Banks offer lower rates; Bankable offers faster access and no citizenship gate
- Most parole-status owners are better served by Bankable until status improves
The Core Difference: Citizenship Requirements
The most important difference between traditional banks and Bankable for parole-status business owners is the citizenship requirement. Most traditional banks — including large national banks and many regional institutions — require business loan applicants to be U.S. citizens, Lawful Permanent Residents, or at minimum hold a status that provides a path to permanent residency. Humanitarian parole does not satisfy this requirement at most institutions.
Bankable has no citizenship requirement. An active EAD is the only immigration documentation needed.
Side-by-Side Comparison
Citizenship / Immigration Requirement
Traditional bank: U.S. citizen or Lawful Permanent Resident required at most institutions. Some community banks may accept EAD with an established banking relationship, but this is the exception.
Bankable: Active EAD accepted for all products. No citizenship, no green card, no specific visa category required.
Decision Timeline
Traditional bank: 4 to 12 weeks from application to decision for most business loans. SBA-backed loans through banks can take 30 to 90 days.
Bankable: 24 to 48 hours from complete application to decision. Same-day or next-day funding after acceptance.
Documentation Requirements
Traditional bank: 2+ years of business tax returns, personal tax returns, business financial statements, business plan (for some products), collateral documentation, and full personal financial history.
Bankable: Active EAD, 3–6 months of business bank statements, business formation documents. Tax returns and P&L are helpful but not always required.
Interest Rate / Cost
Traditional bank: 6–12% APR for conventional business loans; SBA rates 7–11% for qualified borrowers.
Bankable: Factor rates 1.15–1.45 (effective APR 30–80% depending on repayment speed). Higher cost is the trade-off for access and speed.
Loan Amounts
Traditional bank: Varies widely; SBA 7(a) up to $5 million; conventional business loans typically $50,000–$5 million.
Bankable: Up to $500,000.
Collateral Requirements
Traditional bank: Most business loans above $50,000 require collateral (real estate, equipment, receivables).
Bankable: No traditional collateral required for most products. Revenue-based repayment serves as the implicit security.
The Right Choice Depends on Your Situation
For parole-status business owners who need capital now, can't meet citizenship requirements at traditional banks, and have established revenue — Bankable is the right choice. For business owners who have received a green card or citizenship and have time to go through a bank's process — a traditional bank (or the SBA) offers lower costs.
The path is often: start with Bankable, build your business, get your status sorted, then refinance with a lower-cost bank loan. Check your Bankability Score and learn more at our SBA alternatives guide.
Frequently Asked Questions
Rarely. Most traditional banks require U.S. citizenship or a green card for business loans. A small number of community banks and credit unions may work with EAD holders with established accounts, but this is the exception.
Bankable accepts EAD (no citizenship needed) and decides in 24–48 hours. Banks require citizenship/green card and take 4–12 weeks. Bankable costs more but is actually accessible to parolees.
Bankable accepts higher risk by lending without citizenship requirements and with minimal documentation. The higher factor rate reflects that risk. Banks' lower rates come with strict citizenship and documentation gates that parolees can't meet.
If you have time, a bank application is worth trying, especially at a community bank or credit union where you have an established relationship. But if you need capital quickly or have been denied by a bank, Bankable is the right next step.
Yes, once you have a green card or citizenship, applying for a bank or SBA loan at lower rates makes financial sense. Bankable has no prepayment penalty, so you can refinance any time.
Some large banks accept EAD for very small business credit products (like credit cards or small personal loans used for business). For dedicated business loans above $25,000, most major banks require permanent residency or citizenship.
Having an established banking relationship can sometimes open doors to smaller loan products even with an EAD. It's worth asking your bank about their specific business loan requirements for EAD holders. Bankable is always available as the reliable alternative.
Possibly. If your bank offers a small line and Bankable supplements with working capital, the combined debt service must fit within your revenue. Discuss this with your accountant before stacking loans.