The gold rush of 1849 is long past, but millions of small business owners are still chasing their dreams in the Golden State. If you’re one of them, choosing the right bank for your small business is crucial. The right business bank will help you achieve financial stability with robust products, specialized services and accessible capital tailored to your needs.

California’s many banks offer an array of options, from large national banks with extensive resources to community banks that provide personalized service, giving you ample opportunity to choose a partner that aligns with your goals. But it can be daunting to consider and compare all the available options. Luckily, we did the work of filtering banks according to important criteria such as low fees and small business lending. If you’re a small business owner, these are the best banks for small businesses in California.

Top Banks for California Small Businesses

We evaluated banks by focusing on services tailored to small businesses, such as free checking accounts and mobile banking, while also considering fees, loan rates, and transparency. We prioritized user-friendly digital platforms, strong customer service, and a good reputation, with a preference for local banks that offer a physical presence.

1. North One 

Launched in 2017, North One is exclusively focused on banking and loans for small businesses. It is fully online and built to be easy to use and move money fast. Business owners who bank with North One benefit from its comprehensive business tools, excellent customer service and no or low monthly fees. 

North One caters to startups and growing businesses with flexible lines of credit, mobile-first banking and financial tools for budgeting and cash flow management. North One offers a connected bank account that is designed to save small business owners time, money and provide unparalleled control over their finances. With an easy and free application process, North One stands out for its user-friendly approach. Funds are FDIC-insured through North One’s relationship with The Bancorp Bank, N.A. 

North One also provides a suite of features that cater to the needs of small business owners. With capabilities like sending and depositing paper checks, standard and same-day ACH transfers and domestic wire transfers, businesses can handle all their financial transactions efficiently. The platform supports team banking, offering unique logins and debit cards for all co-owners, which enhances transparency and simplifies expense management. Physical and virtual debit cards, along with mobile wallet compatibility, ensure flexibility and ease of use. Best of all, North One’s mobile and desktop applications allow business owners to manage their finances anytime, anywhere, while the customer care team is readily available to provide support. 

2. California Bank & Trust (CB&T) 

Established in 1954, CB&T is a full-service bank with a strong presence in California. CB&T offers comprehensive financial solutions for small businesses, including business checking with competitive fees, SBA loans, merchant services and cash management solutions.

CB&T’s business checking accounts are designed for simplicity and efficiency. Their business savings accounts offer competitive benefits and rates suitable for both short-term and long-term financial planning. As an SBA Preferred Lender, CB&T can assist small businesses in navigating government-backed SBA loans, providing access to necessary capital. They also offer business term loans for various business sizes and goals, as well as business lines of credit that provide quick access to working capital for new opportunities for managing uneven cash flow.

The bank’s suite of AmaZing business credit cards offers cash-back rewards that add value to every purchase. Additionally, CB&T’s Business Complete service connects clients with companies offering more products and services designed to enhance business efficiency, providing access to time — and money-saving offers. Their newly redesigned Business Digital Banking platform ensures a seamless, user-friendly experience.

3. Pacific City Bank 

Founded in 1999, Pacific City Bank (PCB) is a community bank focused on serving California businesses. They provide personalized business banking services with a focus on relationship building. PCB offers business checking with low minimum balances, competitive loan options, and treasury management services.

PCB provides a variety of business checking accounts, from basic options to analyzed checking, so businesses of all sizes and stages can find an account that fits their needs. Their business savings accounts, including installment savings and business CDs, offer competitive rates to help maximize financial returns. With a robust digital banking platform, PCB Bank allows business owners to manage their finances conveniently online.

For those seeking financing, PCB Bank offers a range of commercial loans, including small business loans serviced directly by the bank. As an SBA Preferred Lender, PCB Bank can guide businesses through the process of securing government-guaranteed SBA loans, providing crucial support for growth and development. Their business debit cards come with perks such as instant replacements and mobile wallet integration, adding convenience and security to everyday transactions.

Finally, PCB Bank’s cash management tools help businesses run more efficiently, while their Positive Pay service minimizes exposure to fraud. 

4. Bank of the Sierra 

Established in 1888, Bank of the Sierra is a longstanding community bank with branches throughout California’s Central Valley and Sierra Nevada regions. They offer a comprehensive suite of small business banking features designed to support the diverse needs of business owners in California. Known for its deep community roots and personalized service, the bank provides financial tools to help small businesses grow and succeed. Their offerings include various business checking accounts tailored to different growth stages, and savings options such as installment savings and business CDs.

Business owners can also benefit from a range of loan options, including the Sierra QuickBiz Line of Credit, which features a fully online application process and fast funding, as well as convenient and secure Visa® business debit cards. The bank’s cash management and commercial banking services streamline operations, while their digital banking platform ensures that business finances can be managed from anywhere, whether at home, in the office, or on the go. Specialized agricultural lending options cater to the unique needs of the agribusiness sector.

Since its founding in 1977, the bank has expanded to over 35 locations across California, maintaining its dedication to improving local communities through initiatives like the Sierra Grant Program. 

5. Mechanics Bank 

Founded in 1869, Mechanics Bank is a California-based regional bank with a focus on serving local businesses. It provides a comprehensive suite of business banking services, including resources and educational workshops specifically designed for small businesses.

Their offerings include competitive business checking accounts, savings solutions, merchant services, cash management solutions and comprehensive treasury management services that streamline payable and receivable processes, helping businesses manage their finances efficiently.

Mechanics Bank also offers term loans, lines of credit, SBA loans and specialized lending for commercial real estate and equipment financing. This flexibility ensures that businesses can find the right financing solutions to support their growth and operational needs. Additionally, their digital banking services, including business online and mobile banking, provide convenient, secure access to accounts, allowing business owners to manage their finances from anywhere.

California small business owners often choose Mechanics Bank for its combination of local expertise, personalized service and comprehensive financial solutions. The bank’s dedication to building mutually beneficial relationships and its focus on safety and soundness make it a reliable partner. 

Methodology: How We Chose the Best Bank for California Small Business

Selecting the right bank for your small business is a big decision. We evaluated California banks based on a comprehensive set of criteria that address the unique needs of small business owners. Our methodology prioritized banks offering a range of services specifically tailored to small businesses, such as free business checking accounts, online bill pay, mobile banking, remote deposit capture and merchant services. We also reviewed account maintenance fees, minimum balance requirements, transaction fees and loan interest rates, with a strong emphasis on transparency in fee structures to help businesses manage their finances more effectively.

Next, we assessed the user-friendliness of each bank’s online banking platform and mobile app, recognizing that an intuitive digital experience is crucial for small business owners who need to manage their finances efficiently on the go. The quality and availability of customer service were also considered, including dedicated business banking representatives and multiple support channels. While we included a digital-first option for your convenience, we primarily focused on local and state banks with branches in California since a physical presence can be important for those who prefer face-to-face interactions or need easy access to branch services. Finally, we considered the bank’s overall reputation, including customer reviews and industry accolades.

Boost Your Success With the Right Bank in California

Finding the right bank to fit your small business needs is crucial for fostering growth and ensuring smooth operations. The right banking partner can provide tailored services, transparent fee structures, and user-friendly digital tools that align with your business goals. It’s important to remember that your specific needs will determine which bank is the best fit. Consider your business size, banking habits and desired level of service when making your final choice. Whether your choice is an online-only bank like North One, or a local California bank specializing in small business features, these banks all offer robust small business services for your California venture.