Where Can I Get A Startup Business Loan?

In March 2025, 452,255 new business applications were filed, a 6.4 percent increase from the month before, according to the U.S. Census Bureau’s business formation data. While it’s exciting to launch, securing funding for a startup can also be quite challenging.

One reason is that many traditional lenders, like banks and credit unions, might not want to work with your company if you don’t have a track record of business success. Fortunately, there are other options to consider, including online lenders, personal loans, crowdfunding and venture capital, to ensure that your startup finds the right funding to be successful.

Online lenders for startup business loans

Online lenders are ideal for startup businesses because these lenders tend to offer lenient eligibility guidelines. In other words, they’re more likely to accept startups than traditional banks and credit unions. They also tend to offer fast funding. Some online lenders will decide on your loan within a day; if approved, you’ll receive the money in a day or two.

But prepare to deal with potentially higher interest rates, such as 30 percent or higher, or shorter repayment windows like 24 months or less in exchange for quick access to financing. Online lenders to consider:

Applying for a small business startup loan is fairly straightforward and involves submitting an application online. Some online lenders will decide on your loan within a day; if approved, you’ll receive the money in a day or two. But prepare to deal with potentially higher interest rates or shorter repayment windows like 24 months or less in exchange for quick access to financing.

Pros

• Easier to qualify for than some other business loans
• Offers fast access to cash
• Simple to apply for and manage these loans online

Cons

• Interest rates may be higher than bank loans
• Short repayment periods can mean high payments
• Can’t discuss loan options in person at a physical branch

SBA startup business loans

The Small Business Administration (SBA) backs small business loans  — known as SBA loans  — to help companies cover large purchases and expand their operations. The loans are distributed by SBA-approved traditional and online lenders. While these loans can take 30 to 90 days to approve, if you can wait, you’ll secure competitive interest rates and long repayment terms. The SBA caps interest rates lenders can charge, effectively lowering the cost of a business loan.

However, qualifying for an SBA loan as a startup can be tricky because lenders often require you to have a minimum time in business. Consider applying with multiple SBA lenders to see if you can get approved, such as:

If you can’t qualify with a standard SBA lender, consider the SBA microloan program, which provides small businesses with up to $50,000 to get off the ground. SBA microlenders tend to be nonprofits that accept startups and business owners with high credit risk.

Pros

• Lower, capped interest rates
• Fewer fees than other loan types
• Microloans can help young businesses launch and expand

Cons

• Many lenders require at least two years of business history
• Can take up to 90 days to receive funding
• Some SBA loans require a down payment

Crowdfunding for startups

If you don’t qualify for traditional financing, you can try crowdfunding, which involves raising money from people interested in supporting your company. You’ll start by registering with a crowdfunding site like Kickstarter or Indiegogo. Then, you’ll set up a fundraising campaign, which should include a target dollar amount and a deadline for donations.

It’s also common to incentivize your supporters for their financial support — either with equity (a small stake in your company) or a specific reward like the product you sell or swag.

Alternatively, you can run a debt-based crowdfunding campaign, where you essentially get a startup business loan from individual investors. Microlender Kiva uses this approach, allowing you to get zero-interest loans up to $15,000 as long as you have a strong personal network to achieve funding.

Pros

• With equity-, donation- or reward-based crowdfunding, money doesn’t have to be repaid
• Gives you the opportunity to create early customers and fans of your brand
• No credit check or collateral required
• Open to any businesses, including startups

Cons

• Some crowdfunding websites charge high fees
• You need a strong network and community in order to raise the full funding
• Can take significant time and effort to raise funds this way

Personal loans to start a business

If you have strong personal credit, you could use it to your advantage and take out a personal loan to fund your business. Financial factors, including your income and debt-to-income ratio, will influence your lender’s decision.

You’ll usually need at least a fair personal credit score (above 580) to get a personal loan, a low requirement compared to many business loans. Personal loans may also offer a low loan amount, like $100,000 or less, and limited repayment terms between two and seven years.

One important caveat: Some lenders won’t let you use personal loans for starting a business or any other commercial purpose. Make sure to check the fine print on a loan’s conditions to see if there are any rules about using it for business. If you have questions or doubts, ask the lender directly.

Some personal loan lenders to consider include:

Pros

• No business history required
• Many lenders make it quick and easy to apply online
• Money can be deposited into your bank account within days

Cons

• Small loan amounts
• Interest rates can be high if you have bad credit
• If you can’t repay the personal loan, you could face legal action and be held personally liable

Venture capital

Some startups with high-growth potential will turn to venture capital firms to get funding to develop their products and get off the ground. Investors will provide funding usually in exchange for an ownership stake in the business. These investors may obtain some control over business management or may provide mentorship to help the business succeed. VCs usually exit the business within a few years, hopefully after making a return on their investment.

Because of their steep investment, VCs are typically looking for businesses with high potential, such as those with groundbreaking ideas or in a high-value market. You’ll need to network with VCs and provide a strong resume and business plan to be eligible for funding.

Pros

• Provides funding to help you develop your products and get off the ground
• VCs are usually seasoned professionals who provide expertise to help your business grow
• This funding is designed specifically for startups

Cons

• Investors get part-ownership in your business, which can include some control over how you manage your business
• Investors typically want a high return to offset the high risk of investing
• Investors aren’t long-term business partners

How to get a startup business lender

To get a startup business loan, you’ll need to do your research and evaluate multiple lenders to see which ones will work with you. The process for getting a startup business line includes:

1. Decide how much money you need  — and when. There’s a limit to how much you can borrow with each lender, so choose one that offers enough capital to cover your expenses. Then, use a business loan calculator to estimate the monthly payments and determine whether they will fit your budget. Also, if you need money immediately, look for a loan that can be funded in days rather than weeks or months.
2. Make sure you meet the lender’s minimum requirements. It’s common for lenders to set eligibility criteria around the length of time you’ve been in business, credit history and revenue. You might be able to find the lender’s requirements online, especially if you’re applying with an online lender.
3. Consider what trade-offs you’re willing to make. Business loans for startups can be tough to find, so you may need to get creative when evaluating loan options. For example, a personal loan might work if you’re comfortable with putting your credit on the line. Or, if you’re happy to trade equity and rewards for funding, crowdfunding could be a good option.
4. Compare your options. Create a pro-con list of each startup lender’s interest rates, repayment periods and fees before deciding on one. If possible, prequalify with lenders to see what loan terms and rates you’re offered without performing a hard check on your credit. If you can’t prequalify, apply with multiple lenders and compare their loan offers to find the one that offers the features and interest rates you’re looking for.

Eligibility criteria for business lines of credit

Business lines of credit provide access to capital that startups need, often with more lenient eligibility criteria than other types of business loans. Common requirements include:

• Time in business: Many lenders will accept six months in business, though some require one to two years in the market.
• Minimum annual revenue: Some lines of credit accept $50,000 to $100,000 in annual revenue. Brick-and-mortar bank lenders may require more, such as $150,000 in revenue.
• Minimum credit score: Many online lenders accept personal credit scores in the low to mid-600s, allowing you to access lines of credit without a perfect score.

Wells Fargo business lines of credit

Wells Fargo offers three business lines of credit, making its credit lines accessible to businesses of all shapes and sizes. Take a look at the eligibility requirements for each:

Interest rates and terms for Wells Fargo credit products

Wells Fargo offers competitive interest rates and long terms for its credit products. Discover the rates, fees and features of each loan it offers:

SBA loan benefits and offers

SBA loans provide many benefits to businesses looking to expand their business or fund their next project.

• SBA loans for nearly any purpose. SBA 7(a) loans can be used for working capital, acquiring a business, refinancing debt and more, while SBA 504 loans can be used to purchase equipment or improve or build new constructions. No matter your business’s needs, there is an SBA loan designed for that need.
• Competitive interest rates. The SBA sets a maximum limit that SBA lenders can charge in interest, keeping interest rates low.
• Manageable repayments. SBA loans typically offer terms of 10 years for most loans, and real estate loans offer 25-year terms. These long terms keep the payments manageable for small businesses.
• Helps businesses that can’t access credit elsewhere. SBA loans are designed to step in when businesses can’t qualify for a business loan from traditional lenders.
• Special offers and SBA Preferred Lenders. Some lenders like Bank of America sweeten the deal when you get an SBA loan through them. For example, Bank of America is offering no origination fees for SBA loans of $500,000 or higher, if you apply before September 30, 2025. Bank of America is also an SBA Preferred Lender, helping to speed up the approval process.

SoFi marketplace loan terms and conditions

SoFi is an online finance company that provides a wide range of financial products, inlcuing personal banking and lending. While it doesn’t offer business loans directly, it provides an online marketplace that lets you search for available loans from its partners.

SoFi uses the information you enter to match you with lenders and loan offers that fit your criteria. The exact loan terms, loan amounts, interest rates and requirements will vary from lender to lender.

Does SoFi’s marketplace affect your credit score?

Searching for available startup business loans with SoFi won’t initially affect your credit score. However, your credit score may be impacted when you apply for a business loan with a specific lender. 

Can I get a startup business loan with no money?

It’s possible to find a startup business loan without money on hand, but it’s rare. You have a better chance of getting a business loan with no money if you can offer collateral to back the loan.

You also have a better chance of approval if you get specific types of loans backed by assets. For example, equipment loans are secured with the equipment being purchased, and invoice financing is secured by unpaid invoices. Merchant cash advances also offer financing based on your past sales and get repaid through a percentage of your future sales. These types of loans tend to offer lenient eligibility requirements for these types of loans.

Bottom line

While getting approved for a startup business loan may be trickier than for more established businesses, it’s not impossible. You might have some success by exploring non-traditional options like online lenders and crowdfunding or considering startup-friendly programs like SBA microloans.

Once you’ve decided on a loan type, you can take the next steps to get a startup business loan. See if you meet the lender’s minimum requirements for eligibility, then gather your loan documents and apply.

Frequently asked questions about where to get a startup business loan

• Can I get an unsecured business loan for startups?

  Startup businesses can get an unsecured business loan, which doesn’t require you to put up collateral to back the loan. However, collateral usually helps you get approved and for the lowest interest rates possible for your business. Without collateral, you may not qualify for high loan amounts or low interest rates. You may also need strong credit and high revenue as lenders will look more closely at your finances to determine whether you can repay the loan.

• Can I get a startup business loan with bad credit?

  Yes, you can get a startup business loan with bad credit, but your options for lenders may be limited. You may want to look into a business loan from an online or alternative lender since they tend to have more lenient application requirements. Be sure to research the lender’s qualifications before applying to confirm they’ll accept your credit score. Some online lenders will accept personal credit scores of 500 to 600.

• How do I qualify for a startup business loan?

  To get a business loan for a startup, you still need to meet the lender’s basic loan requirements. The lender will consider your time in business and any revenue you bring in. But establishing a banking relationship first or having a strong personal credit history or assets could give you a leg up in getting approved.