Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

$1 million business loans

Find out eligibility requirements, potential costs, SBA options and more.

Updated

Fact checked

Editor's choice: Lendio business loans

Lendio business loans logo
  • Quick turn around
  • Secure online application
  • Compare 75+ legit business lenders
See your rate

How to get a $1 million business loan

Although each lender has its own process, these steps should help guide your business toward the right loan option:

  1. Compare lenders. Your first step should be to compare business loan lenders. Not every lender offers loans of $1 million, and those that do will have different requirements that could make the difference between approval and rejection.
  2. Prepare financial documents. Lenders want to see your business plan, annual revenue projections, bank statements, tax documents and other information that demonstrates your business’s ability to repay a loan.
  3. Speak with a financial advisor. Loop a financial advisor into your plan for a $1 million business loan to ensure your business can afford it and develop a plan to repay it.
  4. Apply for preapproval. This allows you to see your loan’s potential terms before your personal or business credit is officially checked. Not all lenders offer preapproval, but if it’s available, take advantage of it.
  5. Review and sign the loan contract. If approved, review your loan contract with your partners and financial advisor to ensure the terms are beneficial for your business.

Compare providers that offer $1 million in business financing

Click Check eligibility to apply on the lender’s website or More info to read our review.

Data indicated here is updated regularly
Name Product Filter Values Loan amount APR Requirements
Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
$10,000 – $5,000,000
Varies
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
SmartBiz business loans
$30,000 – $5,000,000
4.75% to 7.00%
650+ personal credit score, US citizen or permanent resident, 2+ years in business, $50,000+ annual revenue, no outstanding tax liens, no bankruptcies or foreclosures in past 3 years
Get funding for your small business with a government-backed loan and extended repayment terms.
Fundera business loans
$2,500 – $5,000,000
7% to 30%
$300,000+ of annual revenue, 680+ personal credit score, in business for 3+ years
Get connected with short-term funding, SBA loans, lines of credit and more.
loading

Compare up to 4 providers

Where can I get a $1 million business loan?

Banks, credit unions and online lenders frequently offer loans up to $1 million for established businesses. The Small Business Association (SBA) also backs loans of $1 million, but to apply for funding, you will need to submit an application through an SBA-approved lender.

$1 million SBA loans

Since SBA loans are guaranteed by the federal government, they’re one of the most affordable options out there for a small business owner looking for a large loan. They’re also one of the most difficult loans to qualify for. Only 100,000 applicants were approved across all SBA programs in 2019, according to data from the SBA.

Here’s how a $1 million loan breaks down for the SBA 7(a) program:

  • Percent guaranteed: 75%
  • Amount guaranteed: $750,000
  • Closing costs: Guaranty fee equal to 3.5% of the amount guaranteed, or $26,250, plus any additional charges by the bank or lender
  • Maximum interest rate: Prime + 2.75%
  • Terms: 5 to 10 years for working capital and equipment; up to 25 years for real estate

How hard is it to get a $1 million business loan?

It depends on you and your business. If you exceed a lender’s minimum requirements, you might not have any trouble. But if your business is less than a year old, not yet profitable or you have poor personal credit, you could have trouble qualifying for $1 million. Having an unpredictable cash flow or low revenue can also get your business rejected.

Is my business eligible?

Your business needs to prove it can afford a $1 million business loan. While requirements vary by lender, you’ll typically need to meet the following criteria to be considered:

  • Good to excellent credit. Lenders look for high personal and business credit scores. The better your credit scores, the better.
  • Two years in business. Lenders are generally wary of giving this amount to businesses that are new to the game, especially if you’re applying with a bank.
  • $10 million in annual revenue. The higher your loan amount, the higher your revenue requirements. It might be possible to find $1 million in financing with revenue under this amount, but it won’t be easy.
  • Large profit margin. On top of having a strong annual revenue, many lenders want to see that your business is actually making money rather than breaking even.
  • Personal guarantee. Many business loans require the owner or owners to back the amount they’re borrowing with a lien on their personal assets. You and your business partners will likely need to have at least $1 million in equity on your homes, cars and other investments.

How much will it cost to pay back a $1 million business loan?

Business loan calculator

See how much you'll pay
Your loan
Loan amount
$
Loan terms (in years)
Interest rate
$ %

Fill out the form and click on “Calculate” to see your estimated monthly payment.

or

Compare business loans now

Based on your loan terms...

You can expect to pay back $ per month

This breaks down to...

$ in principal and $ in interest charged Compare business loans now
$1 million business loans tend to come with longer terms — typically between 10 to 25 years — and lower rates. But monthly repayments tend to be high because the principal is so large. On average, online lenders tend to offer higher rates than local banks, so you might want to go with a bank you trust if keeping the cost down is your top priority.

Say your business qualified for a business loan of $1 million with an APR of 7% and a term of 10 years. It’d have monthly repayments of $11,610.85 and pay a total of $393,301.75 in interest and fees.

You can determine the cost of a $1 million loan with our calculator.

Bottom line

Well-established enterprises with high annual revenues are most likely to qualify for business loans of $1 million or higher. To find more lenders and learn about your other financing options, check out our business loans guide.

Frequently asked questions

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

2 Responses

  1. Default Gravatar
    SybilFebruary 9, 2019

    what is the lowest interest rate one can get for a one million dollar unsecured loan?

    • Avatarfinder Customer Care
      JoshuaFebruary 10, 2019Staff

      Hi Sybil,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      As of now, we currently don’t have this specific information since most lenders would not go far from the average market interest rate. However, generally speaking, online lenders tend to charge a higher interest rate compared to traditional banks. Perhaps, you can also take into consideration SBA loans. They could be the one that offers the lowest interest rate since they are partly backed up by the government. However, getting approved by them is not that easy.

      I would highly recommend that you consider all your options. Check terms and conditions and eligibility requirements. From there, you should be able to find the right loan for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

Go to site