Editor's choice: Lendio business loans
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$2 million business loans
Fund large expenses and growth opportunities — but only if your business can support repayments.
Compare lenders that offer $2 million business loans
Select your business’s average annual revenue, time in business and your personal credit score range, then select Show loans to start comparing. Visit the lender’s application by clicking Check eligibility or read our review by clicking More info.
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Where can I get a $2 million business loan?
Your business can apply for a $2 million business loan from a bank, credit union or online lender. Banks and credit unions typically have strict requirements — like higher minimum revenue and more time in business — than online lenders, but may offer lower rates. Online lenders accept smaller businesses, but yours will still need to meet a few basic requirements to qualify.
$2 million SBA loans
To cover such a large amount, many lenders work with the SBA. When you borrow, the SBA backs a portion of your loan to help reduce your rates. There are two programs that offer $2 million loans:
- SBA 7(a) program. General-use funding for a wide range of projects — from working capital to refinancing business debts.
- SBA 504 program. Financing to purchase equipment, commercial real estate and other assets.
The application process takes longer than other types of business loans, and it’s harder to be approved. However, if you meet the requirements set by the SBA, your business may be able to borrow $2 million at an extremely competitive rate.
Consider an SBA loan if …
- You have time to spend on a long application process
- You’re looking for a competitive rate
Consider other options if …
- You need funding fast
- You haven’t recently applied for business financing
How can I qualify for a $2 million business loan?
While eligibility requirements will vary by lender and the type of financing you’re interested in, you typically need to meet the following criteria:
- In business for a few years
- Strong personal credit
- High monthly revenue to afford repayments
- Collateral to back the loan
How much will a $2 million business loan cost?
It depends on your business and the type of financing you’re applying for. Generally, $2 million is on the higher end of what most lenders offer — if they even offer loans of this size at all. You can expect long terms, from seven to 25 years, and rates on the lower end, from 7% to 15% APR.
If you were to take out a $2 million business loan at a 9% APR with a 15-year term, your business would be on the hook for monthly repayments of $20,285.33 and a total loan cost of $1,651,359.70.
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Types of $2 million business loans
You have a wide range of options when it comes to $2 million business loans, even though loans of this amount are typically on the higher end. Which option is best for you depends on your business and its needs.
Business term loan
A term loan gives you a lump sum of financing, which you repay plus interest and fees over a set term — usually from seven to 25 years for a $2 million loan. It’s meant to cover a one-time business expense and typically requires collateral for loan amounts of this size.
Consider using a term loan if …
- You want to cover a one-time expense
- You have $2 million in business assets to use as collateral
- You and your business partners have excellent credit
Consider other options if …
- You need to pay for unpredictable expenses
- You have less than $2 million in business assets
- You or another business partner have poor credit
Business line of credit
For an ongoing project where you need access to cash, a business line of credit makes more sense. This allows you to draw from a $2 million credit line as needed — and you only pay back what you borrow. These tend to also have rigorous credit standards and are typically secured by your business assets.
Consider using a line of credit if …
- You need to fund an ongoing project
- You and your business partners have excellent credit
- You have collateral to back a $2 million credit line
Consider other options if …
- You want to fund a one-time project
- You or another business partner have poor credit
- You don’t have enough assets to put up collateral
Equipment financing
Equipment financing is a term loan backed by the equipment you buy. You typically need to make a down payment of around 20% to qualify. And your loan amount is based on the value of the item you’re purchasing.
Consider equipment financing if …
- You need $2 million in equipment
- You’re prepared to make a down payment
- All of your other costs are covered
Consider other options if …
- You want to fund more than new equipment
- You lack the funds for a down payment
- You don’t want to use your equipment as collateral
Bottom line
Though not as common as small-dollar business loans, it’s still possible to find $2 million in financing from the standard providers: banks, credit unions and online lenders. But you might have trouble qualifying for a competitive rate if you don’t have good credit or high-enough revenue to afford the five-digit repayments.
You can learn more about how it all works by reading our guide to business loans.
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