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Compare $20,000 business loans

Online lenders will likely be your best shot — unless you're a startup or have bad credit.

Name Product Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Rating: 4.75 / 5: ★★★★★
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
Lendio business loans
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
OnDeck short-term loans
Finder Rating: 4.6 / 5: ★★★★★
OnDeck short-term loans
$5,000 – $250,000
29.9% to 99.9%
625+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
OnDeck short-term loans
A leading online business lender offering flexible financing at competitive fixed rates.
ROK Financial business loans
Finder Rating: 4.7 / 5: ★★★★★
ROK Financial business loans
$10,000 – $5,000,000
Starting at 6%
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
ROK Financial business loans
A connection service for all types of businesses — even startups.
Biz2Credit business loans
Finder Rating: 4.7 / 5: ★★★★★
Biz2Credit business loans
$25,000 – $6,000,000
Starting at 6.50%
6+ months in business; $100,000+ annual revenue; 500+ credit score
Biz2Credit business loans
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.

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While most types of lenders offer $20,000 business loans, a loan of this size can be hard to find at some big banks — several continue to focus on Paycheck Protection Program lending, which limits business loan offerings. This amount can also be on the high-end for microlenders, especially those that offer startup financing.

Compare all your options before applying to find the best $20,000 loan for your business's needs.

Where to get a $20,000 business loan

You can get a $20,000 business loan with most types of business lenders. Online lenders offer the most options when it comes to loans of this amount. But they don't always offer a personalized experience and can charge higher-than-average rates.

Community banks and nonprofits like community development financial institutions (CDFIs) or microlenders also offer loans of this size. These tend to offer lower rates than you'll find online and provide guidance to help grow your business.

Most COVID-19 recovery loan programs offer $20,000 business loans — though the amount your business qualifies for usually depends on lost revenue due to the coronavirus outbreak, monthly payroll or working capital expenses.

If you want a $20,000 business loan to start a business, community banks and microlenders sometimes offer programs that can fund a business through its first few months. Most lenders also offer $20,000 personal loans that you can use for startup costs.

How to apply for a $20,000 business loan

The application process for a $20,000 business varies depending on your business, your personal finances and what you want to fund. But generally, it includes the following steps.

  1. Compare providers that offer the type of funding you need at $20,000. Also consider factors like the turnaround time, minimum requirements, rates, fees and customer reviews.
  2. Get a rate quote from your top choices. You can do this by filling out a prequalifiaction form or speaking with a loan officer at banks, CDFIs and microlenders.
  3. Find the documents you need to complete the application, such as personal and business taxes, bank statements and financial statements.
  4. Fill out the rest of the application and submit any additional documents that your lender requires, like a state-issued ID.
  5. Review your final offer, paying attention to the annual percentage rate (APR), fees, payment due dates and terms.
  6. Sign the contract and wait to receive your funds. Typically funds are available within a few business days after signing off on the loan.

Overall, the process of getting a $20,000 business loan can range from one day to a few weeks. Online lenders tend to be the fastest. Banks, CDFIs and microlenders can take longer — especially if it's your first loan with that institution.

How to get a $20,000 business loan with bad credit

You can get a $20,000 business loan with bad credit by applying with a lender that accepts personal credit scores below 580 — what FICO considers to be bad credit.

Some online lenders specialize in bad credit business financing. And some, like merchant cash advance and factoring companies, don't consider your credit score at all. But these are often extremely expensive and can come with fees equivalent to 300% APR.

Many microlenders and CDFIs also specifically offer $20,000 loans to business owners with bad or no credit, often at lower rates than online lenders. Though you might have to enroll in a training course to qualify.

Some community banks may also be willing to overlook a low credit score for a $20,000 loan, if you have an explanation for negative marks on your credit report.

How much a $20,000 business loan costs

The cost of a $20,000 business loan depends on the rates and terms you qualify for. Use our calculator to estimate how much you'll pay each month and in total.

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Can I get a $20,000 SBA loan?

Yes, you can get a $20,000 loan backed by the Small Business Administration (SBA). Technically the SBA doesn't have a minimum loan amount for any of its programs.

But an SBA microloan might be a better choice for a loan of this size. The maximum SBA microloan is $50,000, while the average is around $13,000.

Bottom line

Smaller banks and online lenders might offer the most options when it comes to $20,000 business loans. And since $20,000 is a relatively low amount for a business loan, you could have an easier time qualifying for a loan as a startup or with bad credit. Compare more options by reading our guide to business loans.

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