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How to get a $3 million business loan

Government-backed SBA loans are a popular choice — but they're not your only option.

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Editor's choice: Lendio business loan marketplace

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Where can I get a $3 million business loan?

You can get a $3 million business loan from a bank, credit union or online lender. Small business owners who need a loan this size might want to look at SBA lenders, which offer government-backed loans that don’t require as much collateral. Or, if you currently have a good relationship with a bank, that could help you qualify and even speed up the process.

Many online lenders don’t offer funding up to $3 million, but a few do. These loans are often more expensive than bank or SBA loans, but the process is typically faster.

Compare $3 million business loan lenders

Select the range for your business’s revenue, your credit score range and time in business then click Show loans to compare options that match your business. To read our review, click More info or go directly to an application by selecting Check eligibility.

Data indicated here is updated regularly
Name Product Filter Values Loan amount APR Requirements
Lendio business loan marketplace
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 675+ personal credit score
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
SmartBiz
$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
$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.
Main Street Finance Group Business Loans
$5,000 – $1,000,000
Varies
1+ years in business, $10,000+ monthly revenue
Apply online and get approved within hours with minimal paperwork. Multiple financing options available.
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How to apply for a $3 million business loan

The application process can vary depending on the type of lender and financing. But you can generally follow these steps to apply for a $3 million business loan.

  1. Compare lenders. Compare factors like rates, terms and requirements — and use a calculator to make sure those ranges fit your budget. If you’re applying for an SBA loan, also ask about the process and turnaround time, since those are often longer and more involved.
  2. Find out if you qualify. Often you can prequalify by filling out a quick online form. But some lenders might require you to speak to a loan agent in person for a $3 million loan. You also usually get an estimate of rates and terms that you can use to pick a lender.
  3. Fill out the application. After picking a lender, follow its directions to complete the application. It can help to have documents like profit and loss statements, tax returns and bank statements on hand.
  4. Submit documents and additional forms. The lender typically reaches out to ask for copies of documents to verify the information in your application. If you’re applying for an SBA loan, you also need to submit several additional forms.
  5. Get collateral appraised. If you’re backing your loan with collateral that doesn’t have a clear dollar value, you might need to get it appraised. Ask your lender about what steps you need to take.
  6. Review and sign the loan agreement. Read over the terms and conditions of your loan agreement to make sure you understand the terms and conditions of repayment. Then sign and submitting it to your lender.

How can I qualify for a $3 million business loan

Eligibility requirements will vary by lender and the type of financing you’re applying for. But in general, you need to have strong personal credit, high enough revenue to afford repayments and significant collateral to qualify for a $3 million business loan.

Ask an expert: How can I increase my chances of qualifying for a high-dollar business loan?

Claire Tompkins

Thomas Ulbrich

Executive Director of the University of Buffalo School of Management’s Center for Entrepreneurial Leadership

You can maximize your chances of qualifying a few different ways. First and foremost, lenders want to see a solid credit history and strong financials.

You’ll also want to have a written business plan that shows how the loan will be used and how it will scale the business. This document should show reasonable financial projections — especially the ability to generate increased cash flow that will show your ability to repay the loan.


It should also discuss your company history and team. A strong team that has a history of past successes can be the assurance a bank sometimes needs to be confident in a company’s ability to actually execute the written plan it’s presenting.


If the loan is being used to purchase something that has high collateral value, you’ll likely have an increased chance of getting a larger loan.


For instance, if you need to borrow $3 million for a specialized piece of equipment that will enable you to grow your business, the bank may be able to offset part of their risk due to the collateral value of the equipment that they would control if you were unable to pay back the loan.

How much will a $3 million business loan cost?

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It depends on your business, the lender and the type of loan you get. But you can typically expect monthly repayments well into the five digits.

Loans of this size also generally come with longer terms — from 10 to 25 years — though it’s possible to find shorter options. And they tend to come with relatively low rates, since most lenders require you to have excellent credit and high revenue to qualify.

If you took out a $3 million loan at a 9% APR with a 10-year term, you would have monthly repayments of $38,002.73 and pay a total of $1,560,327.86 in interest.

4 types of $3 million business loans

Most types of business loans go up to $3 million. But you might not have the same selection of lenders if you were to borrow a lower amount — especially if you’re looking online.

Business term loan

A business term loan works by giving you a lump sum of money you repay in monthly installments — plus interest and fees. It’s meant to cover a one-time expense and is usually only available in such high amounts if you have excellent personal credit and a high enough revenue to afford the repayments. For loans of this size, most lenders require you to back the loan with business or even personal assets.

A great option if …
  • You want to fund a one-time purchase.
  • You have collateral to back your loan.
  • You and your business partners have excellent credit.

    Business line of credit

    One of the most popular types of business financing along with term loans, a line of credit is designed to fund an ongoing project. Instead of borrowing $3 million at once, it allows you to withdraw funds as you need them — up to a credit limit of $3 million.

    Depending on the lender, each withdrawal either turns into a term loan, or you repay the balance with a minimum monthly repayment — similar to a credit card. This option also tends to have strict credit and collateral requirements, especially at larger banks.

    A great option if …
    • You have ongoing costs that are hard to predict.
    • You have seasonal ups and downs.
    • You and your business partners have excellent credit.

      SBA loans

      The Small Business Administration (SBA) partly backs loans to make affordable funding available to businesses that have tried and failed to get financing elsewhere. The SBA 7(a) program offers loans for working capital, debt consolidation and real estate in amounts as high as $3 million. And the 504 program offers funding to buy property, real estate and equipment.

      These loans come with lower rates than you might find elsewhere. But it takes a lot of time and effort to apply. And the program is highly competitive — only 52% of applicants were approved in 2018, according to a survey by the Federal Reserve.

      A great option if …
      • You have time to invest in a long application.
      • You’ve struggled to qualify for funding in the past.
      • Cost is your top priority.

        Equipment or vehicle financing

        Many lenders offer specialized financing to purchase machinery or vehicles for your business. How much you can borrow depends on the value of the vehicle or equipment you’re buying — you can usually finance between 80% and 100% of the cost. These loans use the vehicle or equipment you’re buying as collateral, so you don’t need to have $3 million in assets up front.

        A great option if …
        • You need financing specifically for vehicles or equipment.
        • You can afford to make a down payment.
        • You don’t have assets to apply for a term loan.

          Bottom line

          You have a variety of financing options to choose from when you’re looking to borrow $3 million for your business. Just keep in mind that not as many lenders offer loans of this size — especially if you’re looking online. Get started on your search by reading our guide to business loans.

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