- Required time in business: 1+ years
- Required annual revenue: $500k+
- Min credit score: 500+
Where can I get a $40,000 business loan?
Get a $40,000 business loan at a bank, online lender, community development financial institution (CDFI) and even some microlenders. Some credit unions may also offer $40,000 loans, though not all offer business financing.
When it comes to bank loans, community banks and regional banks can be a particularly good choice for a $40,000 loan. Some large national banks have small business loan programs, but most prefer to fund larger amounts.
How much does a $40,000 loan cost?
The cost of a $40,000 loan depends on the APR and terms that you qualify for. This usually includes an origination fee of 1% to 6%, or $400 to $2,400, which the lender either deducts from or adds to your loan balance at closing.
Use our calculator to get an estimate of your monthly payment and total cost of a $40,000 loan.
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Can I get a $40,000 SBA loan?
Get a $40,000 SBA loan through any loan program, including SBA 7(a) and CDC/504 loans. The SBA microloan program also offers $40,000 loans, though that amount is more than three times the average microloan size of $13,000. Apply through an SBA-approved lender.
SBA loans to help business struggling during the coronavirus outbreak, such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, are also available at $40,000. However, you can’t apply for a specific amount. These loans are based on payroll costs or income lost due to COVID-19.
PPP loans are available through SBA-approved lenders until May 31, 2021. EIDLs are available through the SBA website.
How to apply for a $40,000 business loan
Before you apply for a $40,000 business loan, decide what type of financing your business needs. For example, a term loan can cover a one-time expense, while a line of credit can cover ongoing costs and emergencies.
- Compare lenders that offer the type of $40,000 loan you need with minimum requirements that your business meets. Pay attention to factors like the the annual percentage rate (APR), origination fee, terms and how often payments are due. With banks, you may need to set up an appointment to find some of this information.
- Prequalify with a few of your top choices to get an estimate of the rates and terms your business might receive, if possible. After you’ve made your final decision, follow the lender’s directions to complete the application and submit additional documents.
How can I get a $40,000 business loan with bad credit?
Get a $40,000 business loan with bad credit by applying with an online lender or CDFI that accepts your credit score range. These types of lenders often offer options to people with credit scores below 580, which is considered bad or poor credit.
If your personal and business finances are otherwise in good shape, a community bank might also be willing to overlook a negative credit history. Microlenders often have loan programs for bad or no credit, but often these are not available at $40,000.
Find a $40,000 business loan through most providers — even if you have bad credit. To get one that best fits your business’s needs, compare business loans and check your rate with a few options before you apply.
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