Compare $600,000 business loans

Where to get a $600,000 business loan

You can get a $600,000 business loan from banks, community lenders and lenders that offer financing backed by the Small Business Administration, or SBA. Some online lenders, like Fora Financial, also offer $600,000 in financing, though it’s not as common.

Bank loans are best for more established businesses that have been around for at least three to five years and have positive revenue. SBA loans can be a good choice if your business can’t qualify with a bank, since they’re partly backed by the federal government. 

A local lender like a community development financial institution (CDFI) could also be a good low-cost option for new businesses and bad credit borrowers. Online business lenders also often work with startups or accept bad credit. But they tend to charge higher rates and fees than other providers.

How to apply for a $600,000 business loan

While the application process differs depending on the lender and loan type, follow these steps to apply for a $600,000 loan.

1. Choose the type of loan you need before you start looking at lenders. For example, a $600,000 equipment loan is the way to go if you need more office supplies. But a line of credit could be better if your business consistently needs working capital.
2. Compare business lenders online or by setting up an appointment with a loan officer. Look into all of your options — including banks, CDFIs and SBA lenders. Ask for a quote from your top choices before you make a decision.
3. Gather the documents you need to complete the application. Most lenders will ask for bank statements, tax returns, financial projections and statements — at a minimum. SBA loans tend to have more complicated applications.
4. Complete the application, following your lender’s directions. This can take a few days for loans of this size — especially when it comes to bank loans and SBA funding. Your lender might also reach out to ask for more documentation after you submit your application, depending on the business.
5. Get your collateral professionally appraised if the lender requires it. Collateral appraisal is standard for real estate financing. But it’s also often necessary for equipment or inventory financing of this size.
6. Review and sign your loan offer. Take note of due dates, rates, fees and the repayment plan. Save a copy for reference when you need.

How much a $600,000 loan costs

The cost of a $600,000 loan varies depending on your interest rate, fees and loan term.

For example, let’s say your loan came with a 9% APR and a 10-year term. This particular $600,000 loan would come with a $7,600.55 monthly payment and a total cost of $312,065.57 in interest and fees by the time your term is up.

See how much a $600,000 business loan costs at different rates and terms by using our calculator.

Can I get a $600,000 SBA loan?

Get a $600,000 SBA loan through most SBA programs — though most low credit-friendly programs don't have loan amounts of this size available.

To qualify for an SBA loan, your business must be able to show that it can’t qualify for a bank loan — that’s why it’s helpful to apply with bank and SBA lenders. And while not mandated by the SBA, most lenders also require owners to have a 620 credit score.  

The SBA also requires all businesses to meet its definition of a small business, which varies by industry. In some cases, you'll be denied an SBA loan if you earn more than $1 million in annual revenue — which can make affording repayments difficult.

Which SBA programs offer $600,000 loans?

The most popular SBA programs offer $600,000 loans — though not all. You might want to consider these options, depending on your financing needs. 

• SBA 7(a) loans are government-backed term loans for working capital, refinancing and almost any other one-time expense. When applying for $600,000, even large lenders like Live Oak Bank could be a good choice.
• SBA CAPLines are SBA-guaranteed lines of credit for expenses like ongoing working capital, filling a government contract, completing a construction project or preparing for a seasonal spike in sales.
• SBA CDC/504 loans are government-backed financing specifically for real estate or equipment. These are funded by both a bank and a certified development company, or CDC.

If your business needs an SBA disaster loan, $600,000 loans are available to businesses with that amount of eligible expenses.

SBA International Trade and Export Working Capital loans are also available at $600,000. However, Community Advantage, SBA Express and Microloans aren’t available at this size.

Bottom line

SBA loans, banks and community lenders are your best bet when it comes to $600,000 business loans. Some online lenders can also connect you with funding, though it may come with higher rates.

Compare our picks for the best business loans of October 2021 to learn about more options.