Best small business loans: 10+ for entrepreneurs to start or grow your business

When you’re an entrepreneur, a business loan can help you open that site or storefront, add to your inventory or free up cash flow on the way to Main Street.

With rising interest rates, even regional banks like Silicon Valley Bank and Signature Bank are struggling to fund loans. But you’ve got choices beyond your local bank.

Online lenders are built to support the smallest businesses with fewer than 10 employees, which can struggled to qualify for traditional financing. For slightly larger firms, government-backed loans may offer a great way to grow even more. Online lenders and microlenders also offer financing programs catered for startups with less rigid requirements. The best lender for your business ultimately depends on factors like its finances, why it needs the funds and how long it’s been around.

10 best small business loans

• Best overall: SmartBiz
• Best small business loan marketplace: Lendio
• Best for startups: Finance Factory
• Best for emergency line of credit: OnDeck
• Best merchant cash advance: Credibly
• Best line of credit: BlueVine
• Best microloan: Kiva
• Best bank loan: Bank of America
• Best for high-risk industries: United Capital Source
• Best equipment financing: National Funding

Best overall: SmartBiz

SmartBiz business loans

Finder Rating: 4.5 / 5 ★★★★★

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SmartBiz speeds up the SBA application process by streamlining the information you need to provide. By working with multiple banks and online lenders, it may take just a few weeks to get funding — rather than the normal multimonth waiting period. Prequalification takes a few minutes, and the rates its lenders offer start low. But you'll need to borrow at least $30,000, and the process isn't free: SmartBiz charges a 2% referral fee and 2% packaging fee if you're approved.

• Pros and cons

  Pros

  • Compare bank and SBA loans
  • Helps with SBA loan applications
  • 5-minute online application
  • Highly-rated by past customers

  Cons

  • 2% referral fee and 2% packaging fee
  • No loans under $30,000
  • High starting APR of 8.99% on non-SBA loans

• More details

  Loan amount	$30,000 – $5,000,000
  APR	8.99% to 24.99%
  Min. Credit Score	660
  Loan term	10 to 25 years
  Requirements	660+ 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

Loan amount	$30,000 – $5,000,000
APR	8.99% to 24.99%
Min. Credit Score	660

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Best small business loan marketplace: Lendio

Lendio business loans

Finder Rating: 4.75 / 5 ★★★★★

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Lendio can be a good place to start if you want to save time searching for a lender that fits your needs. You complete an online form with your information to sort through potential lenders that suit your circumstances. Lendio's network includes more than 75 lenders that offer a wide array of business loans, including SBA loans. For some loans, you may even qualify with a credit score around 560. But you may receive marketing calls and emails from lenders, even after you take out a loan.

• Pros and cons

  Pros

  • Network of 75+ lenders
  • Wide range of financing options
  • Options for poor credit

  Cons

  • Fees and rates vary by lender
  • Partners may market to you long after you loan

• More details

  Loan amount	$500 – $5,000,000
  APR	Starting at 6%
  Min. Credit Score	560
  Loan term	1 to 25 years
  Requirements	Operate business in US or Canada, have a business bank account, 560 personal credit score

Loan amount	$500 – $5,000,000
APR	Starting at 6%
Min. Credit Score	560

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Best for startups: Finance Factory

Finance Factory business loans

Finder Rating: 4.1 / 5 ★★★★★

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Finance Factory is an online lender marketplace with multiple financing options for startups. Entrepreneurs can also find services to roll over a retirement account into a new venture and personal loans to fund a new business. While it's not a direct lender, it's uniquely transparent about terms and rates — which are lower than average. But some financing options may require good to excellent credit, and funding can take a few weeks.

• Pros and cons

  Pros

  • Multiple options for startups
  • Transparent with rates across products
  • Award-winning support team

  Cons

  • Not a direct lender
  • Few options for fair or bad credit
  • Funding can take weeks

• More details

  Loan amount	$5,000 – $500,000
  APR	5.99% to 8.75%
  Min. Credit Score	600
  Loan term	2 and 5 years
  Requirements	Good to excellent personal credit, steady cash flow, two years in business

Loan amount	$5,000 – $500,000
APR	5.99% to 8.75%
Min. Credit Score	600

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Best for emergency line of credit: OnDeck

OnDeck short-term loans

Finder Rating: 4.6 / 5 ★★★★★

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OnDeck offers short-term loans to businesses looking for quick funding and who might not qualify for a bank loan. Its line of credit requires very little documentation to apply and funding can be as soon as the same business day. Requirements are in line with other providers, requiring one year in business and $100,000 in annual revenue. And the credit score requirement is at a low 625, so borrowers with fair credit have a shot. There are no prepayment penalties or draw fees on the line of credit (LOC), but repayments are weekly.

• Pros and cons

  Pros

  • 625 minimum credit score
  • Low-doc application
  • Same-day funding available
  • No prepayment or draw fees

  Cons

  • High 29.9% starting APR
  • Weekly repayments on LOC
  • Not available to all industries

• More details

  Loan amount	$5,000 – $250,000
  APR	29.9% to 99.9%
  Min. Credit Score	625
  Loan term	3 to 24 months
  Requirements	625+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account

Loan amount	$5,000 – $250,000
APR	29.9% to 99.9%
Min. Credit Score	625

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Best merchant cash advance: Credibly

Credibly business loans

Finder Rating: 3.8 / 5 ★★★★★

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With factor rates starting at 1.09, Credibly is among the least expensive merchant cash advances out there. It's also more transparent about its rates and fees than similar providers, and you can access your funds as soon as the day you're approved. While its $15,000 monthly minimum revenue requirement is higher than other competitors like Fora Financial, it's not restricted to credit card sales. But like other merchant cash advances, it's still an expensive product.

• Pros and cons

  Pros

  • Same-day funding available
  • Requires only 6 months in business
  • 500 credit score requirement

  Cons

  • Doesn't disclose remittance percentage
  • Admin fee of $50 per month
  • No advances of $400,000+

• More details

  Loan amount	$5,000 – $400,000
  APR	Not applicable
  Min. Credit Score	500
  Loan term	3 to 18 months
  Requirements	6+ months in business, $15K+ in monthly deposits, 500+ credit score

Loan amount	$5,000 – $400,000
APR	Not applicable
Min. Credit Score	500

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Best line of credit: BlueVine

Bluevine business loans

Finder Rating: 4.45 / 5 ★★★★★

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BlueVine's low starting APR and lack of fees make it a good choice for small businesses and startups that need frequent access to funds. After you're approved, you can pay a $15 wire transfer fee to accelerate your funds in a few hours. Otherwise, withdrawals take one to three business days to process. Its lines of credit are revolving, so you're able to borrow and repay as needed. But repayments are weekly if you go with the line of credit — which may strain your budget during slow seasonal periods.

• Pros and cons

  Pros

  • Starting APR compares to banks
  • Flexible credit and revenue requirements
  • Funding within 24 hours for a fee

  Cons

  • Weekly repayments on line of credit
  • Not all industries qualify

• More details

  Loan amount	$5,000 – $250,000
  APR	Estimated 8% to 86%
  Min. Credit Score	600
  Loan term	6 to 12 months
  Requirements	6+ months in business, $10,000+ in monthly revenue, 600+ credit score

Loan amount	$5,000 – $250,000
APR	Estimated 8% to 86%
Min. Credit Score	600

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Best microloan: Kiva

Kiva business loans

Finder Rating: 3.7 / 5 ★★★★★

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Kiva's interest-free microloans are ideal for entrepreneurs looking to turn an idea into reality. It doesn't have any time-in-business requirements, and you can borrow up to $15,000 without paying fees. Borrowers are also granted a six-month grace period before payments are due. But know that Kiva is a nonprofit crowdfunding platform — so if you don't have a large social network willing to make contributions, you may not get anything. Loans that aren't fully funded aren't dispersed.

• Pros and cons

  Pros

  • No interest or fees
  • No credit or residency requirements
  • Loans as low as $25

  Cons

  • No loans of $15,000+
  • Relies on crowdfunding

• More details

  Loan amount	$25 – $15,000
  APR	0%
  Loan term	1 to 3 years
  Requirements	Have at least five friends and family members willing to contribute to your loan, live in the US, ages 18+, not in bankruptcy or foreclosure, not under any liens not engaged in: multi-level marketing, direct sales, pure financial investing or illegal activities.

Loan amount	$25 – $15,000
APR	0%

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Best bank loan: Bank of America

Bank of America business loans

Finder Rating: 3.6 / 5 ★★★★★

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Bank of America offers a wide range of secured and unsecured loans and lines of credit for most business needs. It even offers business auto loans — which can be hard to find at large banks. This nationwide lender has some of the lowest starting rates out there for unsecured financing. But, as with most big banks, it can be difficult to qualify. Especially if you aren't already a customer. Smaller businesses might have more luck with a community bank.

• Pros and cons

  Pros

  • Low rates on unsecured loans compared to other banks
  • Financing program for healthcare practices
  • Available in all 50 states

  Cons

  • Not an SBA preferred lender
  • Smaller businesses may not quality

• More details

  Loan amount	$10,000 – $100,000
  APR	Starting at 6.50%
  Loan term	12 to 60 months
  Requirements	At least 2 years in business with current ownership, good credit, $100,000+ in annual revenue.

Loan amount	$10,000 – $100,000
APR	Starting at 6.50%

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Best for high-risk industries: United Capital Source

United Capital Source business term loans

Finder Rating: 4.8 / 5 ★★★★★

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If you own a newer business, work in a high-risk industry or have poor credit, United Capital Source could be a helpful stop. It's an alternative business loan connection service that helps borrowers who struggle to qualify for traditional lending options. Search for a business line of credit, merchant cash advance, SBA loan or invoice and receivables factoring. It's cannabis-business friendly, it accepts bad credit borrowers and customer reviews are high on average. You must have been in business for at least a year, which means startups must look elsewhere.

• Pros and cons

  Pros

  • High-risk industries OK
  • Compare lenders quickly
  • Multiple loan types

  Cons

  • Not a direct lender
  • Must be in business at least 1 year
  • Payments may be weekly or daily

• More details

  Loan amount	$10,000 – $5,000,000
  APR	Starting from 5%
  Min. Credit Score	550
  Loan term	36 to 120 months
  Requirements	6+ months in business, $75,000+ annual revenue, 550+ credit score

Loan amount	$10,000 – $5,000,000
APR	Starting from 5%
Min. Credit Score	550

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Best equipment financing: National Funding

National Funding business loans

Finder Rating: 4.65 / 5 ★★★★★

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National Funding offers customized loans directly and with its lending partners. It offers equipment financing and leasing of up to $150,000 for new or used equipment. It guarantees you won't find a lower monthly payment elsewhere, or it pays $1,000 toward the equipment lease. And there's no down payment requirement. National Funding advertises fast approvals and funding in as soon as 24 hours, with early payment discounts and excellent customer reviews.

• Pros and cons

  Pros

  • Quick funding on new and used equipment financing
  • No down payment required
  • Highly rated by customers and BBB

  Cons

  • Low maximum loan amount

• More details

  Loan amount	$5,000 – $500,000
  APR	Not stated
  Min. Credit Score	600
  Loan term	4 to 24 months
  Requirements	In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.

Loan amount	$5,000 – $500,000
APR	Not stated
Min. Credit Score	600

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Methodology: How we choose the best business loans

Our lending experts analyze dozens of business loan providers on the market to narrow down the best for business owners and startups. We search for lenders that suit a range of lending needs, highly-rated lenders that offer loans of $100,000 or less, because most small business loans fall into that range.

We weigh lenders against 12 key metrics:

What are the benefits of a small business loan?

A business loan is a form of financing that’s designed to help you start, grow or operate your small business, offering access to capital to cover payroll, purchase real estate, invest in equipment or other business needs.

You can find business loans through traditional banks and credit unions, online lenders and marketplaces and even fintech lending companies, with benefits that include:

• Simple loans that you pay back over time
• Flexible repayment options
• Competitive interest rates
• Online applications and funding

Types of small business loans

Small business loans aren’t only SBA loans issued by the US Small Business Administration, which are partially backed by the federal government.

You’ll find many other types of small business loans offered by private lenders for different purposes. There’s financing suited for specific needs such as microloans, lines of credit or equipment financing.

• Types of business loans

  Loan type	Typical loan amounts	Best for
  SBA loan	$30,000 to $5 million	Small businesses that have trouble qualifying elsewhere and could use more flexible terms.
  Term loan	Up to $500,000	Covering one-time expenses, like buying office supplies or technology or other costs that your business doesn’t need to cover regularly.
  Business line of credit	$2,000 and $500,000	Covering recurring expenses tied to your business’s cash cycle, picking up the slack during an off-season or paying for ongoing projects where costs are difficult to predict.
  Equipment financing	Up to 100% of the equipment’s value	Businesses buy heavy machinery and other expensive equipment.
  Microloan	Start as low as $500	Small businesses that need financing for basic necessities but can’t qualify for a traditional business loan.

How to get the best small business loan

While small business loan requirements depend on the financing you need, you’ll get the lowest rates and strongest terms by meeting general requirements that include:

• Good credit. If you don’t have a score of at least 670, consider bringing a cosigner along for better approval odds.
• At least $100,000 in revenue. If your business is new or still in the startup phase, look into our top editorial picks for startup business loans.
• At least 1 year in business. Startup loans may come with less rigid or even no requirements around specific time in business.
• A low-risk industry. High-risk industries in adult entertainment, cannabis and gambling may struggle to find financing.
• Collateral requirements. If you’re looking for a secured business loan, know what collateral you’ll use to secure it. For example, with equipment financing, the loan is secured by the asset you’re financing.
• Personal and business documentation. Lenders will ask for tax returns, profit and loss statements and much more when applying. Know what you’ll need to have on hand before applying.

Don’t meet these requirements? Set up an appointment at a local bank. Community banks tend to have more flexible requirements than their larger counterparts. Even if you don’t qualify for financing, the bank can point you toward other options and advise you on how to strengthen your application. Or, consider a personal loan from a lender like Upstart if you need funding fast.

Business loan documentation checklist

Prepare to submit personal and business documents when applying for a small business loan, including:

• Business and personal tax returns for your business and all owners
• Government-issued identification and Employer Identification Number (EIN)
• Profit and loss statements and balance sheets for up to three years
• Business and personal bank statements
• Business plan and future projections
• Personal credit score requirement — typically 670+

What is the largest business loan I can get?

How much of a loan you can qualify for depends on factors like your business’s revenue, debts and what you’re financing. Generally, your loan amount is based on the value of a self-liquidating asset that you’re using the funds to purchase.

• SBA loan — from $500 to $5,000,000, depending on the program
• Lines of credit — highs of $250,000 to $500,000
• Equipment financing — value typically equal to the equipment’s value

Business loan alternatives

If you own a newer business, haven’t yet reached $100,000 in revenue or have poor credit, you may not qualify for the lowest rates. Look to other financing options to grow your business.

Personal loans

For entrepreneurs looking to fund a startup, a personal loan is a popular choice. These loans typically max out at $50,000, though sometimes reach $100,000. The best personal loans require good credit — so they’re not right for all business owners and needs.

Use our table to compare rates, credit score requirements and loan amounts to see if a personal loan is the right choice for your business. Select Compare for up to four loan products to see their benefits side by side.

Sort by:

Name	Product	Filter Values	APR	Min. credit score	Loan amount
Best Egg personal loans Finder Rating: 3.8 / 5: ★★★★★ Best Egg personal loans Finder Rating: 3.8 / 5: ★★★★★			8.99% to 35.99%	600	$2,000 to $50,000	A prime online lending platform with multiple repayment methods.	Go to site More Info	Compare	loading Fetching your data...
Upstart personal loans Finder Rating: 4.15 / 5: ★★★★★ Upstart personal loans Finder Rating: 4.15 / 5: ★★★★★			6.7% to 35.99%	300	$1,000 to $50,000	This service looks beyond your credit score to get you a competitive-rate personal loan.	Go to site More Info	Compare	loading Fetching your data...
LightStream personal loans Finder Rating: 4.83 / 5: ★★★★★ LightStream personal loans Finder Rating: 4.83 / 5: ★★★★★			7.99% to 25.00%	Good to excellent credit	$5,000 to $100,000	Borrow up to $100,000 with low rates and no fees.	Go to site More Info	Compare	loading Fetching your data...

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Crowdfunding

You might not need to take on debt or pay anyone back at all if your business needs to fund a project that’s easy to communicate in a short video. Friends, fans or investors can help you raise money through crowdfunding. But keep up with regulations that are developing around it.

For example, all crowdfunding transactions must be done online through a Securities and Exchange Commission (SEC)-registered intermediary, and you can’t raise more than $5 million through crowdfunding offerings in a 12-month period, as stated by the U.S. SEC.

Equity investments

You could finance your business needs by bringing on an investor. An investor allows you to get funding for your business that you never have to pay back in exchange for partial ownership in your company. But make sure you have a lawyer on retainer to avoid getting in legal trouble with the SEC.

Business credit cards

For small expenses or working capital, a business credit card can be easier to manage than a loan. Plus, many business credit cards come with 0% APR promotional periods, giving you a window to make a big purchase and pay it off without interest over a few months or a year.

Invoice financing

This alternative type of financing is an advance on unpaid accounts receivables — also called accounts receivable financing. It’s an asset-based loan to help give your business cash flow while you wait for invoices to be paid. However, invoice financing is an advance, so it can get expensive.

Inventory financing

Got orders but not enough inventory? Typically, inventory financing is a line of credit that you use to purchase product, and the inventory is collateral on the loan. However, if you need to buy perishables like produce, you can find inventory financing options for which the inventory doesn’t secure the loan.

Merchant cash advance

Considered an alternative borrowing option, a merchant cash advance is a lump sum loan based on a percentage of your business’s card sales. It’s often for emergencies, used to cover expenses in a pinch or during slow seasons. Merchant cash advances don’t charge traditional interest. Instead, you’re charged a fee called a factor rate expressed as a decimal — usually between 1.09 to 1.5 — and the factor is multiplied by the amount borrowed.

This type of financing can get expensive and many providers require weekly repayments.

Grants and other resources for small businesses

Whether you’re just starting out or need help with crafting a business plan, check out these no- or low-cost resources:

• Small Business Development Centers — SBDCs are the US’s network of small business development centers, all sharing the goal of helping small businesses grow. With over 1,000 local centers, SBDCs offer no-cost consulting to assist entrepreneurs in growing or starting a business.
• USA.gov — Search for grants, training programs or financing options in your state through this government site.
• Federal grants for tech businesses — Tech-centered businesses may be eligible for the Small Business Innovation Research (SBIR) or Business Technology Transfer (SBTT) program grant. Each grant is suited for tech businesses or those with scientific research.

How to manage payments

Business owners may not be strangers to debt. But if you’re looking to take on your first business loan, or you’re struggling to manage multiple credit lines, keep these tips in mind:

• Autopay. Sign up for autopay to avoid missing payments. As a bonus, many lenders offer rate discounts if you enroll in autopay, often around 0.25%.
• Keep your lender in the loop. Even when things are going great, stay in contact with your lender because they may offer you new products, and business lenders tend to prefer lending to businesses with existing relationships.
• Ask about hardship programs. Hard times can fall on anyone. If you’re unable to repay your loan, even temporarily, contact your lender and ask about a hardship program or deferment plan. More often than not, lenders would rather offer a deferment option than have you default.
• Only borrow when you need it. Don’t be tempted to take on a larger loan simply because it’s offered, and make sure the loans you do take on will be beneficial.
• Consider consolidating if you have multiple loans. If you have multiple loans or your loan’s interest rates are super high, you may be able to consolidate your business debt for a lower rate and more manageable payments — if your business is in a strong financial situation have decent credit.