Your business can apply for a $2 million business loan from a bank, credit union or online lender. Banks and credit unions typically have strict requirements — like higher minimum revenue and more time in business — than online lenders, but may offer lower rates. Online lenders accept smaller businesses, but yours will still need to meet specified requirements to qualify.
To cover such a large amount, many lenders work with the SBA. When you borrow, the SBA backs a portion of your loan to help reduce your rates. There are two programs that offer $2 million loans:
The application process takes longer than other types of business loans, and it’s harder to be approved. However, if you meet the requirements set by the SBA, your business may be able to borrow $2 million at an extremely competitive rate.
Each lender has its own process, however, these steps should help guide your business toward the right loan option:
The actual cost of how much you’ll pay in interest for a business loan depends on your business and the type of financing you’re applying for. Generally, $2 million is on the higher end of what most lenders offer — if they even offer loans of this size at all. Expect long terms from seven to 25 years, and rates on the lower end from 7% to 15% APR.
If you were to take out a $2 million business loan at a 9% APR with a 15-year term, your business would be on the hook for monthly repayments of $20,285.33 and a total loan cost of $1,651,359.70.
Use our calculator to play around with what you may page on multi million dollar business loan with different terms.
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You have a wide range of business loan options when it comes to $2 million business loans, even though loans of this amount are typically on the higher end of what lenders offer. Which option is best for you depends on your business and its needs.
A term loan gives you a lump sum of financing, which you repay plus interest and fees over a set term — usually from seven to 25 years for a $2 million loan. It’s meant to cover a one-time business expense and typically requires collateral for loan amounts of this size.
For an ongoing project where you need access to cash, a business line of credit makes more sense. It allows you to draw from a $2 million credit line as needed — and you only pay back what you borrow. These tend to also have rigorous credit standards and are typically secured by your business assets.
Equipment financing is a term loan backed by the equipment you buy. You typically need to make a down payment of around 20% to qualify. And your loan amount is based on the value of the item you’re purchasing.
Though not as common as small-dollar business loans, it’s still possible to find $2 million in financing from the standard providers: banks, credit unions and online lenders. But you might have trouble qualifying for a competitive rate if you don’t have good credit or high-enough revenue to afford the five-digit repayments.
You can learn more about how it all works by reading our guide to business loans.
What $2 million business loans are available without collateral?
You might be able to find a $2 million business loan that doesn’t require collateral if you have excellent credit and high revenue. But you and your business partners still might be required to sign a personal guarantee, meaning you’re responsible for repaying the loan if your business can’t.
Invoice financing can help your business meet immediate cash flow needs based on your unpaid invoices.
Startups and newer businesses could qualify for up to $150,000 in financing.
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