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Compare $20,000 business loans

Online lenders will likely be your best shot for a $20k business loan — unless you're a startup or have bad credit.

Best for small businesses

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  • Required time in business: 6 months
  • Required monthly revenue: $20k
  • Min credit score: 550

Easy, fast funding options

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  • Required time in business: 1+ years
  • Required annual revenue: $50k+
  • Min credit score: 525+

Good for high loan amounts

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  • Required time in business: 6 months
  • Required annual revenue: $200k
  • Min credit score: 500+
Name Product Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio business loans
Starting at 3%
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $20,000 in monthly revenue
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Finder Score: 4.7 / 5: ★★★★★
Starting from 3.9%
525+ credit score, one year in business, at least $50,000 annual revenue
Compare lending options and get funded fast.
Finder Score: 4.9 / 5: ★★★★★
Rates start at 1% per month
500+ FICO score, $200,000 annual revenue, 6 months in business, most recent business bank statements
Same day approval
Finder Score: 4.4 / 5: ★★★★★
Varies by loan type and lender
Must have been in business between 1 to 2 years, have a minimum revenue of $75,000 to $250,000 and have a minimum credit score of 500 to 650.
Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.

While most types of lenders offer $20,000 business loans, a loan of this size can be hard to find at some big banks — several continue to focus on Paycheck Protection Program lending, which limits business loan offerings. This amount can also be on the high-end for microlenders, especially those that offer startup financing.

Compare all your options before applying to find the best $20,000 loan for your business’s needs.

Where can I get a $20,000 business loan?

You can get a $20,000 business loan with most types of business lenders. Online lenders offer the most options when it comes to loans of this amount. But they don’t always offer a personalized experience and can charge higher-than-average rates.

Community banks and nonprofits like community development financial institutions (CDFIs) or microlenders also offer loans of this size. These tend to offer lower rates than you’ll find online and provide guidance to help grow your business.

Most COVID-19 recovery loan programs offer $20,000 business loans — though the amount your business qualifies for usually depends on lost revenue due to the coronavirus outbreak, monthly payroll or working capital expenses.

If you want a $20,000 business loan to start a business, community banks and microlenders sometimes offer programs that can fund a business through its first few months. A personal loan from a lender like Upstart can also be a good option for entrepreneurs with good credit and a source of income outside their new venture. Almost all offer $20,000 personal loans that you can use for startup costs.

How to apply for a $20,000 business loan

The application process for a $20,000 business varies depending on your business, your personal finances and what you want to fund. But generally, it includes the following steps.

  1. Compare providers that offer the type of funding you need at $20,000. Also consider factors like the turnaround time, minimum requirements, rates, fees and customer reviews.
  2. Get a rate quote from your top choices. You can do this by filling out a prequalifiaction form or speaking with a loan officer at banks, CDFIs and microlenders.
  3. Find the documents you need to complete the application, such as personal and business taxes, bank statements and financial statements.
  4. Fill out the rest of the application and submit any additional documents that your lender requires, like a state-issued ID.
  5. Review your final offer, paying attention to the annual percentage rate (APR), fees, payment due dates and terms.
  6. Sign the contract and wait to receive your funds. Typically funds are available within a few business days after signing off on the loan.

Overall, the process of getting a $20,000 business loan can range from one day to a few weeks. Online lenders tend to be the fastest. Banks, CDFIs and microlenders can take longer — especially if it’s your first loan with that institution.

How can I get a $20,000 business loan with bad credit?

You can get a $20,000 business loan with bad credit by applying with a lender that accepts personal credit scores below 580 — what FICO considers to be bad credit.

Some online lenders specialize in bad credit business financing. And some, like merchant cash advance and factoring companies, don’t consider your credit score at all. But these are often extremely expensive and can come with fees equivalent to 300% APR.

Many microlenders and CDFIs also specifically offer $20,000 loans to business owners with bad or no credit, often at lower rates than online lenders. Though you might have to enroll in a training course to qualify.

Some community banks may also be willing to overlook a low credit score for a $20,000 loan, if you have an explanation for negative marks on your credit report.

How much does a $20,000 business loan cost?

The cost of a $20,000 business loan depends on the rates and terms you qualify for. Use our calculator to estimate how much you’ll pay each month and in total.

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Can I get a $20,000 SBA loan?

Yes, you can get a $20,000 loan backed by the Small Business Administration (SBA). Technically the SBA doesn’t have a minimum loan amount for any of its programs.

But an SBA microloan might be a better choice for a loan of this size. The maximum SBA microloan is $50,000, while the average is around $13,000.

Compare personal loans for startups

Entrepreneurs and business owners with income outside of their company may want to consider a personal loan if they can’t meet time in business or revenue requirements. Select Compare for up to four providers to see how their APRs, credit score requirements and loan amounts stack up.

Name Product Filter Values APR Min. credit score Loan amount
Best Egg personal loans
Finder Score: 3.8 / 5: ★★★★★
Best Egg personal loans
8.99% to 35.99%
$2,000 to $50,000
Fast and easy personal loan application process. See options first without affecting your credit score.
Upstart personal loans
Finder Score: 4.2 / 5: ★★★★★
Upstart personal loans
7.80% to 35.99%
$1,000 to $50,000
This service looks beyond your credit score to get you a competitive-rate personal loan.

Bottom line

Smaller banks and online lenders might offer the most options when it comes to $20,000 business loans. And since $20,000 is a relatively low amount for a business loan, you could have an easier time qualifying for a loan as a startup or with bad credit. Compare more options by reading our guide to business loans.

Other business loan amounts:

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