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Compare $20,000 business loans

Online lenders may offer the best options 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+

For a variety of finance options

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  • Required time in business: 6+ months
  • Required monthly revenue: $10k+
  • Min credit score: No credit needed

Best for business line of credit

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  • Required time in business: 1+ years
  • Required monthly revenue: Average of at least $3,000
  • Min credit score: 660
Name Product Filter Values Min. Amount Max. Amount APR Requirements
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio business loans
$1,000
$5,000,000
Varies by lender
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.
Fundible
Finder Score: 4.9 / 5: ★★★★★
Fundible
$1,000
$10,000,000
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
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Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera business loans
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
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Most types of lenders offer $20,000 business loans. Whether you need a long term loan, a business cash advance or a line of credit, $20k loans come in a variety of options. You won’t necessarily need perfect credit to qualify, but you’ll need to meet time in business requirements of at least six months to a couple of years depending on the lender you work with. Your business will also need to generate at least $50k to $100k in annual revenue.

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.

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.

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 much pricier than more traditional types of financing.

Many microlenders and CDFIs also 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.

Business loan calculator

See how much you'll pay on a $20K business loan
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Interest rate
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Principal $
Interest $
Total Cost $

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
Upstart personal loans
Finder Score: 4.2 / 5: ★★★★★
Upstart personal loans
7.80% to 35.99%
300
$1,000 to $50,000
This service looks beyond your credit score to get you a competitive-rate personal loan.
SoFi personal loans
Finder Score: 4.4 / 5: ★★★★★
SoFi personal loans
8.99% to 29.99%
680
$5,000 to $100,000
A highly-rated lender with competitive rates, high loan amounts and no required fees.
Best Egg personal loans
Finder Score: 3.8 / 5: ★★★★★
Best Egg personal loans
8.99% to 35.99%
640
$2,000 to $50,000
Fast and easy personal loan application process. See options first without affecting your credit score.
Upgrade
Finder Score: 4 / 5: ★★★★★
Upgrade
8.49% to 35.99%
620
$1,000 to $50,000
Check your rates with this online lender without impacting your credit score.
LendingPoint personal loans
Finder Score: 3.3 / 5: ★★★★★
LendingPoint personal loans
7.99% to 35.99%
620
$2,000 to $36,500
Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
Happy Money
Finder Score: 3.8 / 5: ★★★★★
Happy Money
11.72% to 24.50%
640
$5,000 to $40,000
Pay down your debt with a fixed APR and predictable monthly payments.
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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:

Written by

Anna Serio

Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full profile

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