Compare $300,000 business loans

What types of business loans for $300,000 are available?

Business loans for $300,000 cover a wide range of financing scenarios. Here’s a list of the most common types.

Secured vs. unsecured business loans

Business loans can either be secured or unsecured. A secured loan is backed by collateral from your business – like real estate, equipment or other valuable assets. An unsecured loan is based on your creditworthiness and doesn’t require collateral. But with an unsecured loan, you’ll likely need to provide a personal guarantee.

Can I get an unsecured $300,000 business loan?

It’s possible to get an unsecured $300,000 business loan, especially if you apply with an online lender. However, most lenders prefer to collateralize $300,000 loans because they stand to take a sizable loss if your business defaults.

And even then, most unsecured loans require a personal guarantee from all business owners with a 20% stake in the company.

Where can I get a $300,000 business loan?

You can get a $300,000 business loan from most banks and lenders that offer loans backed by the Small Business Administration (SBA).

Community and regional banks might be a particularly good choice for small businesses. While large banks like Chase often offer loans of this size, it can be difficult for smaller businesses to qualify for financing — especially if you have fewer than 10 employees.

Some online lenders like Fora Financial and Rapid Finance offer $300,000 loans — even to borrowers with bad credit. But online lenders typically only finance smaller projects, and some don’t offer financing over $250,000.

How to apply for a $300,000 business loan

You can apply for a $300,000 business loan by following these general steps. But beware — the application process is usually more intensive for a loan of this size than for financing under $100,000.

1. Decide on the type of loan your business needs. Long-term loans and equipment financing are best for investing in long-term growth projects. Short-term loans, lines of credit, inventory financing and business cash advances are best for short-term needs and ongoing projects.
2. Compare business loan providers and check your eligibility. This could involve setting up an appointment with a loan officer at a bank. Or use a connection service like Lendio that partners with both bank and online lenders to quickly compare offers.
3. Get prequalified. After you’ve made a list of lenders you’re interested in, get a personalized quote from your top choices by doing a prequalification. Prequalification allows you to compare rates and terms before applying and doing a hard credit pull.
4. Gather all required documents. For a $300,000 loan, this will require a government-issued ID, EIN, bank statements from the past few months for the business and owners, tax returns, financial statements and financial projections.
5. Apply for the loan. If your lender has an online application, this sometimes only takes a few minutes. But SBA loans typically require multiple forms that can get complicated. It may be worth signing up for a packaging service from a company like SmartBiz.
6. Appraise collateral. If required, hire a professional to appraise your collateral. While standard for real estate loans, you might also need to take this step for an equipment loan or if you’re financing inventory.
7. Sign your loan offer. If you’re approved for a loan, read your loan offer carefully before signing, noting the interest rate, fees, repayment terms and due dates.

How much does a $300,000 loan cost?

How much a $300,000 loan costs depends on the rates, fees and loan terms your lender offers.

Suppose your business took out a $300,000 loan at an 8% APR and a seven-year term. The loan would cost your business around $4,676 each month and about $92,772 in interest after you’ve fully paid off the loan.

See how much a $300,000 business loan costs at other rates and terms by using our calculator and compare costs to typical business loan rates.

Can I get a $300,000 SBA loan?

Get a $300,000 loan from most SBA lenders. In fact, SBA loans can be a great option for established small businesses that have been around for about three years but can’t qualify for a bank loan.

It’s not a bad credit option, however. You need a credit score of at least 620 to qualify for government-backed financing. And your business typically needs to have enough revenue to support payments — usually around just under $1 million to $3 million.

But the SBA sometimes has revenue caps, which vary depending on your industry. For example, many agriculture businesses must earn less than $1 million in annual revenue to qualify.

Which SBA programs offer $300,000 loans?

Most SBA loan programs offer $300,000 loans. Here are some options you might want to consider:

• SBA 7(a) loans are general-purpose term loans and the most popular SBA loan program. But for a $300,000 loan, avoid the largest 7(a) lenders like Live Oak Bank, which typically specialize in financing higher dollar projects.
• SBA Express loans can be used in the same way as a 7(a) loan — but with a faster turnaround. However, a lower SBA guarantee means your business likely needs to back the loan with collateral valued at up to $150,000.
• SBA CAPLines offer $250,000 lines of credit for expenses like working capital, filling a government contract, completing a construction project or preparing for a seasonal spike in sales.
• SBA CDC/504 loans are specialized financing for real estate or equipment purchases and are available at $300,000.

Bottom line

Banks and SBA lenders are often your best bet for $300,000 business loans. Before you land on a lender, compare the best business loans. Determine which ones have the type of financing you need and — if it’s available — prequalify before you submit your full application.

Other business loan amounts: