A startup business loan is money you borrow before the business has much of a track record. That is the hard part. Most business lenders want to see months of sales in a business bank account before they say yes, so a company that opened last week is shopping from a much shorter list than one that has been open a year. The good news is that the short list includes some of the cheapest money there is.
Four questions sort your options. How long has the business been open? How much revenue is coming in each month? How strong is your personal credit? And how fast do you need the money? Answer those and the right choice below is usually obvious. The quick picks show what each one is best for. Tap one to jump to its card and the fine print.
Best Startup Business Loans
Every number here was checked against the lender’s or program’s own site as of this update. One thing to know up front: if you already have six months of sales, Fora Financial is the fast one, with funding in as little as 24 hours after you accept an offer. If you are not there yet, the options right after it are built for brand-new businesses.
Fora FinancialFastest funding once you have 6+ months of revenue$5K to $1.5M · 24-hour funding2
SBA MicroloansBest for a brand-new business that needs $50,000 or lessup to $50,0003
KivaBest for a 0% loan with no credit score requirement0% interest4
Blue Business Cash CardBest 0% intro APR card for startup purchases0% for 12 months5SBA 7(a) LoansBest for a bigger loan with SBA-capped ratesup to $5 million6
LiliBusiness checking to open before you apply anywhere$0 monthly fee1. Fora Financial
Best once you have 6+ months of revenue
Best if you have six months of sales and need cash fast.
Fora Financial funds businesses with at least 6 months of operating history, $240,000 or more in annual revenue and a 570+ personal credit score. It is not a day-one startup loan. It is the fast option once money is coming in.
Fill out the five-minute online application and upload three months of business bank statements
A Capital Specialist reviews your file and you get a decision in as little as 4 hours
Accept the offer and the money can land in as little as 24 hours
Want the fine print? Costs, speed, and what you really get
Applying is a soft credit check with no cost and no obligation. Expect to pay more than an SBA loan, with daily or weekly payments.
2. SBA Microloans
Best for a brand-new business that needs $50,000 or lessBest if you are brand new and need a small loan.
SBA microloans are made by nonprofit, community-based lenders using money from the Small Business Administration. The local lender makes the credit decision and sets the terms, so requirements differ from one lender to the next.
Find an SBA-approved intermediary lender in your area on sba.gov
Apply with that lender directly. Each one sets its own credit and collateral requirements
Use the money for working capital, inventory, supplies, furniture, fixtures, machinery or equipment
Want the fine print? Costs, speed, and what you really get
Rates are generally 8% to 13% with up to 7 years to repay. You apply through a local nonprofit lender, not the SBA itself.
3. Kiva
Best for 0% interest with no credit score requirementBest if your credit is thin and your network is strong.
Kiva is a nonprofit crowdfunding lender. You borrow $1,000 to $15,000 at 0% interest with no fees, and the loan is funded by individual people lending small amounts on the platform.
Apply online. Kiva reviews applications in 20 to 25 business days
Private fundraising: you bring in friends and family to lend first, which usually takes 10 to 15 days
Public fundraising on Kiva usually takes 20 to 30 days. Then you repay over 12 to 36 months
Want the fine print? Costs, speed, and what you really get
0% interest and no fees on $1,000 to $15,000. Plan on roughly 2 to 3 months from application to funding.
4. Blue Business Cash Card
Best 0% intro APR card for startup purchasesBest if you can pay off startup purchases within a year.
The Blue Business Cash Card from American Express is a credit card, not a loan. It gives you 0% introductory APR on purchases for 12 months from account opening and has a $0 annual fee, so it works like a free short-term loan for equipment, inventory and software.
Apply online. Approval and your rate are based on your creditworthiness
Put startup purchases on the card during the 12-month intro period
Pay the balance off before the intro period ends, because the regular rate is much higher
Want the fine print? Costs, speed, and what you really get
0% intro APR on purchases for 12 months, then 16.99% to 28.74% variable. $0 annual fee.
5. SBA 7(a) Loans
Best for a bigger loan with SBA-capped ratesBest if you need more than a microloan and can wait.
The 7(a) is the SBA’s main loan program. A bank or other approved lender makes the loan and the SBA guarantees part of it, which is why lenders will consider businesses they would otherwise turn down.
Use SBA Lender Match on sba.gov to get matched with approved lenders
Apply with the lender. You have to show you are creditworthy and able to repay
Repay monthly, principal and interest, from the cash flow of the business
Want the fine print? Costs, speed, and what you really get
Up to $5 million with rates capped by the SBA. You apply through an approved lender, and timing depends on that lender.
6. Lili
Best business checking to open before you applyBest if you still run the business through a personal account.
Lili is a business checking account, not a lender. It is on this list because lenders want to see business bank statements. Fora Financial asks for three months of them, so the clock on qualifying starts the day you open a business account and run your sales through it.
Open the account online and move your business income into it
Run every sale and expense through it so your statements show real revenue
Bring those statements when you apply for funding
Want the fine print? Costs and what you really get
$0 monthly fee on the Core plan and no minimum balance. Paid plans cost more and add tools.
What Are Startup Loans?
“Startup loan” is not one product. It is a catch-all for any financing a new business can get: government-backed loans like SBA microloans and 7(a) loans, nonprofit crowdfunded loans, business credit cards, and short-term online loans once you have some revenue. What they have in common is that the lender cannot lean on years of business tax returns, so it leans on something else. That is usually your personal credit, your business plan, your community, or your first few months of bank statements.
Who Qualifies for Startup Business Loans?
It depends on which of the four questions you can answer well. No revenue yet? Look at SBA microloans, where a nonprofit lender sets its own requirements, and Kiva, which says it never decides on your credit score. Good personal credit? A 0% intro APR business card covers purchases for a year. Six months of sales and about $20,000 a month coming in? Online lenders like Fora Financial open up, and they move fast. The SBA’s 7(a) program has no minimum time in business on paper, but you have to show you are creditworthy and able to repay.
How to Get a Startup Business Loan
- Separate your money first. Open a business checking account and run every sale through it. Lenders ask for business bank statements, and you cannot produce them from a personal account.
- Know your numbers. Write down your time in business, average monthly revenue and personal credit score. Those three decide which lenders will even look at you.
- Match the option to your stage. Brand new: SBA microloan, Kiva or a 0% intro APR card. Six months in with steady revenue: an online lender.
- Gather the paperwork. Expect to show a government ID, recent bank statements and, for SBA loans, a business plan and financial projections if the lender asks for them.
- Compare the total cost, not the payment. A factor rate of 1.25 on $100,000 means you repay $125,000. Ask every lender for the total you will pay back.
How to Choose the Right Loan for Your Startup
- Loan amount. Borrow what the plan needs. Microloans stop at $50,000, Kiva at $15,000, and the 7(a) goes to $5 million.
- Total cost. Kiva is 0%. SBA microloans generally run 8% to 13%. Short-term online loans cost more, and the price is quoted as a factor rate plus an origination fee.
- Repayment schedule. SBA loans are repaid monthly over years. Short-term online loans are repaid daily or weekly over 4 to 18 months. Make sure your cash flow can take that.
- What it can pay for. SBA microloans and 7(a) loans can both pay for machinery and equipment. Microloans cannot pay off existing debt or buy real estate.
- Speed. Fast money costs more. If you can wait two or three months, the cheap options are open to you.
- Credit impact. Ask whether applying is a soft or hard credit check, and whether the lender reports your payments to the business credit bureaus.
What to Do if You Are Denied a Startup Loan
A no usually means one of three things: not enough time in business, not enough revenue, or credit that needs work. All three are fixable. Ask the lender which one it was. Then keep running sales through your business checking account, because every month of statements moves you closer to the 6-month mark that online lenders want. If you do not have a business account yet, Lili has a $0 monthly fee on its Core plan.
While you wait, build business credit so the next application is stronger. Open a few net-30 vendor accounts that report your payments. Nav Prime‘s Build plan costs $49.99 a month and reports your membership payment as a tradeline to Experian, Equifax and Dun & Bradstreet. And if the amount you need is small, a 0% Kiva loan or an SBA microloan through a nonprofit lender may say yes where a bank said no.
Startup Business Loan FAQs
Fora Financial is the fastest option on this page once you qualify. It can give you an approval decision in as little as 4 hours and fund in as little as 24 hours after you accept the offer, for amounts from $5,000 up to $1.5 million. You need at least 6 months in business, about $240,000 a year in revenue and a 570 or higher credit score. The catch is cost: terms run 4 to 18 months with daily or weekly payments, and you will pay more than you would on an SBA loan.
Yes, but the list is short. An SBA microloan goes up to $50,000 and is made by a nonprofit lender that sets its own requirements. Kiva lends $1,000 to $15,000 at 0% interest and says it never decides based on your credit score. If your personal credit is good, the Blue Business Cash Card from American Express gives you 0% intro APR on purchases for 12 months. Online lenders like Fora Financial need 6 months in business, so come back to them once sales are coming in.
Yes. The SBA microloan program lends up to $50,000 through nonprofit community lenders, and the average microloan is about $13,000. The 7(a) program goes up to $5 million through banks and other approved lenders. The SBA does not set a minimum time in business for either one, but each lender has its own requirements, and for a 7(a) you have to show you are creditworthy and able to repay. Use Lender Match on sba.gov to find lenders.
Open a business checking account and run your sales through it, because lenders ask for business bank statements. Lili has a $0 monthly fee on its Core plan if you need one. Then write down your time in business, monthly revenue and credit score, and apply to the option that fits your stage: an SBA microloan or Kiva if you are brand new, or Fora Financial once you have 6 months of revenue.
Sometimes. It depends on the lender. Some personal loan agreements do not allow business use at all, so read the permitted uses before you sign. If the lender allows it, approval rests on your personal credit and income, and you are personally on the hook for the debt. Compare lenders on our best personal loans page and check each one’s rules first.
The Right Startup Loan Depends on Your Stage
Brand new with no revenue? Start with an SBA microloan or Kiva, and put purchases on a 0% intro APR card if your credit allows it. Open a business checking account today so your statements start counting. Once you have six months of sales, fast funding is on the table. Here is how all six compare.
All six at a glance
| Option | Loan amount | Time to fund | Time in business | Best for | Get started |
|---|---|---|---|---|---|
4.5 | $5K to $1.5M | As little as 24 hours | 6+ months | Best once you have 6+ months of revenue | |
4.5 | Up to $50,000 | Varies by lender | No SBA minimum | Best for a brand-new business that needs $50,000 or less | |
4.0 | $1,000 to $15,000 | About 2 to 3 months | None listed | Best for 0% interest with no credit score requirement | |
4.0 | Credit line set at approval | Card, not a cash loan | Not published | Best 0% intro APR card for startup purchases | |
4.0 | Up to $5 million | Varies by lender | No SBA minimum | Best for a bigger loan with SBA-capped rates | |
4.0 | Not a loan | Account opens online | None listed | Best business checking to open before you apply |
