Startup Loans in the US: SBA & Bank Financing for Founders
From SBA 7(a) to microloans and online lenders: find the startup loan you can actually get, then get matched with lenders, grants and investors for free.
SBA 7(a) loans at ~9-13.25% variable, terms up to 25 years
Up to $50K
SBA Microloans, the true startup entry point (average ~$13K)
1-7 days
Online lenders fund working capital in days, at a price
In the first nine months of 2025, 8,900 SBA loans worth $5.6B went to startups and new businesses, part of a record $44.8B in SBA-guaranteed lending in FY2025 (SBA data).
The honest founder's guide
What Are Startup Loans in the US?
For US founders, "startup loans" mostly means SBA-guaranteed lending: the government guarantees 75-85% of a bank loan so lenders can say yes to companies they would otherwise decline. FY2025 was the biggest year on record, with $44.8B guaranteed across roughly 84,400 loans, according to SBA data. The flagship 7(a) program lends up to $5M at ~9-13.25% variable, priced over the current Prime Rate of 6.75%, while SBA Microloans cover the first $50K.
The hard truth most guides skip: since June 2025, the SOP 50 10 8 rules made underwriting stricter, with a verified 10% equity injection for startups, collateral considered above $50K, and a minimum SBSS score of 165. The Fed's Small Business Credit Survey found only 28% of firms under two years old get fully approved, versus 57% of 10-year-old firms. This guide maps every route that still works, and if debt does not fit yet, our investor database matches you with equity investors instead.
US Startup Loans
Every Startup Loan Route in the US
Six routes, from $500 microloans to $5M SBA facilities. Match the route to your stage before you apply anywhere. And if you are doing R&D, check SBIR grants first: non-dilutive federal money beats any loan.
SBA 7(a) Loans
The flagship program: up to $5M at ~9-13.25% variable (capped spreads over Prime 6.75%), terms up to 10 years for working capital and 25 for real estate. Startups with a year of revenue or less can qualify, with conditions.
SBA guarantees 75-85% of the loan
Verified 10% equity injection for startups (15-25% in practice)
Personal guarantee from all 20%+ owners
Collateral considered on loans above $50K
30-90 days to fund, 60-90 typical for startups
Loan sizeUp to $5M
SBA Microloans
The true startup entry point. Up to $50K (average ~$13K) at 8-13%, terms up to 7 years, delivered through nonprofit community intermediaries who make the credit decisions themselves.
26% go to businesses under 2 years old
Personal credit around 620 typically accepted
Cannot repay existing debt or buy real estate
Nonprofit intermediaries, not banks, decide
Loan sizeUp to $50K
SBA 504 Loans
Fixed assets only: real estate and machinery with a 10+ year life, no working capital. The classic structure is 50% bank, 40% CDC, 10% you, rising to 15% down for startups.
Up to $5.5M on the CDC portion
Fixed rate: ~10-yr Treasury + ~3%
10, 20 or 25 year terms
Only through Certified Development Companies
Loan sizeUp to $5.5M
Online & Fintech Lenders
The trade-off stated plainly: funding in 1-7 days, but term loans run 14-99% APR. Fundbox accepts just 3 months in business; OnDeck and Bluevine want 12-24 months.
Fundbox: credit line to $150K from 3 months in business
OnDeck: term loans up to $400K, 625 credit
Bluevine: credit line to $250K, 24 months in business
Best for bridging cash flow, not long projects
Typical range$5K–$400K
Mission Lenders & CDFIs
Community lenders built to say yes when banks say no. CDFIs lend at roughly 7-20% with flexible, startup-friendly underwriting; Kiva crowdfunds up to $15K at 0% interest.
Kiva US: $1K-15K at 0% APR, no credit minimum
Accion Opportunity Fund: $5K-250K from 12 months in business
Slower process, but genuinely flexible
Kiva funds in 30-60 days via social underwriting
Typical range$1K–$250K
Bootstrap Routes
The self-serve options, with honest risk framing: they work, but the liability is personal, and it does not disappear if the business does.
Business credit cards: 0% intro for 6-18 months, then ~16-27%+
Equipment financing: the asset is the collateral, so startups qualify more easily (4-45%)
Personal loans: $1K-100K at 7-36%, funded in about a week
Some personal lenders prohibit business use: read the terms
Typical range$1K–$100K
Not sure which loan route fits your startup?Create a free profile and we'll match you with the lenders, grants and investors that fit your stage, sector and ticket size. It's 100% free.
Six requirements decide whether an SBA lender will underwrite a company with little or no revenue history. Miss one and you are usually better off starting with a microloan or a CDFI.
A year of revenue or less counts as a startup. That is the SBA's own definition, and startups do get funded: 16% of 7(a) loans go to founders opening new businesses. You must also show you cannot get credit on reasonable terms elsewhere.
A verified 10% minimum equity injection. Since the June 2025 SOP 50 10 8 rules, lenders must document your cash, no more self-certification. Expect 15-25% in practice; seller notes count only on full standby and up to half the injection.
Personal credit around 680+ for 7(a). The practical floor is ~640, the sweet spot 680+, and microloans accept ~620. On smaller 7(a) loans the SBSS business credit score must now clear a minimum of 165.
A business plan, 3-year projections and industry experience. With no financial history to underwrite, lenders underwrite you: a lender-grade plan, realistic projections and a resume that proves you know the industry.
Personal guarantee and collateral. Every owner holding 20% or more signs a personal guarantee, and lenders must consider collateral on all loans above $50K, a threshold cut from $500K in 2025.
100% US citizen, national or LPR ownership. Under the 2025 rule, every owner and guarantor must be a US citizen, national or lawful permanent resident. Foreign-owned startups need to look at non-SBA routes.
What it costs
Startup Loan Rates Compared
Same borrower, wildly different prices. Here is the honest spread across the five main routes, at the current Prime Rate of 6.75%.
Loan route
Amounts
Typical APR
Time in business
Speed to fund
SBA 7(a)The flagship program
Up to $5M
✓~9-13.25% variable
Startups OK with 10%+ down
30-90 days
SBA MicroloanThe startup entry point
Up to $50K (avg ~$13K)
✓8-13%
New businesses welcome
Weeks to a few months
Bank term loanLowest cost, hardest approval
Varies by bank
✓~7-12%
2+ years, ~700+ credit
Slowest: full underwriting
Online term loanSpeed over price
$5K-$400K
~14-99%
3-24 months
1-7 days
Merchant cash advanceLast resort
Advance on card sales
~40-350% effective
Minimal requirements
1-7 days
A founder's guide
How to Get an SBA Startup Loan
A standard 7(a) runs 30-90 days end to end, with 60-90 days typical for startups. Here is the path, step by step.
Weeks 1–3
Prepare Your Plan, Projections and Equity Injection
Write a lender-grade business plan with 3-year financial projections, document your industry experience, and line up your equity injection: a verified minimum of 10% of total project costs, and realistically 15-25%. Since 2025 there is no self-certifying this; the lender must see the cash.
Weeks 3–4
Find the Right SBA Lender
Prefer SBA Preferred Lenders, who hold delegated approval authority and move faster. Match the loan size to the program: microloans up to $50K through nonprofit intermediaries, SBA Express up to $500K, standard 7(a) above that. Note the Express nuance: the SBA responds within 36 hours, but funding still takes 30+ days.
Weeks 4–8
Underwriting: Credit, Collateral, Verification
The lender pulls personal credit (aim for 680+) and your SBSS business score (minimum 165), considers collateral on anything above $50K, verifies your equity injection, runs IRS tax transcript verification and applies a personal liquidity test. Slow responses to document requests are the number-one avoidable delay.
Weeks 8–12
Approval, Closing and Funding
Sign the loan authorization, meet the closing conditions and receive funds. The SBA processes roughly 1,600 loans a week, though timelines can stretch: the 43-day government shutdown in late 2025 built a backlog that has since cleared, a reminder to build slack into your runway plan.
Where founders actually borrow
Key US Startup Lenders to Know
Informational references based on published requirements, not endorsements: terms change often, so confirm directly with each lender before applying.
Category
SBA & Traditional Banks
The lowest cost of capital, and the strictest gatekeeping: big banks fully approve only a minority of small business applicants, and most want two years of history.
ChaseTerm loans, lines of credit and SBA lending. Generally expects 2+ years in business, so true startups route via SBA programs.
Bank of AmericaUnsecured lending needs 2 years, $100K revenue and a ~700 score. Exception: the Cash-Secured line of credit at 6 months and $50K revenue.
Wells FargoBusinessLine requires 2 years and 680 credit, but the SBA-backed Small Business Advantage line accepts under 2 years in business (680 credit, up to $150K).
Category
Online & Fintech Lenders
Days to fund instead of months, in exchange for materially higher rates. The differences that matter are credit floors and time-in-business minimums.
OnDeckTerm loans up to $400K. Minimum 625 credit, 12 months in business, $100K annual revenue.
BluevineLines of credit up to $250K. Minimum 625 credit, 24 months in business, $10K monthly revenue.
FundboxLines of credit to $150K from just 3 months in business and a 600 score: one of the most startup-friendly floors online.
AmEx Business BlueprintLines of credit $2K-250K on a monthly-fee model. Roughly 640-660 credit, ~12 months in business, ~$3K monthly revenue.
LendioA marketplace, not a lender: one application reaches 75+ lenders, $1K to $5M+, with 216K+ loans and $10B+ facilitated to date.
Category
Mission & Microlenders
Built for borrowers banks decline: pre-revenue founders, thin credit files, underserved communities. Slower, smaller, and often the only genuine yes for a day-one startup.
Accion Opportunity FundCDFI term loans $5K-250K from a 620 score and 12 months in business.
Kiva USCrowdfunded microloans of $1K-15K at 0% APR with zero fees, no minimum credit score and no time-in-business requirement. Funds in 30-60 days.
CDFIs (nationwide)Community Development Financial Institutions lend at roughly 7-20% with flexible, startup-friendly underwriting and a slower process.
SBA microloan intermediariesNonprofit community lenders who run the SBA Microloan program and make the credit decisions themselves: up to $50K, credit around 620.
Keep exploring
Related Debt Guides
SBA loans are one lane. If you have raised from VCs, venture debt is the dedicated instrument; if you have recurring revenue, revenue-based financing repays as you earn.
Venture Debt
Term loans with warrants for VC-backed startups: typically 20-35% of your last equity round at 8-15% interest plus 0.5-2% warrant coverage.
Non-dilutive capital repaid as a percentage of monthly revenue: payments flex with your sales, no personal guarantee theatrics, best for SaaS and ecommerce.
Yes. The SBA defines a startup as a business with a year of revenue or less. You will need a minimum 10% equity injection (often 15-25% in practice), a solid business plan with 3-year projections, industry experience, collateral consideration on loans over $50K and a personal guarantee. SBA Microloans (up to $50K) are the most startup-friendly entry point: 26% go to businesses under two years old.
SBA 7(a): around 640 minimum, with 680+ recommended. SBA microloans: around 620. Banks: 680-700+. Online lenders: 570-625. Kiva has no minimum credit score at all. On smaller 7(a) loans the SBA also applies an SBSS business credit minimum of 165.
SBA 7(a) goes up to $5M and SBA 504 up to $5.5M, though both are rare for true startups. Microloans lend up to $50K with an average around $13K, online lenders roughly $5K-400K, and Kiva up to $15K at 0% interest.
Harder than they were. The June 2025 SOP 50 10 8 rules restored stricter underwriting: the collateral threshold dropped to $50K, the SBSS minimum rose to 165, and the 10% equity injection must now be verified by the lender. Per the Fed's Small Business Credit Survey, only 28% of firms under two years old get fully approved for financing, versus 57% of firms with 10+ years of history.
SBA loans take 30-90 days, with 60-90 typical for startups. SBA Express gets a 36-hour response from the SBA itself, but funding still takes 30+ days. Online lenders fund in 1-7 days, and Kiva takes 30-60 days.
With the Prime Rate at 6.75%, SBA 7(a) loans run roughly 9-13.25% (Prime plus capped spreads that shrink as the loan grows), microloans 8-13%, and online lenders 14-99%. Merchant cash advances start around 40% effective APR and climb from there: avoid them if you possibly can.
Yes. SBA rules set a minimum 10% equity injection of total project costs for startups, and since June 2025 the lender must verify it rather than take your word. In practice, many lenders ask true startups for 15-25% down.
Often yes: personal loans run $1K-100K at 7-36% APR, are approved on your personal credit and income, and fund within about a week. But you are personally liable whether or not the business survives, and some lenders prohibit business use, so read the terms before you sign.
Debt Is One Path. Here Is the Full Picture.
Debt financing works best as part of a funding stack. The strongest startups combine non-dilutive capital (grants + debt) with equity investment from angels, VCs, and family offices.
AngelsPartners is the only platform where a founder can access all three capital pathways in one place: grants, debt information, and 100,000+ equity investor profiles with live reply-rate data.
Equity funding
100,000+ Equity Investors
The largest searchable database of angels, VCs, family offices, and corporate investors on one platform. Filter by sector, geography, ticket size, and stage. Direct contact details included - no gatekeepers, no pay-to-pitch.
Once you submit your profile, our AI scans grant programmes across the UK, US, and EU to find programmes that match your sector, stage, and geography. Zero dilution, no repayment obligations.
UK, US, and EU grant programmes covered
R&D tax credits, innovation loans, and challenge prizes
