7 Best Startup Business Loans for New Businesses

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The best startup business loans depend on how far your business has progressed, how much you need and how the money will be repaid. A pre-revenue founder needs a different shortlist from an owner with a year of trading and consistent deposits.

Reviewed October 30, 2026. This guide compares seven financing routes, including loan programs, one named online lender and a credit-card alternative. It is an editorial comparison of public terms, not a firsthand borrowing test or an approval prediction.

Can you get a startup business loan?

Yes, some programs and lenders consider new businesses, but a newly formed LLC does not by itself establish eligibility. The key questions are whether the provider accepts your stage of business, what evidence supports repayment and whether you can meet its financial and documentation requirements.

Be specific about your stage when you contact a lender. “Startup” can mean an idea, an operating business without revenue, a company with several months of sales or a young business that has already completed a full year. Ask whether the lender accepts your exact situation before completing an application.

If you do not have historical financial statements, ask which projections, owner financial information, vendor quotes and evidence of customer demand the lender will accept. A forecast explains the plan; it is not a substitute for meeting the program’s eligibility rules.

Quick comparison: seven startup funding options

Option	Potential fit	Amount or limit	Main limitation
SBA 7(a) loan	Larger eligible startup or early-business projects	Up to $5 million	Startup underwriting varies by lender; guarantees and documentation matter
SBA microloan	Smaller startup and expansion needs	Up to $50,000	Intermediary sets approval criteria and terms
Kiva U.S.	Small needs with community support	$1,000–$15,000	Crowdfunding takes time; eligibility restrictions apply
OnDeck	Operating businesses with at least one year of history	Term loan: $5,000–$400,000; credit line: $6,000–$200,000	Not available to a brand-new, pre-revenue business under stated minimums
Equipment financing	A specific productive asset	Provider and asset dependent	Financed equipment can be at risk on default
Business credit card	Smaller business purchases	Issuer and applicant dependent	Revolving credit, rather than an installment startup loan
CDFI or local loan	Businesses served by a particular community program	Program dependent	Location, mission and product eligibility vary

Maximum amounts are not typical startup approvals. For categories rather than individual products, there is no universal rate, credit-score minimum or funding limit. Some categories overlap: an SBA microlender may also be a CDFI.

How these options were selected

“Best” means potentially useful for a different financing need, rather than a numerical ranking. The comparison considers startup eligibility, permitted use of funds, borrowing structure, repayment risk and the availability of public information. The seven entries are not seven interchangeable lenders, and no option is best for every applicant.

1. SBA 7(a) loans: investigate for a larger eligible project

The SBA’s 7(a) program guarantees part of a participating lender’s loan; the borrower applies to the lender rather than receiving a routine startup loan directly from SBA. Eligible uses include working capital, equipment, property and business acquisitions. The program maximum is $5 million.

A startup should ask specifically whether the lender accepts new ventures, which industries it serves and what owner investment and repayment evidence it requires. Do not assume every SBA lender will finance a business without operating history.

SBA’s lender resources generally describe terms of ten years or less, with longer terms possible for qualifying real estate and longer-lived equipment. A real-estate term may reach 25 years. The purpose of the loan and the applicable program determine the available maturity.

SBA’s guarantee guidance says individuals owning 20% or more of an applicant must provide an unlimited personal guarantee. That obligation is separate from pledging collateral. Ask the lender to explain both requirements for the proposed loan.

• Potential advantage: A route to investigate when the project needs substantial capital and a longer repayment structure.
• Main drawback: Documentation and lender underwriting can make this unsuitable for an urgent expense.
• Best next question: “Do you finance businesses at my stage, and what must be in place before I apply?”

Get a realistic closing timeline from the lender. An advertised SBA review or response time is not the same as the date money reaches your account.

2. SBA microloans: compare for a smaller startup need

SBA microloans reach up to $50,000, with an average loan of about $13,000. Nonprofit intermediary lenders make the credit decisions. SBA describes a maximum seven-year repayment period and interest rates generally between 8% and 13%, with actual terms set by the intermediary.

Permitted uses include working capital, inventory, supplies, furniture and equipment. Proceeds cannot purchase real estate or repay existing debt. Startup eligibility, collateral, guarantees, fees and the application process must be checked with the specific intermediary.

• Potential advantage: A small request can be matched with an organization that also provides business assistance.
• Main drawback: The program ceiling may be too low for the full launch budget.
• Best next question: “Do you consider pre-revenue applicants, and what documentation and borrower contribution do you require?”

Separate essential opening costs from purchases that can wait. A smaller first phase can reduce the amount you need to finance, but it still needs a workable repayment plan.

3. Kiva U.S.: consider for small needs and community fundraising

Kiva U.S. advertises $1,000–$15,000 loans at 0% interest, with no fees, collateral or minimum credit score. Its eligibility rules include business-purpose and industry restrictions; businesses registered or primarily operating in Nevada or North Dakota are excluded. Review the full requirements before applying.

Kiva relies on support from the borrower’s network followed by public crowdfunding. Its current borrower page estimates application review at 20–25 business days, followed by private and public fundraising stages. Treat those as estimates, not a funding promise.

The application FAQs explain that the private stage requires support from a specified number of people in the borrower’s network. Approval and successful fundraising are separate steps.

• Potential advantage: No stated financing charge, if approved and successfully funded.
• Main drawback: You must be willing to promote the campaign and allow time for fundraising.
• Best next question: “Am I eligible, how much may I request, and what fundraising and repayment schedule would apply?”

Zero interest does not remove the obligation to repay. Assess whether the first payment and later installments fit the business’s expected receipts.

4. OnDeck: only for businesses with operating history

OnDeck’s published minimum requirements include one year in business, $100,000 annual revenue, a business checking account and a 625 personal FICO score. A company without that history should look elsewhere rather than treating OnDeck as pre-revenue startup financing.

Its term-loan page lists $5,000–$400,000 and a maximum 24-month term, with daily or weekly payments. Its line of credit lists $6,000–$200,000 with 12-, 18- or 24-month repayment options and weekly or monthly payments. Offered terms depend on underwriting.

The term loan is backed by a general business-asset lien and personal guarantee, according to the lender’s FAQs. A credit line has a different structure; inspect the particular agreement rather than transferring one product’s terms to the other.

• Potential advantage: An operating business can compare a fixed-sum loan with revolving access to capital.
• Main drawback: Financing cost and frequent installments may put pressure on cash flow.
• Best next question: “What is the full repayment, APR and actual debit schedule for my offer?”

For a closer look at the revolving product, read our OnDeck line of credit review.

5. Equipment financing: match borrowing to a specific asset

An equipment loan finances a defined purchase, such as production machinery, a commercial vehicle or professional equipment. A lease is a different contract and should be compared separately. Lender requirements vary, and equipment serving as collateral does not automatically make a pre-revenue business eligible.

For example, Bank of America’s secured-loan information lists business-history and revenue requirements as well as collateral considerations. Check the exact product rather than assuming every equipment-related loan is startup-friendly.

• Potential advantage: The borrowing can be tied to an identifiable productive asset.
• Main drawback: The equipment can be at risk if repayment fails, and additional guarantees or security may apply.
• Best next question: “Do you finance startups and this asset, and what down payment, guarantees and total payments are required?”

Before committing, compare the cash purchase price with the financed total. Include installation, training, maintenance, insurance and operating expenses in the project budget. Ask about ownership at the end of a lease, purchase options and any early-termination obligations.

6. Business credit cards: a revolving-credit alternative

A business credit card is not an installment startup loan, but it can finance smaller purchases if the applicant qualifies. Chase’s guidance for businesses without revenue explains that issuers may consider personal income and request a personal guarantee.

Some cards advertise temporary purchase-rate promotions. Review the issuer’s current pricing and terms for the promotional period, later APR, annual fee and eligible transaction types. Do not assume a purchase promotion covers cash advances or balance transfers.

• Potential advantage: Revolving access can suit smaller, planned business expenses.
• Main drawback: An unpaid balance can become expensive after promotional terms end; personal liability may apply.
• Best next question: “Can I repay the planned purchases before the promotion expires, and what happens if I cannot?”

Divide the planned balance by the available payoff months to set a target payment, then account for additional purchases and fees. The card’s minimum payment is not a plan for clearing the balance by a specific date.

7. CDFI and local loans: investigate community-focused programs

Community Development Financial Institutions can include banks, credit unions, loan funds and venture capital funds. The Treasury’s CDFI Fund FAQ explains how to find institutions; the federal fund itself does not make a direct loan to your business.

A CDFI is an institution designation, not a single standardized startup-loan product. Look for a lender whose current business program covers your location and stage. Ask about loan size, costs, collateral, guarantees, coaching and application timing. Do not assume every certified organization offers startup lending.

• Potential advantage: A mission-focused lender may have a program designed around borrowers underserved by other providers.
• Main drawback: Geographic, program and funding limits can narrow the available options.
• Best next question: “Which of your current programs serves a business like mine, and what are its written terms?”

Use the Treasury’s CDFI certification resources to identify institutions, then confirm the actual loan offering with each provider. SBA microloans and CDFI lending can overlap, so avoid counting the same application as two separate financing sources.

How to compare the full borrowing cost

Compare the same amount of usable cash over the same expected borrowing period. Ask for the payment schedule and all mandatory charges, then check the cash-flow effect of each due date.

For example, if a lender deposits $19,000 after withholding a $1,000 fee from a $20,000 loan, and scheduled repayments total $24,000, the financing cost is $5,000, assuming no other charges. Adding that withheld fee again would double-count it.

If $24,000 is repaid in exactly 26 equal weekly installments, each installment is approximately $923.08, with rounding handled in the actual schedule. “Six months” alone is not precise enough to establish the installment count.

A factor rate also needs translation into dollars. A 1.25 factor applied to $20,000 produces a $25,000 base repayment before other charges. It is not a 25% APR: APR also depends on timing, installments and fees.

• Net amount you receive and total scheduled repayment
• APR, or the provider’s explanation if it does not quote APR
• Payment dates, installment count and final payoff date
• Origination, servicing and other mandatory fees
• Late-payment and returned-payment charges
• Collateral, liens, personal guarantees and default provisions
• Whether early repayment reduces interest or other charges

Documents to prepare before applying

Ask the provider for its own checklist. An established business and a pre-revenue applicant will not have identical records, and there is no universal requirement to supply several months of business statements before every type of startup application.

• Identity, ownership and business registration information
• Tax identification details appropriate to your business structure
• Business bank records and available tax returns
• Current financial statements, if the business is operating
• Itemized use of funds and existing debt obligations
• Financial projections with the assumptions explained
• Vendor quotes, contracts or purchase orders relevant to the request
• Owner financial information and investment details when requested

Support projections with evidence such as pricing research, documented costs and genuine customer commitments. Identify what is confirmed and what is an assumption. Do not present a letter of interest as a guaranteed sale.

What if you cannot qualify yet?

Review the reason for the mismatch before submitting more applications. It may be the amount requested, insufficient operating history, the use of funds, geography, credit or the repayment forecast. A smaller project or more time building records may be more useful than repeatedly applying to the wrong product.

Other approaches include owner savings, customer deposits, supplier terms, documented family financing, rewards crowdfunding or equity investment. These have different obligations: deposits require fulfillment, equity changes ownership and personal savings remain money at risk.

Do not assume ordinary startup costs qualify for an SBA grant. SBA’s grants page says it does not provide grants for starting or expanding a business and describes limited, specific-purpose programs. Other public and private programs have their own eligibility rules.

If you are still deciding what the capital needs to do, use our business funding starting guide before choosing a product.

Frequently asked questions

Can I get a startup business loan with no revenue?

Some providers consider pre-revenue applicants, but approval is not assured. Ask Kiva, suitable microlenders, community lenders or a startup-focused SBA lender about your exact stage. An OnDeck application is unsuitable if you do not meet its stated operating-history and revenue minimums.

Does an SBA guarantee protect me from repayment?

No. The SBA guarantee supports the participating lender; it does not erase the borrower’s debt. A personal guarantee is a separate obligation. Understand both the business’s repayment duties and any responsibilities you take on personally.

Can I qualify with bad credit?

There is no answer that applies to every program. Check providers whose requirements match your circumstances rather than relying on an advertised “startup-friendly” label. Ask whether the inquiry affects personal credit, what other factors are considered and what costs would apply.

Are all seven options separate loan products?

No. The list includes government-supported programs, a lender, financing categories and a credit-card alternative. SBA microlenders may also be CDFIs. Compare individual written offers rather than treating these labels as seven independent approvals.

Should I accept the largest amount offered?

Set the request using the actual project budget and a conservative repayment forecast. Test a slower-sales scenario and preserve cash for taxes, payroll and essential bills. The approved limit is not evidence that borrowing the full amount is sensible.

Choose the option that matches your stage

Start with eligibility, the specific use of funds and the expected source of repayment. Compare community and smaller-loan routes for a modest launch need, investigate SBA financing for a suitable larger project, and evaluate asset financing or cards only for the expenses they fit.

Read the written terms before accepting any offer. Borrowing can support a new business, but the payment schedule must work even when sales develop more slowly than expected.

Sources and review method

Business Loan Toolkit Editorial Team reviewed the linked SBA, Treasury CDFI Fund, Kiva, OnDeck and bank resources on October 30, 2026. Figures describe public program or product terms, not individual offers. Hypothetical calculations are identified as examples. Illustrative images do not depict actual borrowers or lender endorsements.