How to Get a Startup Business Loan in 2026: Types, Requirements and Best Options
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- A startup business loan is financing for businesses operating for less than two years, generally with more flexible revenue and history requirements than traditional business loans.
- Lenders typically want to see three to six months in business, $100,000+ in annual revenue, a 600+ credit score, and consistent business bank deposits — though requirements vary widely by lender and loan type.
- LendingTree helped startups secure over $142 million in funding last year, with more than half going to businesses less than a year old; businesses under one year old that received loans through LendingTree in 2025 had an average annual revenue of about $400,000.
- If your business has no revenue yet, options are narrower but not zero: SBA microloans, CDFIs, nonprofit lenders, equipment financing and personal funding are the most realistic paths.
What is a startup business loan?
A startup business loan is financing designed for businesses that have been operating for less than two years — before they’ve built the multi-year track record traditional lenders usually require.
Unlike traditional business loans, which typically require a longer operating history and higher, more predictable revenue, startup loans come from a wider mix of sources: SBA-backed lenders, online lenders, equipment financers and nonprofit/mission-based lenders willing to underwrite newer companies.
What types of startup business loans are available?
Before comparing individual lenders, it helps to know the categories you’re choosing between. Here’s how the main options compare, based on SBA program data and LendingTree’s own partner lender terms:
| Loan type | Typical max amount | Best for | Time-in-business needed | Source |
|---|---|---|---|---|
| SBA 7(a) loan | Up to $5,000,000 | Working capital, equipment, real estate, refinancing, buying a business | Usually two-plus years at most banks | SBA-approved lender |
| SBA microloan | Up to $50,000 (average loan ~$13,000) | Working capital, inventory, supplies, small equipment purchases | Set by nonprofit intermediary lender; often startup-friendly | Nonprofit intermediary |
| SBA 504 loan | Up to $5,500,000 | Real estate and major equipment purchases | Typically more established businesses | CDC + private lender |
| SBA 7(a) Working Capital Pilot (line of credit) | Up to $5,000,000 | Recurring working capital, large contracts, borrowing against receivables/inventory | At least one year of operating history | SBA-approved lender |
| Business line of credit | Varies by lender | Seasonal or short-term cash-flow gaps | Varies by lender (typically 12 months, but sometimes less) | Banks and online lenders |
| Equipment financing | Varies by lender | Financing equipment with little or no down payment | Varies by lender (typically 24 months, but sometimes less) | Banks and online lenders |
What do lenders look for when you apply for a startup loan?
Approval depends on a combination of factors — not just revenue or credit score in isolation. Here’s what most lenders evaluate:
| Factor | What it means | Typical startup benchmark |
|---|---|---|
| Time in business | How long you’ve operated | Three to six months minimum at many online lenders; two-plus years at banks and many SBA lenders |
| Annual revenue | Verifiable business income | Often $100,000+, though this varies significantly by lender |
| Credit score | Personal and/or business credit history | 600+ typical; some online lenders accept scores as low as 500 |
| Cash flow | Consistency of deposits in a business bank account | Lenders review recent bank statements for stability |
| Collateral/personal guarantee | Assets or personal backing that reduce lender risk | Common at SBA and bank lenders |
| Documentation | Business plan, financial projections, use-of-funds explanation | Frequently required by CDFIs and SBA lenders, especially for newer businesses |
If your business hasn’t started generating revenue yet, your options narrow considerably — see the no-revenue section below.
What are the best startup business loans right now?
| Lender | Starting rate | Amount | Time in business | |
|---|---|---|---|---|
|
4.66% | Up to $250k | 3 months | |
|
8.75% (interest rate) |
$5k – $5M |
None | |
|
9.99% (interest rate) |
$5k – $250k |
24 months | |
|
9.50% | Up to $10M | 6 months | |
|
8.75% |
$10k – $150k |
6 months |
| Lender |
|
|
|
|
|
|---|---|---|---|---|---|
| Starting rate | 4.66% | 8.75% (interest rate) | 9.99% (interest rate) | 9.50% | 8.75% |
| Amount | Up to $250k | $5k – $5M | $5k – $250k | Up to $10M | $10k – $150k |
| Time in business | 3 months | None | 24 months | 6 months | 6 months |
Fundbox — Best for seasonal cash-flow gaps
Fundbox is a strong fit for startups needing fast, flexible cash for short-term or seasonal gaps. Funding is available in as soon as two business days, and it requires only 3 months in business, a 600 credit score, and $30,000 in annual revenue — one of the more accessible bars in this list. The tradeoff: repayment terms are only up to 12 months with weekly payments, so it works best if cash flow is expected to improve quickly. Read LendingTree’s full Fundbox review.
Taycor Financial — Best for financing equipment
Taycor Financial offers equipment financing with no time-in-business requirement, making it one of the most accessible options for brand-new companies. Because the equipment itself serves as collateral, borrowers can qualify with a 550 minimum credit score and no minimum revenue, and Taycor Financial can finance up to 100% of equipment costs with no down payment. Read LendingTree’s full Taycor Financial review.
Accion Opportunity Fund — Best for underserved entrepreneurs
A nonprofit lender focused on women, people of color and low-income entrepreneurs, Accion Opportunity Fund pairs financing with business coaching and mentorship. It requires 24 months in business and $300,000 in annual revenue, and loans over $50,000 require a blanket lien. Read LendingTree’s full Accion Opportunity Fund review.
Fundible — Best for SBA loans
Fundible works with businesses as young as 6 months, well below the two-plus years many SBA lenders require, making SBA-rate financing more accessible to newer companies. Minimum credit score is 500 and minimum annual revenue is $96,000 — but SBA loans generally take longer to fund than online alternatives. Read LendingTree’s full Fundible review.
Wells Fargo Bank — Best for ongoing access to funds
For startups that want a revolving line of credit from a traditional bank rather than a one-time loan, Wells Fargo Bank requires no collateral but does require a personal guarantee and a higher credit score than most online lenders, with funding that may take longer to arrive.
How can I get a startup loan with no revenue?
If your business hasn’t generated revenue yet, most traditional lenders — and many online lenders — will decline your application. That doesn’t mean you’re out of options:
- SBA microloans and CDFIs. SBA-funded intermediary lenders and local Certified Development Financial Institutions (CDFIs) are generally more flexible with newer businesses and often expect a business plan and financial projections in place of revenue history. Find a CDFI in your area.
- Nonprofit, 0%-interest microlenders. Some nonprofit microlenders offer crowdfunded loans with 0% interest specifically for early-stage businesses, though the application process typically requires more upfront effort than a standard online loan.
- Equipment or vendor financing. Because the equipment itself secures the loan, this can sidestep business-history requirements entirely — worth asking equipment vendors directly before assuming a lender is the only route.
- Personal funding, friends and family, or bootstrapping. Some small businesses fund their first six to 12 months using personal savings, family support or early client deposits before taking on debt.
- Grants. Unlike loans, grants don’t require repayment, though they’re typically competitive and slower to secure.
See LendingTree’s full guide on getting startup business loans with no money.
How can I get a startup loan with bad credit?
A lower credit score limits your options but doesn’t eliminate them:
- Online lenders with relaxed requirements. Some online lenders accept credit scores as low as 500 for working capital or short-term loans — though expect higher rates and shorter repayment terms in exchange for lower eligibility bars.
- SBA loans. The SBA explicitly notes that even businesses with bad credit may qualify for startup funding through its guaranteed loan programs, since the SBA guarantee reduces the lender’s risk.
- CDFIs and nonprofit lenders. These mission-driven lenders often weigh business plans and character alongside credit history.
- Build business credit separately. Using a business credit card and paying it off in full each month is one of the more accessible ways to start building a business credit profile independent of your personal score.
Term loan vs. line of credit: Which should a startup choose?
| Term loan | Line of credit | |
|---|---|---|
| How it works | You borrow a defined amount upfront | You draw funds as needed, up to a limit |
| Repayment | Fixed schedule of principal + interest over a set term | Interest charged only on the amount drawn; revolving |
| Best for | One-time, defined expenses — equipment, buildout, acquisition | Fluctuating needs — payroll, inventory, seasonal gaps |
| Examples in this guide | Taycor Financial, Accion Opportunity Fund, Fundible | Fundbox, Wells Fargo Bank |
A term loan suits a specific, known financing need. A line of credit is better when your cash needs fluctuate month to month. Either way, compare the APR — not just the advertised rate — along with fees, prepayment penalties, and whether a personal guarantee or collateral is required.
How do I apply for a startup business loan?
- Check your eligibility snapshot against the factors table above: time in business, revenue, credit score and cash flow.
- Gather documentation. Business plan and financial projections (especially for SBA and CDFI lenders), bank statements and basic business formation documents.
- Compare loan types, not just lenders — a $50,000 SBA Microloan and a $5,000,000 SBA 7(a) loan solve very different problems.
- Apply and compare offers. Many lenders, including several featured here, can provide funding decisions within a few business days.
- Review total cost before signing. Interest rate, fees, prepayment penalties and repayment frequency all affect what the loan actually costs you.
Why do startup loan applications get denied?
Lenders and the SBA commonly emphasize four underwriting factors: business purpose, repayment ability, creditworthiness and financial documentation. Startups get declined most often when one of these is missing — insufficient time in business, inconsistent cash flow, an unclear use of funds or incomplete financials.
It’s also worth knowing that dissatisfaction doesn’t stop at approval: a Federal Reserve small-business survey found that online lender applicants most often complained about high interest rates and unfavorable repayment terms — a reminder to compare total cost, not just approval odds, before accepting an offer.
Frequently asked questions
Most lenders look for 600+, though some online lenders will work with scores as low as 500 — typically at a higher cost.
It depends on the loan type: SBA Microloans cap at $50,000, SBA 7(a) loans max out at $5,000,000, and LendingTree’s featured lenders range from $5,000 up to $10 million depending on the product.
It’s difficult but not impossible. SBA Microloans, CDFIs, nonprofit lenders, equipment financing and personal funding are the most realistic paths for pre-revenue businesses.
Yes, though most banks want two-plus years in business. Some SBA-affiliated lenders, like Fundible, work with businesses as young as six months.
It varies by lender and loan type — some online lenders fund in as little as two business days, while SBA loans generally take longer due to additional underwriting.
The bottom line
A startup business loan is financing built for businesses under two years old, and the right option depends less on finding “the best lender” and more on matching the loan type — SBA, microloan, line of credit or equipment financing — to your revenue stage, credit profile and how the funds will be used. Businesses with steady revenue and six-plus months of history have the most options; pre-revenue businesses should start with SBA Microloans, CDFIs or equipment financing rather than traditional term loans.