Startup Business Loans
Capital options for new businesses — including the SBA programs, microloans, ROBS, and credit-based products that work even when you don't yet have years of revenue.
What is startup business loans?
Startup business loans are funding products designed for businesses under 2 years old — including pre-revenue ventures and businesses still building a track record. Most traditional lenders require 1–2 years of operating history, which leaves new owners reliant on a smaller, specialized set of products.
The most common startup-friendly funding sources are SBA microloans (up to $50K), SBA 7(a) for franchise unit purchases or business acquisitions (where the target's history matters more than the buyer's), 401(k) rollovers (ROBS structures), equipment financing (where the asset secures the loan), business credit cards, and personal credit lines used for business purposes.
True 'pre-revenue' funding is hard to source as debt — most lenders need to see at least some operating history. For pre-revenue ventures, friends and family, angel investment, accelerators, and grants are usually more realistic than commercial debt.
How it works
- 1
Choose your structure
We assess your situation — pre-revenue vs. early-revenue, franchise vs. independent, acquisition vs. ground-up — and match you to the right product.
- 2
Strengthen the application
Strong personal credit, a thoughtful business plan, and skin-in-the-game equity matter more for startups than for established businesses.
- 3
Apply through a startup-friendly lender
We work with lenders who actively underwrite startup files, including SBA Preferred Lenders with strong startup track records.
- 4
Close and deploy capital
Funding timelines range from a few days (equipment, credit-based) to 30–90 days (SBA structures).
Key details
Qualifications
- Personal credit 680+ recommended for SBA startup loans
- 10–30% equity injection (your money in the deal)
- A clear, realistic business plan and projections
- Industry experience or transferable skills
- Personal financial statement showing reserves
Pros and cons
Pros
- Several legitimate paths exist for new businesses
- SBA programs are designed to extend credit when banks won't
- ROBS structures let you fund a startup without taking on debt
- Equipment financing works even with limited operating history
Cons
- Personal guarantees and equity injection almost always required
- Pre-revenue businesses face a much smaller product set
- Approval often hinges on personal credit and reserves
- Higher cost vs. financing for established businesses
How it compares
Side-by-side comparison of small business funding options.
| Product | Speed | Cost | Term | Best for |
|---|---|---|---|---|
| SBA 7(a) | 30–90 days | Prime + 2.25–4.75% | Up to 25 yrs | Largest, lowest-cost capital |
| Business Line of Credit | 1–3 weeks | 8–25% APR | Revolving 1–3 yrs | Ongoing flexibility |
| Term Loan | 1–2 weeks | 10–30% APR | 1–10 yrs | One-time investments |
| Working Capital | 1–3 days | 1.10–1.40 factor | 3–18 mo | Speed and minimal docs |
| MCA | Same day–48 hrs | 1.15–1.50 factor | 3–12 mo | Lowest credit / fastest funding |
| Equipment Financing | 1–7 days | 7–25% APR | Useful life of asset | Equipment-secured purchases |