Editor’s note: This guide was originally published on August 10, 2020 by Michael Washington and restored from the US Patriot Loans archive. It was last reviewed on August 13, 2026.
This article is educational and does not guarantee approval, rates, or loan terms.
Getting a business loan for a new business is possible, but startup financing is usually harder than funding an established company. Lenders want to understand how the business will repay the money, how much risk is involved, and whether the owner has a realistic plan.
The SBA does not usually lend directly. It guarantees loans made by approved lenders. SBA options include 7(a) loans, 504 loans for major fixed assets, and microloans. The SBA microloan program provides loans up to $50,000 and may be useful for smaller startup or expansion needs.
Traditional lenders may offer strong terms, but they often prefer established revenue, owner credit strength, collateral, and a clear repayment source.
Online lenders may move faster and accept a wider range of borrowers, but costs can be higher. Always compare APR, fees, payment frequency, prepayment rules, and total repayment amount.
A business credit card can help with smaller expenses, but it is not a substitute for working-capital planning. Carrying balances at high interest can become expensive quickly.
Use the loan calculator to estimate payments, then review our business loans page and Responsible Lending Policy.
Sources reviewed for this update include SBA 7(a), 504, Microloan, and lender-program materials.
