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.
Important disclosure: US Patriot Loans is not a lender, bank, broker, credit bureau, or government agency. We provide financial education and may link to advertisers or partners. We do not make credit decisions, guarantee approval, guarantee rates, or control whether a partner offers you credit. Some links may earn us compensation, which can affect where offers appear.
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.
What lenders usually review
Personal credit and, when available, business credit.
Revenue, cash flow, bank statements, and debt obligations.
Time in business and industry experience.
Business plan, use of funds, and repayment plan.
Collateral, down payment, or personal guarantee requirements.
Funding options for new businesses
SBA loans
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.
Bank and credit union loans
Traditional lenders may offer strong terms, but they often prefer established revenue, owner credit strength, collateral, and a clear repayment source.
Online lenders
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.
Business credit cards
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.
How to improve your chances
Separate business and personal finances.
Prepare basic financial statements and bank records.
Need personal funding while planning your business?
Affiliate disclosure: US Patriot Loans may earn compensation if you use one of the sponsored links below. These are personal loan marketplace options, not business loan offers. Personal borrowing can put your own credit and finances at risk.
Important: These sponsored loan-marketplace links may not be available in every state or to every applicant. The reviewed MaxBounty export lists restrictions including no New York applicants, checking account requirements, age/income requirements, and no military applicants. Review all terms before submitting personal information.
Sources reviewed for this update include SBA 7(a), 504, Microloan, and lender-program materials.
