Starting a business is expensive, and most founders don’t have enough personal savings to cover everything. The challenge is that traditional lenders — including most SBA loan providers — want to see years of operating history before they’ll approve a loan.
That doesn’t mean funding is out of reach. Several loan products and alternative financing options are specifically designed for newer businesses. Here’s what’s available in 2026.
Startup Loan Options at a Glance
| Funding Type | Amount | Min. Time in Business | Min. Credit | Speed |
|---|---|---|---|---|
| Business Line of Credit | $50K–$100K | 6 months | Varies | 1-2 weeks |
| SBA Microloan | Up to $50K | None (startup eligible) | 575+ | 2-4 weeks |
| Business Credit Cards | $5K–$50K | None | 670+ | Instant–1 week |
| Online Term Loans | $5K–$250K | 6-12 months | 550-600+ | 1-7 days |
| Equipment Financing | Up to $500K | None (with collateral) | 600+ | 1-2 weeks |
| SBA 7(a) Loan | $50K–$5M | 2-3+ years | 660+ | 30-60 days |
1. Business Line of Credit — Best for Early-Stage Flexibility
A business line of credit gives you access to a pool of funds you can draw from as needed. You only pay interest on what you borrow, and as you repay, the credit becomes available again.
This is one of the best options for startups because some lenders accept businesses with as little as six months of operating history. SmartBiz, for example, offers business lines of credit from $50,000 to $100,000 with a 24-month draw period — and the minimum time in business is just 6 months.
Explore business line of credit options →
2. SBA Microloans — Best for Very New Businesses
The SBA Microloan Program offers loans up to $50,000 through nonprofit intermediary lenders. These are specifically designed for startups and very small businesses that can’t access traditional financing.
- Credit requirements as low as 575
- Interest rates between 8% and 13%
- Terms up to 6 years
- No minimum time in business
- Often come with free business mentoring and training
3. Business Credit Cards — Best for Immediate, Small-Scale Funding
Business credit cards offer instant access to working capital with the added benefit of building your business credit history. Many offer 0% introductory APR periods of 12-18 months, making them effectively interest-free short-term financing.
4. Online Term Loans — Best for Fast Funding
Online lenders like Fundbox, OnDeck, and Credibly use technology and alternative data (bank statements, revenue trends) to evaluate businesses that traditional banks would decline. They can fund in as little as 24 hours.
The tradeoff is cost. Interest rates on online term loans typically range from 15% to 35%, significantly higher than SBA loans. Use these for short-term needs where speed matters more than rate.
5. Equipment Financing — Best When You Need Specific Assets
If your startup needs equipment — vehicles, machinery, technology, restaurant equipment — equipment financing uses the equipment itself as collateral. This makes it one of the easiest loan types to qualify for, even as a new business.
6. SBA 7(a) Loans — The Goal for Established Startups
Once your business has 2-3+ years of history, 660+ credit, and demonstrated revenue, you become eligible for SBA 7(a) loans — the gold standard of small business financing. Rates are lower, terms are longer, and loan amounts are higher than virtually any other option.
Check if you qualify for an SBA loan →
How to Improve Your Startup Loan Approval Odds
- Build your personal credit. Most startup lenders rely heavily on your personal credit score since the business doesn’t have its own track record yet.
- Open a business bank account. Lenders want to see business revenue flowing through a dedicated account.
- Start with smaller credit. A business credit card or small line of credit builds your business credit profile for larger loans later.
- Prepare a business plan. For SBA Microloans and some online lenders, a clear business plan demonstrates viability.
- Show consistent revenue. Even 6 months of steady bank deposits significantly improves your options.
Start Building Toward Better Funding
Every business starts somewhere. The funding options available to you today — lines of credit, microloans, business cards — are stepping stones to the more powerful financing (like SBA 7(a) loans) you’ll qualify for as your business matures.