Small Business Loans for New Businesses (2026): SBA, Online Lenders and What to Avoid

New businesses are the hardest to lend to, because lenders want to see revenue and a track record. Your best options are usually an SBA microloan, a business credit card or a small line of credit. Once you have one or two years of revenue, SBA 7(a) loans and online term loans become realistic. Avoid merchant cash advances. They're easy to get and very expensive.

Checked September 26, 2026.

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SBA loans

The Small Business Administration doesn't usually lend directly. It guarantees part of loans made by banks and nonprofits, which lets them lend at capped rates.

Use SBA Lender Match on sba.gov to find lenders. Expect to provide a business plan, tax returns, financial statements and a personal guarantee.

Online lenders

Online lenders decide faster, often within days, and ask for less paperwork. They usually cost more than SBA loans and often want at least six months to a year of revenue.

• Term loans give you a lump sum, repaid over 1–5 years, sometimes weekly rather than monthly.
• Lines of credit let you draw as needed and pay interest only on what you use. They're good for uneven cash flow.

Bizcap

Bizcap offers revenue-based financing and a revolving Line of Capital of up to $2 million for established US businesses. It says decisions can take as little as three hours, with same-day funding if you're eligible, and it uses a soft credit pull, so checking your options doesn't affect your credit score.

• Suits: businesses with steady revenue that need cash quickly, for example to cover a slow month, buy stock or take on a larger job.
• Doesn't suit: startups with no revenue, or anyone who qualifies for an SBA or bank loan, which will cost less.
• You'll need: at least one year in business, at least $20,000 in monthly revenue, an EIN, and recent business bank statements.
• Before you sign: ask for the APR and the total repayment amount, and check whether the offer is a loan or a merchant cash advance (see below).

Compare APRs, not factor rates

Some lenders quote a factor rate, such as 1.3, instead of an APR. On $10,000 at a 1.3 factor you repay $13,000. Repaid over six months, that's an APR far above 30%. Always ask for the APR and the total repayment amount.

Merchant cash advances

A merchant cash advance isn't a loan. A company buys a share of your future card sales and takes it daily. Approval is easy, but the effective cost is often very high, and daily withdrawals can drain cash flow. Treat it as a last resort.

What lenders ask for

• A business bank account. See the best bank for a new LLC
• An EIN and business registration documents. See do you need an EIN for a business bank account
• Bank statements, often 3–6 months
• Tax returns and financial statements, for larger loans
• Your personal credit score. For new businesses it matters as much as the business itself
• A personal guarantee

Before you borrow

1. Work out exactly what the money will do and how it will be repaid.
2. Start with the cheapest option you qualify for. Usually that means a microloan or a card with a 0% intro APR before an online loan.
3. Get the APR, total repayment and payment schedule in writing.
4. Read the prepayment terms. Some lenders charge the full interest even if you repay early.

FAQ

Can I get a business loan with no revenue? Mostly only an SBA microloan or a business credit card, both based largely on your personal credit.

How fast can an online lender fund a business? Often within a few days of approval, if your bank statements and documents are ready. SBA loans usually take weeks.

Will a business loan affect my personal credit? Applying usually causes a hard inquiry, and the personal guarantee makes you liable if the business can't pay.