How Much Is a Small-Business Loan?

The average small-business loan amount made by commercial banks in the U.S. is $663,000, according to the most recent available data from the Federal Reserve^[0]

Understanding typical small-business loan amounts can put you in a better position to determine the right financing option for your needs. Here’s what you need to know.

Average small-business loan amount by lender

Small-business bank loans are traditionally difficult to qualify for — you’ll need excellent credit, strong finances and multiple years in business. Those who can qualify, however, will likely be able to access low interest rates, long repayment terms and large loan amounts.

According to data from the Federal Reserve, banks offer the largest average business loan amounts, followed by SBA lenders. Alternative lenders, which often have more flexible eligibility requirements than banks or SBA lenders, offer the lowest average loan amounts.

Average small-business loan amount by SBA lender

SBA loans are partially guaranteed by the U.S. Business Administration and issued by participating lenders, typically banks and credit unions. These loans offer competitive interest rates, long repayment terms and can be slightly easier to qualify for than bank loans.

Generally, you’ll still need good credit, multiple years in business and strong finances to get an SBA loan. Although the average SBA loan amount from all banks is $107,000, the Federal Reserve’s data shows that small banks tend to issue larger loans.

» MORE: Compare the best SBA lenders

Average small-business loan amount by alternative lender

Although online business lenders tend to offer lower average funding amounts compared with traditional lenders, these alternative options have increased in popularity in recent years. Online lenders typically have more flexible qualifications and some work with new businesses or those with bad credit.

These companies can also offer several types of loan products — and there’s a variety of alternative lenders to choose from.

Below, you’ll find a breakdown of some well-known online lenders and the funding ranges they offer.

It’s important to remember that although some alternative lenders have high maximum loan limits, you may not always qualify for the largest amount of financing available.

In general, the stronger your business credentials — such as years in business, personal credit score and annual revenue — the more likely you are to qualify for a larger loan, as well as one with lower interest rates and longer repayment terms.

Average small-business loan amount by loan type

When you’re trying to find the right business funding, you’ll want to consider different loan options in addition to your lender.

Some types of small-business loans, like SBA 7(a) loans and medium-term loans, are good for large investments — and bigger loan amounts. Other types of financing, like short-term loans and invoice financing, are better for smaller projects and working capital needs.

Here’s what you can expect for typical small-business loan amounts based on the type of funding.

» MORE: Business loan calculator: Estimate loan payments and interest cost

How to find the right small-business loan

When you’re looking for business financing, you’ll want to explore and compare multiple options. You should think about:

• Why you need a loan.

• How fast you need funding.

• How much capital you need.

• Your business’s qualifications.

• Total cost of the potential debt.

If you need a larger small-business loan amount, you might look to national banks and SBA 7(a) loan lenders. You’ll likely need multiple years in business, strong credit and solid business finances to qualify, however.

Some alternative lenders may be able to offer larger loan amounts — if you have good credentials — but these loans are also typically more expensive than traditional loan options. For smaller business loan amounts, you might consider regional banks, SBA lenders or online lenders — depending on your qualifications and how fast you need financing.