How Much Is a Small-Business Loan?

The average small-business loan amount can vary based on the lender, loan type and your business's qualifications.
Jun 24, 2022

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

Board of Governors of the Federal Reserve System. Survey of Terms of Business Lending. Accessed Jun 15, 2022.
. How much funding you’re eligible to receive, however, depends on several factors.

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.

How Much Do You Need?

with Fundera by NerdWallet

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 criteria than banks or SBA lenders, offer the lowest average loan amounts.

Lender

Average small-business loan amount

Large national banks

$593,000.

Small regional banks

$146,000.

Foreign banks (made by U.S. branches)

$8,512,000.

SBA lenders

$107,000.

Alternative lenders

$25,000 to $100,000.

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.

Lender

Typical small-business loan range

Bluevine

$6,000 to $250,000.

Credibility Capital

$50,000 to $500,000.

Credibly

$5,000 to $400,000.

Fora Financial

$5,000 to $750,000.

Fundbox

Up to $150,000.

Funding Circle

$25,000 to $500,000.

Headway Capital

$5,000 to $100,000.

Kabbage

$2,000 to $250,000.

National Funding

$5,000 to $500,000.

OnDeck

$5,000 to $250,000.

Rapid Finance

$5,000 to $1 million.

Triton Capital

$5,000 to $250,000.

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 larger 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.

Lender

Average small-business loan amount

SBA 7(a) loan

$704,581.

SBA microloan

$16,557.

Medium-term loan

$110,000.

Short-term loan

$20,000.

Business line of credit

$22,000.

Equipment financing

Up to 100% of the value of the equipment.

Invoice financing

Up to 90% of the value of your outstanding invoices.

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 a potential loan.

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 bank or SBA loans. For smaller small-business loan amounts, you might consider regional banks, SBA lenders or alternative lenders — depending on your qualifications and how fast you need financing.

Regardless of the lender, remember to evaluate business loan costs and compare APRs to find the best deal for your business.

Compare small-business loans

To see and compare loan options, check out NerdWallet’s list of the best small-business loans.

Our recommendations are based on the market scope and track record of lenders, the needs of business owners, and an analysis of rates and other factors, so you can make the right financing decision.