5 Best Small-Business Loans in 2026
Get the capital you need to start or grow your small business with these five loan options.
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Published · 7 min read
Written by
Senior Writer & Content Strategist 
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Managing Editor Key takeaways
- The best small-business loans vary by use case, with bank and SBA loans offering the lowest rates and online lenders providing faster, more flexible funding.
- Consider factors like qualifications, cost, speed and flexibility in order to choose the best business loan for your needs.
- A business lending marketplace can allow you to apply to multiple lenders with a single application and provide personalized guidance.
At some point, most small businesses need more money — whether it’s to stock shelves, buy new equipment or expand their footprint. A business loan can help, but figuring out where to start isn’t always simple.
Below, we’ve identified small-business loans that can serve a range of needs, from short-term working capital to longer-term growth. Although the products vary, every option on this list meets criteria we think matter most to business owners:
- Transparent rates and terms. We focused on financing options that clearly outline loan rates, terms and qualification requirements up front, so you can understand what to expect before applying.
- Underwriting and loan flexibility. These products can serve a range of business profiles and may offer multiple loan and repayment options — making financing accessible to a variety of small businesses.
- Straightforward application experience. These options are clear about what the application process involves, including required documentation, timelines and next steps. Some may also offer multiple ways to apply, faster funding speed and different avenues for customer support.
If a loan checks these boxes, it’s likely a solid choice. The right option for you, however, will depend on why you need the money and what you qualify for.
Here are our top picks and what each one does best.
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Tell us how much you need and see your options in minutes.Our 2026 list of the best small-business loans
- Best for low interest rates → Wells Fargo
- Best for businesses that can’t qualify for bank loans→ SBA 7(a) loan
- Best for fast funding → Bluevine
- Best for startups → Headway Capital
- Best for bad credit → Fora Financial
These are the best of the best in 2026. To see our full list and compare options side-by-side, check out our small-business loan comparison page.
Wells Fargo: The best for low interest rates
Wells Fargo Wells Fargo BusinessLine® Line of Credit
Max Loan Amount
$150,000 I’ve been covering small-business loans for seven years, and I always tell business owners to try to get a bank loan first. Bank loans, like this Wells Fargo line of credit, are almost always the most affordable option, and when you're running a small business, saving money on interest costs can go a long way.
Some tradeoffs may make you hesitant to start with a bank. Bank loans are hard to qualify for (you’ll usually need strong credit and multiple years in business), and they’re notoriously slow to fund. But, if you have the credentials and time to wait, a business bank loan like this one is going to be your best bet.
Why I like Wells Fargo
Competitive rates. Wells Fargo’s line of credit offers low interest rates — much lower than you’ll find with any online line of credit. Rates are variable, starting as low as 8.5% (prime rate + 1.75%). Although this structure means rates can fluctuate, it also means you could access a lower rate if the prime rate decreases (as it did three times last year). Wells Fargo also waives its annual fee for the first year.
Flexible line of credit. This credit line is revolving, meaning it operates similarly to a credit card. You only pay interest on what you borrow, and can pull from it as needed. This flexibility makes it a great choice for a range of business needs — including keeping it in your back pocket as an emergency fund (as long as you can avoid the inactivity fee, more on that later).
Startup-friendly. Most banks ask you to have at least two years in business before you can qualify for financing. This Wells Fargo product is much more lenient; it only requires a minimum of six months in business. I like that Wells Fargo is making affordable financing available to newer businesses, since they often have limited options.
Want to learn about all of the financing products this lender offers? Check out our full Wells Fargo business loans review.
👉 See our breakdown of Wells Fargo’s key details and qualification requirements
Key features
- Loan type: Line of credit.
- Funding amount: $10,000 to $150,000.
- Interest rate range: 8.5% to 16.5%.
- Repayment term: Revolving; a minimum payment is required each month you carry a balance.
How to qualify
- Time in business: 6 months.
- Credit score: 680.
Where Wells Fargo falls short
As I mentioned earlier, banks usually want you to have strong credit, and Wells Fargo is no exception. So, if you have a credit score under 680, you’ll want to jump down to some of the other lines of credit on our list.
You should also keep in mind that after the first year, Wells Fargo charges an annual fee ($95 for lines up to $25,000 and $175 for lines over $25,000) and may charge an inactivity fee if you don’t meet a certain threshold of use. These fees are not uncommon for bank credit lines, but online lenders don’t typically charge them (though interest rates will be higher with an online lender).
Finally, it may take a while to get approval and funding from Wells Fargo. The bank doesn’t provide a specific timeline on its website (most don’t), but it will likely be slower than an online alternative. This is something to consider if you need funding as soon as possible.
SBA 7(a) loan: The best for businesses that can’t qualify for bank loans
U.S. Small Business Administration SBA 7(a) loan
Max Loan Amount
$5,000,000 If you can’t qualify for a bank loan, I’m always going to recommend an SBA loan as your next top choice. Keep in mind, SBA loans aren’t actually given out by the government. Instead, they’re issued by banks and other lenders and partially guaranteed by the U.S. Small Business Administration. This guarantee (in which the government reimburses the bank a portion of the loan if you don’t repay) reduces a lender’s risk and encourages it to work with more small businesses (read more about how SBA loans work here).
Next to bank loans, SBA 7(a) loans have some of the most competitive rates and terms and they can be used for a variety of purposes. The drawbacks, however, are largely the same as bank financing. You’ll still need to meet pretty strict criteria to qualify, and the funding process is usually time-consuming and slow.
Why I like SBA 7(a)
Competitive rates. SBA lenders have to follow SBA guidelines when setting interest rates. In other words, lenders can’t charge interest rates above the SBA’s maximums. Right now, the maximum for variable rate loans is 13.25% and 14.75% for fixed rate loans. These are much lower rates than you’ll find with most online lenders.
Long terms. Terms on SBA 7(a) loans can be as long as 25 years. This can be useful if you’re making a big purchase and want to repay it slowly over time. Although you’ll pay more interest over the life of the loan, these long terms can offer low monthly payments that make it easier to manage your cash flow.
Large loan amounts. Few lenders offer loan amounts as large as the SBA 7(a) program. These loans can provide up to $5 million. Only 5.5% of loans issued last fiscal year exceeded $2 million, but another 15.3% landed between $500,000 and $2 million — still far more than what most online lenders, and even many banks, typically offer . So, if you need to make a big investment, like purchasing real estate or opening a new location, an SBA 7(a) loan can be a good fit.
👉 See our breakdown of the SBA 7(a) loan's key details and qualification requirements
Key features
- Loan type: Term loan.
- Funding amount: Up to $5 million.
- Interest rate range: 9.75% to 14.75%.
- Repayment term: Up to 25 years.
- Speed: As fast as two weeks.
How to qualify
- Time in business: 24 months.
- Credit score: 650.
Where SBA 7(a) falls short
Even though SBA 7(a) loans can be easier to get than bank loans, most lenders will still want to see good credit and multiple years in business in order to approve you. You may also have to provide collateral (like your business assets) to secure your loan. A personal guarantee — which states that you, the borrower, will repay the loan if your business can’t — is nearly always required.
That said, it’s not impossible for less-qualified businesses to get a 7(a) loan, but it will likely be an uphill battle that may not be worth your time (as an alternative, I’d recommend SBA microloans).
It’s also important to understand that while you may be able to get an SBA 7(a) loan in as little as two weeks, the process is known to take anywhere from 60 to 90 days. You’ll need to provide a lot of paperwork as part of your application. Plus, many lenders don’t offer an option to apply online (you’ll have to visit a branch location). Similar to bank loans, if speed is your priority, an online lender will be a better fit.
Bluevine: The best for fast funding
Bluevine Bluevine - Line of credit
Max Loan Amount
$200,000 Online lenders have made it easier and faster for a wide variety of borrowers to get financing, and Bluevine is one of the top options out there. Bluevine offers a simple and streamlined application and can put money in your bank account as fast as the same day (for a fee). Keep in mind, the tradeoff for speed and flexibility is cost; Bluevine will have higher rates than traditional lenders.
That said, Bluevine’s qualification requirements are much more lenient than bank or SBA lenders — meaning newer businesses or borrowers with lower credit scores might start their search here.
Why I like Bluevine
Fast and easy application. If you’re looking for speed, Bluevine is a good choice. It took me less than three minutes to fill out the online application (you will have to create an account first, but this is also really easy). Once you submit your application, Bluevine can approve you in as little as five minutes. And once you request to draw funds, you may see them in your account within a few hours (if you pay the $15 wire transfer fee) or as fast as the next day.
Flexible qualification requirements. Compared with bank and SBA loans, you’ll find Bluevine’s qualification requirements are much easier to meet. You’ll need at least 12 months in business, a credit score of 625 and $120,000 in annual revenue. This makes Bluevine a solid option for newer businesses (but not brand new) that are already generating decent revenue.
Learn more about where Bluevine stands out in our full review.
👉 See our breakdown of Bluevine's key details and qualification requirements
Key features
- Loan type: Line of credit.
- Funding amount: $5,000 to $200,000.
- Interest rate range: 14% to 95%.
- Repayment term: 26 or 52 weeks.
- Speed: As fast as the same day.
How to qualify
- Time in business: 12 months.
- Annual revenue: $120,000.
- Credit score: 625.
Where Bluevine falls short
As I mentioned earlier, the downside of Bluevine’s speed and flexibility is cost. Bluevine’s line of credit rates are higher than a bank or SBA loan, and rates can vary widely based on your qualifications. While the lender’s minimum APR of 14% seems reasonable, you’ll likely need strong credentials to access it. Other businesses can expect APRs that go all the way up to 95%. I’d also keep in mind that Bluevine requires weekly payments over 26 or 52 weeks, which may not be ideal if you have unpredictable cash flow.
Headway Capital: The best for startups
Headway Capital Headway Capital - Line of credit
Max Loan Amount
$100,000 With a requirement of only 6 months in operation (the lowest on our list), I recommend Headway Capital as the top pick for startup business loans. Headway also stands out in several ways for its flexibility. The lender has lenient credit score and annual revenue requirements. It also gives you three options for term length and lets you choose between weekly or monthly payments, making it easier for you to repay on a schedule that works best for you.
As you might expect, Headway’s rates are higher than traditional options, but what’s more noteworthy is its draw fee (which you may not find with other online competitors). A draw fee, as the name implies, is charged every time you use money from your line of credit.
Why I like Headway
Easy to qualify. Looking at its requirements as a whole, Headway probably has the most lenient criteria of any lender on our list. So, if you need access to fast and flexible capital — but aren’t the most qualified applicant — Headway might be a good fit. In particular, I’d recommend Headway to startups (since there aren’t many options for businesses with only six months in operation) and to businesses that are still building their revenue. Headway only requires $50,000 in annual revenue (or about $4,167 per month), which is lower than several similar competitors.
Flexible repayment terms. If you’re a new business that’s just starting out, it’s very possible that your revenue is inconsistent — making it difficult to keep up with frequent payments over a short period of time. Headway offers a lot of flexibility in this department, with term options of 12, 18 or 24 months, and a choice of weekly or monthly payments. With all of these options, it’s much easier to find something that works well for your business’s needs.
Want to read more about Headway’s advantages? Read our comprehensive review.
👉 See our breakdown of Headway's key details and qualification requirements
Key features
- Loan type: Line of credit.
- Funding amount: $5,000 to $100,000.
- Interest rate range: 39% to 82%.
- Repayment term: 12, 18 or 24 months.
- Speed: As fast as the next business day after approval.
How to qualify
- Time in business: 6 months.
- Annual revenue: $50,000.
- Credit score: 625.
Where Headway falls short
Headway’s draw fee stands out to me as the biggest disadvantage. This fee increases the cost of your line of credit every time you use it. Plus, several online line of credit competitors (Bluevine, OnDeck, Fundbox) don’t charge a draw fee. It’s also worth mentioning that Headway’s credit lines max out at $100,000, which is also a smaller amount than these competitors.
Finally, Headway doesn’t offer financing in nine states — Arkansas, Connecticut, Michigan, Montana, Nevada, North Dakota, Rhode Island, South Dakota and Vermont — which decreases its overall level of accessibility.
Fora Financial: The best for bad credit
Fora Financial Fora Financial - Online term loan
Max Loan Amount
$1,500,000 It can be hard to find financing if you have a credit score in the 500s, but that’s why I like Fora Financial (more about what I like best in the full review here). Fora offers fast, short-term loans, which can be used for a variety of needs, as long as your credit score is at least 570.
I wouldn’t necessarily recommend Fora to new or smaller businesses, however. The lender has a high annual revenue requirement — higher than many other online lenders — which can make it difficult to access if you’re just starting out and have inconsistent sales.
This lender also offers a larger maximum loan amount than many competitors, although you’ll likely need stronger credentials to access those bigger amounts.
Why I like Fora
Low credit score requirement. If your credit score is holding you back, Fora Financial is worth exploring. This lender considers more than your credit history when evaluating your application, accepting scores as low as 570.
Fast funding. Fora can also be a good choice if you need money quickly. It took me less than five minutes to fill out the application, and Fora can approve you in as little as four hours. Once you’re approved, you may see funds in your account within 24 hours (but up to 72 hours).
Large loan amounts. As I mentioned earlier, Fora’s loan maximum is much higher than competitors. If you’re looking to fund a large project quickly, Fora may be able to help, provided you can meet more than the minimum requirements. In my experience, lenders want to see stronger credentials for larger funding requests.
👉 See our breakdown of Fora's key details and qualification requirements
Key features
- Loan type: Term loan.
- Funding amount: $5,000 to $1.5 million.
- Repayment term: Up to 24 months.
- Speed: As fast as 24 hours.
How to qualify
- Time in business: 6 months.
- Annual revenue: $240,000.
- Credit score: 570.
Where Fora falls short
As is often the case with bad credit lenders, Fora will likely be a more expensive option. Because the lender is taking on more risk by working with you, it charges higher rates. Fora also charges interest as a factor rate. Factor rates aren’t particularly uncommon with short-term loans, but they can be more difficult to understand and make it harder to compare costs with other lenders. I always recommend that you convert your factor rate into an APR to get a better sense of your borrowing costs.
I should also point out that Fora’s terms only go up to 24 months and payments are daily or weekly. Frequent payments over a short period of time can put a strain on cash flow, so you’ll want to make sure this type of schedule is manageable for your business before opting in.
How to compare options with a business lending marketplace
Comparing loan options can be overwhelming, especially while trying to run your business at the same time. If you’re short on time, you might consider using a business lending marketplace, like Fundera by NerdWallet, to help.
Business lending marketplaces allow you to submit one application and compare loan offers from multiple lenders through their online platform. Fundera by NerdWallet offers dedicated representatives to walk you through the process and provide personalized support.
Why work with a business lending marketplace?
Free to use and funding usually available quickly.
Receive multiple loan offers through a single application.
Get information from several lenders in one place.
Access to a dedicated lending representative for personalized support.
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences. Here’s how we evaluate each lender and the approximate weights we place on each category:
- Cost (33%). Lenders that don’t charge origination fees or prepayment penalties rank higher in this category.
- Transparency (19%). Lenders that make it easy for borrowers to understand loan rates, fees, terms, qualification requirements and more rank higher in this category.
- Underwriting and loan flexibility (15%). Lenders that have flexible underwriting and offer multiple payment terms rank higher in this category.
- Credit (11%). Because it helps borrowers establish business credit, lenders that report timely payments to the commercial credit bureaus rank higher in this category.
- Application experience (11%). Lenders that offer fast funding and multiple ways to apply for a loan rank higher in this category.
- Customer service (11%). Lenders that provide multiple ways to speak with a customer service representative and an online dashboard for loan management rank higher in this category.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
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- 1. U.S. Small Business Administration. 7(a) and 504 Segment Report. Accessed Feb 3, 2026.
