Startups can qualify for SBA loans — in certain instances. Although you’ll typically need good credit, strong finances and multiple years in operation to qualify for an SBA loan, some lenders and loan programs are more amenable to new businesses.
Below, learn more about the best SBA loans for startups and how to get one for your small business.
How much do you need?
We'll start with a brief questionnaire to better understand the unique
needs of your business.
Once we uncover your personalized matches, our team will consult you
on the process moving forward.
Best SBA loans for startups
The U.S. Small Business Administration offers three main loan programs — the 7(a), 504 and microloan programs. Each of these small-business loans may be an option for startups, depending on your individual needs, lender and qualifications.
SBA microloans
U.S. Small Business Administration SBA microloan
Max Loan Amount
$50,000 - Best for: Managing and expanding a new business.
- Loan amount: Up to $50,000.
- Interest rates: Typically, 8% to 13%, but can vary based on the lender.
- Use cases: Working capital, inventory, supplies, furniture, fixtures, machinery or equipment.
- FY 2026 approvals: 26% of microloans issued have gone to startups (businesses in operation for two years or less).
Targeted specifically to startups and other traditionally underserved businesses, the SBA microloan program provides loans of up to $50,000 with repayment terms of up to seven years.
The SBA microloan program is administered by a network of community-based lenders, which can set their own rates and eligibility requirements. These requirements are less stringent than other SBA loans, however, and small-business owners with poor credit or lower incomes can often qualify.
SBA microlenders also tend to offer mentorship programs, educational resources and other support that can be particularly useful for businesses that are just starting out.
SBA 7(a) loans
U.S. Small Business Administration SBA 7(a) loan
Max Loan Amount
$5,000,000 - Best for: Growing your business.
- Loan amount: Up to $5 million.
- Interest rates: Vary based on lender, but maximums are set based on the prime rate. Rates currently range from 9.75% to 14.75%.
- Use cases: Working capital, equipment, supplies, real estate, debt refinancing and changes of ownership.
- FY 2026 approvals: 30.3% of 7(a) loans issued to new- and startup businesses.
SBA 7(a) loans are the most popular — and most competitive — type of SBA loan. To qualify, you typically need:
- Personal credit score of 650+.
- Two or more years in business.
- $100,000+ in annual revenue.
Some lenders are more flexible with their time in business requirements, however. U.S. Bank, for example, can fund startups who have been in business for at least six months.
SBA Express loans
SBA Express loans can be issued without SBA review, making them a faster alternative to the standard 7(a) loan. These loans are available up to $500,000 and can be a good option for startups with smaller borrowing needs.
SBA 504 loans
U.S. Small Business Administration SBA CDC/504 loan
Max Loan Amount
$5,000,000 - Best for: Purchasing or upgrading major fixed assets.
- Loan amount: Up to $5 million; select projects may qualify for up to $5.5 million.
- Interest rates: Tied to the 10-year U.S. Treasury notes and typically around 5% to 7% of the amount financed.
- Use cases: Real estate, land, machinery, equipment and other similar purchases or upgrades.
- FY 2026 approvals: 15.4% of 504 loans issued to new and startup businesses.
SBA 504 loans are designed to fund large equipment purchases or facilities upgrades in order to “promote business growth and job creation.” You can borrow up to $5 million (some projects can qualify for up to $5.5 million) with a term length of 10, 20 or 25 years, depending on the loan.
Unlike other SBA loan options, 504 loans come from three places:
- Third-party lender (50%).
- Certified Development Company (40%).
- Borrower (10%).
Startup businesses (those with less than two years in operation), are required to provide 15% of the loan, however — 20% if you’re funding a special purpose property.
Like 7(a) lenders, not all 504 lenders are willing to work with startups. To qualify, you’ll generally need:
- Two years in business.
- Credit score of 680+.
- At least $100,000 in annual revenue.
How to get an SBA loan for a startup
It may be more difficult for startups to get an SBA loan, but it’s not impossible.
To give your business the best chance at approval, you’ll want to pick the right loan and lender and submit a strong application. At the end of the day, you need to prove to the lender that although you don’t have several years of established success, you’ll still be able to repay a loan.
Here are the steps you can follow:
1. Calculate startup costs
You can’t apply for a startup business loan until you know how much you need to borrow. Factor in one-time costs, such as permits, licenses and equipment purchases, as well as recurring expenses such as payroll, rent and inventory for at least the first year. This will give you a realistic picture of how much money you need to get your business off the ground.
2. Write a business plan
A solid business plan shows lenders you’ve thought of things like your target market, pricing structure, marketing costs, potential challenges and industry competition.
Include your startup cost calculation and a detailed funding request, along with projected income. The goal is to show lenders your business will be a success, especially if you don’t have multiple years of profits to lean on.
3. Evaluate your qualifications
Even if you don’t have several years in operation, it’s important to evaluate your other business loan qualifications before searching for a loan. Consider common underwriting criteria, such as your personal credit score, cash flow, sales projections and available collateral.
You should also confirm that you can meet the standard SBA loan requirements. In general, your business will need to:
- Be for profit and operating in the U.S.
- Be 100% owned by U.S. citizens or U.S. nationals
- Meet the SBA’s definition of a small business.
- Show your ability to repay the loan.
- Have tried to find alternative forms of funding before trying to get an SBA loan.
4. Choose a loan and lender.
Once you have a sense of where your business stands, determine which SBA startup loan option will be best for your needs. In general,
- SBA microloans: Best for most startups, especially traditionally underserved borrowers (like those with lower credit scores).
- SBA 7(a) loans: Best for highly-qualified startups with general financing needs.
- SBA 504 loans: Best for highly-qualified borrowers that need to finance large fixed assets.
Then, find a participating lender.
You can use the SBA’s Lender Match tool to find a bank, credit union or community-based lender that participates in your chosen loan program. You can also reach out to any financial institution with which you have a previous relationship and see if it offers the SBA loan you’re looking for.
As you research and compare your options, consider factors such as interest rates, repayment terms, speed and customer support.
» MORE: Compare the best SBA lenders
5. Prepare your loan application and apply.
After you choose a lender, you’ll be ready to start your SBA loan application. Generally, these applications require extensive documentation, but the specific paperwork you’ll need will vary based on your loan program and lender.
Overall, you can expect to provide some, if not all, of the following:
- Business and personal tax returns.
- Business financial statements.
- Business certificates or licenses.
- Business overview and history.
- Business plan.
- Existing debt schedule, if applicable.
- Detailed collateral information.
- Business lease, contracts or purchase agreements.
- SBA Form 1919, Borrower Information Form.
- SBA Form 912, Statement of Personal History.
- SBA Form 413, Personal Financial Statement.
Your lender will be able to help you throughout the application process and should be able to answer any questions you may have.
The time it takes to get an SBA loan for your startup will vary largely based on your lender and loan program, but may be anywhere from 30 to 90 days.
Alternatives to SBA startup loans
If you don’t think an SBA loan is right for your startup, or simply want to look into other options, here are a few alternatives to consider:
- For fast financing. Online lenders typically have flexible qualification requirements and can offer a wide range of loan options for startups. These lenders can also provide fast business loans, sometimes funding applications in as little as 24 hours. This speed and flexibility will result in higher interest rates, however.
- For a debt-free option. Startup business grants can offer capital that you don’t have to repay. Applying for grants can be time-consuming and competition is often difficult, but it may be worth it if you can secure funds.
- For covering everyday expenses. For startups that are just launching, a business credit card can help you pay for day-to-day expenses. You can use a startup business credit card to build business credit and earn rewards, but you’ll want to make sure you don’t spend too much on the card and end up carrying a balance.
Frequently asked questions
Can you get an SBA loan for a startup?
Yes, you can get an SBA loan as a startup. The SBA microloan program is designed for startups and early-stage businesses. Startups can qualify for other SBA loan programs, provided they have good personal credit and strong finances.
Is it hard to get an SBA loan for a startup?
Generally, it’s harder for startups to get SBA loans than more established businesses. In most cases, SBA lenders will require that you have at least two years in business to qualify for financing. SBA microloans, however, are more accessible to startups, as they offer flexible qualification requirements.
What are the requirements for an SBA startup loan?
The requirements for an SBA startup loan will vary based on your lender and the type of SBA loan you choose. In general, SBA microloans will have more flexible requirements than 7(a) or 504 loans.
Article sources
NerdWallet writers are subject matter authorities who use primary,
trustworthy sources to inform their work, including peer-reviewed
studies, government websites, academic research and interviews with
industry experts. All content is fact-checked for accuracy, timeliness
and relevance. You can learn more about NerdWallet's high
standards for journalism by reading our
editorial guidelines.
- 1. U.S. Small Business Administration. Microloans Segment Report. Accessed Jun 4, 2026.
- 2. U.S. Small Business Administration. 7(a) and 504 Segment Report.
- 3. U.S. Small Business Administration. Lender and Development Company Loan Programs.
