StreetShares Small-Business Loans: 2021 Review

StreetShares offers multiple loan products and may be an option for newer businesses with low revenue.

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Our Take

StreetShares - Online term loan

StreetShares - Online term loan

Est. APR

8.00 - 39.99%

Min. Credit Score

600

Pros & Cons

Pros

  • No prepayment penalty.

Cons

  • Requires weekly repayments.
  • Financing amounts limited to 20% of annual revenue.

Compare to Other Lenders

StreetShares - Online term loan
Kabbage - Line of credit
Est. APR

8.00 - 39.99%

Est. APR

9.00 - 36.00%

Min. Credit Score

600

Min. Credit Score

640

Full Review

Online lender StreetShares helps fill a financing void for businesses that are starting to find their footing.

StreetShares is a good option for borrowers who:

Loan amount: $2,000 to $250,000.

APR: 8% to 39.9%.

Loan term: 3 to 36 months.

How to qualify: 

Loan amount: $5,000 to $250,000.

APR: 8% to 39.99%.

Loan term: 3 to 36 months.

How to qualify: 

Community-based lending: StreetShares takes a different spin on the , which connects borrowers with investors. The company uses its “affinity-based lending” strategy to match borrowers with investors who share similar characteristics, such as military veterans.

Connecting the borrower to investors who have similar passions or interests is a selling point for StreetShares, because the borrower feels a responsibility to those who put up the funds, Rockefeller says.

» MORE: 

Access to capital for newer businesses: Finding loans for businesses with low revenue can be tricky, but StreetShares offers loans to companies that have been in business for just one year and pull in $75,000 in annual revenue.

No prepayment fee: Borrowers can pay back their loans early, with no prepayment penalties. If your company is young, there’s a good chance you’ll alter your financing plan as your business changes, says Mel Levey, director of investor relations for StreetShares.

“We’ve talked to business owners who are being choked to death by prepayment fees,” he says. Regardless of the length of your loan, StreetShares offers the flexibility of paying it back immediately.

Funding limitations: Though StreetShares offers term loans and standard lines of credit up to $250,000, the maximum amount you can qualify for is 20% of your annual revenue. If you make $200,000 a year, that limits you to a maximum loan of $40,000. You may need to look elsewhere to get financing for big projects, such as a major expansion.

Limited reach: In response to market demand, StreetShares applies for permission to lend on a state-by-state basis. At the moment, it does not provide loans to businesses in Montana, Nevada, North Dakota, Rhode Island, or South Dakota. If you operate a sole proprietorship, you can’t use StreetShares if you live in Delaware, Minnesota, Nebraska, New Jersey, or New York.

There are also a few industry limitations. StreetShares does not lend to non-commercial construction contractors and those who will use the loan to flip homes or other real estate (although real estate management is OK). It doesn’t lend to law firms or tax preparation or accounting firms — unless the business belongs to a certified public accountant.

Weekly payments: Most of StreetShares products are paid back with automatic weekly deductions from your bank account. Although some borrowers may find that convenient, others looking for semimonthly or monthly payments may struggle with the lack of flexibility. If you have uneven cash flow, you may also find this repayment option inconvenient.

If you’d like to compare loan options, NerdWallet has a list of that are best for business owners. All of our recommendations are based on the lender’s market scope and track record and on the needs of business owners, as well as rates and other factors, so you can make the right financing decision.