Small-business lenders can be traditional financial institutions, such as banks or credit unions, government agencies, nonprofit organizations or online fintech companies. Individual lenders vary in the types of small-business loans they provide, their application processes and eligibility criteria for borrowers. The best small-business lender offers the products you need, has requirements you can meet and charges affordable interest rates and fees.
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Loans from the best small-business lenders
| Product | Max Loan Amount | Max Term Length | Min Credit | |
|---|---|---|---|---|
 OnDeck - Online term loan Nerdwallet Rating with NerdWallet Small Business | $400,000 | 24 months | 625 | with NerdWallet Small Business |
 SBA Express loan with NerdWallet Small Business | $500,000 | 25 years | 650 | with NerdWallet Small Business |
 Fora Financial - Online term loan Nerdwallet Rating with NerdWallet Small Business | $1,500,000 | 24 months | 570 | with NerdWallet Small Business |
| SBA 7(a) loan with NerdWallet Small Business | $5,000,000 | 25 years | 650 | with NerdWallet Small Business |
 iBusiness Funding - Online term loan Nerdwallet Rating with NerdWallet Small Business | $500,000 | 5 years | 660 | with NerdWallet Small Business |
 Bluevine - Line of credit Nerdwallet Rating with NerdWallet Small Business | $200,000 | 12 months | 625 | with NerdWallet Small Business |
 Headway Capital - Line of credit Nerdwallet Rating with NerdWallet Small Business | $100,000 | 24 months | 625 | with NerdWallet Small Business |
 Triton Capital - Equipment financing Nerdwallet Rating with NerdWallet Small Business | $250,000 | 5 years | 575 | with NerdWallet Small Business |
| SBA microloan with NerdWallet Small Business | $50,000 | 7 years | 620 | with NerdWallet Small Business |
 AltLINE - Invoice factoring Nerdwallet Rating with NerdWallet Small Business | $5,000,000 | 3 months | 300 | with NerdWallet Small Business |
 Bank of America Business Advantage Unsecured Term Loan Nerdwallet Rating with NerdWallet Small Business | $100,000 | 5 years | 700 | with NerdWallet Small Business |
 Accion Opportunity Fund Small Business Working Capital Loan Nerdwallet Rating with NerdWallet Small Business | $250,000 | 3 years | 620 | with NerdWallet Small Business |
 Wells Fargo BusinessLine® Line of Credit Nerdwallet Rating with NerdWallet Small Business | $150,000 | N/A | 680 | with NerdWallet Small Business |
 Fundbox - Line of credit Nerdwallet Rating with NerdWallet Small Business | $250,000 | 24 months | 600 | with NerdWallet Small Business |
 JR Capital - Equipment financing Nerdwallet Rating | $10,000,000 | 7 years | 620 |
Government small-business lenders
The federal government doesn’t usually lend to small-business owners directly. However, it does guarantee financing issued through the SBA loan program. SBA loans are funded by participating lenders, typically banks and credit unions, and backed by the U.S. Small Business Administration.
Many national, regional and local banks are SBA lenders. Even big-name institutions like Chase and Bank of America have SBA loan programs. The SBA website also has a lender match tool to help you find the best SBA lender for you.
SBA loans offer long terms and low interest rates. They can be used for a variety of purposes. To qualify for an SBA loan, you’ll need good credit and financials, as well as a few years in business.
Credit union and bank small-business lenders
Banks and credit unions offer some of the most affordable small-business loans, but these lenders also have lengthy application processes and strict eligibility requirements. You’ll likely need strong credit, two or more years in business and solid revenue to qualify for a loan from one of these small-business lenders.
Borrowers that applied for financing at small banks were more likely to be approved than borrowers who applied with other lender types, according to a Federal Reserve survey released in 2025.
If you have an existing relationship with a local bank or credit union, try contacting a representative to find out if the institution offers small-business financing.
Bank of America
We rate several of Bank of America’s loan products at 4+ stars. The bank offers a wide range of financing options, including both secured and unsecured term loans and business lines of credit as well as equipment loans. Some of its loans come without an origination fee and without the need to put up collateral. Bank of America also reports to the major credit bureaus, which means making on-time loan payments helps you build your business credit score.
As with most bank or credit union business loans, however, it may take up to several weeks to receive funding for a Bank of America loan.
Wells Fargo
NerdWallet awards high marks also to Wells Fargo’s business line of credit products. Like Bank of America, Wells Fargo reports to the credit bureaus. But unlike Bank of America, Wells Fargo doesn’t charge you a fee for paying off your loan early, also known as a prepayment penalty. With this bank’s line of credit products, you make monthly payments — rather than daily or weekly — which is often a more manageable repayment schedule for a business.
Wells Fargo does, like many small-business lenders, file a UCC lien, which grants the lender the right to seize assets you’ve pledged as collateral in the event that you default on your loan.
Online small-business lenders
Online business lenders can offer a variety of financing options with a streamlined application process. Online lenders are known for their fast access to capital. Some companies even offer same-day business loans with funding in as little as 24 hours.
Compared with loans from banks and credit unions, online or private business loans have more flexible qualification requirements. But the cost of borrowing is often higher.
Bluevine
» MORE: Read our Bluevine review.
Bluevine is one of our highest-rated online lenders. It offers a short-term business line of credit of up to $200000, with either 26- or 52-week repayment terms. This lender reports to credit bureaus and can fund your account within just a few days. It’s also transparent with its loan terms and requirements. And aside from interest, Bluevine charges no fees and doesn’t require collateral.
OnDeck
» MORE: Read our review of OnDeck.
OnDeck is another of our highest-rated online lenders. It offers a business line of credit that we rate 5 out of 5 stars. OnDeck can fund term loans up to a maximum of $400000, sometimes within the same business day. With qualification requirements of 12 months in business and $100000 in annual revenue, OnDeck is a strong option for newer businesses. It does require a business lien for its term loan.
Fora Financial
» MORE: Read our Fora Financial review.
We recommend this lender particularly for its more widely accessible minimum credit score (570) and time in business (6 months) requirements along with its generous maximum loan amount of $1500000. This lender doesn’t require collateral and doesn’t penalize you for paying off your loan early. In fact, Fora may offer you a prepayment discount. But because the lender uses factor rates instead of APR, it’s difficult to compare the total cost of this loan with others.
AltLINE
» MORE: Read our AltLINE review.
AltLINE, part of the Southern Bank Company, offers its invoice factoring services to business-to-business companies with outstanding invoices in their accounts receivable. This lender doesn’t have the typical qualification requirements for a business loan because it focuses instead on the creditworthiness of the customers you invoice.
While this type of financing won’t help you build business credit, it can provide you fast funding without the need for physical collateral (the outstanding invoices serve as collateral). AltLINE generally provides funding within two business days.
JR Capital
» MORE: Read our JR Capital review.
For equipment financing, JR Capital offers fast funding (within 48 hours) of up to $10 million at a comparatively reasonable interest rate. While some online lenders have APRs that can reach as high as 99%, JR Capital’s range caps out at 18%. This lender also has some flexible payment options available for certain industries, including annual payments for farming. Certain borrowers may be eligible to prepay on their equipment loan without a penalty. You will pay an origination fee, though.
Nonprofit and microlenders
Nonprofit organizations can offer loans to small businesses in underserved communities, such as women-owned businesses or minority-owned businesses.
Many nonprofit lenders are also community development financial institutions (CDFIs), which are registered through the U.S. Treasury Department to build wealth in underserved areas through loan dollars and other resources. These organizations typically provide smaller loans, called microloans, but may be more willing to work with newer businesses or those with bad credit.
As part of the SBA microloan program, for instance, the government distributes funds directly to these types of lenders. The lenders are then able to create and manage their own programs.
Accion Opportunity Fund
Most microloans max out at $50,000, but Accion Opportunity Fund’s working capital loan can reach up to $250000, and the lender will accept borrowers with a FICO score as low as 620. According to Accion, more than 90% of its borrower base is made up of women, people of color and/or low- to-moderate–income borrowers. Accion dedicates its services to uplifting small businesses in traditionally disadvantaged communities and offers coaching and other resources to empower small-business owners.
How to choose a small-business lender
You’ll want to consider several factors when choosing a small-business lender. But ultimately, there are trade-offs between banks, online lenders and other options. The right choice for your business depends on what’s most important to you.
| Your deciding factor | The best small-business lender |
|---|---|
| The least expensive loan | A bank will likely offer the lowest interest rates, though you’ll need to be able to meet tough financial qualifications. Banks can also offer a variety of business loans and longer terms than some online lenders. |
| Can’t qualify with a bank | Start with the SBA loan program. SBA loans have competitive rates and long terms. Plus, eligibility criteria can be a little more flexible than bank requirements. However, you’ll still need good credit and strong revenue to qualify. And the application process can be complex, so online business lenders are an alternative option. |
| Need a fast loan | Online lenders will be your top option. Some online lenders can offer funding in as little as 24 hours. Speed can come at a cost of higher interest rates, though. |
| Customer service is a priority | Although a variety of lenders have representatives to help you through the application process, small-business borrowers report having a higher level of overall satisfaction with credit unions and community banks, according to a 2024 report by the Federal Reserve Banks. |
| New business or bad credit | Some online lenders, as well as nonprofit lenders, may have more flexible requirements that can accommodate newer businesses or those with bad credit. These businesses may also consider alternative types of funding, such as small-business grants. |
Small-business lender alternatives
If you’re not sure that a traditional loan is right for you, you may consider these alternative funding options:
- Small-business grants. A wealth of small-business grants exist to offer debt-free financing to small business owners. Many grants are designed for specific business types or industries and often have very particular qualification requirements. Grant applications also tend to be lengthy and time-intensive, and the competition for this “free money” option is high. But the effort will be well worth it if you’re able to get access to capital that you have no obligation to repay.
- Angel investors or venture capital firms. Instead of going into debt, you could opt for forms of equity financing, which allow you to trade ownership shares in your business for capital. Angel investors are usually wealthy individuals who invest their own money into a business idea, whereas venture capitalists typically invest on behalf of a firm. Equity financing is typically only an option for high-potential, fast-growing companies, and it can cost you control of your business if you dilute your ownership too much.
- Self-funding. If you have the means and want to avoid debt and ownership dilution, you may opt to fund your business yourself. You can use personal savings or tap into your retirement savings tax free with Rollovers as Business Startups (ROBS). With self-funding, you will likely save money on interest and fees; however, you risk your personal savings or retirement fund if your business fails.
- Crowdfunding. Particularly if you already have a group of supportive friends and family who can help kickstart your fundraising, crowdfunding can be a viable, though time-consuming, avenue to building capital for your small business. As a bonus, this funding option can also help you drum up interest in your business and expand your base of potential customers.
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, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
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.
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. Fed Small Business. 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey. Accessed Dec 22, 2025.
