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A startup business loan is financing to pay for the needs of a new business. It can help you cover the initial costs needed to establish your new business, including things like working capital, real estate, equipment, supplies, and inventory.
Many consider the SBA loan programs to be the gold standard for startup business loans. They offer high funding amounts, long payback terms, and low rates, but often require six months to two years in business, and a 20% to 30% cash injection from the borrower. But the SBA is not the only path to success. There are other ways to get a startup business loan in case you don’t meet the SBA’s requirements.
Interviews with our category winners revealed that the average startup business funding amount is between $20,000 and $80,000 initially, whereas the average SBA loan is just over $350,000. We researched 15 lenders, most of which can fund startups through SBA loans and many other strategies. Check out our list of trusted, experienced, and innovative lenders that are helping thousands of Americans start businesses every year.
Best Startup Business Loans of 2021
Best Overall: Finance Factory
Best for E-commerce: Become.co
Best for Retail: OnDeck
Best for High-Growth Startups: Midwest Corporate Credit
Best for Long Repayment Terms: Seek Capital
Best for Unpaid Invoices: Upwise Capital
Article: Investopedia (Author: Brian Carmody)
Photo: Getty Images