To get a small business loan, the general steps include:
- Assess your business needs and determine the loan amount required.
- Understand types of loans available such as term loans, lines of credit, SBA loans, etc.
- Review your credit score, business financials, and revenue as lenders typically require a minimum credit score (often 600–660) and annual revenue (usually $100,000 or more).
- Compare lenders including banks, SBA lenders, online lenders, credit unions, and nonprofit organizations to find the best terms and funding speed.
- Prepare necessary documents like business plan, financial statements, tax returns, and bank statements.
- Apply for the loan either online, by phone, or in person depending on the lender.
- Review the loan agreement thoroughly upon approval before signing.
- Receive funding, typically via a direct deposit to your business bank account.
SBA (Small Business Administration) loans are a common option because they are government-backed and might be easier to qualify for than traditional bank loans. Various SBA loans like the 7(a) and 504 programs accommodate different business financing needs, including long-term fixed-rate loans and loans for equipment or real estate. If a loan application is denied, understand why and improve your credit, revenue consistency, or the loan amount requested before reapplying. Starting with banks or SBA lenders, or exploring online business lenders is recommended depending on your business profile and urgency for funding. Would you like detailed lender options, loan types, or documentation needed? I can provide tailored guidance based on the business location or size, too. This summary covers key points on how to successfully get a small business loan in 2025.
