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What Are the Best Loan Options for Startups?

Greg Swanson

If you're launching a business, you may be wondering what the best loan options for startups are. Getting funding early can make or break your growth—and not all loans are created equal. Whether you need $5,000 or $500,000, knowing where to look is key.

Quick answer: The best startup loan options include SBA microloans, business credit cards, crowdfunding, online lenders, and loans from friends or family—each with different pros and cons.

Top Loan Options for New Businesses

SBA Microloans: Government-backed loans up to $50,000, ideal for early-stage businesses with a solid plan.
Online Lenders: Fast approval and flexible amounts, but rates can be higher than banks.
Business Credit Cards: Great for small purchases and building credit history.
Crowdfunding: Raise money on platforms like Kickstarter without giving up ownership or taking on debt.
Friends and Family Loans: Flexible terms, but be sure to treat it like a real agreement to avoid stress.

How to Choose the Right Option

Think about your funding needs, how fast you need the money, and how much risk you can handle. If you’re looking for startup business funding with low interest, SBA loans might be your best bet. For quick cash or bridge funding, online lenders and credit cards may work better.

Tips Before Applying

Have a clear business plan. Know your credit score. Prepare financial documents. And be realistic about repayment. Most new business loans come with personal guarantees, so make sure you’re ready to take that leap.

Updated: August 15, 2025

Can I get a loan with no business history?

Yes, some lenders offer loans to startups with no business history if you have a solid plan, good credit, or collateral.

What is the easiest loan for startups to get?

Business credit cards or loans from online lenders tend to be the easiest to qualify for quickly.

Are SBA loans good for startups?

Yes, SBA microloans and 7(a) loans are excellent options with lower rates and longer terms—if you qualify.

How much money can I borrow as a startup?

Amounts vary—microloans go up to $50,000, while some lenders or crowdfunding can offer $100K or more based on risk and plan.