08 Best Loans for Startups

Identifying the best loans for startups is the first step for any entrepreneur who wants to grow without sacrificing the company’s equity early on.

Many hesitate, but understanding the eligibility criteria and rates for the best loans for startups is what separates stagnant businesses from those that thrive with financial health.

In this article, we will analyze the main options in the American market. We will look at the best loans for startups based on updated data for rates, terms, and requirements. This way, you will have all the necessary technical information to decide which capital will drive your startup toward the next level of revenue.

08 Main Loans for Startups Options

1. SBA 7(a)

The SBA 7(a) program remains the main initiative of the federal agency and consistently ranks among the best loans for startups due to its guarantee structure.

It is worth noting that the SBA does not make the loan directly but guarantees a portion of the amount, which reduces the risk for partner banks.

This results in very favorable conditions, such as competitive interest rates and extended terms.

It is worth noting that the program allows you to raise up to US$ 5 million, with terms reaching 10 years for working capital and equipment, or up to 25 years if the goal is real estate acquisition.

Furthermore, the maximum fixed interest rate registered in mid-2025 was 7.5%, although it may fluctuate according to the market.

To be eligible, your company must be for-profit, have been operating for at least one year, and demonstrate repayment capacity.

Despite the clear benefits, such as the lower down payment requirement, the application process is known to be complex, and there may be a need to present tangible collateral.

2. SBA Microloan Program (Microloan)

If your capital need is smaller, the SBA Microloan emerges as a viable alternative, especially for underrepresented communities.

This program offers amounts up to the ceiling of US$ 50 thousand, although the average granted is around US$ 13 thousand. The administration is handled by non-profit institutions that add value by providing technical mentoring in addition to the money.

Furthermore, the repayment term is up to 7 years, with interest rates generally ranging between 8% and 13%.

In addition, eligibility tends to be more flexible than in larger programs, making it accessible to those who are just starting out.

It is emphasized that a common requirement is collateral or a personal guarantee, and the approval process may not be as fast as that of private fintechs.

3. Community Development Financial Institutions (CDFIs)

CDFIs operate as intermediaries financed by the Treasury Department, with the mission of supporting small businesses in underserved communities or specific niches.

They can be community banks, credit unions, or investment funds.

In addition, the typical amount for microcredit in these institutions goes up to US$ 25 thousand, but larger projects may achieve higher amounts.

It is emphasized that the terms are attractive, typically reaching 10 years and up to 20 years for real estate. Interest rates fluctuate between 4% and 9%, which is extremely competitive.

You need to know that the great advantage of CDFIs is the flexibility in requirements, accepting businesses with little credit history and offering mentoring. However, the entrepreneur must be prepared for longer approval processes and possible collateral requirements.

4. American Express Business Line of Credit (Best loans for startups)

For those seeking agility and flexibility, the American Express line of credit is a powerful tool. It allows access to short or medium-term capital, where each withdrawal counts as a separate loan.

Firstly, the available amount ranges from US$ 2 thousand to US$ 250 thousand, although new clients may have an initial ceiling of US$ 150 thousand. Repayment terms are 6, 12, 18, or 24 months.

In addition, the cost is not calculated as traditional interest, but as a fixed commission fee. For 6 months, this total fee is between 3% and 9%; for 12 months, it rises to 6% to 18%; reaching up to 27% in 18-month terms.

To access this capital, the company needs one year of operation, minimum annual revenue of US$ 36 thousand, and a FICO score of at least 660. The advantage is the quick release of funds and the absence of origination fees, but it requires a personal guarantee.

5. Wells Fargo Small Business Advantage

Wells Fargo offers a line of credit specifically designed for young companies, with less than two years of operation, supported by the SBA’s Small Business Advantage program.

As a rule, the amount available varies between US$ 5 thousand and US$ 50 thousand. It works as a revolving credit with a five-year term, being reviewed only at the end of this period.

Interest rates are between 12% and 15%, depending on the applicant’s credit profile, and only apply to the amount used.

To qualify, in addition to the reduced operating time, owners must have personal net worth of less than US$ 500 thousand.

6. Bluevine (Best loans for startups)

Bluevine stands out for its speed, being a fintech that offers revolving lines of credit managed entirely online.

Keep in mind that the amounts range from US$ 20 thousand to US$ 250 thousand. The payment structure is intense: terms are 6 or 12 months, with payments that can be weekly (in 26 or 52 weeks) or monthly.

You should know that the estimated cost, in terms of APR, ranges from 14% to 95%, and there is a transfer fee of US$ 15 per withdrawal.

Eligibility requires six months of activity, monthly revenue of US$ 10 thousand, and a FICO score above 625 for weekly plans.

7. Fundbox

Fundbox uses artificial intelligence for quick approvals, offering short-term lines of credit. The differentiator here is the charge: a fixed weekly fee instead of compound interest.

In this case, the amounts go up to US$ 150 thousand, with short terms of 12 or 24 weeks. The fee for 12 weeks starts at 4.66% of the withdrawn amount, while for 24 weeks it starts at 8.99%.

This means that a US$ 10 thousand withdrawal can cost about US$ 466 in fees in the shortest option. The company requires a credit score starting at 600, six months of operation, and annual revenue of US$ 100 thousand.

8. OnDeck (Best loans for startups)

OnDeck acts as a hybrid platform, offering both term loans and lines of credit for companies that already have some history.

As a rule, the amounts for term loans range from US$ 5 thousand to US$ 250 thousand, and for lines of credit up to US$ 100 thousand. The maximum terms reach 24 months.

The cost is a point of attention, with APRs ranging from 35% to 99% for loans and 39% to 99% for lines of credit. Finally, there is an origination fee of up to 4%.

Comparative Table of Startup Loans

Option	Maximum Value	Maximum Term	Estimated Rate/Interest
SBA 7(a)	US$ 5 Million	10-25 Years	Max. 7.5% (fixed)
SBA Microloan	US$ 50,000	7 Years	8% – 13%
CDFIs	Variable	10-20 Years	4% – 9%
Amex Line	US$ 250,000	24 Months	3% – 27% (total fee)
Wells Fargo	US$ 50,000	5 Years	12% – 15%
Bluevine	US$ 250,000	12 Months	14% – 95% (APR)
Fundbox	US$ 150,000	24 Weeks	Starting at 4.66% (fee)
OnDeck	US$ 250,000	24 Months	35% – 99% (APR)
Kabbage	US$ 250,000	18 Months	2% – 27% (monthly)
Kiva	US$ 15,000	36 Months	0%

Conclusion

Choosing among the best loans for startups is not just a matter of who lends the most money, but who offers the conditions that suit your business’s life cycle.

Programs like SBA 7(a) and Microloans are unbeatable for long-term structural investments due to their low interest rates.

On the other hand, the agility of fintechs like Bluevine and Fundbox can save operations that need immediate working capital, despite the higher cost.

You need to make a cold analysis of the total costs, including origination fees and the need for personal guarantees, which should guide your signature on the final contract.

Finally, evaluate your urgency, your credit history, and your monthly repayment capacity.

Use the information in this guide to navigate safely and select the option that not only fills the cash register today but builds the foundation for tomorrow’s financial success.

Have doubts about the steps to get the loan? Then we recommend you see now how to get loans.