Short answer: yes, but your options are narrower than for an established business, and most of them lean on you rather than on the business. Lenders that fund startups look hard at your personal credit, your experience in the industry, how much of your own money you are putting in, and any collateral. The most realistic starting points are SBA microloans, SBA 7(a) loans for owners with strong experience and a down payment, equipment financing, and credit based on your personal profile.
Can a startup get a business loan?
It is harder, and it helps to know why. Most lenders decide by looking at a business's track record: revenue, bank statements and tax returns. A startup has little or none of that, so lenders have to judge you instead.
The numbers show the gap. In the Federal Reserve's latest Small Business Credit Survey, businesses with $50,000 to $100,000 in revenue were denied about 35% of the time, compared with about 11% for businesses with $1 million to $10 million (see our denial statistics). Newer businesses tend to sit at the low end of that range.
That does not mean no. It means you should apply for products built for new businesses, and bring the things lenders use in place of a track record.
What lenders need from a new business
- Good personal credit. With no business history, your personal score carries most of the weight.
- Industry experience. Years spent working in the same kind of business is one of the strongest signals for a startup loan.
- Your own money in the deal. For SBA loans to startups, the SBA requires an equity injection of at least 10% of total project costs, and many lenders want more.
- A business plan with realistic projections. Required for most startup loans. See our guide to a business plan for a business loan.
- Collateral or a personal guarantee. Most startup financing requires the owner to guarantee it personally.
- Some early revenue, if you have it. Even a few months of deposits opens more doors.
Options that work for startups
| Option | Typical amount | Best for | Watch out for |
|---|---|---|---|
| SBA microloan | Up to $50,000 | Small startup costs, with coaching included | Smaller amounts; may require training or a plan |
| SBA 7(a) loan | Up to $5 million | Owners with experience, a plan and a down payment | Slow approval; 10% minimum equity injection |
| Equipment financing | The cost of the equipment | Buying machinery, vehicles or tech | Down payment; the equipment is the collateral |
| CDFI and community lenders | Varies | Newer and underserved owners | Smaller amounts; regional availability |
| Business credit cards | Your credit limit | Small, short-term costs | High rates if you carry a balance |
| Personal loan used for the business | Based on your personal income | Owners with strong personal credit | Your personal finances carry all the risk |
SBA microloans are made through nonprofit lenders, up to $50,000, and often come with business coaching (SBA). SBA 7(a) loans are open to new businesses, but owners must be U.S. citizens or nationals and must put in at least 10% of total project costs. Community development financial institutions (CDFIs) are mission-driven lenders that often work with newer businesses (CDFI Fund).
Once you have six months to a year of steady deposits, online lines of credit and term loans become realistic too.
Loans for new LLCs
Forming an LLC does not, by itself, make a loan easier to get. Lenders still look at the owners' credit, experience and cash, and they usually ask the owners to personally guarantee the loan. What an LLC does help with is separation: a business bank account, an EIN and clean records make your future applications much stronger.
To get an LLC ready to borrow:
- Get an EIN and open a business bank account right away, and run all business money through it.
- Register with the business credit bureaus and pay suppliers on time to build a business credit file.
- Keep your personal credit strong, because it will be checked.
Startup loans with no money down
Most startup financing expects you to put something in. The SBA's 10% minimum equity injection for startups is a good benchmark. Options that need little or no cash upfront usually rely on something else instead:
- Strong personal credit, for a personal loan or business credit card
- The asset itself as collateral, as with some equipment financing
- A co-signer or partner who brings credit or cash
Be wary of anyone promising large startup loans with no money down, no credit check and no plan. Real lenders ask for at least one of those.
Startup loans with bad credit
Bad credit plus no business history is the hardest combination. Realistic options are small: an SBA microloan or CDFI loan (some focus on owners with limited credit), equipment financing where the equipment secures the loan, or a co-borrower. Our guide to bad credit business loans explains what lenders look at besides your score.
What to do if you have no revenue yet
If you have not made your first sale, most lenders will not lend to the business yet. In that stage:
- Start small. Use savings, a microloan or a small credit line to reach your first customers.
- Build the record lenders want. Run every sale and expense through your business account from day one.
- Apply again at six to twelve months. With steady deposits, far more lenders will look at you.
Frequently Asked Questions
Can a startup get a business loan?
Yes, though options are narrower. Startups usually qualify through SBA microloans, SBA 7(a) loans for experienced owners with a down payment, equipment financing, CDFI lenders, or credit based on the owner's personal profile. Expect lenders to rely on your personal credit, experience and personal guarantee.
How do I get a startup business loan with no money?
It is difficult, because most startup lenders want you to invest some of your own money. The SBA requires at least 10% of total project costs from startup owners. Without cash, your best options depend on strong personal credit, collateral such as the equipment you are buying, or a partner or co-signer.
Can I get an SBA loan for a new business?
Yes. New businesses are eligible for SBA 7(a) loans and SBA microloans. For startups, the SBA requires an equity injection of at least 10% of total project costs, and lenders will want a business plan, projections, relevant experience and a personal guarantee. All owners must be U.S. citizens or U.S. nationals.
Can an LLC get a business loan?
Yes. An LLC can borrow like any other business, but a new LLC is judged mostly on its owners. Expect a personal credit check and a personal guarantee. A separate business bank account, an EIN and clean records will help.
What credit score do I need for a startup business loan?
There is no single number, but because a startup has no business history, personal credit matters more than usual. SBA lenders usually look for scores in the mid-600s or higher. Some microlenders and CDFIs work with lower scores, especially for small amounts.
Do I need collateral for a startup business loan?
Often, yes. Many startup loans are secured by equipment, real estate or other assets, and almost all require a personal guarantee. SBA 7(a) loans of $50,000 or less do not require collateral, though the lender will still review your credit and plan.
Sources
- Federal Reserve Banks, Small Business Credit Survey, via our SBA loan denial statistics
- U.S. Small Business Administration: Microloans
- U.S. Small Business Administration, SOP 50 10 8 (equity injection, collateral and ownership rules), with the citizenship update effective March 1, 2026 (NerdWallet summary)
- U.S. Treasury CDFI Fund