A startup business loan is any kind of financing aimed specifically towards startups with little to no business history. There are a variety of new business loans and financing methods available to new business owners: SBA microloans, business credit cards, business grants, friends and family, and crowdfunding.
Equipment financing: Get a loan to buy equipment for your business, using the equipment itself as collateral. Interest rates range from 8 percent to 30 percent, and you can use equipment finance for a variety of purchases, from computers to vehicles.
Business credit card: Get access to revolving credit, as well as sign-up bonuses, rewards earning potential and cash back. For funding early business operations, 0 percent intro APR business credit is great, as it gives you the ability to borrow money without incurring charges for 12 to 18 months.
Credit line builder: With a credit line builder, you apply for multiple business credit cards through a financing company. You can build your business credit so you can qualify for better loans later. And you can increase the max amount you can borrow.
Grameen America provides microloans (starting at no more than $2,000), financial training, and support to members. As part of our program, members open free savings accounts with commercial banks and make weekly deposits. We also report microloan repayments to Experian, enabling our members to build their financial identity.
Our target population is women who live below the federal poverty line, for whom the mainstream financial system is currently out of reach. Our members are women who previously had few options for accessing capital and most lacked bank accounts and credit scores.
San Antonio-based LiftFund offers microloans in the southern U.S., including Texas, Georgia and Florida. Borrowers typically use the financing to buy equipment and supplies. The microloans are also meant to help small-business owners improve their credit and more likely to qualify for a bank loan in the future, the lender says on its website. LiftFund got a boost in October 2016 when JPMorgan Chase & Co. announced almost $5 million in funding for its new small-business loan program in New Orleans, Atlanta, Dallas, Houston, San Antonio and Austin, Texas.
Target: Startups,Supply and Inventory,Purchasing a Business, Equipment, Real Estate, Lease Improvements, Vehicles, Restaurants, Operation & Working Capital
California-based Opportunity Fund has been serving residents of the state since 1994, with more than $160 million in microloans. Its borrowers have a median household income of $31,000 per year. Around 90% are minority-owned businesses, and about 30% are women-owned businesses. Opportunity Fund also provides financial literacy education to business owners.
Loans: Small Business, Micro, Commercial Vehicle, Express, Mobile Food Truck
Accion New Mexico offers small-business loans from $1,000 to $1 million in New Mexico, Arizona, Colorado, Nevada and Texas. The nonprofit also provides business counseling and marketing support and sponsors educational events. It’s part of the Accion U.S. Network, which also has major chapters in New York, Chicago and San Diego. The international Accion nonprofit offers financing services and assistance, including microloans, in 32 countries.Loans for Women-Owned Businesses
Loans for Minority-Owned Businesses, Food and Beverage Businesses, Startup Businesses, Small Businesses, Veteran-Owned Businesses, People with Disabilities, Green Businesses
CDC Small Business Finance Corp. offers different types of financing for new and expanding businesses in California, Arizona and Nevada, including SBA Community Advantage loans of between $20,000 and $250,000. It also issues SBA commercial real estate loans, known as the SBA 504 loans, for clients planning to buy an existing building or build a new facility.
Products: Business loan, Fastfund, Lease
Justine Petersen, which is based in St. Louis, offers small-business loans, typically of less than $10,000. The nonprofit also finances businesses in rural areas through the U.S. Department of Agriculture Intermediary Relending Program and originates loans of up to $150,000 as part of the SBA’s Community Advantage Program.
Target: Commercial Real Estate and Heavy Equipment, Refinance
Valley Economic Development Corp. specializes in small-business loans and micro-financing for entrepreneurs who don’t qualify for loans from traditional banks. It’s based in Los Angeles but also operates in other states, including Nevada, Illinois and New York. Aside from the SBA Community Advantage program, it participates in other small-business financing programs, including the Goldman Sachs 10,000 Small Businesses, the National African-American Small-Business Loan Fund and the National Microfinance Network.
Products: Microenterprise Loan, Standard Business Loan,VEDC Microloan
Empire State Certified Development Corp. is part of the New York Business Development Corp., a major SBA lender. It was the top SBA Community Advantage lender in 2014. Empire State CDC also participates in the SBA commercial loan program.
Products: SBA 504 Loan Program, SBA 7(a) Loan Program, USDA B&I Program, Non-Guaranteed Loan Program, Bridge to Success, Online Loans
Main Street Launch, previously known as OBDC Small Business Finance, serves clients in the San Francisco Bay Area. It provides small-business loans of $10,000 to $250,000 that can be used for such expenses as equipment purchase, inventory or working capital.
Product: Venturize, Fund Well, Opportunity Fund, Working Solutions
One of the oldest and well-respected women’s business associations, NAWBO has a network of over 10.1 million women-owned businesses in the United States. Created with the intention to provide women-owned businesses the opportunity to connect with other women business owners, NAWBO equips its members with the tools to succeed in any industry.