Small business loans can be used for most business purposes:
Obtaining a business loan can mean the difference between success and failure for most small businesses. So, what do you need to do to find the right small business loan and get approval?
Sorting through all of the different types of small business loans (and their associated funding sources) is actually the easy part. You can browse through the table below and select the funding type that best fits your needs. You can also click on the search link to match your business to more than 4,000 different funding sources.
However, keep in mind that getting approval requires an incredible attention to detail. Each loan provider will have slightly different criteria that you’ll have to fulfill before you can be approved. You can use our free search service to track down business lenders, but before you apply make sure you ask each lender about their approval criteria. Then make sure that you and your business meet the criteria before you allow the lender to do their checks.
For example, many business loan providers won’t approve a loan unless your business has a good business credit score (so make sure to check your business credit score before you apply). A business loan provider might also require that everyone who owns 20 percent or more in the business have personal credit scores of 680 or more.
So, your primary task then is to ask each lender what all the approval points are and then check to make sure you satisfy all of the requirements. The fewer credit checks the better—loan providers might shy away from a business owner that has three or more credit checks on his record. Once you get your business loan approved, the proceeds can then be used for:
- The purchase of real estate to house a business
- Construction, renovation or leasehold improvements
- To purchase furniture, fixtures, machinery or equipment
- For inventory and for working capital
|Capital Type||Capital Type Definition|
|Micro Loan||These loans are around $5,000 to $35,000 and can be used for any business purpose.|
|SBA Loans||Loans to small businesses from private-sector lenders (banks, etc.) which are guaranteed by the SBA.|
|Franchise Financing||Specialized financing reserved for the franchisees of recognized, typically nationally known, franchises.|
|Development Financing||Loans to small businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. CDCs work with the SBA and private sector lenders to provide the financing.|
|Import Export Loans||Export financing of U.S. goods and services through a variety of loan, guarantee and insurance programs. (Import-Export Bank Programs)|