Key takeaways
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The average small business loan amount is $437,482, according to the the SBA
- Lenders use your revenue, credit score and current debt load to determine how much business loan your business can handle.
- Large national banks lend higher loan amounts than regional banks. Yet alternative lenders often offer a smaller range of loan amounts.
The average small business loan amount is $437,482, according to the latest data on SBA loans. However, lenders determine the amount of a business loan by looking at your business’s finances, including your revenue, credit score and current debts. If you have strong credit and revenue, lenders might be willing to lend more to you than a business with lower credit and revenue. Your current debts also play a role in how much of a business loan you can get.
Be aware that lenders might not approve you for the full amount that you apply for. According to the 2025 Report on Employer Firms, lenders fully approve 39 percent of business loans and partially approve another 30 percent. To improve your chances of getting fully approved, estimate the cost of the business loan and add the loan repayments to your budget to ensure you can manage them.
To help you find the best small business loan for you, here’s an in-depth look at the loan amounts you can get for different types of business loans.
Small business loan amounts by loan type
We analyzed a variety of lenders and types of loans to compile a table with business loan amounts. See how much of a business loan you can get by the type of loan.
| Lender | Average small business loan amount |
|---|---|
| Bank loans | $448,439¹ |
| SBA 7(a) loans | $437,481¹ |
| Online loans | $5,000 to $500,000 |
| Short-term loans | $5,000 to $750,000 |
| Business line of credit | Up to $1 million |
| Equipment financing | Up to 80% to 100% of the value of purchased equipment |
| Invoice financing/invoice factoring | 70% to 90% of the invoices |
| Merchant cash advance | Based on total future credit card or debit card sales |
| Microloans | $13,000² |
2. Average from U.S. SBA microloans
Bank loans
Traditional banks, like TD Bank and PNC Bank, typically lend large amounts to borrowers, with business loan amounts ranging from $10,000 to $5 million. That said, banks have been continually tightening credit standards, making approval more difficult. Traditional banks normally require that borrowers have several years in business, a credit score of at least 680 and strong annual revenue, such as $250,000.
SBA loans
SBA loans are loans backed by the U.S. Small Business Administration, aimed at helping businesses that can’t get conventional business loans. SBA loans are known for their low interest rates set by the SBA and their long repayment terms, desirable features for small businesses.
Because these loans come with attractive features, you can expect a long, competitive application process. Here are the average business loan amounts that you can expect with SBA loans:
| SBA loan type | Description | Average loan amount in 2025 | Maximum loan amount |
|---|---|---|---|
| Standard 7(a) | Can be used for nearly all purposes, including working capital, payroll, expansion and equipment. | $760,712 | $5 million |
| Express | Short- and long-term working capital, inventory purchases, construction financing, renovations and purchasing real estate. | $107,424 | $500,000 |
| Export Express | Covers the costs of foreign trade shows, financing export orders and expansions, real estate acquisitions, equipment purchases and inventory. | $267,059 | $500,000 |
| 504 | Fixed assets that promote job creation and business growth, like equipment. | $1,138,449 | $5.5 million |
| CAPLines | Helps fund seasonal increases in costs, including inventory or labor, or the labor and material costs for particular projects. | $1,015,103 | $5 million |
Online loans
Online loans are alternative business loans offered through lenders that primarily work online, without physical branches. These lenders can offer loans of $500,000 or more in some cases. However, overall loan amounts are typically less than what you can get through a traditional bank.
Online lenders tend to approve and fund loans quickly, with many approving loans within 24 to 48 hours. Online lenders also tend to have more accessible loan requirements, often accepting startups or businesses with bad credit. Online loans might be a solid option if you need fast funding or you’re a subprime borrower.
Here are some examples of how much funding you can get with an online business loan:
Short-term loans
Short-term loans are loans with a short repayment schedule, usually 24 months or less. Loan amounts depend largely on the lender but can range from $5,000 to $750,000. These loans may be available to startups, businesses with fair or bad credit or businesses that simply want to pay off their loan quickly. That said, short-term loans can come with high interest rates, such as 30 percent or higher.
Some short-term loans will also charge a factor rate instead of an interest rate. Factor rates are decimals that get multiplied by the entire loan amount upfront, such as 1.10 or 1.50. They typically cost borrowers more than loans with APRs.
Bankrate insight
To save interest on a term loan, estimate the total interest you’ll pay with a short- or long-term loan. You may find that the total interest will be less with a short-term loan since you’ll be paying high interest for less time.
Business lines of credit
Business lines of credit are similar to business credit cards, allowing you to use the line of credit repeatedly. The available credit limit replenishes as you pay back past loans so that you can borrow from it again in the future.
Credit limits for business lines of credit often stop at $250,000 to $500,000. But some lenders will offer higher credit limits, such as $1 million. Lines of credit are ideal if you know you’ll need to borrow money in the future and want flexible access to funding.
Equipment financing
Equipment financing is a type of term loan that backs the loan with the equipment that you’re purchasing. The business loan amount typically equals the cost of the equipment purchase. You can find equipment loans from both traditional banks like Bank of America or online lenders like Triton Capital.
Because the equipment secures the loan, you can expect lower interest rates than an unsecured term loan. But the lender is able to seize the equipment if you default on the loan.
Invoice financing and invoice factoring
Both invoice financing and invoice factoring are short-term loans that you borrow against your unpaid invoices. The financing company will consider whether your clients are creditworthy and pay your invoices in a timely manner.
If approved, it will then advance you 70 percent to 90 percent of your outstanding invoices. You’ll repay the financing company plus fees when your clients pay the invoices. With invoice factoring, you sell your invoices to the company, and the factoring company will collect the invoices for you.
These loans can be useful if you have cash flow gaps from slow-paying clients. But consider that they often come with high fees like 4 percent of the invoice amount.
Merchant cash advances
Merchant cash advances offer a lump sum based on your business’s future credit or debit card sales. Once approved, your business will repay the advance with a percentage of your daily or weekly sales. This alternative business loan tends to have high approval rates, even for bad credit borrowers.
But they often come with high interest rates or factor rates that you’ll want to factor in when considering the cost of borrowing. Because the fees can be steep, you may want to use a merchant cash advance as a last resort for emergency funding.
Bankrate insight
Microloans
Microloans are business loans with low loan amounts, such as $1,000 to $100,000. SBA lenders and nonprofits often offer these loans to support businesses that don’t qualify for traditional business loans.
Microlenders often offer relaxed lending criteria, such as accepting poor or no credit. They may also provide business coaching and education to further support small businesses.
Determining how much you can borrow
When approving you for a business loan, lenders will look at several factors to determine if you can manage a new business loan. Lenders will look at your:
- Credit score: Lenders are more likely to approve you for funding if you have strong credit. If you have fair or poor credit, the lender may approve you for less funding than you requested or deny the loan.
- Revenue and cash flow: Lenders want to see that you have plenty of revenue left after expenses to cover business loan repayments.
- Debt obligations: Lenders will evaluate how much debt you already have and whether you can handle new debt. They may use a debt-to-income (DTI) ratio or debt service coverage ratio (DSCR) to determine your debt load. Lenders typically like to see a DTI of 36 percent or less and DSCR of at least 1.25.
Bottom line
The average small business loan amount varies considerably depending on what type of loan you take out, the lender you choose and your business’s finances. Lenders want to see that you can reasonably repay the loan amount from your expected revenue. Some types of business loans are easier to qualify for because the loan amounts are based on your future invoices or credit or debit card sales.
Always compare interest rates, repayment terms, loan amounts, eligibility criteria and fees when selecting a loan to ensure you find the most affordable option for your circumstances.
