Key takeaways
- Startups are unlikely to meet minimum revenue and time in business requirements from traditional lenders.
- Alternative lenders, microloans and SBA loans are common options for startups.
- Startup loans may have higher interest rates, shorter repayment terms and a lower maximum business loan amount.
The maximum business loan amount seems to be getting smaller. Compare loans backed by the Small Business Administration (SBA) as an example. In 2021, more than 37 percent of the SBA’s 7(a) loans were for $500,000 or more. In 2025, just north of 18 percent of 7(a) loans topped a half-million.
In fact, today, the average small business loan amount is $437,482.
For startups looking for a business loan, maximum amount ceilings come down further. Because they don’t have proof of consistent income over years, lenders see new businesses as risky.
How much can you get for a startup business loan? It depends, but expect your startup business loan to be smaller than one for an established business.
How much can you borrow for your startup business?
According to the 2024 Small Business Credit Survey (SBCS) from the Federal Reserve, 40 percent of companies that sought financing in the last year applied for a maximum business loan of $50,000 or less.
How much can you get for a startup business loan for your specific company? That depends on factors that are specific to you. When lenders evaluate a company for a small business loan, they set amounts based on factors like the company’s time in business, revenue and credit history.
Because startups aren’t usually strong in these areas, lenders may consider additional factors when approving your maximum business loan amount, including:
- Industry: Lenders may consider a startup’s industry when making a loan decision, offering more money to companies in profitable and stable industries.
- Personal credit: As a startup loan applicant, you’ll need a strong personal credit score and credit history to receive funding. If your credit isn’t great, you could find a lender who will work with your business, but the cost of borrowing may be higher.
- Industry experience: Having experience in your industry gives lenders more confidence that you can repay your loan. In turn, they may offer you a larger amount of money.
- Collateral: If you can offset the lender’s risk by securing your loan with collateral or another asset, the lender may be more likely to approve you for a larger loan.
Bankrate insight
The 2023 Small Business Credit Survey also found that 42 percent of businesses younger than two years had $100,000 or less in outstanding debt. Thirty-eight percent of these businesses were seeking a business loan, and 24 percent were seeking a line of credit.
Why do startup loans tend to be smaller than other business loans?
Startups are new companies, usually with ambitious growth plans and products or services that tap into a unique market. That’s not how lenders define them, though. Instead, in most lenders’ eyes, you’re a startup if you’ve been in business for two years or less.
A startup carries more risk for lenders because it often hasn’t delivered strong business results yet, hasn’t built much business credit and doesn’t have many assets. Plus, if a startup fails, there’s a risk that the loan might not get repaid.
Because of this, lenders may hesitate to fund startups. If they do offer a business loan, maximum amount ceilings will likely be less than an established business would receive. Further proof? According to the 2023 SBCS, 72 percent of startup businesses used personal funds to weather a financial challenge. When they did apply for financing, only 43 percent were fully approved.
Difficulty in financing
Lenders prioritize business age and revenue. Startups tend to have lower revenue and do not meet minimum time in business requirements, making it difficult to qualify. The 2023 Small Business Credit Survey found that 26 percent of businesses younger than two years saw their financing applications fully denied.
Even small loan amounts are getting harder to get. Business owners often need to be savvy and look at multiple options to find financing they need at any amount.
How much can a startup business borrow from different lenders?
Not all lenders provide startup loans. You may not have much success with traditional lenders like banks and credit unions, though a few work with new businesses.
Fortunately, new business owners who need startup funding do have other options. Your maximum business loan amount might be lower than the overall ceiling the lender advertises.
So, how much can you get for a startup business loan? Exploring loan caps from different sources helps you get a better idea.
SBA loans
Backed by the U.S. Small Business Administration, SBA loans for startups are designed to help business owners grow their companies and cover expenses like equipment. There are several types of SBA loans with maximum amounts ranging from $50,000 to $5 million.
Out of the 67,000 7(a) loans approved as of April 2025, over 28 percent have been issued to a new business or a startup, according to the weekly report published by the SBA.
SBA startup loans are known for their low interest rates and generous repayment periods. These loan features keep costs low while you get your business off the ground. And because they’re backed by the SBA, they offset some risk for lenders, making startups more likely to get approved. The downside is that the application process is involved and can take weeks or months to get approved.
Online lenders
Online and alternative lenders are popular options for startup owners in search of capital. These lenders supply everything from working capital loans to lines of credit to invoice factoring.
These companies and their offerings can vary significantly. Some are known for more flexible repayment terms and lower rates than traditional lenders like banks. Others specialize in helping business owners with poor credit.
In fact, per the 2024 SBCS, online lenders were a top choice for business owners with medium-to-high credit risk. 45 percent pursued this option, while fewer business owners in this category applied at large (31 percent) and small (24 percent) banks.
You should know, though, that borrowers have a lower satisfaction rating when working with online lenders. The 2024 SBCS revealed that from 2023 to 2024, net satisfaction with online lenders among financing applicants who were declined plummeted from 15 percent to 2 percent. Borrowers who do get approved cite common challenges like high interest rates and unfavorable repayment terms as problems with their borrowing experience. So, while an online lender is more flexible, be prepared to pay more over a short time.
Flexibility with online lenders
Online lenders have much more lenient criteria than traditional lenders.
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- Triton Capital provides startups with equipment loans between $10,000 and $500,000.
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- Fundbox has short terms ranging from three to six months and low loan amounts of $150,000 or less, but it accepts businesses with six months in business and a 600 personal credit score.
Some lenders even offer alternatives to loans that rely on your revenue rather than your business’s age, including:
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- Credibly: Offers long-term loans through lending partners up to $10 million, though other loans stop at $600,000
Microloans
Microloans are a type of small loan often funded through nonprofit organizations, and they may be aimed at small business owners in underserved groups, such as women and veterans. The SBA has a microloan program that offers up to $50,000. Other microloan programs exist with different loan amounts, and many businesses use microloans to fund expenses like inventory and supplies.
As the name suggests, microloans come with a lower maximum business loan amount. According to data voluntarily reported to the SBA, the average microloan is around $16,000 in 2025.
Grants
In addition to microloans, there are grants for businesses that are in their startup phase. Many grants are targeted to underserved groups, including:
The bottom line
When you’re trying to grow a young business, a startup business loan can provide much needed liquid capital. These can be hard to come by, though, particularly in large amounts. Usually, for a startup business loan, maximum amount averages hover around $500,000 — and actual loan amounts might only be for a sliver of that.
That said, how much you can get for a startup business loan depends on your company, your personal credit history and other factors specific to you. Exploring your options with a variety of lenders can help you find the capital you need.
