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Best ways to get a $1 million business loan in 2026
The best way to borrow $1 million for a business is an SBA 7(a) loan for an acquisition or expansion, an SBA 504 loan for real estate and major equipment, or a conventional bank loan for a strong company. At the current SBA maximum of 10.00%, a $1 million 7(a) loan costs about $13,215 a month over 10 years. Expect full underwriting and a process measured in months.
By the WithFunded team · Published November 11, 2026 · Rates as of November 2026
The short list
- Best for acquisitions and expansion
- SBA 7(a) loan
- Best for buildings and equipment
- SBA 504 loan
- Best for well-established companies
- Bank term loan
- Best for investment property
- Commercial real estate loan
- Best for a revolving facility
- Asset-based line of credit
The 5 best options, ranked
1. SBA 7(a) loan Best for acquisitions and expansion
Seven-figure loans for goodwill or working capital are rare outside the SBA program, which finances them at its lowest rate tier.
Watch for: Heavy documentation, and the timeline rules it out for anything urgent. SBA loan guide →
2. SBA 504 loan Best for buildings and equipment
A $1 million fixed-asset project is the 504 program's core use, with long fixed-rate terms and a modest down payment.
Watch for: Only for fixed assets. It cannot fund payroll, inventory, or other working capital. SBA loan guide →
3. Bank term loan Best for well-established companies
A business with strong earnings and collateral can borrow conventionally and avoid SBA fees.
Watch for: The slowest route outside SBA and the hardest to qualify for. Term loan guide →
4. Commercial real estate loan Best for investment property
A conventional commercial mortgage fits property that is not owner-occupied.
Watch for: Appraisal, environmental review, and closing add both time and cost. Commercial real estate guide →
5. Asset-based line of credit Best for a revolving facility
Companies with large receivables and inventory use asset-based lines for seven-figure working capital.
Watch for: Expect regular reporting on receivables and inventory, and a limit that moves with them. Business line of credit guide →
Side-by-side comparison
| Option | Verdict | Cost basis | Funding speed | Qualifies on |
|---|---|---|---|---|
| SBA 7(a) loan | Best for acquisitions and expansion | Capped at 10.00%–13.50% by loan size (prime plus the SBA maximum spread) | Weeks to months | Generally stronger credit and two or more years in business |
| SBA 504 loan | Best for buildings and equipment | CDC portion roughly 6.6% on 10 to 25 year terms | Weeks to months | Owner-occupied real estate or major equipment, plus a down payment |
| Bank term loan | Best for well-established companies | About 7% median on new small-business term loans (Kansas City Fed, Q4 2025) | Weeks | Strong credit, established financials, often collateral |
| Commercial real estate loan | Best for investment property | Conventional pricing varies by property and borrower; long amortization | Weeks to months | A stronger profile and a down payment; the property is the collateral |
| Asset-based line of credit | Best for a revolving facility | Interest on what you draw; the limit follows a borrowing base of receivables and inventory | Weeks to set up | The quality of your receivables and inventory |
What it costs
SBA 7(a) rates are capped at prime plus a maximum spread that shrinks as the loan grows. At the current 7.00% prime rate, these are the highest payments a lender could charge on a 10-year term:
| Loan amount | Maximum rate | Monthly payment at the maximum |
|---|---|---|
| $1,000,000 | 10.00% | $13,215 |
Payments at the SBA maximum variable rate for each size tier. Many borrowers qualify below the maximum. Source for rate caps: U.S. Small Business Administration. WithFunded calculation.
SBA 7(a) rates are capped at prime plus a maximum spread that shrinks as the loan grows. At the current 7.00% prime rate, these are the highest payments a lender could charge on a 25-year term:
| Loan amount | Maximum rate | Monthly payment at the maximum |
|---|---|---|
| $1,000,000 | 10.00% | $9,087 |
Payments at the SBA maximum variable rate for each size tier. Many borrowers qualify below the maximum. Source for rate caps: U.S. Small Business Administration. WithFunded calculation.
What lenders look at
- Complete financial statements, tax returns, and projections.
- Debt service coverage with a clear margin.
- Equity injection, collateral, and an experienced management team.
Mistakes to avoid
- Approaching one lender. At this size, terms differ enough between lenders to be worth comparing.
- Starting late. Appraisals, environmental reports, and SBA processing all take time.
Frequently asked questions
- Can a small business get a $1 million loan?
- Yes. SBA 7(a) loans go up to $5 million, and more than 80% of 7(a) loans are under $500,000, so a $1 million loan is at the larger end but well within the program.
- What is the payment on a $1 million business loan?
- At the current SBA maximum rate, about $13,215 a month over 10 years or $9,087 over 25 years for real estate.
- How much down payment is needed on $1 million?
- It depends on the use. SBA 504 real estate projects can require as little as 10%, while acquisitions and other uses vary by lender.
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How we ranked these options
This guide ranks types of financing, not individual lenders. Each option is ordered by how well it fits the need described on this page, judged on four things in this order: whether the structure matches how the money will be used and repaid, total cost, funding speed, and how hard it is to qualify. Cost figures are WithFunded calculations from published rate inputs as of November 2026: the bank prime loan rate from the Federal Reserve, the SBA maximum-rate schedule, and Federal Reserve survey data. The method follows our 2026 SMB Financing Cost Report, whose own figures use June 2026 rates.
WithFunded is a financing marketplace, not a lender. Our 2-minute form suggests a product type from the families we cover, and a funding partner reviews the request. Not every structure named in this guide is available through WithFunded: options such as SBA microloans, USDA farm loans, bank loans, and seller financing are ones you would pursue directly with the provider. They are listed because leaving out a good fit would make the ranking less useful.
Related guides
The top-ranked option on this page is SBA 7(a) loan because it fits the most common version of this need. Your own best fit depends on your revenue, time in business, credit, and how fast you need the money.
Disclaimer. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Everything on this page is a representative example only — not an offer or a commitment to lend, and not financial advice. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.