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Best business loans for startups in 2026
The best financing for a startup with little or no revenue is an SBA microloan, equipment financing, or a business credit card, because most other business loans require operating history. An SBA 7(a) loan is available to startups that bring industry experience and their own cash. Once a company has several months of revenue, lines of credit and revenue-based funding open up.
By the WithFunded team · Published November 11, 2026 · Rates as of November 2026
The short list
- Best for a brand-new business
- SBA microloan
- Best when the startup cost is equipment
- Equipment loan
- Best for early everyday expenses
- Business credit card
- Best for a funded launch with experience
- SBA 7(a) loan
- Best low-rate option for owners with home equity
- Home equity line of credit
The 5 best options, ranked
1. SBA microloan Best for a brand-new business
Microloans of up to $50,000 are made by nonprofit lenders whose purpose is to fund new and underserved businesses. Many include training or mentoring.
Watch for: Small amounts, and availability depends on an intermediary lender serving your area.
2. Equipment loan Best when the startup cost is equipment
A lender can finance equipment for a new business because the equipment secures the loan. Expect a down payment and a personal guarantee.
Watch for: Older or highly specialized equipment gets shorter terms and higher rates. Equipment financing guide →
3. Business credit card Best for early everyday expenses
A business card is approved on personal credit, needs no revenue, and costs nothing if paid in full. It also starts the company's credit file.
Watch for: Low limits, and one of the most expensive ways to carry a balance for months.
4. SBA 7(a) loan Best for a funded launch with experience
Startups can get 7(a) loans, typically with relevant industry experience, a business plan, and an owner cash injection toward the project.
Watch for: Heavy documentation, and the timeline rules it out for anything urgent. SBA loan guide →
5. Home equity line of credit Best low-rate option for owners with home equity
A home equity line does not depend on business history at all. It is cheap, but it puts your home behind a new venture.
Watch for: Your home is the collateral, even though the money funds the business. HELOC guide →
Side-by-side comparison
| Option | Verdict | Cost basis | Funding speed | Qualifies on |
|---|---|---|---|---|
| SBA microloan | Best for a brand-new business | Rate set by the nonprofit intermediary; loans up to $50,000 | Weeks | Open to startups and thinner credit, often paired with business training |
| Equipment loan | Best when the startup cost is equipment | Representative 8%–30% APR, with the term matched to the equipment's useful life | Days to weeks | The equipment is the collateral, which can offset a thinner credit profile |
| Business credit card | Best for early everyday expenses | No interest if paid in full each cycle; high rates on a carried balance | Days | Mostly your personal credit |
| SBA 7(a) loan | Best for a funded launch with experience | 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 |
| Home equity line of credit | Best low-rate option for owners with home equity | Typically prime (7.00%) plus a lender margin | Slower than unsecured options: expect an appraisal and title work | Your home equity and personal credit |
What it costs
Monthly payments on a standard fixed-payment loan at the representative 8%–30% APR band. The low end of each range is 8% APR and the high end is 30% APR.
| Amount | 24 mo | 36 mo | 60 mo |
|---|---|---|---|
| $10,000 | $452–$559 | $313–$425 | $203–$324 |
| $25,000 | $1,131–$1,398 | $783–$1,061 | $507–$809 |
| $50,000 | $2,261–$2,796 | $1,567–$2,123 | $1,014–$1,618 |
Financing $25,000 over 36 months costs about $783–$1,061 a month, or $3,203 to $13,206 in total interest, depending on the rate you qualify for. WithFunded calculation, representative 8%–30% APR band. Not a quote.
What lenders look at
- Your personal credit, since the business has none yet.
- How much of your own money is in the business.
- Direct experience in the industry and a plan with realistic numbers.
Mistakes to avoid
- Borrowing for expenses a customer deposit or a smaller launch could cover.
- Putting long-term startup costs on a credit card and carrying the balance for a year.
Frequently asked questions
- Can a startup get a business loan with no revenue?
- Yes, but the options are narrow: SBA microloans, equipment financing, business credit cards, and SBA 7(a) loans for owners with experience and cash to invest. Most lines of credit and online loans need revenue first.
- How long do I need to be in business to qualify for more?
- Many online lenders want at least six months to a year of operation and steady monthly revenue. Bank and SBA loans for working capital usually look for two years.
- Does WithFunded work with startups?
- The WithFunded form asks for time in business and monthly revenue. Businesses under a year old can submit it, though most product types it matches to are built for companies that already have revenue.
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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 microloan 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.