Business lending in the United States is structured around established businesses. Most term loans, SBA programs, and bank lines of credit require 2+ years of business operations and demonstrated revenue. New LLCs face a much narrower lender pool — typically marketplace lenders that aggregate startup-friendly options, SBA microloans, business credit cards, and (controversially) personal loans used for business purposes.
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Realistic options for businesses under 2 years old. SBA microloans (under $50K) have shorter time-in-business requirements than 7(a) loans.
| Lender · Best for | APR range | Loan amount | Min. credit | Fees | Funding | Terms | Soft pull? | |
|---|---|---|---|---|---|---|---|---|
| Lendio Marketplace · multiple lenders |
8.00% – 35.99% | $1,000 – $5,000,000 | 600 | Varies by lender | 1–14 days | 3 mo – 25 yr | Yes | Check rates → |
| Bluevine Fast lines of credit |
7.80% – 28.49% | $5,000 – $250,000 | 625 | Draw fees apply | Same day | 6 or 12 months | Yes | Check rates → |
| SBA-approved lenders Lowest rates · longest terms |
8.50% – 11.99% | $30,000 – $5,000,000 | 650 | SBA + lender fees | 30–90 days | 7 – 25 yr | No | Check rates → |
APRs and product details reflect publicly available lender information; actual offers depend on credit profile, income, state, and lender underwriting. iLoans.ai may earn a commission if you apply through these links. Advertising disclosure.
Lendio
- APR range
- 8.00% – 35.99%
- Loan amount
- $1,000 – $5,000,000
- Min. credit
- 600
- Fees
- Varies by lender
- Funding
- 1–14 days
- Terms
- 3 mo – 25 yr
Bluevine
- APR range
- 7.80% – 28.49%
- Loan amount
- $5,000 – $250,000
- Min. credit
- 625
- Fees
- Draw fees apply
- Funding
- Same day
- Terms
- 6 or 12 months
SBA-approved lenders
- APR range
- 8.50% – 11.99%
- Loan amount
- $30,000 – $5,000,000
- Min. credit
- 650
- Fees
- SBA + lender fees
- Funding
- 30–90 days
- Terms
- 7 – 25 yr
Detailed lender reviews
Lendio
What we like
- Connects to 75+ business lenders in one application
- Wide range of products: term, line, SBA, equipment
- Single application, multiple offers
- Free to use
What to watch for
- Final terms set by each lender
- Quality of offers varies
- Customer support handled by lender after match
Useful for business owners who want to compare multiple lenders in one place without filling out 10 separate applications. Works best for established businesses with at least one year of history.
Bluevine
What we like
- Same-day funding for approved applications
- Soft-pull pre-qualification
- Lines of credit up to $250,000
- No fees to maintain unused credit line
What to watch for
- Higher rates than bank lines
- Short repayment terms (6 or 12 months)
- Draw fees on each advance
The leading non-bank line of credit for established small businesses needing working capital quickly. Faster than any bank but at a meaningful rate premium.
SBA-approved lenders
What we like
- Among the lowest small-business rates available
- Longest terms (up to 25 years for real estate)
- Government partial guarantee reduces lender risk
- Loan amounts up to $5M
What to watch for
- Application process is lengthy and paperwork-intensive
- Funding takes 30–90 days
- Personal guarantee typically required
- Specific use-of-funds restrictions
The cheapest small-business money available, in exchange for the longest application process. Worth pursuing for any borrower with time to spare and a use case that fits SBA program rules.
How to choose
The honest answer for most new LLCs is that business loan options are limited and expensive, and the right tool is often something other than a business loan. Here's how to think about the decision.
- Have a clear use of funds. "Working capital" is too vague for most new-LLC lenders. Specific use cases (inventory purchase, equipment, marketing for known channels) get better treatment than open-ended cash needs.
- Document business revenue carefully. Even 6 months of consistent revenue dramatically expands lender options. Business bank statements, invoices, and tax returns (when available) are the standard documentation.
- Consider SBA microloans seriously. SBA microloans go up to $50,000, fund through nonprofit intermediaries, and have shorter time-in-business requirements than traditional SBA 7(a). They're slow (60–90 days) but cheap.
- Use a business credit card for under-$10K needs. Most business credit cards approve based on personal credit, not business credit. A card with 0% intro APR can fund the same day at lower effective cost than any business loan.
- Personal loans for business purposes are legal but risky. Many new-LLC borrowers use personal loans to fund business activities. This works but blurs personal and business credit, and the lender may have language restricting business use. Read the loan agreement.
- Avoid merchant cash advances. MCAs are widely available to new businesses with revenue but charge effective APRs of 40–150%. They work for short-term cash-flow gaps in established businesses; they almost never work for new LLCs.
- Build business credit deliberately. While waiting for traditional financing, register with Dun & Bradstreet, open a business bank account, and use a business credit card. After 12–18 months of established business credit, your lender pool expands meaningfully.
Frequently asked questions
Can a new LLC get a business loan?
Yes, but options are limited. Marketplace lenders (Lendio), SBA microloans, and business credit cards are the realistic paths. Most term lenders and bank lines of credit require 2+ years in business.
What credit score does a new LLC need for a loan?
650+ personal FICO is typical for marketplace business loans. SBA microloans typically require 620+. Business credit doesn't exist yet for most new LLCs, so personal credit is the primary underwriting input.
How long does an LLC need to be in business to get a loan?
Most term lenders require 2+ years. SBA microloans accept newer businesses. Business lines of credit typically want 6+ months of consistent revenue. Marketplace lenders vary widely; some accept startups with strong personal credit.
Can I use a personal loan for business expenses?
Legally, in most cases yes. Practically, this is a common path for new-LLC borrowers. The trade-offs: personal credit is on the line, the loan agreement may restrict business use, and the borrowing doesn't build business credit.
What is an SBA microloan?
SBA microloans are loans up to $50,000 made through nonprofit intermediary lenders, partially guaranteed by the SBA. They're designed for small startups and underserved borrowers. Rates are typically 8–13%, terms up to 6 years, and time-in-business requirements are shorter than SBA 7(a).
Should I form an LLC before applying for a business loan?
Generally yes for liability protection, but the business structure typically doesn't affect rate or approval at this credit tier. Some lenders have minimum revenue or time-in-business requirements that aren't met by recent LLC formation alone.