Best Small-Business Loans of 2022 – NerdWallet

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Best for Bank small-business loans
Max Loan
$200,000
Min. Credit Score
650
APR Range
8.99-35.99%
Max Term Length
5 years
Best for Bank lines of credit
Max Loan
$100,000
Min. Credit Score
720
APR Range
14.49-16.49%
Best for SBA loans
Max Loan
$5,000,000
Min. Credit Score
650
APR Range
9.25-11.75%
Max Term Length
25 years
Best for Established businesses
Max Loan
$500,000
Min. Credit Score
650
APR Range
8.99-17.99%
Max Term Length
5 years
Best for Long-term loans
Max Loan
$500,000
Min. Credit Score
660
APR Range
10.64-31.85%
Max Term Length
7 years
Best for Short-term loans
Max Loan
$250,000
Min. Credit Score
625
APR Range
29.90-97.30%
Max Term Length
2 years
Best for Online lines of credit
Max Loan
$250,000
Min. Credit Score
640
Best for Startup businesses
Max Loan
$250,000
Min. Credit Score
625
APR Range
15.00-78.00%
Max Term Length
1 year
Best for Borrowers with bad credit
Max Loan
$150,000
Min. Credit Score
600
APR Range
10.10-79.80%
Max Term Length
6 months
Best for Equipment financing
Max Loan
$250,000
Min. Credit Score
600
APR Range
5.99-25.00%
Max Term Length
5 years
Best for
Bank small-business loans
Banks typically offer small-business loans with the lowest interest rates and most competitive terms. These products are well-suited for established businesses with collateral and strong credit.
» MORE: Best banks for small-business loans
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Best for
Bank lines of credit
A bank line of credit offers greater flexibility than a term loan — allowing you to tap into a credit line and pay interest on only the portion of money you borrow. Bank credit lines are a good source of affordable working capital for established businesses.
» MORE: Guide to best business lines of credit
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Best for
SBA loans
SBA loans offer favorable rates and terms and can be used for a variety of large and long-term funding purposes. These government-guaranteed loans are best for businesses that don’t meet bank eligibility criteria, but still have good credit and strong finances.
» MORE: NerdWallet’s guide to SBA loans
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Best for
Established businesses
Online term loans can be good options for established businesses that need faster financing than a bank or SBA loan. Businesses with a good credit and financial history can access the most competitive interest rates and repayment terms from online lenders.
» MORE: Best online business loans
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Best for
Long-term loans
Long-term loans can help you expand your business — and provide more time to repay and lower monthly payments than short-term loans. Some online lenders can offer repayment terms up to seven years, with faster funding times than more conventional loan options.
» MORE: Best long-term business loans
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Best for
Short-term loans
Short-term loans can be good for businesses that need quick funding or those that can’t qualify for an SBA or bank loan. Short-term lenders generally have less-stringent eligibility requirements compared to traditional lenders and may work with startups or businesses with bad credit. Some lenders can also turn around funding within 24 hours.
» MORE: Best short-term business loans
Based on loans originated in the half-year ending March 31, 2022
Pros
Cons
Qualifications:
Best for
Online lines of credit
Online business lines of credit are best for fast access to working capital, especially for new businesses or those with less-than-perfect credit histories.
» MORE: Business lines of credit for startups
Pros
Cons
Qualifications:
Best for
Startup businesses
Some online lenders offer business loans for startups with one year or less in operation. You’ll typically need at least six months in business to qualify.
» MORE: NerdWallet’s guide to startup business loans
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Best for
Borrowers with bad credit
It can be more difficult to get a business loan with bad credit, but some online lenders are willing to work with borrowers who have a personal credit score below 630.
» MORE: NerdWallet’s guide to bad-credit business loans
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Best for
Equipment financing
Equipment financing is best for small businesses looking specifically to purchase machinery or equipment. Since the equipment itself serves as collateral, equipment loans can be more affordable and easier to qualify for than other types of small-business loans.
» MORE: Best options for equipment financing
Depending on your creditworthiness and your business's financials
Pros
Cons
Qualifications:
Calculate estimated payments, then see if you qualify for a business loan
with Fundera by NerdWallet
Getting a business loan can be challenging, and several factors — cost, speed, repayment schedule — can play a role in deciding which product is right for you. Let us help you through the process.
1. Fill out one simple application
Answer a few questions about your business to get personalized lending options. It’s free and won’t impact your credit score.
2. See your business loan options
It takes about three minutes to get options from our network of vetted small-business lenders. Compare interest rates and repayment terms to choose the best product for your needs.
3. Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
Keep up with your credit score.
Monitor your credit and grow your business. Strengthening your personal credit can help you qualify for lower rates and more loan options.

Randa Kriss is a small-business writer who joined NerdWallet in 2020. She previously worked as a writer at Fundera, covering a wide variety of small-business topics including banking and loan products. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor’s degree in English and Spanish at Iona College. Email: rkriss@nerdwallet.com.
Updated
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