Updated March 2026·CompareBankLoans Editorial Team·Fact checked

Compare Small Business Loan Rates

Fund growth, manage cash flow, or invest in equipment — find the right business financing without giving up equity.

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From 7%

SBA 7(a) loan rates

$5K–$5M

Typical loan range

1–25 yrs

Available loan terms

PersonalHome EquityAutoDebt ConsolidationSmall Business

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Sample lenders for a good-credit borrower

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Best Match
L

LightStream

4.9/5

APR

7.49%

Est. mo. payment

$297

Loan range

$5K–$100K

Total fees

$0

Get My Rate on LightStream
Terms vary by lenderSame day funding
U

Upstart

4.6/5

APR

7.80%

Est. mo. payment

$331

Loan range

$1K–$50K

Total fees

$720

Get My Rate on Upstart
Terms vary by lenderNext-day funding
DP

Discover Personal Loans

4.7/5

APR

7.99%

Est. mo. payment

$295

Loan range

$3K–$40K

Total fees

$0

Get My Rate on Discover
Terms vary by lender2 days funding
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How to evaluate small business loan rates

Small business loans come in a wider variety of structures than consumer loans — and the right choice depends heavily on why you need the money, how long you've been in business, and your personal credit profile. Term loans are best for a specific capital investment. Lines of credit suit seasonal cash flow gaps. SBA loans offer the most favorable long-term rates but require more paperwork and time. Equipment financing and invoice factoring serve even more specific needs. The good news: competition among business lenders has intensified significantly, with many online lenders now offering same-week funding for established businesses. The key is matching your financing type to your business need, then shopping rates across multiple lenders — because in business lending, the difference between a good deal and a bad one is often 3–5 percentage points.

Use these comparison lenses to move beyond headline APRs and pick the product that fits.

Term loans vs. lines of credit

A term loan provides a lump sum repaid over a fixed schedule — best for equipment, expansion, or a known capital need. A business line of credit gives you flexible access to funds up to a set limit, ideal for managing working capital or unpredictable expenses.

SBA loan programs

SBA 7(a) loans offer some of the lowest rates available for small businesses, with terms up to 25 years. The tradeoff is a longer approval process (2–3 months) and more documentation. SBA Express loans are faster (36-hour approval) but capped at $500,000.

Time in business requirements

Traditional bank loans typically require 2+ years in business and strong revenue. Online lenders often work with businesses as young as 6 months. Startups generally need to rely on personal loans, business credit cards, or investor capital until they build a financial track record.

Personal guarantee

Most small business loans require a personal guarantee — meaning you're personally liable if the business defaults. Understand what you're signing before committing. Some lenders require collateral in addition to a personal guarantee for larger loan amounts.

Pros

  • Preserve business equity — debt financing doesn't dilute your ownership
  • Interest paid on business loans is generally tax-deductible as a business expense
  • SBA loans offer favorable long-term rates with extended repayment periods
  • Builds your business credit profile for future, better-priced financing
  • Online lenders can fund in as little as 24–48 hours for qualifying businesses

Tradeoffs

  • Approval typically requires 1–2 years in business and documented revenue
  • Personal guarantee means your personal credit and assets can be at risk
  • Collateral may be required for larger loan amounts
  • Rates vary widely — some online lenders charge effective APRs above 30%
  • SBA loans are slow to close (6–12 weeks), unsuitable for urgent cash needs

Frequently Asked Questions

What types of small business loans are available?
The main categories are: SBA loans (7a, 504, Express), traditional bank term loans, online lender term loans, business lines of credit, equipment financing, invoice factoring/financing, and merchant cash advances. Each has different rate structures, repayment terms, and qualification criteria.
How long do I need to be in business to qualify?
Traditional banks and SBA lenders typically require 2+ years in business. Many online lenders work with businesses that have been operating for 6–12 months with consistent revenue. Brand-new businesses generally aren't eligible for business loans and should look at personal loans, business credit cards, or SBDC resources.
Does my personal credit score matter for a business loan?
Yes, significantly — especially for businesses under 3 years old. Lenders use your personal credit score as a proxy for financial responsibility when business credit history is limited. A score of 680 or above opens most doors; below 600 significantly limits your options and raises your rate.
What is an SBA loan and should I pursue one?
An SBA loan is a bank loan partially guaranteed by the U.S. Small Business Administration. The guarantee allows lenders to offer lower rates and longer terms than they otherwise would. SBA 7(a) loans are the most common and offer up to $5M at competitive rates. The tradeoff is documentation and time — plan for 2–3 months from application to funding.
What revenue do I need to qualify for a business term loan?
Online lenders often start at $10,000–$25,000 in monthly revenue. Traditional banks typically want to see $250,000 or more in annual revenue. SBA lenders focus more on profitability and debt service coverage ratio than a hard revenue minimum.
Can I use a business loan for any purpose?
Most term loans and lines of credit are general-purpose — working capital, payroll, marketing, inventory, renovation, or equipment. Some loan types are purpose-specific: equipment loans must be used for equipment, real estate loans for property. SBA loans have broad but defined eligible uses.