You don't need a broker to get business funding. You can apply directly with banks, credit unions and SBA-approved lenders, and SBA's online matching tool, Lender Match, can connect you with one. Community lenders (CDFIs and local loan funds), equipment financing, invoice factoring and grants also take direct applications. Brokers aren't banned, but on an SBA 7(a) or 504 loan any paid agent fee must be disclosed on SBA Form 159.
By MCAFax. Last updated: October 12, 2026. SBA rules last checked on SBA.gov and eCFR on October 12, 2026.
General information, not legal or financial advice.
At a glance
| Path | How you apply direct | Watch-outs | Deeper guide |
|---|---|---|---|
| Bank or credit union term loan or line of credit | Apply at the institution, starting with the one that holds your deposits | Compare total dollars repaid, not just the payment | Where to get business funding |
| SBA 7(a), 504 or Microloan | Lender Match on SBA.gov, then the lender | Any paid agent fee goes on SBA Form 159 | How to qualify for an SBA loan, SBA 7(a) without getting hooked by brokers |
| CDFI or local revolving loan fund | CDFI Fund resources or your state's SSBCI program | Mission lenders, often slower | Community lenders on the pillar |
| Equipment financing | The equipment seller's finance arm or a bank | The equipment is the collateral | Where to get business funding |
| Invoice factoring | Apply with a factoring company | Cost is a discount on invoices, not a loan APR | How invoice factoring works |
| Grants | Grants.gov and program sites | Never pay a finder fee for a "guaranteed" grant | Small business grants open now |
| Fast online working capital | Apply on the company's own site | Many "check your options" forms are lead generators | Fastest business funding, Why brokers call you |
Yes, you can skip the broker
Start cheap and work outward: money you already have access to, then your own bank or credit union, then SBA lenders and community lenders, then equipment or invoice financing, and only then fast online capital. Every one of those paths has a front door you can walk through yourself. The pillar guide lays out that order in full.
How to apply direct, path by path
Bank or credit union. Ask the business banker where you deposit. They already see your cash flow, so they can often tell you fast whether a term loan or line fits.
SBA loans. Fill out Lender Match on SBA.gov. You answer questions about your business and get a list of lenders who express interest in your loan. Then you apply with the lender you pick. See how to qualify for an SBA loan.
CDFIs and local loan funds. These lenders serve businesses banks often pass on. Look for them through the CDFI Fund and your state's SSBCI page on Treasury.gov.
Equipment financing. Ask the seller or your bank. Because the machine secures the loan, approval leans on the equipment's value.
Invoice factoring. A factor buys unpaid invoices at a discount. Read the fee schedule line by line.
Grants. Search Grants.gov and your state and city programs. Real grants never charge you to apply.
When a broker or packager is involved on an SBA loan
Here's a hypothetical. Ridgeback Tile Co. (a made-up business) is closing a $250,000 SBA 7(a) loan. Three weeks in, a "consultant" who never mentioned a fee sends a bill for $12,500, 5% of the loan, due at closing.
The SBA rules are specific here:
It has to be on Form 159. Under 13 CFR 103.5, any agent or packager paid in connection with an SBA loan must have a compensation agreement. That's SBA Form 159, signed by the borrower, the agent and the lender.
SBA can cut it. If SBA decides a fee is unreasonable, the agent must reduce it and refund the excess to the borrower.
No "paid only if approved" fees. SBA's SOP 50 10 8.1 and the Form 159 instructions bar fees that are paid only if the loan is approved.
So before Ridgeback signs anything, the owner asks the lender one question: "Is this fee on a Form 159?" If not, it isn't part of the deal. We don't state a dollar cap here because the right number depends on the work done; check current guidance on SBA.gov. More detail: SBA 7(a) Form 159 agent fees and how to get an SBA 7(a) loan without getting hooked by brokers.
The lead-gen trap
Many "check your options, no credit impact" forms are not lenders. The consent line under the button often lets the site share your number with "partners." One form can mean dozens of calls by lunch. Read why brokers call you before you hit submit, and the FTC's guidance on blocking unwanted calls.
Compare a direct offer against a brokered one
Put both offers side by side: total dollars repaid, every fee, how often you pay (daily, weekly, monthly), and whether there's a personal guarantee. Plug them into the cost of capital calculator. A lower payment stretched over more payments can still cost more.
Already getting broker calls, or already in an advance?
If the calls started after a form, follow how to stop MCA broker calls. If you're already in a merchant cash advance, see merchant cash advance alternatives. SBA loans generally can't be used to refinance MCA debt; see SBA 7(a) MCA refinance rules. To check a specific lender, browse our lender reviews.
For the full map of where to get funding in 2026, go to where to get business funding.
Sources
U.S. Small Business Administration, Lender Match
U.S. Small Business Administration, SBA Form 159: Fee Disclosure and Compensation Agreement
U.S. Small Business Administration, SOP 50 10 8.1: Lender and Development Company Loan Programs
ECFR, 13 CFR 103.5
CDFI Fund, cdfifund.gov
U.S. Treasury, State Small Business Credit Initiative
Federal Trade Commission, How to block unwanted calls