To get a business loan when you are self-employed, prove steady income and that you can repay. Gather your personal tax returns with Schedule C, business bank statements, a simple profit and loss statement, and contractor income forms or client contracts. Keep business and personal money separate, check your credit, and compare SBA microloans, CDFIs, credit unions and banks before anything with daily payments.
Last updated: October 2026
The short version
- Prove steady income with tax returns, Schedule C, bank statements and client records.
- Keep business and personal money in separate accounts.
- Check your personal credit and shore up the file with collateral, your own cash or a cosigner.
- Compare SBA microloans, CDFIs, credit unions and banks before anything with daily payments.
What SBA says lenders look for
The SBA loans page sums up the basic test this way:
"Normally, businesses must meet SBA size standards, be able to repay, and have a sound business purpose."
In plain words, being a one-person business does not rule you out. You apply through a lender, not SBA itself.
First: Prove your income
Lenders want to see that money comes in steadily and that you can make the payments. Bring:
- Personal tax returns with Schedule C. The IRS explains the form on its About Schedule C page.
- Business bank statements.
- Form 1099 income forms your clients sent you, such as Form 1099-NEC; see the IRS About Form 1099-NEC page.
- Schedule SE from your tax return, which shows the self-employment tax you paid on your net earnings; see the IRS About Schedule SE page.
- Client contracts or recurring invoices.
- A simple profit and loss statement.
- A personal financial statement and the lender's forms. For SBA loans this usually means SBA Form 413 (personal financial statement) and SBA Form 1919 (borrower information form). Many lenders also ask you to sign IRS Form 4506-C so they can pull your tax transcripts straight from the IRS.
- A short business plan: what you sell, who pays you, and how the loan will help you earn more and pay it back.
For the full list, see what documents you need for a business loan.
Example: Maple Row Design (a made-up business) is a solo graphic designer. Its owner pulls together tax returns, bank statements and signed client contracts before talking to any lender, so the file tells a clear income story.
Next: Separate business and personal money
Open a business bank account and run all business income and costs through it. Consider getting an EIN, which is free from the IRS; see the IRS page to get an employer identification number. Mixed accounts are a common reason files stall, because the lender cannot tell which money is the business. More on how to build business credit.
Then: Check your credit and strengthen the file
For a sole proprietor, personal credit matters most, because you and the business are the same in the lender's eyes. Collateral, some of your own cash in the deal, or a cosigner can help. Many lenders also ask for a personal guarantee, which means you promise to repay the loan yourself if the business cannot, so read that part of any offer closely. Read bad credit business loans and business loans with no collateral.
Finally: Compare where to apply
| Option | Good points | Trade-offs |
|---|---|---|
| SBA microloan through a nonprofit lender | Built for small and new businesses | Smaller loans, more paperwork |
| CDFI lender | Serves borrowers banks may turn down | Varies by lender |
| Credit union or bank | Often lower cost | Harder to qualify |
| Business line of credit | Draw only what you need | Can carry higher cost |
| Personal loan used for business | Can be faster | The debt is on you personally |
Learn more about SBA microloans, CDFI business loans, a business line of credit and a personal loan versus a merchant cash advance.
Merchant cash advances take daily or weekly payments from the same uneven income, so compare longer-term options first. Read is a merchant cash advance a good idea.
Grants for one-person businesses
Grants do not have to be paid back, but they are competitive and often tied to a place, industry or group. A grant can fill a gap next to a small loan. See grants for sole proprietors.
Watch for broker calls
Applying online often starts a wave of broker calls. Learn how to stop MCA broker calls.
Every other way to fund your business
A loan is one way to fund a one-person business. See every way to fund your business.
For free help, try the FDIC's Money Smart for Small Business.
Sources
Checked on SBA.gov, IRS.gov and FDIC.gov in October 2026.
- SBA, Loans
- IRS, About Schedule C
- IRS, About Form 1099-NEC
- IRS, About Schedule SE
- IRS, Get an employer identification number
- FDIC, Money Smart for Small Business
Last updated: October 2026