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How to get a small business loan

To get a small business loan in 2026, decide exactly how much you need and what it is for, check your credit and cash flow, pick the loan type that fits, gather your documents, then apply directly with two or three banks, credit unions or SBA lenders. Compare every written offer on total cost, term, collateral and personal guarantee before signing.

By MCAFax · Published October 15, 2026

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Last updated: October 15, 2026

If you need money for...	Loan type to look at first	Go deeper
A one-time purchase or expansion	Term loan from a bank, credit union or SBA 7(a) lender	How to qualify for an SBA loan
Ups and downs in cash flow, recurring needs	Business line of credit	How to get a business line of credit
A vehicle, machine or equipment	Equipment financing (the equipment is the collateral)	How to get equipment financing
A smaller amount, or a newer or smaller business	SBA microloan through a nonprofit intermediary	How to get an SBA microloan
Cash tied up in unpaid customer invoices	Invoice factoring or financing	Invoice factoring explained
Starting from zero, no revenue yet	Startup options: savings, microloans, grants, friends and family	Startup business funding

A loan you can explain in one sentence is a loan a lender can say yes to.

Before you apply: amount, purpose and repayment

Write one sentence: what the money buys and how cash flow repays it. SBA's Lender Match checklist asks for the same things: amount and use of funds, credit history, financial projections and a business plan. Sizing help: how much business funding can I get.

How to get a small business loan, step by step

Decide the amount and purpose, as above.
Check your credit. Pull free reports at AnnualCreditReport.com and fix errors before any hard pull. Ask whether each lender's first check is soft or hard; see the CFPB on credit inquiries. Thin or weak credit? See no credit history and bad credit business loans.
Pick the loan type with the table above.
Build your document file once. See what documents do I need for a business loan.
Find lenders yourself: your own bank or credit union first, then SBA Lender Match. SBDCs and SCORE can review your file for free; find one through SBA local assistance. See business funding without a broker.
Apply with two or three lenders in a short window.
Compare written offers: total dollars repaid, APR, fees, term, payment schedule, collateral, personal guarantee and prepayment terms. Use the cost of capital calculator.
Do not sign anything you have not read in full.

What lenders look at

Credit history
Cash flow and your ability to repay
Time in business
Existing debt
Collateral
A sound business purpose

SBA says businesses normally must meet SBA size standards, be able to repay and have a sound business purpose. The lender gives you the full list.

SBA loans in one paragraph

SBA-guaranteed loans are made by approved lenders, not handed out by SBA. SBA's 7(a) page says you apply for your loan directly through a local lender, and Lender Match can connect you with one. Start with SBA's loans overview, then read how to qualify for an SBA loan and how to get an SBA 7(a) loan without getting hooked by brokers.

If the call you got says "loan," check what it really is

Many "fast business loan" callers sell merchant cash advances. An MCA buys a share of future sales, is repaid daily or weekly, and is not a loan or an SBA product. Here is an example, not a quote: a $50,000 advance at a 1.35 factor rate means $67,500 paid back over about six months, roughly 126% APR. Read is a merchant cash advance a good idea, merchant cash advance alternatives and how to stop MCA broker calls.

If you get turned down

Ask why, fix what you can, and try a different type of lender. See business loan denied: what to do next.

Need it fast?

Faster money usually costs more. See the fastest business funding.

Every other option

See every way to fund your business. Grants: see small business grants page.

Sources

SBA facts checked on SBA.gov on October 15, 2026.

SBA, Loans: https://www.sba.gov/loans/
SBA, 7(a) loans: https://www.sba.gov/loans/7a-loans/
SBA, Lender Match: https://www.sba.gov/loans/lender-match/
SBA, Local assistance: https://www.sba.gov/counseling/local-assistance/
CFPB, What is a credit inquiry: https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-inquiry-en-1317/
AnnualCreditReport.com: https://www.annualcreditreport.com/

Questions readers actually ask

How do I get a small business loan?

Set the amount and purpose, check credit, pick the loan type, build your file, apply directly with two or three lenders, and compare written offers.

Where do I apply for a small business loan?

Your own bank or credit union, SBA lenders through Lender Match, and nonprofit microlenders. You can apply directly; no broker is needed.

What do lenders look at?

Credit, cash flow, time in business, existing debt and collateral. Each lender sets its own requirements.

What documents do I need?

Usually tax returns, bank statements, a P&L, a debt schedule, entity papers and ID. See our documents checklist.

Does SBA lend the money itself?

For its main loan programs, no. You apply through an SBA-approved lender, and SBA guarantees part of the loan.

Will shopping for a loan hurt my credit?

Ask each lender whether its first check is soft or hard. Full applications are often hard inquiries. The CFPB explains the difference.

Is the "business loan" a cold caller offers a real loan?

Often it is a merchant cash advance, not a loan. Ask in writing what the product is.

What if I get denied?

Ask why, fix what you can, and try a different type of lender.

Looking for a term loan? See what your business could likely get first.

Answer a few quick, anonymous tap questions and get a free estimate, with options ranked cheapest first. No credit check. If you apply, only MCAFax reviews it, and nothing goes to any lender without your separate written permission.

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