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Where to get funding for your small business (2026)

Most small businesses should look for funding in this order: grants, SBA loans, bank lines, then equipment or invoice financing. You can apply for any of them yourself, without a broker, and if you want help working out which one fits, start at MCAFax.com/apply.

By MCAFax · Published October 8, 2026

Four stepped wooden shelves hold a silk ribbon, a brass key, a leather ledger, and an iron gear in warm sunlight. — The Funding Playbook · Business Funding

General information, not legal or financial advice.

That order is cheapest money first. A merchant cash advance belongs at the very end, because it's usually the most expensive money a small business can take. Below is the honest answer for each situation people ask about, written by people who used to sell the expensive stuff.

If you need money fast

The fastest cheap money is usually money you already have access to: an existing business credit card or a line of credit at your own bank. If you don't have one, ask your bank first. It can see your deposits, so it can often decide faster than a lender that's never met you.

SBA loans are slower but far cheaper. SBA says its own review of a 7(a) Small loan takes 2 to 10 business days, and lenders with delegated authority can decide without waiting on SBA. Your lender's paperwork takes longer than that. (SBA: 7(a) terms and eligibility)

A merchant cash advance can fund in a day or two. Here's what that speed costs, with typical numbers. You take a $50,000 advance at a 1.35 factor rate, so you owe $67,500. The funder debits $535.71 every business day for 126 business days, about six months. That's $17,500 in cost, roughly 126% a year as an APR. A 3% origination fee cuts what you receive to $48,500 and pushes it to about 140%.

For comparison, a $50,000 7(a) loan at the current cap of 13.50% over 10 years is about $761 a month. The advance above takes about $11,250 a month.

Put any offer through our cost of capital calculator before you sign.
Read Merchant cash advances in plain numbers and the advance agreement, clause by clause.
Already in one and struggling? Read The debit is about to bounce.

Need it fast and want a second opinion before you sign? Apply at MCAFax.

If you have bad credit

Bad credit narrows your options, but it doesn't end them. Lenders look at more than a score. SBA says lenders may weigh credit history alongside cash flow, equity and collateral. (SBA: 7(a) terms and eligibility)

SBA Microloans. Loans up to $50,000 through nonprofit community lenders. The average is about $13,000, and the lender sets the terms. (SBA: Microloans)
Secured financing. Equipment financing and invoice financing lean on the equipment or your customers' invoices, so your score matters less.
Your own bank or credit union. A long deposit history can count for more than a thin or damaged credit file.

What to avoid: anyone who promises approval regardless of credit. That's usually an advance priced for risk, or a fee scam. Check any company in our Lender Reviews before you hand over bank statements.

Not sure where you stand? Apply at MCAFax.

If you want a grant

A grant is money you don't repay, and a real one never charges a fee to receive it.

Grants.gov is the free, official index of federal grants. Most federal grants go to nonprofits, research groups and governments, so the pool for a for-profit small business is narrower than the ads suggest. SBA lists the federal programs that do fund small businesses, like SBIR and STTR research awards, on its grants page.

Most grant money a regular small business can win comes from state, city, county and corporate programs. They're competitive, and deadlines are short.

We post open programs with real deadlines in Grant Finder.
If anyone asks you to pay to get a grant, stop and read The grant that costs $499.

Want to line up a grant with other funding? Apply at MCAFax.

If you want an SBA loan

The 7(a) program is SBA's main business loan. SBA doesn't lend the money. It guarantees part of a loan made by a bank, credit union or other approved lender, and you apply directly with that lender. (SBA: 7(a) loans)

Loans go up to $5 million. Terms usually run up to 10 years, and up to 25 years for real estate.
Rates are negotiated but capped. A variable-rate loan of $50,000 or less can't exceed the base rate plus 6.5%.
You must be creditworthy and unable to get the same credit on reasonable terms elsewhere.

One rule that trips up MCA borrowers: under SBA SOP 50 10 8.1, an active merchant cash advance can't be refinanced with a 7(a) loan. It first has to be converted to a term loan that has amortized for at least 24 months, with no new advance taken since the conversion. (SBA SOP 50 10)

Underwriting details, worked examples and checklists are in the SBA 7(a) Playbook.

Want help getting an SBA file ready? Apply at MCAFax.

If you're a startup or new business

New businesses have the fewest options, so start with the ones built for them.

SBA 7(a). SBA lists starting a business as an eligible use of 7(a) money. Expect the lender to want a real equity injection from you. Our SBA 7(a) Playbook walks through how much.
SBA Microloans. SBA says microloans help businesses start up and expand, up to $50,000. (SBA: Microloans)
Pitch competitions and startup grants. Several open programs in Grant Finder are aimed at new founders.
Free help. SBA's Small Business Development Centers and SCORE mentors help with business plans and loan files at no or low cost. (SBA: resource partners)

Most fast online funding wants months of deposits, so it usually isn't open to a business that's weeks old. That's fine. It's also the most expensive money there is.

Starting out and want a plan? Apply at MCAFax.

If you want funding without a broker

Every option on this page can be applied for directly. SBA says you always work directly with your lender, not with SBA, and its free Lender Match tool on SBA.gov can connect you with SBA lenders. (SBA: 7(a) loans)

Brokers aren't banned. But if a broker, loan packager, consultant or referral agent is paid to help with an SBA 7(a) or 504 loan, whether you pay them or the lender does, the fee has to be disclosed on SBA Form 159, signed by you, the agent and the lender. SBA can make an agent cut or refund a fee it finds unreasonable, and it doesn't allow fees that are paid only if the loan is approved. (SBA Form 159 Â· 13 CFR 103.5)

Watch the "check your options, no credit impact" forms. Many are lead generators, and the consent line under the submit button can let them share your number with "partners." That's how a lot of broker calls start. Here's how your number gets out.

Before you apply anywhere, look the company up in our Lender Reviews.

Want to skip the middleman? Apply at MCAFax.

The MCA and 7(a) payment examples are illustrations with assumed numbers, not quotes. The 13.50% cap uses a 7.00% WSJ prime rate on October 8, 2026, plus SBA's 6.5% maximum spread for variable loans of $50,000 or less. Verify current rates with SBA and your lender.

Last updated: October 8, 2026. Rules and agency pages in this area change. If something here is out of date, tell us at info@mcafax.com and we will fix it. MCAFax is not a law firm or a lender, and this is not legal or financial advice.

Sources:

Questions readers actually ask

Where can I get funding for my business?

Start with grants, then an SBA loan through a bank or credit union, then a bank line of credit, then equipment or invoice financing. Keep a merchant cash advance as the last resort because it usually costs the most. You can apply for all of these directly, or [get help choosing at MCAFax](https://mcafax.com/apply).

How do I get a business loan with bad credit?

Look at SBA Microloans from nonprofit lenders, secured options like equipment or invoice financing, and the bank where you already deposit. Lenders also weigh cash flow and collateral, not only your score. Be wary of anyone who promises approval no matter what.

What is the fastest business funding?

A line of credit or business credit card you already have is fastest and usually cheapest. A merchant cash advance can fund in a day or two, but a typical one costs well over 100% a year as an APR. SBA loans take longer and cost far less.

Can I get a business loan with no credit history?

Sometimes. SBA Microloans are made by nonprofit lenders that also offer coaching, and secured financing leans on the equipment or invoices rather than your history. Expect smaller amounts at first, and keep business deposits in one account so a lender can see them.

Are there grants for small businesses?

Yes, but they're competitive, and most federal grants go to nonprofits, research groups and governments. State, local and corporate programs are where most small-business grants are. A real grant never charges a fee to receive it.

How do I get funding for a startup?

Look at SBA 7(a) loans, which can be used to start a business, and SBA Microloans up to $50,000. Add startup grants and pitch competitions, and get free help from an SBDC or SCORE mentor. Expect to put in some of your own money.

How do I qualify for an SBA loan?

SBA says you must be an operating, for-profit U.S. business that's small under SBA size standards and in an eligible industry. You must also be creditworthy, show you can repay, and be unable to get the same credit on reasonable terms elsewhere. Lenders can add their own rules on top.

Do I need a broker to get a business loan?

No. You can apply directly with banks, credit unions and SBA lenders, and SBA's free Lender Match tool can connect you with one. If a broker, packager or referral agent is paid to help with an SBA loan, whether by you or by the lender, the fee must be disclosed on SBA Form 159, signed by you, the agent and the lender.

How much does a merchant cash advance really cost?

Multiply the advance by the factor rate to get the total payback. A $50,000 advance at a 1.35 factor costs $17,500, and repaid over about six months that's roughly 126% a year as an APR. Fees and shorter terms push it higher.

Can I use an SBA loan to pay off a merchant cash advance?

Not while the advance is active. Under SBA SOP 50 10 8.1, an MCA can be refinanced only after it's been converted to a term loan and has amortized for at least 24 months, with no new advance since. Ask your lender to check your case against the current SOP.

What is the cheapest way to fund a small business?

Grants are cheapest because you don't repay them, but they're hard to win. After that, SBA-backed and bank loans usually cost far less than short-term online funding. A merchant cash advance is usually the most expensive option.

How can I check if a business lender is legitimate?

Look the company up by its full legal name, confirm its contact details on its own website, and never pay an upfront fee just to be approved. Read independent reviews, like MCAFax's Lender Reviews, before you send bank statements. A real lender will give you the total cost in writing before you sign.

Getting the calls? Shut it down.

MCAFax was built to do the thing you can't do from inside the room: make the phone stop. Check any broker against our member-built database, send cease & desist letters from your own Gmail, and build the paper trail. Some laws, like the TCPA, put statutory damages on illegal calls — whether they apply to your calls depends on your situation, and business lines get less protection than home ones. It's free, and we're not a law firm.

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