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Best small business loans of May 2025

Written by
Marlese Lessing
Edited by
Rob Watts
Reviewed by
Emmanuel Nyame
Updated: April 4, 2025

What to know first: A small business loan can help cover a variety of business-related expenses, including startup costs, working capital or growth opportunities.

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National Funding: Best for early payoff discount

4.4
Bankrate Review
Loan amount
$5k-$500K
Term: 4 - 24 months
Interest rate
Factor Rates Starting at 1.10
Fastest funding
1 business day
Apply nowArrow Right

on partner site

QuickBridge: Best for loan variety

4.2
Bankrate Review
Loan amount
$10k-$500K
Term: 4 - 24 months
Interest rate
Varies
Fastest funding
1 business day
Apply nowArrow Right

on partner site

Fora Financial: Best for fast approval

4.5
Bankrate Review
Loan amount
$5k-$1.5M
Term: 6 - 18 months
Interest rate
Starting at 1.10 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on partner site

iBusiness Funding: Best for flexible repayment terms

4.6
Bankrate Review
Loan amount
$25k-$500K
Term: 6 - 84 months
Interest rate
Starting at 7.90% simple interest
Fastest funding
2 business days
Apply nowArrow Right

on BusinessLoans.com

Fundbox: Best for startups

4.3
Bankrate Review
Loan amount
$1k-$150K
Term: 3 - 6 months
Interest rate
Starting at 4.66%
Weekly Fee
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

American Express Blueprint: Best for low revenue requirements

4.3
Bankrate Review
Loan amount
$2k-$250K
Interest rate
N/A
Fastest funding
Not disclosed
Apply nowArrow Right

on BusinessLoans.com

Credibly: Best for bad credit

4.6
Bankrate Review
Loan amount
$25k-$400K
Term: 3 - 15 months
Interest rate
1.11 factor rate
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

OnDeck: Bankrate 2025 Award Winner Best lender for startups
4.5
Bankrate Review
Loan amount
$5k-$250K
Term: 3 - 24 months
Interest rate
Starting at 27.30% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Bank of America: Best for the bank experience

4.3
Bankrate Review
Loan amount
Starting at $10k
Term: 12 - 60 months
Interest rate
Starting at 8.50%
Fastest funding
Not disclosed
Wells Fargo Business: Bankrate 2025 Award Winner Best small business lender for good-to-excellent credit
4.2
Bankrate Review
Loan amount
$10k-$150K
Interest rate
Starting at 10.00%
Fastest funding
Not disclosed
Accion Opportunity Fund: Bankrate 2025 Award Winner Best CDFI for small business loans
4.1
Bankrate Review
Loan amount
$5k-$250K
Term: 12 - 60 months
Interest rate
8.49- 24.99%
Fastest funding
Not disclosed
On This Page

A closer look at our top small business lenders

When you’re comparing the best business loans, it’s important to take multiple factors into consideration.

  • Do you meet the minimum requirements?
  • Is this loan designed for your needs?
  • What is the interest rate?
  • How fast can the loan get funded?

Decide which features of a loan are most important for your business, such as flexible terms or startup support, and then take a closer look at the lenders we mentioned by diving into their features below.

National Funding: Best for early payoff discounts

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

National Funding works with hundreds of industries and communities. The lender’s business loans include working capital loans, short-term business loans, equipment financing and leasing. National Funding’s working capital loans offer a 7 percent discount on loan fees if you repay within 100 days of taking out the loan. Its loans range from $5,000 to $500,000, with repayment terms from four months to five years, depending on the loan you get.

Min. Fico Score
660
Loan Amount
Up to $500,000
Min. time in business
6 months
Read Bankrate's Expert Review

QuickBridge: Best for short-term loans

Rating: 4.3 stars out of 5
4.3
Bankrate Score

Overview

QuickBridge aims to provide small business owners with straightforward financing solutions. Like many alternative lenders, QuickBridge specializes in short-term loans and fast funding. A benefit to using QuickBridge is their dedicated Funding Specialists, who can help you find the best financing option for your business. Funds from QuickBridge can be used for any purpose, and you could be eligible for an early repayment discount.

Min. Fico Score
660
Loan Amount
Up to $500,000
Min. time in business
6 months
Read Bankrate's Expert Review

Fora Financial: Best for fast funding

Rating: 4.4 stars out of 5
4.4
Bankrate Score

Overview

Founded in 2008, Fora Financial specializes in short-term financing from everything from term loans to revenue advances to business lines of credit and more. Its loans are accessible to business owners with poor credit, though your business needs established revenue to qualify.

Min. Fico Score
570
Loan Amount
$50,000 to $1.5 million
Min. time in business
6 months
Read Bankrate's Expert Review

iBusiness Funding: Best for flexible repayment terms

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

iBusiness Funding helps small businesses find accessible business loans online, including term loans, SBA loans and USDA loans, a rare selection for a fintech lender. Unlike other online lenders, iBusiness Funding offers short and long-term repayment options. The term lengths for their business loans range from six months to 30 years, depending on which loan you choose. This flexible range allows businesses to tailor funding and repayment terms to their budget.

Min. Fico Score
660
Loan Amount
$25,000 to $500,000
Min. time in business
2 years
Read Bankrate's Expert Review

Fundbox: Best for startup loans

Rating: 4.3 stars out of 5
4.3
Bankrate Score

Overview

Fundbox provides working capital loans for small businesses in the form of unsecured lines of credit. Its credit limits range from $1,000 to $150,000. The company doesn’t use traditional interest rates, instead relying on an amortized weekly fee. Fundbox has a simplified online application, and business owners could be approved in as little as three minutes. Borrowers can use its online calculator to input their desired loan amount and chosen repayment term to see the total borrowing costs. 

Min. Fico Score
600
Loan Amount
$1,000 to $150,000
Min. time in business
3 months
Read Bankrate's Expert Review

American Express® Business Line of Credit: Best for low revenue requirements

Rating: 4.2 stars out of 5
4.2
Bankrate Score

Overview

American Express® Business Line of Credit offers credit from $2,000 to $250,000 with terms ranging from six, 12, 18 and 24 months. Instead of interest, borrowers are assessed a percentage fee each month they have an outstanding balance. The total monthly fees incurred over the loan term range from 3.00% to 9.00% on six-month terms, 6.00% to 18.00% on 12-month terms, 9.00% to 27.00% on 18-month terms and 12.00% to 18.00% for 24-month terms.

* All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

Min. Fico Score
660
Loan Amount
$2,000 to $250,000
Min. time in business
12 months
Read Bankrate's Expert Review

Credibly: Best for bad credit

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

Credibly is a direct lender of working capital loans and cash advances to small businesses needing fast funding. It also partners with other lenders to offer business lines of credit, long-term loans, equipment financing, SBA loans and invoice factoring. It’s often easier for business owners with poor or bad credit to qualify with Credibly than it would be at a traditional bank. 

Min. Fico Score
500
Loan Amount
$5,000 to $600,000
Min. time in business
6 months
Read Bankrate's Expert Review

OnDeck: Best for working capital

Rating: 4.5 stars out of 5
4.5
Bankrate Score

Overview

OnDeck is an online lender specializing in short-term small business loans. Its products include term loans and business lines of credit, which are available in 49 states. Flexible lending requirements and fast funding make OnDeck an appealing option for businesses needing working capital. If approved, businesses can get between $5,000 and $250,000 to use for various business purposes. 

Min. Fico Score
625
Loan Amount
$5,000 to $250,000
Min. time in business
1 year
Read Bankrate's Expert Review

Bank of America: Best for the bank experience

Rating: 4.1 stars out of 5
4.1
Bankrate Score

Overview

Bank of America is one of the nation's largest originators of commercial loans. Its large bank network sprawls across 39 U.S. states, and the brand serves customers in all 50 states. You can get face-to-face help from a representative to guide you through the business loan process. Plus, you can apply for its unsecured Business Advantage term loan online (so long as you have an online banking ID with the bank) by phone or in person, making it a convenient option among bank loans. The bank offers many business loan products, from term loans and lines of credit to equipment and SBA loans.

Min. Fico Score
700
Loan Amount
$10,000 and up
Min. time in business
2 years
Read Bankrate's Expert Review

Wells Fargo: Best small business line of credit

Rating: 4.2 stars out of 5
4.2
Bankrate Score

Overview

Wells Fargo is a well-known financial institution that operates in most states. It offers a wide range of products, including secured and unsecured small business lines of credit and SBA loans. Wells Fargo offers multiple lines of credit to qualifying businesses. Credit lines range from $5,000 to $1 million and come with a revolving or five-year term. In addition to its competitive rates, which range from an 8.00 percent to 12.00 percent APR, businesses with an unsecured line of credit have access to Wells Fargo's rewards program.

Min. Fico Score
680
Loan Amount
$10,000 to $150,000
Min. time in business
2 years or less, depending on product
Read Bankrate's Expert Review

Accion Opportunity Fund: Best for underserved communities

Rating: 4.1 stars out of 5
4.1
Bankrate Score

Overview

Accion Opportunity Fund is a nonprofit dedicated to serving underserved communities. It provides access to capital and financial resources to empower and help entrepreneurs, particularly those with limited resources and access to funding, to achieve their business aspirations. Accion Opportunity's working capital and equipment loans are designed to eliminate the barrier of strict lending requirements often imposed by traditional banks and provide easy access to funding to help small businesses succeed. 

Min. Fico Score
N/A
Loan Amount
$5,000 to $250,000
Min. time in business
1 year
Read Bankrate's Expert Review

What is a small business loan?

A small business loan is a financial product that allows business owners to borrow the funding they need. Business owners can use a business loan to start up a business idea, grow their operations, purchase equipment or inventory, manage cash flow, hire more staff and other needs. Business loans must be repaid over a specified timeframe with interest and fees, and come with certain requirements from the lender. These loans are available through traditional banks, credit unions and online lenders.

How a small business loan works

Small business loans work by allowing business owners to borrow money in exchange for promising to pay it back. A business owner can apply for a business loan and receive funding if they meet the requirements set by the lender. These requirements can include a minimum amount of time in business, positive cash flow and a good business or personal credit score. You’ll have to provide financial documents and bank statements from your business in order to get approved. 

Approval for a business loan can take as little as a day, or as long as a few weeks, depending on the lender, the loan amount and other factors. Some loans, like fast business loans, are advertised to have a quick turnaround time. Once you’re approved, you can discuss and negotiate the details before signing off on the loan agreement and receiving your funds. 

Once you’ve secured your loan, you’ll have to start repaying the lender. Depending on the loan agreement, you may pay back your business loan in daily, weekly, monthly or quarterly installments. Some types of loans, such as merchant cash advances, will require payments based on your weekly or monthly sales. 

Secured vs. unsecured business loans

You also get to choose between a secured or unsecured business loan, depending on whether you have collateral to put up for the loan. A secured business loan uses your business assets as a guarantee that you can repay the loan, with the assurance that the lender can take ownership of your assets if you default on your loan. 

Using collateral is beneficial if you need help getting approved for a bad credit loan or if you’re vying for lower interest rates. 

If you’re short on assets or don’t want to risk backing a loan with them, you can go with an unsecured loan. An unsecured loan lets you borrow funds without putting any collateral behind the money borrowed. Be aware that lenders may require you to have a top-notch credit history or well-built stream of revenue to qualify for an unsecured loan.  

Requirements for small business loans

Each lender has its own set of eligibility criteria for small business loans. That said, you’ll want to keep some general guidelines in mind as you research your options and prepare to apply for a business loan. Bankrate has additional resources that can help you prepare. 

Most lenders will typically evaluate the following to determine if you’re a good fit for a small business loan: 

  • Business revenue: You’ll likely need to generate a certain amount of gross annual or monthly revenue to qualify for a small business loan. Meeting this requirement demonstrates to the lender that you have the means to make monthly loan payments without disrupting your company’s cash flow.
  • Business credit history: Some lenders will check your business credit score when evaluating your loan application. Your business credit history will also show the lender your payment history with vendors and service providers.
  • Personal finances: Most small business lenders will check your personal credit score and history to determine the risk you pose. Some lenders may offer business loans for a credit score of 500 or less, but they may come with high interest and fees. A higher credit score means you’ll have better approval odds and lower interest rates with more lenders. 
  • Time in business: Expect to provide the number of months or years you’ve been in business. In most instances, you’ll need at least six months of business to qualify for funding. Some traditional lenders require at least two years of business experience to secure a small business loan. But startup loans exist, too.
  • Industry: Lenders want to know you’re operating in a stable industry or one that isn’t at risk for a major downturn that could significantly affect operations and your ability to repay the loan.
  • Business debts: Prepare to provide a business debt schedule, which lists your current outstanding business debt obligations and monthly payments to the lender. This information will be used to determine how much of your revenue is allocated to current debts and if you can afford to take on a new monthly loan payment. 

It’s also helpful to have these documents handy when you apply: 

Pros and cons of small business loans

Small business loans can be a good or less-optimal option, depending on your situation.
 

Pros

  • Longer terms. Installment loans make it possible to pay for an expense over a long period of time. Business loans often extend up to five to 10 years, depending on the lender.
  • Flexible use. Most loans let you use the funds for a variety of expenses as long as they directly benefit your business.
  • Borrower incentives. Some lenders offer unique features to benefit their borrowers, such as an early repayment incentive or rewards program for a business line of credit.

Con

  • Not ideal for startups. Newer businesses or businesses with poor credit may have limited options.
  • Documentation requirements. You’ll need ample financial documentation to show you can repay, which can be challenging for new companies to provide. 
  • Lengthy approval timelines. Some lenders or types of loans take weeks to approve due to rigorous underwriting processes.
You can get a business loan at any stage of the business even when it's just an idea. However, it's advisable to go for a loan only when the need is essential. This includes but is not limited to purchasing equipment, covering operational costs or managing cash flow gaps. Be sure to have a solid repayment plan in order to avoid any form of associated risks for the business.
Bankrate logo Emmanuel Nyame, CEO of Twelvenets

Types of small business loans

There are several types of small business loans to choose from. Some have more stringent requirements than others, particularly those offered by traditional banks. But online lenders typically have options available for new businesses and business owners with fair or bad credit.

Here’s a closer look at the different business loan options available.

Where to get a small business loan

Don’t limit your options. Let Bankrate help you find the best rates for loans from multiple lenders.

Banks and credit unions

Banks and credit unions typically offer a variety of products, from lines of credit to SBA loans. Requirements tend to be strict, often requiring several years in business and strong credit and revenue. Approval can take weeks or months to finalize the loan agreement. However, these institutions can offer a face-to-face experience. And bank employees should be skilled at helping you navigate the application process.

Online lenders and fintech

These lenders often specialize in less stringent lending requirements, making them appealing to less-established businesses. For example, online lenders may only require six months in business. Online loans can disburse quickly, with approval and funding taking only a day or two. An all-online experience means that you can access and manage the loan as needed without having to contact a loan officer during business hours. However, you need to be careful that the lender is established and legitimate by reading reviews, checking Better Business Bureau ratings and looking at the lender's background. 

Nonprofits

There are nonprofits that specialize in helping small businesses access capital. Some, such as Kiva, operate crowdfunding platforms or run microloan programs. In general, banks and credit unions are best for more established businesses because of the stricter approval requirements. Online lenders and nonprofits may be more forgiving of less established businesses, as some are even geared toward businesses that could not secure funding from more traditional banking options. 

Community Development Financial Institutions (CDFI)

A business loan from a Community Development Financial Institution (CDFI) offers unique advantages. These institutions are dedicated to supporting underserved communities and promoting economic development. Loans often have more flexible underwriting criteria tailored to meet the needs of small businesses that may face challenges accessing traditional financing. 

Minority Depository Institutions (MDI)

Minority Depository Institutions are financial institutions focused on serving minority communities. Like CDFIs, the goal of MDIs is to provide access to capital and financial services and promote economic development in underserved communities. 

SBA lenders

Banks, credit unions and alternative lenders offer term loans backed by the Small Business Administration. A business can benefit from an SBA loan due to its favorable terms, lower interest rates, longer repayment periods and flexible eligibility criteria. It provides access to capital for various purposes, such as starting a business, expanding operations, purchasing equipment or refinancing debt and supporting business growth and stability.

How to compare small business loans

No two business loans are the same. Finding the best small business loan for you means thoroughly researching what’s available, while also knowing what your business needs and how it operates. 

Here are some criteria to consider when comparing small business loans:

  • Loan size
  • Repayment terms
  • Loan term
  • Interest/factor rate
  • Fees 
  • Collateral requirements
  • Credit score requirements
  • Revenue and years in business requirements
  • How quickly you need the funds
  • Servicing accessibility
  • Repayment discounts
  • Additional resources such as mentoring 
  • Specialization in the industry

It’s important to keep in mind that a loan can go beyond simply having the lowest interest rate or the lowest eligibility requirements. For example, it may be worth paying a bit more in interest if the loan servicer offers a personal mentoring program for borrowers, or if they have a 24/7 customer service line to quickly address your financing needs. Lenders who are specialized in your industry may also be more helpful in helping you secure financing and offer additional resources. 

Bankrate insight

If the business loan you’re considering presents the following red flags, consider going with a different option.
 
  • Fees or other points of the contract are not clearly stated or vague
  • Terms to pay back the loan or draw periods are very short
  • You cannot pay off the loan early
  • Borrowing limits are smaller than what you need
  • Lender isn’t forthcoming when answering questions

Small business loan news

The foundation of how small business loans work and what’s offered tend to stay the same. But the economy and government regulations can impact interest rates and loan approvals. Here’s what you need to know about getting a business loan in the current market:

  • SBA seeks to expand small business working capital financing: The SBA is introducing a new 7(a) Working Capital Pilot program designed to help more small businesses access a line of credit. It has tiered interest rates based on the amount borrowed, and like most lines only charges interest when you withdraw funds. This credit line will allow financing for projects, asset-based lending and funding international orders.
  • Small business bankruptcies: Small businesses have been hit hard by the economy and other factors in the last few years, leading some businesses to file bankruptcy. According to the American Bankruptcy Institute, small business Chapter 11 bankruptcies were down 22 percent in November 2024 compared to the same time the previous year, showing a reprieve from the large rise in filings back in June 2024. 
  • New business lending remains flat, while lenders continue to tighten credit:  Businesses have been getting less access to credit over the past year as business loan interest rates increased and loan demand decreased. Yet new data shows a slight surge in new business lending in Q3 2024. According to the Federal Reserve’s Small Business Lending Survey, new lending increased slightly by almost 2 percent compared to the previous year, and outstanding balances increased by 1.3 percent when compared to 2023.
  • High Fed rates lower, but only to a trickle: While the Federal Reserve dropped their rate three times in 2024, lowering the borrowing costs for loans, the January 2025’s meeting saw the Fed holding the rate where it is. A stubborn rate of inflation and a strong job market have motivated the Fed to hold off on dropping the rate for the foreseeable future, though factors such as deportation of immigrant workers, tariffs, further inflation and economic upheaval may cause the Fed to change its mind. 
  • Tariffs hit small businesses where it hurts. With President Donald Trump imposing import taxes on Canada, Mexico and China, businesses who rely on imports from these countries are seeing prices increase and supply tightening. While the Trump administration promises the tariffs will return overseas production to the United States, businesses are feeling the pinch as they eat the costs for cheaper goods and raw materials. 

Alternatives to small business loans

If you decide a small business loan isn’t for you, Bankrate has some alternative options:


Frequently asked questions about small business loans

How we chose our best small business loan lenders

Bankrate's trusted small business loan industry expertise

Read our full methodology

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best small business loans, we ensured all loans featured are broadly available across the United States. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, required time in business, minimum annual revenue and fees. Additionally, the featured lenders were evaluated for notable qualities such as funding speed and nontraditional eligibility criteria.
 
When evaluating lenders, we use a 22-point scale to measure quality in five key areas: