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Lender. Best for. Min. credit score. Bankrate score. SBA microloans. Affordable business loans. No credit requirement. N/A. Fundible. Low revenue requirement. 450
Loan type. Typical amount. Purpose. How it works. Term loan. $1,000 to $1 million. Highly versatile; can be used for equipment, real estate, working capital and more
Lender. Average small business loan amount. Bank loans (large national bank) $593,000. Bank loans (small regional bank) $146,000. SBA 7(a) loan. $479,685
SBA loans are term loans or lines of credit backed by the U.S. Small Business Administration. If you default on the loan, the SBA guarantees repayment to the lender up to a certain percentage.
Bankrate insight. If you borrow $150,000 with strong credit at an 8 percent APR for five years, your monthly payment would be $3,041.46, with a total interest cost of $32,487.55.
In the 2023 Small Business Credit Survey, 36 percent of small businesses applied for business loans, while 20 percent applied for an SBA loan or line of credit. 7. Microloan
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