Who Qualifies?

 

Here’s the low-down on qualifying:

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Because there’s no one option for a small business start-up loan, we’ll broadly cover the various financing options for startup owners—SBA microloans, business credit cards, small business grants, friends and family, and crowdfunding.

As you might guess, many young and new businesses can qualify for a startup business loan.

How young?

For businesses younger than 6 months, it typically makes sense to pursue one of these small business start-up loan options. Businesses older than 6 months (or businesses approaching one year) might have more traditional business loan options available to them, and should consider applying to those instead.

The most important factor in all of these small business startup financing options will be your personal credit score: The higher the score, the better your chances of qualifying for an SBA microloan, business credit card, or even a personal loan for business.

Your eligibility for more alternative start-up business loans like grants, crowdfunding, or friends and family will depend less on your credit score and more on the details of your business—like what your business model is, who your customers are, what community you operate in, and so on.