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Wisconsin has about 460,000 small business owners who can apply for small business grants. Submitting an application and competing for Wisconsin small business grants can help you grow your small or medium-size enterprise in the Badger State.

Wisconsin’s economy has a gross domestic product of $414.4 billion as of 2023. That’s the 22nd largest GDP in the United States out of the 50 states and the District of Columbia.

Below we highlight some of the top small business grants in Wisconsin to be explored.

Grants for Small Businesses in Wisconsin

If you’re looking for small business grants in Wisconsin, here are some options to consider:

Collaborative Market Access Grant

•   Program description: This program provides grants to eligible nonprofit organizations, industry associations, or economic development agencies that support export-ready businesses in Wisconsin. Export-ready companies can then receive a portion of the grant as pass-through financial assistance for increasing their exports.

•   Incentive: Economic development organizations can receive up to $150,000 for helping export-ready companies sell their goods abroad. Your business can then receive a portion of that grant — up to $15,000 — for increasing your total export volume.

•   General requirements: Here are some of the general requirements for this grant:

◦   Operate a Wisconsin-based company

◦   Collaborate with an outside organization on a collaborative business project

◦   Your collaborative project must be a viable solution for increasing your company’s export volume

◦   The outside organization must demonstrate an administrative capacity to manage the project in collaboration with your company

•   How to apply: Contact the Wisconsin Economic Development Corporation (WEDC) for application information.

International Market Access Grant

•   Program description: This program reimburses eligible Wisconsin businesses for expenses related to international business development, such as the costs of attending trade shows or growing your presence in foreign markets.

•   Incentive: Receive up to $10,000 in reimbursement for implementing an export project or up to $25,000 if your company completes the national ExporTech™ program.

•   General requirements: Here are some of the general requirements for this grant:

◦   Be a Wisconsin-based company in operation for at least a year

◦   Manufacture, process, assemble or distribute a product or service with the potential to be exported

◦   Be new to export or expand your export volume

◦   Wisconsin cost inputs must make up at least 35% of the value of the product or service being exported

◦   Agree to a 30% match of the grant funds received

◦   Complete the ExporTech program to be eligible for the maximum grant award

•   How to apply: Contact the WEDC organization for application information.

Wisconsin Center for Technology Commercialization (CTC) Micro-Grants

•   Program description: The Wisconsin CTC provides micro-grants to eligible technology and research-based Wisconsin businesses that intend to apply for Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) federal funds.

•   Incentive: Be reimbursed up to $4,500 for expenses related to developing a Phase I SBIR/STTR research and development proposal or Phase II SBIR/STTR commercialization plan.

•   General requirements: Here are some of the general requirements for these grants:

◦   Be a research or technology business based in Wisconsin

◦   Intend to develop a Phase I SBIR/STTR research and development proposal or Phase II SBIR/STTR commercialization plan

◦   Your SBIR/STTR technical proposal is vetted by a federal program officer who gives the go-ahead

•   How to apply: You can access the grant application portal through the Wisconsin CTC website .

Wisconsin Entrepreneurial Training Program (ETP) Grant

•   Program description: The ETP grant covers most of the tuition costs of qualified applicants who participate in the ETP course offered at select University of Wisconsin campuses.

•   Incentive: Receive a grant covering 75% of the ETP course fee that typically costs $1,000, and receive training that can help you develop or improve your entrepreneurial business plan.

•   General requirements: Here are some of the general requirements for this grant:

◦   Register for an Entrepreneurial Training Program course

◦   Meet attendance requirements

◦   Complete a satisfactory business plan within the given timeframe by the hosting UW campus

•   How to apply: Contact the Wisconsin Small Business Development Center if you wish to apply.

Wisconsin Fast Forward (WFF) Grants

•   Program description: This program can reimburse eligible employers who implement a workforce training program that provides trainees with transferable skills or industry-recognized credentials.

•   Incentive: Receive up to $50,000 in reimbursement for your training program expenses, such as the costs of curriculum development, instructor salaries, training materials, or supplies.

•   General requirements: Here are some of the general requirements for this grant if you’re a small business owner:

◦   Be a Wisconsin-based employer or partnered with a Wisconsin-based employer

◦   Propose a workforce training program

◦   Provide trainees with workforce training in Wisconsin

◦   Train economically disadvantaged individuals or people who are seeking higher wages and new opportunities

◦   Be financially viable

◦   Be current on all federal and state tax obligations

◦   Match 50% of the amount of the grant with cash or in-kind contributions

•   How to apply: Apply online if and when the Wisconsin Fast Forward grants program reopens.

Who Provides Small Business Grants in Wisconsin?

State-funded organizations and the Office of Skills Development at the Wisconsin Department of Workforce Development offer a variety of small business grants in the Badger State.

Do You Have to Pay Back a Small Business Grant?

A small business grant typically comes with terms and conditions, and you may be responsible for paying back the grant if you violate those terms. In general, small and mid-size business owners are not required to pay back an SMB grant absent any violations.

You typically have to sign a funding agreement to accept a small business grant, and it may come with certain conditions. Using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.

Small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.

Recommended: What to Know About Short-Term Business Loans

Who Is Eligible for Small Business Grants in Wisconsin?

Local business owners or operators of an enterprise with fewer than 500 employees may be eligible for small business grants in Wisconsin.

The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. A small business, including individuals who freelance, may be eligible for small business grants.

What Industries Does Wisconsin Support With Grants?

Virtually all industry sectors in the Badger State can be eligible for Wisconsin small business grants, including:

•   Agriculture

•   Construction

•   Customer service

•   Financial services

•   Health care

•   Information technology

•   Manufacturing

•   Research and development in biotechnology

•   Scientific research and development services

•   Transportation, logistics, and distribution

Wisconsin Resources for SMB Owners Looking for Funding

Here are some resources for small and medium-sized businesses looking for funding in the Badger State:

Wisconsin Small Business Development Center (SBDC)

The Wisconsin SBDC is a statewide program that can provide Wisconsin’s small business owners with the following services:

•   Business training courses

•   Confidential business consulting at no cost

•   Specialized initiatives and webinars

SBA District Office in Wisconsin

The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA Wisconsin District Office has locations in Milwaukee and Madison, and both of those locations serve all 72 counties in the Badger State.

Alternative Funding Sources for Small Businesses in Wisconsin

Here are some alternative funding sources for small businesses:

Wisconsin State Small Business Credit Initiative (SSBCI)

Wisconsin’s SSBCI is a federally funded program for small business owners in the Badger State. Federal law — the American Rescue Plan Act of 2021 — allocates nearly $80 million to Wisconsin’s State Small Business Credit Initiative program.

Here’s how Wisconsin plans to use its SSBCI funding:

•   Wisconsin Forward Venture Fund — $25 million. This program will help eligible startups access venture capital.

•   Wisconsin Forward Co-Investment Fund — $25 million. These funds will also help eligible businesses access venture capital.

•   WEDC Technology Development Fund — $8.1 million. This funding will expand WEDC’s Technology Development Loan program for eligible new businesses that need financing.

•   Wisconsin Housing and Economic Development Authority (WHEDA) Collateral Support Program — $6 million. This program will provide cash collateral to help eligible small business owners access credit.

•   WHEDA Subordinate Loan Participation Program — $6 million. This program uses SSBCI funds to expand Wisconsin’s loan participation. A loan participation program typically allows a state to partner with private lenders to support small business lending.

•   WEDC Capital Catalyst Fund — $6 million. This program will help Wisconsin provide matching funds to nonprofits that operate small business loan programs.

•   WHEDA Capital Access Program — $3 million. This program will promote small business lending activity in Wisconsin. WHEDA can use SSBCI matching funds to support portfolio insurance on small business loans.

Wisconsin Microloan Lenders

Community-based nonprofits may offer microloans of up to $50,000 to small business owners in Wisconsin. In general, microloans can range from $500 to $50,000 and may be available to startups.

Wisconsin SMB Loans from Private Lenders

Banks, credit unions, and private lenders may offer different types of small business loans to Wisconsin business owners.

Here are some of the funding products you may consider depending on your needs:

•   Commercial real estate loans

•   Equipment financing

•   Small business loans for startups

•   Working capital lines of credit

The Takeaway

Small businesses in Wisconsin may be eligible for a number of grants, ranging from state and local governments to private sources.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

FAQ

How do you get a small business grant in Wisconsin?

You can apply for Wisconsin small business grants, but there’s no guarantee you’ll get approved for one. You may have to submit a grant application as a qualified small business owner to be considered for a small business grant in Wisconsin.

How hard is it to get a business loan in Wisconsin?

You may have difficulty getting a small business loan in Wisconsin if you have bad credit or insufficient business experience.

What is the easiest SBA loan to get approved for?

There’s no guarantee you’ll get approved for any SBA loan, but SBA microloans may be one of the easier ones to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50K. If you’re looking for a streamlined application process, SBA Express working capital loans are an option you may consider.

Photo credit: iStock/kali9

SoFi's marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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SOSB0424007

You’re ready to take out a loan to expand your business, hire staff, or purchase a permanent space. Trouble is, small business loans typically require a significant down payment and, right now, you simply don’t have the cash. Does that mean financing is off the table?

Not necessarily. There are several types of small business loans, including some term loans, that don’t require borrowers to make a down payment. In addition, some lenders will forgo a downpayment if a borrower has excellent credit or can offer collateral to secure the loan.

No-money-down business loans may come with higher fees and interest rates than conventional loans, however. So it’s important to shop around, compare business loan rates, and always read the fine print. Here’s what you need to know about no-money-down loans.

What Are No-Money-Down Small Business Loans?

No-money-down small business loans are exactly what they sound like — business loans with no down payment requirement.

While many small business loans require you to make a down payment of anywhere from 10% to 30% of the principal amount in order to secure the loan, these loans don’t ask for any initial deposit. Common no-money-down loans include: secured loans, short-term loans, microloans, invoice financing, and business lines of credit.

Why Cash Flow Matters to Lenders

Lenders are more likely to approve you for a no-money-down loan if your business can demonstrate a positive cash flow, which refers to the total amount of money that comes in and out of your business.

A positive cash flow means your revenue is higher than your expenses. This enables you to pay expenses, invest in new opportunities, and grow your business. A negative cash flow, on the other hand, means your expenses exceed your revenues. Businesses with positive cash flow tend to be more reliable borrowers that can afford their debt obligations, making them a trustworthy candidate to lenders.

Why You Might Need a No-Money-Down Business Loan

If your business is new or just getting off the ground, you may not be able to spend money (as in come up with a hefty down payment) in order to get money. Any available cash may be needed elsewhere in your company.

A no-money-down loan can help your business move forward without having to part with precious capital. Lenders will often waive the down payment in exchange for collateral, a higher than average interest rate, and fees.

This type of loan isn’t necessarily cheaper in the long term. However, if you need an influx of cash to achieve a healthy return on investment (ROI), a no-money-down business loan may be worth considering. Of course, it’s important to only borrow funds you know you can repay on time.

How Does a Loan With No Money Down Work?

Lenders require deposits to lower their risk. To offset the higher risk involved in offering a no-money-down business loan, lenders may offer lower funding amounts, shorter loan terms, and/or higher fees and interest rates.

In some cases, lenders may also require collateral. Using assets such as real estate or equipment as collateral allows lenders to recoup their losses if you go into default. Lenders that don’t require you to put up collateral may instead require a blanket lien (which allows them to place a claim on all assets to satisfy the debt) or request a personal guarantee (which says that if the business can’t pay its debt, the person providing the guarantee will be responsible for repayment).

Aside from the initial requirements, no-money-down business loans work the same way as traditional business loans. Typically, you receive the loan principal in a lump sum, then start paying it back (plus interest) according to a predetermined schedule. As with other types of business loans, the interest you pay on a no-money-down loan can be a tax-deductible business expense.

Pros and Cons of No-Money-Down Loans

If you’re short on capital, getting a no-money-down business loan may sound like the ideal solution. However, these types of loans come with both pros and cons. Here’s a look at how they stack up.

Pros

The biggest advantage to a no-money-down business loan is that you can avoid the catch-22 of having to come up with cash in order to borrow cash. Not having to wait until you’ve saved enough for a downpayment can also mean faster funding.

Another plus is that no-money-down business loans often have less stringent requirements, making them a viable option for businesses that have no credit history or a poor credit history. No-money-down loans also tend to be flexible, meaning you can use them for any type of business expense, such as supplies, payroll, equipment, or real estate.

Cons

One of the biggest drawbacks of no-money-down loans is that they often come with higher interest rates than conventional loans. You may also get hit with hefty loan fees, including fees for origination, late payments, and prepayments.

Loan amounts for no-money-down loans also tend to be smaller and terms are often shorter compared to conventional loans. In addition, you may have to put up a business asset as collateral in order to secure the loan.

Also keep in mind that not putting money down on a loan means the total amount you are borrowing will be greater. As a result, your loan payments will be higher.

Recommended: Grants for New York Small Businesses

No-Money-Down Loans vs Conventional Loans

No-money-down loans can come in handy in certain situations, but rates and terms tend to be less favorable when compared to conventional loans. Here’s how the two options compare.

Collateral vs Down Payments

Down payments and collateral are similar, but also have some key differences.

A down payment is a cash payment you make to the lender before you receive the loan. If you default on the loan, you forfeit your down payment.

Collateral is an asset you put up against the loan. This means you give the lender the right to take the asset if you are unable to pay the loan. Collateral could be a vehicle, piece of equipment, inventory, or real estate. Collateral allows you to keep more liquid capital in your business, but comes with the risk that you could lose the asset.

Both down payments and collateral serve the same purpose — they lower the lender’s risk. Some loans require one or both, while some require neither. Generally, if a loan requires either a down payment or collateral, it will have a lower interest rate.

Recommended: Unemployment Rates By City

6 Types of No-Money-Down Loans

Not every type of business loan requires a down payment. Here are some no-money-down loan options.

1. Business Lines of Credit

If you’re interested in getting a loan to relieve cash-flow issues, a business line of credit (LOC) can be a good solution. This kind of financing allows you to access cash when you need it and doesn’t require any down payment.

With a small business LOC, you can draw funds up to an agreed-upon credit limit (based on your business’s qualifications) whenever you need them in whatever amount you need. You only pay interest on what you use. Your line of credit replenishes to its original amount once you repay what you’ve used, plus interest.

2. Invoice Financing

Like a business line of credit, invoice financing is a quick way to improve cash flow, and it requires no down payment to secure. With invoice financing, you sell your unpaid invoices to a company who gives you up to 85 percent of the value of those invoices in return. You get the remaining amount, minus fees, once the invoices are paid by your customers.

Recommended: Annual Business Revenue

3. Equipment Loans

If you need a loan to purchase a vehicle or piece of equipment for your business, equipment financing can be a good option because the asset you are buying serves as collateral for the loan. And, if you can receive 100% of the money you need to buy the equipment, there won’t be any down payment involved. In some cases, however, an equipment loan will only cover 80%, which means you would need to come with 20% of the cost in advance.

4. Term Loans

Business term loans, which allow you to borrow a lump sum of money and repay it via monthly payments over the term of the loan, are one of the most common funding solutions for small businesses. And, you often don’t have to put money down to get one. If your lender looks over your credit and application and deems you a fit, they may only ask that you put up collateral or sign a personal guarantee.

5. SBA Microloans

If you’re looking for a startup business loan with no money down, you may want to consider a Small Business Administration (SBA) microloan. Unlike traditional, large SBA loans, microloans are for small amounts (up to $50,000) and typically do not require a down payment. SBA microloan lenders look to accommodate borrowers in underserved communities; female-, minority-, or veteran-owned businesses; environmentally friendly businesses; and certain nonprofits.

6. Crowdfunding

Crowdfunding involves getting small donations from a large number of people via a crowdfunding platform, such as Kickstarter or Wefunder.

With rewards-based crowdfunding, you create a post describing your product or service, set a target funding amount, and create tiered rewards for contributors based on the size of their donations, such as a company t-shirt or early access to the product. You need to meet your goal in order to keep the funds, and the platform typically charges a fee.

There are also other types of crowdfunding you might consider, such as equity crowdfunding (where donors receive a stake in the company), debt crowdfunding (where the money pledged by backers is a loan and must be repaid with interest by a certain deadline), and donation crowdfunding (where people give to a campaign for nothing in return).

Recommended: Comparing Personal Loans vs Business Loans

Applying for No-Money-Down Business Loans

Even if you don’t have the cash available to make a down payment, you may be able to qualify for a small business loan. Here are some things to consider before you apply for a no-money-down business loan.

Check Your Financials

At the end of the day, a lender simply wants assurance that any loans they extend will be fully repaid (plus interest). To qualify for a no-money-down loan, you’ll typically need to show a lender evidence that your business is generating revenue. If it isn’t, you’ll want to look at other assurances you can offer, such as collateral or strong personal credit, that demonstrate to the lender you are a safe bet.

Check Lender Requirements

Some lenders, like banks, have strict application requirements, such as a certain number of years in business and a minimum amount of annual revenue. Online lenders, however, tend to have more flexible criteria and may consider new businesses and those with lower cash flow if they can show other strengths, such as strong personal credit. It’s key to know what a lender is looking for before you start the application process to make sure it’s going to be worth your while.

Can You Afford the Loan?

Before applying for a small business loan, you’ll want to make sure that you have enough revenue or available cash to easily manage the monthly payments. Lenders generally like automatic withdrawals, so you’ll want to ensure that your business account balance is consistently well over wherever the monthly payment amount will be.

Can You Afford the Risk?

The rate and terms of a loan are based on the risk the borrower represents. If you can’t afford to make a down payment, you represent a higher risk to a lender. As a result, the annual percentage rate (APR) and payment frequency may be higher and the repayment period may be shorter than a traditional business loan. You may also have to put a business asset at risk. If you default on the loan, you could lose that asset.

Recommended: How Much Does It Cost to Start a Business?

Business Acquisition Loans With No Money Down

If you’re looking to purchase an existing business, a business acquisition loan can be a good option. This is a loan that’s given to a small business specifically to acquire another business. If the business you’re buying has sufficient assets to serve as collateral for the loan, you might be able to qualify for a no-money-down acquisition loan. If that’s not the case, you may be able to secure financing directly from the seller. If the owner is eager to sell, you may be able to negotiate a payment plan that doesn’t require a down payment.

The Takeaway

There are several types of loans that don’t require a down payment. However, no-money-down business loans may come with higher fees and interest rates than conventional loans.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

FAQ

Do SBA loans require a down payment?

Typically, yes. The two most common SBA loan programs – the SBA 7(a) and SBA 504 – both require a down payment of at least 10%.

Can you fund a business with no money?

Yes, it’s often possible to fund a business with no money. Options include loans from friends and family, a business grant, a no-money-down business loan, crowdfunding, and bringing in an investor.

Do no-money-down business loans exist?

Yes. Not all small business loans require a down payment. Some loans require collateral instead of a down payment, and some require neither.

What is collateral for a business loan?

Collateral for a business loan is a high-value asset, such as real estate or equipment, that a lender can seize and sell in the event that you default on the loan.

What are the downsides of no-money-down loans?

No-money-down loans often come with lower amounts, shorter terms, and higher interest rates than loans that require a down payment.

Photo credit: iStock/FluxFactory

SoFi's marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOSB0424006

Indiana has about 530,000 small business owners who can apply for small business grants. Submitting an application and competing for Indiana small business grants can help you grow your small- or medium-sized enterprise in the Hoosier State.

Indiana’s economy has a gross domestic product of $494.8 billion as of 2023. That’s the 19th largest GDP in the United States out of the 50 states and the District of Columbia. Small businesses contribute to the nation’s economy.

Below we highlight some of the top small business grants in Indiana that you can explore.

Grants for Small Businesses in Indiana

If you’re looking for Indiana small business grants, here are some potential options to consider:

Federal Home Loan Bank of Indianapolis (FHLBI) Elevate Grants

•   Program description: FHLBI Elevate grants can help you grow your Indiana firm and cover costs related to small business expansion and workforce development.

•   Incentive: Eligible business owners can receive up to $20,000 to cover project expenses, such as technology enhancements, capital improvements, and workforce development.

•   General requirements: Here are some of the general requirements for this grant:

◦   Partner with an FHLBI member institution

◦   Be a small business owner based in Indiana or Michigan

◦   Be active in business for at least 12 months

◦   Have average annual gross revenues of less than $1 million

•   How to apply: Work directly with an FHLBI member institution to apply when the annual application opens.

City of South Bend Business Grants

•   Program description: The city of South Bend offers a variety of grants that may partially reimburse eligible businesses for making capital improvements.

•   Incentive: Eligible businesses can receive up to $20,000 for making visual enhancements in downtown South Bend and up to $112,000 for implementing an advanced sustainability project in select corridors.

•   General requirements: Any business in South Bend may be eligible for a Vibrant Places matching grant, and businesses in the downtown area may be eligible for one Exterior Enhancement Grant per year.

•   How to apply: Visit the City of South Bend website for additional information on these grants and how to apply.

Michigan City Urban Enterprise Association (MCUEA) Business Grant Program

•   Program description: The MCUEA offers grants to eligible business owners who make exterior and interior improvements to their brick-and-mortar commercial establishments in Michigan City, Indiana.

•   Incentive: Eligible businesses in the Michigan City Urban Enterprise Zone can receive up to $7,500 in reimbursements for making capital improvements.

•   General requirements: You generally need to operate a business within the Michigan City Urban Enterprise Zone for a minimum period of one year to qualify for this grant.

•   How to apply: Contact the Michigan City Urban Enterprise Association for information on when the business grant application opens.

City of Madison’s Preservation and Community Enhancement (PACE) Grant Program

•   Program description: The PACE Grant Program provides matching grants to eligible property owners who rehab and improve the structural integrity of dilapidated buildings within the city of Madison, Indiana.

•   Incentive: The PACE Grant Program offers the following incentives per category:

◦   Receive a Curb Appeal Grant of up to $5,000 for improving the appearance of your residential or commercial property within the hilltop target area

◦   Receive a Rehabilitation Grant of up to $7,500 for rehabbing your downtown historic property

◦   Receive a Dangerous Buildings Grant of up to $10,000 for the full demolition of an unsafe property within the city of Madison

◦   Receive a Dilapidated Structures Grant of up to $25,000 for the partial demolition and rehabilitation of a dilapidated structure within the city of Madison

•   General requirements: Here are some of the general requirements for this grant:

◦   Own residential or commercial property in the city of Madison, Indiana

◦   Be current on all property taxes

◦   Have no current tax liens against the property

◦   Have no current litigation between you and the city of Madison

◦   Provide willingness to execute all legal agreements

◦   Properties which previously received PACE grant funds are not eligible for additional funding for two years following the previous grant’s final disbursement of funds

•   How to apply: Contact the PACE Review Committee or Madison’s Planning Department if you’re interested in applying.

Downtown Danville Partnership Façade Improvement Grant Program

•   Program description: Downtown businesses in Danville, Indiana, can receive partial reimbursements for making improvements to their storefronts and building exteriors.

•   Incentive: Receive up to $5,000 per grant for making exterior façade improvements to your commercial property in downtown Danville, Indiana.

•   General requirements: Here are some of the general requirements for this grant:

◦   Own a business in downtown Danville, Indiana

◦   Your business is located within the boundary of Clinton, Kentucky, Broadway, and Wayne streets

◦   Receive design approval in advance from the Town of Danville’s Design Review Committee

•   How to apply: Go to the Downtown Danville Partnership website to submit your application online.

Who Provides Indiana Small Business Grants?

Local governments, nonprofits, and financial institutions affiliated with the Federal Home Loan Bank of Indianapolis may offer small business grants in Indiana.

You can compare small business grants in Indiana with similar programs in other states, such as:

•   Florida small business grants

•   Michigan small business grants

•   NJ small business grants

Do You Have to Pay Back a Small Business Grant?

A small business grant typically comes with terms and conditions, and you may be responsible for paying back the grant if you violate those terms. In general, small and midsized business owners are not required to pay back an SMB grant absent any violations.

You typically have to sign a funding agreement to accept a small business grant. As mentioned above, the grant may come with certain conditions. Using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.

Small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.

Recommended: What to Know About Short-Term Business Loans

Who Is Eligible for Indiana Small Business Grants?

You may qualify for Indiana small business grants if your business generates annual revenues of less than $1 million and you plan to implement a capital improvement project. Local business owners or operators of an enterprise with fewer than 500 employees may also be eligible for small business grants in Indiana.

The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. A small business, including individuals who freelance, may be eligible for small business grants.

What Industries Does Indiana Support With Grants?

Indiana offers a variety of grants supporting the following industries:

•   Agriculture

•   Food services and drinking places

•   Hair, nail, and skin care services

•   Landscaping services

•   Restaurants and other eating places

•   Retail trade (store and nonstore retailers)

Indiana Resources for SMB Owners Looking for Funding

Here are some resources for small and medium-sized businesses looking for funding in the Hoosier State:

Indiana Small Business Development Center (SBDC)

The Indiana SBDC is a statewide program that can provide Indiana’s small business owners with the following services:

•   Access to market research reports at no cost

•   Confidential business counseling at no cost

•   Workshops and training events

SBA District Office in Indiana

The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA District Office in Indianapolis serves all 92 counties in Indiana.

Alternative Funding Sources for Small Businesses in Indiana

Here are some alternative funding sources for small businesses in Indiana:

Indiana State Small Business Credit Initiative (SSBCI)

Indiana’s SSBCI is a federally funded program for small business owners in the Hoosier State. Federal law — the American Rescue Plan Act of 2021 — allocates about $99 million to Indiana’s State Small Business Credit Initiative program.

Here’s how Indiana plans to use the SSBCI funding:

•   Indiana Angel Network Fund — $70.4 million. This program will help eligible startups access venture capital in the Hoosier State. It provides equity capital directly to startups through the Indiana Angel Network Fund alongside co-investors. Investments from the Indiana Angel Network may be made up to $1 million per company and typically require a minimum 1:1 co-investment.

•   Indiana Loan Fund Investment Program — $28.7 million. This program can help Indiana small business owners access small business loans. This includes Indiana small businesses with fewer than 10 employees and firms owned and controlled by socially and economically disadvantaged individuals.

Indiana Microloan Lenders

Community-based nonprofits may offer microloans of up to $50,000 to Indiana small business owners. In general, microloans can range from $500 to $50,000 and may be available to startups.

Indiana SMB Loans from Private Lenders

Banks, credit unions, and private lenders may offer different types of small business loans to Indiana small business owners.

Here are some of the funding products you may consider depending on your needs:

•   Commercial real estate loans

•   Equipment financing

•   Small business loans for startups

•   Working capital lines of credit

The Takeaway

There are a variety of grants available for Indiana small businesses, ranging from state or local governments to private businesses.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

FAQ

How do you get an Indiana small business grant?

You can apply for Indiana small business grants, but there’s no guarantee you’ll get approved for one. You may have to submit a grant application as a qualified small business owner to be considered for an Indiana small business grant.

How hard is it to get a business loan in Indiana?

You may have difficulty getting an Indiana small business loan if you have bad credit or insufficient business experience. You generally have to pay back business loans with interest.

What is the easiest SBA loan to get approved for?

There’s no guarantee you’ll get approved for any SBA loan, but SBA microloans may be one of the easier ones to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50K. If you’re looking for a streamlined application process, SBA Express working capital loans are an option you may consider.

Photo credit: iStock/JLco – Julia Amaral

SoFi's marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Small businesses make up a substantial portion of the New York State economy. According to New York’s 2023 Annual Report on the State of Small Business, a full 98% of New York businesses have fewer than 100 employees, and just over 92% of that total have fewer than 25 employees.

To support small and medium-size businesses in the Empire State, New York offers a number of generous grant programs that can help entrepreneurs launch or grow their companies. Unlike small business loans, grants typically don’t have to be repaid. While competition for New York grants can be stiff, here are five small business grants in New York to explore.

Grants for Small Businesses in New York

If you’re looking for a small business grant to grow or start your business in New York, here are some options to consider.

Global NY Fund Grant Program

•   Program description: The Global NY Fund Grant Program can help you export your goods or your services from the Empire State to foreign markets.

•   Incentive: Eligible businesses can receive up to $25,000 in reimbursement for expenses related to market customization, participation in trade shows, export workshops, or product adaptations to meet foreign regulatory requirements.

•   General requirements:

◦   Be a New York small business owner

◦   Have 500 or fewer employees statewide

◦   Be new to export or expand your exports to new markets abroad

◦   Have at least 51% of the value of your goods or services originate in New York, or be certified as a local producer

◦   Your business is at least 12 months old

◦   You have a demonstrated need for grant assistance

◦   You understand how exporting works and the cost of doing business with foreign buyers

•   How to apply: The Global NY Fund Grant Program is due to reopen for business by the end of 2024. You can find more information on its website .

Recommended: Business Cash Management: Tips for Managing Cash

The Creative Opportunity Fund

•   Program description: In partnership with the New York State Council on the Arts (NYSCA), A.R.T./New York offers the Creative Opportunity Fund (COF) to provide general operating support grants to theaters throughout New York State.

•   Incentive: Small professional theaters with budgets under $500K can receive general operating support grants of $2,000 to $5,000.

•   General requirements:

◦   Be a New York-based theater company with at least two years of public programming experience

◦   Operate as a 501(c) nonprofit, fiscally sponsored, or unincorporated artist collective organization

◦   Host live or virtual performances in New York State

◦   Have annual expenses totaling $500,000 or less

◦   Commit to allocating at least 50% of any funding awarded through the COF to providing compensation to artists

•   How to apply: The application process for the 2024 COF program closed in October 2023; check the COF website back in early August 2024 for 2025 grant opportunities.

Recommended: Comparing Personal Loans vs Business Loans

City of Troy’s Community Business Investment Grant

•   Program description: The City of Troy’s Community Business Investment Grant provides reimbursement funds to eligible commercial and mixed-use projects that strengthen the surrounding community. Such projects can include interior or exterior renovations to a commercial space, among other capital improvements.

•   Incentive: Business owners in Troy can receive between $5,000 and $50,000 in reimbursement for expenses related to a capital improvement project.

•   General requirements:

◦   Be a property owner or business owner in the City of Troy

◦   Be current on all taxes

◦   Propose a capital improvement project, such as making energy efficiency upgrades to your commercial property or rehabbing an industrial building

◦   Certify a minimum 50% match requirement

◦   Have proof of available financing for your project

◦   Begin project within six months of grant approval

◦   Complete the project within one year of project commencement, unless granted an extension

•   How to apply: Check the City of Troy’s website for updates on 2024/2025 grant opportunities and deadlines.

Recommended: How Do You Open a Business Checking Account?

City of Rochester Small Business Grant Programs

•   Program description: The City of Rochester offers small business reimbursement grants to eligible retail and neighborhood service establishments that need capital for items such as advertising, furniture/equipment, exterior signage, computers, architectural services, and security equipment.

•   Incentive: Startups in business for up to 12 months are eligible for up to $5,000. Existing businesses (in business for 12 months or more) are eligible for up to $8,000.

•   General requirements:

◦   Be a retail establishment or consumer services business owner with annual gross revenues of $5 million or less

◦   Operate your Rochester-based business in accordance with local zoning regulations

◦   Meet the U.S. Department of Housing and Urban Development (HUD) eligibility guidelines of providing an essential product or service in low-to-moderate-income areas (or meet other HUD guidelines)

◦   Be current on your sales and property taxes

◦   Have no outstanding code violations or nuisance points on your commercial property

◦   Operate an eligible business or enterprise (adult entertainment businesses, check-cashing facilities, gambling facilities, gun shops, home-based businesses, payday loan operations, and vape shops are not eligible)

•   How to apply: You can submit an online request for assistance/information on the City of Rochester’s website .

Market New York Tourism Grant

•   Program description: The Market New York grant program can help small businesses and other eligible applicants pay for tourism marketing initiatives in the Empire State.

•   Incentive: Various funding amounts are available for tourism marketing initiatives, capital projects, and special events (such as meetings, conferences, conventions, festivals, and athletic competitions).

•   General requirements:

◦   Be a not-for profit corporation or a for-profit business certified in the state of New York

◦   Propose a marketing or capital project that will promote tourism in the region or state

◦   Complete and submit a Consolidated Funding Application (CFA)

◦   Make a 50% match for working capital/marketing projects with a $50,000 minimum request.

◦   Make an 80% match for capital projects with a $150,000 minimum request

•   How to apply: Contact the New York State Division of Tourism staff for information about the next round of funding.

Who Provides Small Business Grants in New York?

Federal, state, and local governments and agencies; nonprofit organizations; and institutions of higher learning offer a variety of small business grants in New York.

Recommended: California Small Business Grants

Do You Have to Pay Back a Small Business Grant?

Typically, no. Unlike small business loans, small business grants generally do not need to be repaid. However, that doesn’t mean there are no strings attached. Small business grants usually come with terms and conditions and require the recipient to sign a funding agreement. If for any reason you violate the terms of the grant, you may be responsible for paying back the funds. For example, using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.

In some cases, small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.

Who Is Eligible for Small Business Grants in New York?

Local business owners or operators of an enterprise with fewer than 500 employees may be eligible for small business grants in New York.

The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. A business with just a few employees, even self-employed individuals, may also be eligible for small business grants.

What Industries Does New York Support With Grants?

New York offers a variety of grants supporting the following industries:

•   Manufacturing

•   Performing arts

•   Technology

•   Renewable energy

•   Restaurants

•   Retail

•   Tourism

New York Resources for SMB Owners Looking for Funding

Here’s a look at some resources for small- and medium-sized businesses looking for funding in the Empire State.

New York Small Business Development Center (NYSBDC)

The NYSBDC is a statewide program that offers New York’s small business owners with the following services at no cost:

•   Business training courses, seminars, and workshops

•   Library and research services

•   Confidential business counseling

SBA District Offices in New York

The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA has three district offices in New York:

•   SBA Buffalo District Office . This SBA district serves 14 of the westernmost counties of New York. Depending on where you’re based, you can contact the main office in Buffalo or the satellite office in Rochester.

•   SBA Metro New York District Office . This SBA district serves 14 counties in New York City, Long Island, and the surrounding area. Depending on where you’re based, you can contact the main office in New York City or the satellite office in Hauppauge.

•   SBA Syracuse District Office . This SBA district serves 34 counties in upstate New York. Depending on where you’re based, you can contact the main office in Syracuse, branch office in Albany, or the satellite office in Elmira.

Recommended: Small Business Grants in Texas

Alternative Funding Sources for Small Businesses in New York

If you don’t qualify for small business grants in New York State, you’re not necessarily out of funding options. Here are some other ways you may be able to get the capital you need to launch or grow your business in New York.

NY Microloan Lenders

Community-based nonprofits may offer microloans of anywhere from $500 to $50,000 to underserved small business owners in New York, such as women and minorities. Interest rates tend to be low (or zero in some cases), and the qualification criteria are often less stringent compared with other business loans.

Microloans can provide an infusion of cash to get a startup off the ground or grow an existing business. However, you may need to provide a microlender with a personal guarantee and collateral in order to secure funding.

SBA loans for New York Businesses

An SBA loan is a type of SMB loan that is partially guaranteed by the U.S. Small Business Administration and offered by banks and other lenders. Loan amounts range from $500 to $5.5 million.

Because the federal government guarantees to repay most of the loan amount if a borrower defaults, it reduces the lender’s risk and encourages them to offer loans to companies they might not otherwise work with. For small business owners who can’t qualify for a traditional business loan, an SBA loan can be an ideal option.

SBA loan rates are among the lowest available, and repayment terms can go up to 10 or 25 years, depending on loan usage. However, the SBA loan application process can be long and rigorous.

Recommended: Typical Small Business Loan Fees

New York SMB Loans from Private Lenders

Banks, credit unions, and online lenders may offer business term loans to New York business owners. Newer businesses typically have a better chance of approval through online lenders because they typically offer more flexible qualification requirements.

With a term loan, you receive a lump sum of cash upfront and repay it over a set period of time, often up to 10 years. Your business’s history, annual revenue, and creditworthiness (including your personal credit) typically determine which loan terms you’ll have access to and how much you can borrow.

Recommended: What to Know About Short-Term Business Loans

Business Lines of Credit

A business line of credit is a flexible financing option that lets you borrow money on an as-needed basis up to a predetermined amount. Similar to a credit card, you pay interest only on the money you’ve drawn. Once you’ve repaid your funds, you can draw on your line again.

Business credit lines are offered by banks, online lenders, and other lenders. Banks tend to have more stringent qualifications and lower rates, while online lenders may be more lenient, but offer higher rates.

Equipment Loans

If your business needs money to purchase equipment or machinery, equipment financing may be a good solution. The equipment you purchase serves as collateral for the loan. If you default, the lender can repossess and resell the equipment to recuperate some of its losses. Since this lowers risk for the lender, equipment financing often comes with competitive interest rates.

The amount you can borrow with an equipment loan depends on what you need to finance. Many banks and online lenders will offer financing that covers the full cost of equipment.

The Takeaway

A variety of small business grants are available in New York State, whether it’s from state or local governments or the private sector.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

FAQ

How do you get a small business grant in New York?

To find a small business grant in New York, you might start by contacting the state’s Economic Development Administration and your local Small Business Development Center. You typically need to submit a grant application as a qualified small business owner to be considered for a small business grant in New York.

How hard is it to get a business loan in New York?

You typically need to have been in business for at least two years and have strong financials to qualify for a business loan from a bank. Online alternative lenders tend to have more flexible qualification criteria but generally charge higher interest rates.

What is the easiest SBA loan to get approved for?

There’s no guarantee you’ll get approved for any SBA loan, but SBA microloans may be one of the easier ones to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50,000. If you’re looking for a streamlined application process, look into an SBA Express loan.

Photo credit: iStock/Prostock-Studio

SoFi's marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you need funds to launch a new venture or expand a current business, a small business loan can be a great option. But how much of a loan can you get? Depending on the lender and the type of financing, you can typically borrow anywhere from $500 to more than $5 million.

Exactly how much a lender will offer your small business, however, will depend on your company’s financials, time in business, and credit profile. Read on to learn how big of a small business loan you may be able to get, as well as the different types of business loans and how to qualify for the best rates and terms.

How Much Do Most Business Loans Offer?

How much business loans offer depends on the type of loan you’re after, such as whether it’s a short term loan, Small Business Administration (SBA) loan, or bank loan. Here’s a breakdown of some of the most common types of small business loans.

The differences between loans don’t stop with the amount, however. You’ll also pay different interest rates for each kind of loan. To get a sense of how much different types and sizes of loans may cost, you may want to use a small business loan comparison site.

To use a loan comparison tool, you generally need to plug in an approximate loan amount, as well as some basic stats about your business, including time in business, revenue over the last 12 months, and credit score.

Amounts Offered by Types of Lenders

You can generally borrow the highest amounts with traditional lenders, but you’ll have to jump through a few hoops to qualify. Luckily, there are many small business loan options on the market, even for larger loan amounts. Here’s a look at some of the most common lending options for small businesses and how much you may be able to borrow with each.

Bank Loans

Banks typically offer the largest loan amounts, and if you have the cash flow and the credit history to qualify, you can often borrow as much as $1 million. You might even be able to borrow more, though you’ll likely need stellar credentials to do so. Some large commercial banks don’t even have a maximum borrowing limit, while smaller banks typically do.

SBA Loans

The U.S. Small Business Administration (SBA) is an independent government agency that helps small businesses by guaranteeing loans issued by banks and other private lenders. Due to reduced risk to the lender, SBA-backed loans offer large amounts (as much as $5 million), as well as low interest rates compared to typical business loan interest rates.

Online Loans

If you have thin or poor credit, an online loan may be your best option. These loans can be anywhere from $1,000 to $500,000, and the qualification process is generally easier than loans from traditional lenders. The interest rate, however, will likely be higher than an SBA or traditional bank loan.

Short-Term Loans

Typically, a short-term business loan has a term of one year or less and is structured as a lump sum loan (which can be as much as $500,000) with repayments made on a daily or weekly schedule. This type of loan is most commonly offered by online lenders, and interest rates tend to be higher than other types of loans.

Medium-Term Loans

The definitions vary, but most commonly, medium-term loans are ones with a repayment period between two and five years and loan amounts up to $500,000. Borrowers usually have to make payments every month or twice a month. You generally need a business producing revenue to qualify for a medium-term loan and a credit score of at least 700.

Lines of Credit

With a business line of credit, a lender gives you access to a specific amount of cash (ranging from $1,000 to $500,000), which you can draw from whenever you want and use to cover whatever expenses you need. You’ll only pay interest on the funds you use. Lines of credit can be a great option for small businesses facing frequent cash flow issues. They can also be a good thing to have in your back pocket in case of emergencies.

Equipment Financing

Equipment financing limits vary with each bank (or online lender) and each piece of machinery, but you can generally borrow between 80% and 100% of the value of the equipment or vehicle you are purchasing — often up to $500,000. Typically, the equipment itself acts as the loan’s collateral and the repayment period often mirrors the equipment’s expected lifespan.

Recommended: Typical Small Business Loan Fees

Microloans

Microloans generally run between $500 to $10,000, and can be a great option for new companies or borrowers with poor credit. Unlike short-term loans, microloans are typically available through nonprofits and come with relatively low rates. However, microlenders often have specific parameters for a business to qualify for the loan.

Invoice Factoring

Invoice factoring is a short-term financing method that allows businesses to sell unpaid customer invoices to third-party invoice factoring companies. You can often get 85% of your unpaid invoices up front. The factoring company then collects payment from your customers and gives you the remaining balance minus fees. While these fees can be hefty, knowing what invoice factoring is and how to use it may help your business get past difficult financial times.

Business Credit Cards

Small business owners who are interested in financing ongoing expenses and working capital can sometimes be drawn to business credit cards. Opening a credit line with a business card offers flexibility and carries advantages, such as rewards for spending, 0% introductory annual percentage rates (APRs), and the capacity to build business credit. The downside is a revolving line of credit may come with high interest costs (once the introductory rate ends) and other fees.

Recommended: Can a Personal Loan Be Used to Start a Business?

7 Factors That Affect How Much of a Loan You Can Get

There are generally a lot more requirements for small business loans than there are for personal loans. Here are some key factors that can influence how much you can borrow.

1. Credit Scores: Personal and Business

Lenders typically only offer the highest loan amounts to business owners with good to excellent credit, since these borrowers represent a lower risk. A lender will typically want to look at both your personal and business credit scores.

Recommended: No Credit Check Business Loan

2. Collateral

Collateral is an asset (like equipment, real estate, or inventory) used to secure a loan. In the event that you cannot make loan payments, the collateral can be seized and resold to cover the remainder of the loan. While it’s possible to get a loan without collateral, you may be offered a lower amount, asked to pay more in interest, or both.

3. Debt-to-Income Ratio

Your debt-to-income ratio affects your monthly budget, which in turn can affect your ability to pay your debts each month. If the ratio is too high, a lender may either decline to work with you or offer you a lower loan amount.

4. Revenue

Generally speaking, the more money your business brings in each month and year, the more you will be able to borrow. Depending on the lender, you might need to bring in as much as 10 times the amount you want to borrow if you are applying without collateral.

5. Time in Business

The longer you’re in business, the more faith a lender will likely have in your company. Many small businesses fail each year, so if you’ve been in business for at least two years, you’ll likely have an easier time getting approved for a larger loan amount.

6. Down Payment

Making a down payment on a business loan proves you’re serious about the loan — and about paying it back. The larger a down payment you are able to make, generally the more a bank or lender will be willing to lend to your business.

7. Industry

Lenders will also often look at the type of industry your business falls under. If you’re in a field that is considered risky, associated with an unsteady cash flow, or not seen as socially acceptable, a lender may reject you or offer you a lower amount.

Recommended: What Is a No Doc Business Loan?

Calculating How Much of a Business Loan You Need

When applying for a small business loan, you’ll want to consider not just how much of a loan they can get, but exactly how much of a loan you need. The reason: The more you borrow, generally, the more you’ll pay in interest and fees — and the higher your monthly cost will be.

Before you start applying for a small business loan, it can be a good idea to think carefully about what you would do if you could get access to extra capital, and then calculate exactly how much you would need to accomplish your goal. You may then want to add a little bit of padding to that amount to account for unexpected expenses.

You may even want to draw up a detailed plan (and budget) for how your company will use the funds and what impact you expect the money to have on your business growth. Some lenders will ask for this when you apply for the loan.

Recommended: How to Read Financial Statements: The Basics

Tips To Maximize Your Business Loan Amount

Here are some simple ways you may be able to qualify for more funds.

Make a Down Payment

Generally, the larger your down payment on the loan, the less risk you pose to a lender, and the more they will allow you to borrow.

Put up Collateral

By backing your loan with collateral, you present less risk to the lender, which means they will likely be willing to offer you a larger loan amount.

Look Into an SBA loan

If your business can meet the strict qualifications, SBA loans tend to come in larger amounts than other types of small business financing.

Reduce Your Debt

By paying off debts, you can likely improve your debt-to-income ratio and, in turn, increase the amount you can borrow.

Work on Building a Better Credit Profile

In general, the stronger your credit, the more money you will be able to borrow.

Wait a Year or So

If your business hasn’t been around for at least two years, you may want to hold off applying for a loan and put your efforts into building a good foundation for your business and increasing your revenue. In the future, this will allow you to borrow a larger amount.

Recommended: How Much Does It Cost to Start a Business?

The Takeaway

How large a loan you can get for your business ranges anywhere from $500 to over $5 million. The exact amount you will get approved for will depend on the lender (traditional banks and SBA-backed lenders tend to offer the largest loan amounts), the type of loan you’re applying for, as well as your qualifications (such as your credit score, time in business, and annual revenue).

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

FAQ

How does the loan amount affect interest rates?

Higher loan amounts pose more risk for lenders, which can lead to higher interest rates. However, economies of scale can lower rates for substantial loans, as processing costs are spread over a larger amount, making the loan more profitable even with lower rates.

How does the loan amount affect other fees?

Many loans come with an origination fee, which is typically a percentage of the loan amount. The bigger the loan, the more you’ll pay in origination fees.

How are qualifications related to loan amounts?

Qualified borrowers are considered financially strong and good with their finances. Therefore, borrowers with strong credit profiles and solid revenue are generally able to get higher loan amounts.

How much money can you get for a business loan?

Business loans can range from as little as $500 to as much as $5 million.

Do banks give loans to start a business?

It’s uncommon for a bank to give a loan to a business that has not been producing revenue for at least a year and preferably two.

Photo credit: iStock/Edwin Tan

SoFi's marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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