$250,000
8.49%
12 to 60 months
Accion Opportunity Fund (AOF) is our top pick for startups because, in addition to having a fairly low annual revenue requirement and short time in business requirement, it offers small business owners access to valuable resources like free business coaching. It also offers several industry-specific accelerator programs for restaurant owners, Etsy shop owners and minority e-commerce shop owners in general.
Yet, at just $250,000, AOF’s maximum loan amount is lower than most other lenders. In addition, you’ll have to agree to a blanket lien if you intend to borrow more than $50,000 from the organization.
Learn more about Accion Opportunity Fund.
In order to qualify, you’ll need to meet Accion Opportunity Fund’s criteria of:
$250,000
Not specified
Up to 84 months
Citi’s Small Business Diversity Lending Program aims to help minority-, women- and veteran-owned businesses get the funding they need. The program’s unique strengths are that it offers the choice between a long-term business loan or a more flexible line of credit. Plus, it also offers physical branches for those who prefer to apply for financing in person.
Keep in mind that, like many traditional banks, Citi isn’t very upfront about its eligibility requirements or interest rates, which can make it hard to tell if you’ll qualify and how much you’ll pay if you are approved for a loan. Plus, it’s only available in certain locations — you can put your zip code into Citi’s website to find out if it’s available in your city.
Learn more about Citi’s Small Business Diversity Lending Program.
In order to qualify, you’ll need to meet Citi’s criteria of:
$50,000
Not specified
Up to 24 months
Camino Financial is a Community Development Financial Institution (CDFI) dedicated to helping small business owners achieve their financial goals. It offers services in English and Spanish, providing loans up to $50,000 with flexible eligibility requirements, such as a $30,000 annual revenue requirement and a 12-month annual revenue requirement.
Unfortunately, however, Camino Financial may not be a fit for every business. The CDFI is unable to underwrite loans in Hawaii, Michigan, Nevada, New Jersey, Puerto Rico, Massachusetts, New York, North Dakota, Ohio, Pennsylvania or Tennessee. They also won’t service certain industries, including companies in the transportation, real estate and financial services sectors.
Read our Camino Financial review.
In order to qualify, you’ll need to meet Camino Financial’s criteria of:
Not specified
Typically, 3.00% of the total amount financed for SBA 504 loans
Up to 120 months
If you need a lender who speaks Mandarin or Cantonese, East West Bank could be a good fit. The bank offers services in four languages. Plus, it could serve as a one-stop-shop for your personal, business and international banking needs. It even has branch locations in some Asian food markets like 99 Ranch, and it’s pretty easy to get a real human on the phone if you need help.
At the same time, though, those branch locations are not available in every state. Additionally, your financing options may be more limited than you’d find with other lenders. This bank specializes in SBA financing, especially the SBA 7(a) and SBA 504 loans, which means you’ll be subject to long processing times.
Learn more about East West Bank.
East West Bank doesn’t disclose the minimum credit score, time in business or annual revenue you’ll need to qualify. Apply online or contact the lender directly to learn if your business qualifies for a loan.
$50,000
9.99%
Up to 30 months
Since DreamSpring is another CDFI, aimed at promoting economic inclusion in underserved communities, it boasts more lenient qualification criteria than more traditional lenders, alongside dedicated support to help with the application process. For those who qualify, this lender offers up to $50,000 in a line of credit that will give you flexible access to funding as you need it.
Unfortunately, DreamSpring isn’t currently able to service every state. You’ll need to be located in Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Washington or Wyoming.
Plus, its line of credit comes with a fairly steep annual fee and, depending on the loan amount, you may be required to put up collateral to secure the loan.
Learn more about DreamSpring.
Instead of the traditional qualifying criteria. DreamSpring mandates that its applicants:
$250,000
27.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Up to 24 months
If you need same-day funding, OnDeck has the capacity to fund your loan in less than 24 hours. As an added bonus, its qualification criteria are fairly flexible, requiring only a minimum credit score of 625 and a 12-month business history to obtain up to $250,000 in financing.
That said, there are some trade-offs to that flexibility. For one, OnDeck’s interest rates are fairly high, not to mention that you could be charged an origination fee. Plus, each of its term loans is secured by both a blanket lien on your business assets and a personal guarantee.
Read our OnDeck business loan review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
Up to $50,000
8.00% Generally between 8.00% and 13.00%. Interest rates vary based on the intermediary lender you choose.
Up to 84 months
The SBA isn’t a direct lender, but was worth including on this list because it can be a great option for minority-owned businesses.
The Small Business Administration’s (SBA) microloan program is aimed at assisting women, low-income, veteran and minority entrepreneurs who are in need of small amounts of funding.
It offers loans up to $50,000 with affordable interest rates to business owners nationwide by partnering with a network of approved intermediary lenders. Plus, it offers more lenient eligibility requirements than traditional business lenders, especially around its credit requirements.
However, in exchange you’ll be required to put up collateral and a personal guarantee to secure the loan. Not to mention that the SBA has notoriously slow processing times. It could take up to three months for you to receive your loan funds.
To apply for an SBA microloan, you’ll need to work with an intermediary lender — a fancy term for a bank or online lender that has a relationship with the SBA and offers SBA loans. You can use this list of approved SBA microloan lenders or contact your local SBA district office.
The SBA lets its intermediary lenders set their own eligibility requirements, which means that expectations can vary.
But, keep in mind that the program is geared toward lending to those who may not be approved by more traditional sources, so the requirements will likely be more flexible than you might expect from a traditional lender.
Up to $5,000,000
10.75% to 14.25%
14.25% for loans $50,000 or less
13.75% for loans $50,001 to $250,000
12.25% for loans $250,001 to $350,000
10.75% for loans above $350,000
Some lenders may charge lower rates. Based on the current prime rate of 8.00% + a rate maximum set by the SBA.
12.75% to 15.75%
15.75% for loans $25,000 or less
14.75% for loans $25,001 to $50,000
13.75% for loans $50,001 to $250,000
12.75% for loans above $250,000
Some lenders may charge lower rates. Based on the current prime rate of 7.75% + a rate maximum set by the SBA.
Up to 300 months
If an SBA microloan is too small to suit your business’s needs, consider an SBA 7(a) loan instead. Offering amounts up to $5,000,000 and loan terms up to 300 months, the 7(a) loan is popular because it is so flexible. The funding can be used for many purposes, including acquiring real estate, covering working capital costs, refinancing debt and purchasing equipment, among others.
Still, like with the microloan you’ll be subject to the SBA’s collateral and personal guarantee requirements, as well as its longer-than-normal processing times. And you’ll need to work with a lender that offers SBA loans. Some of the lenders on this list, like Citibank and East West Bank, offer SBA loans. You can also see our list of the best SBA lenders.
Learn more about the SBA 7(a) loan.
In order to qualify, you’ll need to meet the SBA’s recommended criteria of:
