Business Loans for Startups: Options When You're Under 2 Years Old
Getting financing as a new business can be challenging, but it's not impossible. This guide covers all your startup loan options and how to maximize your chances of approval.
Sarah Johnson, MBA
Small Business Finance Expert
Updated February 2, 2026 • 12 min read
The Startup Lending Challenge
Most traditional lenders require 2+ years in business. However, several options exist for newer businesses:
6+ Months
Alternative lenders, MCAs
1+ Year
Equipment financing, some online lenders
Day 1
Business credit cards, personal loans
Pre-Revenue
SBA microloans, grants, investors
Best Financing Options for Startups
1. SBA Microloans
Loans up to $50,000 specifically designed for startups and small businesses. Administered through nonprofit intermediaries.
- Available for brand-new businesses
- Rates: 8-13%
- Terms: Up to 6 years
2. Business Credit Cards
Often the easiest financing for new businesses. Based primarily on personal credit.
- No time in business requirement
- 0% intro APR available
- Builds business credit
3. Equipment Financing
The equipment itself serves as collateral, making approval easier for new businesses.
- Often available at 1+ year
- Self-collateralized
- Fixed monthly payments
What Lenders Look for in Startups
Strong Personal Credit (680+)
Your personal credit carries extra weight when business history is limited.
Solid Business Plan
Detailed financial projections and market analysis.
Industry Experience
Previous experience in your field reduces perceived risk.
Collateral or Personal Guarantee
Assets to secure the loan increase approval odds.
Related Resources
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