How do I get a startup business loan in the US, even with no revenue?
Without revenue most banks will say no, so start with lenders built for new businesses. 1) SBA microloans: up to $50,000, about $13,000 on average, from nonprofit intermediary lenders, generally at 8% to 13% over up to seven years, for working capital, inventory and equipment. 2) Kiva U.S.: 0% interest loans with no fees, no collateral and no minimum credit score, crowdfunded first from your own network and then from the public. 3) SBA Lender Match: one free form puts your plan in front of SBA lenders. 4) The SBA 7(a) loan goes up to $5 million, but eligibility rests on credit history and what the business does, so it fits better once you have sales. Bring a business plan with startup costs, projections and a break-even point to every lender. If the business cannot repay from cash yet, customer prepayments, grants or equity are safer than debt.
The SBA's page on its microloan program: loans of up to $50,000, averaging about $13,000, made by nonprofit intermediary lenders, generally at 8% to 13% and repayable over up to seven years.
The SBA's page on 7(a), its main loan program, with a maximum of $5 million, the uses it covers and the eligibility factors lenders look at, including credit history.
Kiva's US lending program: 0% interest loans with no fees, no collateral and no minimum credit score, crowdfunded first from people you know and then from Kiva's public lenders.
