What is a startup business loan?

Startup business loans fund businesses that have been operating for less than 2 years or have not yet opened. Because startups lack the financial history traditional lenders require, options are more limited and often more expensive. SBA Microloan program offers up to $50,000 for startups through nonprofit intermediaries. SBA 7(a) loans accept startups for certain purposes with strong personal credit and collateral. Microfinance organizations, CDFI lenders, and online lenders also serve startups. Rollovers for Business Startups (ROBS) allow you to use retirement funds to fund a business without early withdrawal penalties. Business credit cards and personal loans are common fallback options for very early-stage businesses.