Most Startup failer reason is they do not have a fund. Really, They struggle to kick start their business without finance. Fortunately, several lenders in the U.S. now offer startup-friendly loans with competitive interest rates, flexible repayment terms, and accessible qualification requirements. These programs are particularly suited for new businesses—often less than two years old—and prioritize low-rate, startup-focused financing rather than high-APR alternatives.
Startup Business Loans U.S.
Startups in the U.S. have access to a wide range of business loan options designed to offer low interest rates, flexible repayment terms, and accessible qualifications. These loans come from government-backed programs, traditional banks, nonprofit lenders, and fintech platforms. Below is a concise overview of the top low-interest financing options for startups in 2025.
on this page, you will get more information about startups business loan at lower interest rate.
25 Startup Business Loans
As of 2025 (based on a prime rate of 7.00%), the following are 25 of the best low-interest business loan options available to startups in the United States. These include government-backed programs, nonprofit lenders, traditional banks, and fintech platforms that collectively make affordable funding more accessible to new entrepreneurs.
Here are the 25 business loan options for U.S. startups with the absolute lowest interest rates (all under 19% as of November 2025):
- Kiva Microloans
- Accion Opportunity Fund
- Bluevine Line of Credit
- Lendio (SBA partners)
- iBusiness Funding
- Triton Capital
- SBA Microloans
- SBA Community Advantage
- American Express Business Line
- SBA 7(a) Small Loans
- CDC Small Business Finance
- Pursuit Lending
- LiftFund
- Traditional Bank Loans (Chase, Wells Fargo, Bank of America)
- Business Lines of Credit (Major Banks)
- Funding Circle
- Credibly
- OnDeck
- Fundbox
- National Funding
- DreamSpring
- Hebrew Free Loan Society (NY) – 0% (if Jewish)
- Grameen America – (women only, but flat)
- Fundera by NerdWallet (SBA matches)
- CDFI Loans (Justine PETERSEN)
1. Kiva Microloans
Kiva offers interest-free, crowdfunded microloans ideal for very early-stage founders. You can take loans up to $15,000 through a global crowdfunding model. Entrepreneurs build community support and repay over time without financial strain. It’s ideal for startups with limited credit history seeking ethical, accessible funding. No fees, no interest—just trust and social capital.
- Interest rate: 0% (no fees)
- Loan amount: Up to $15,000
- Terms: Up to 36 months
- Best for: Startups owned by women, minorities, or underserved founders; no credit check; must raise funds from your network first.
2. SBA Microloan Program
The U.S. Small Business Administration (SBA) provides microloans through nonprofit intermediaries.
- Interest rate: 8%–13% (average ~8.5%)
- Loan amount: $500–$50,000
- Terms: Up to 7 years
- Best for: New or underserved small businesses seeking affordable, smaller loan amounts and mentorship support.
3. Accion Opportunity Fund (AOF)
Accion provides mission-driven loans to underserved entrepreneurs, including minorities and women. With rates starting at 5.99%, it combines capital access with business coaching. A nonprofit Community Development Financial Institution (CDFI) supporting underrepresented entrepreneurs. Startups benefit from flexible underwriting, personalized support, and a strong focus on inclusive growth. Perfect for founders needing guidance and affordable financing.
- Interest rate: 5.99%–15.99% (often under 10%)
- Loan amount: $5,000–$250,000
- Terms: Up to 5 years
- Best for: Minority, women, and veteran-owned startups; flexible credit requirements (560+ FICO).
4. SBA 7(a) Loan Program
The flagship SBA program offering long-term financing for small businesses. The SBA 7(a) Small Loan program provides loan for working capital, equipment, or expansion. With rates around 11.50%, it’s a versatile option for startups seeking government-backed financing. Longer repayment terms and partial guarantees make it easier to qualify and manage debt.
- Interest rate: Around 10%–13.5%
- Loan amount: Up to $5 million
- Terms: Up to 10 years (working capital) or 25 years (real estate)
- Best for: Startups with strong personal credit and a solid business plan seeking larger funding.
5. SBA Community Advantage Loan
Designed for underserved markets, SBA Community Advantage loans provide up to $350,000 with rates around 9.25%. Startups benefit from flexible underwriting and longer terms. Offered through mission-based lenders, it’s ideal for businesses in rural, minority, or low-income communities seeking impactful funding.
- Interest rate: 9.25%–13%
- Loan amount: Up to $350,000
- Terms: Up to 10–25 years
- Best for: Early-stage businesses needing flexible qualification terms and longer repayment.
6. SBA 504 Loan Program
Designed for asset-heavy startups investing in property or major equipment.
- Interest rate: Competitive (≈6.5%–8%)
- Loan amount: Up to $5.5 million
- Terms: Up to 25 years
- Best for: Startups buying commercial real estate or machinery.
7. Lendio Marketplace
Lendio is a loan marketplace connecting startups with 75+ lenders, including SBA options. It simplifies the search for low-interest loans, offering personalized matches based on business needs. With rates starting at 6%, it’s a smart way to compare offers and secure optimal funding quickly.
- Interest rate: 6%–8% (via SBA and partner lenders)
- Loan amount: $500–$5 million
- Terms: 1–5 years typical
- Best for: Comparing multiple low-interest financing options quickly.
8. Bluevine Line of Credit
Bluevine offers revolving credit lines up to $250,000 with competitive rates and fast approvals. A fast-access revolving credit line for small businesses. Ideal for startups managing cash flow, it allows flexible draws and repayments. The online platform is intuitive, and funds can be accessed within 24 hours—great for agile, growth-focused businesses.
- Interest rate: 6.2%–18%
- Loan amount: Up to $250,000
- Terms: 6–24 months
- Best for: Startups with $120K+ annual revenue seeking flexible short-term cash flow.
9. American Express Business Line of Credit
American Express offers a business line of credit with rates starting at 9% for qualified applicants. It’s best for startups with strong personal credit and predictable revenue. They offers flexible short-term working capital to eligible startups. The revolving credit structure supports ongoing expenses, and the brand’s reputation adds trust and reliability.
- Interest rate: 3%–27% (qualified startups often get single digits)
- Loan amount: $2,000–$250,000
- Terms: 6–24 months
- Best for: Founders with good personal credit (660+) or existing Amex cardholders.
10. iBusiness Funding
Specializing in SBA loans, iBusiness Funding streamlines the application process for startups. they provides fast business term loans and lines of credit. With rates from 7.49%, it offers tailored solutions for working capital, equipment, or expansion. Their platform integrates automation and expert support, making it easier for new businesses to navigate complex loan requirements.
- Interest rate: Starting at 7.49%
- Loan amount: Up to $500,000
- Terms: Short-term (3–24 months)
- Best for: Startups needing rapid approval (within 1–3 days).
11. Triton Capital
Triton Capital focuses on equipment financing for startups needing machinery, tech, or vehicles. With rates starting at 7.99%, it offers fast approvals and minimal paperwork. They offers rapid funding for startups with flexible credit requirements. Ideal for businesses in construction, healthcare, or manufacturing, Triton helps founders invest in assets without draining cash reserves.
- Interest rate: Starting at 7.99%
- Loan amount: $10,000–$350,000
- Terms: 3–18 months
- Best for: Businesses with 600+ credit scores; includes a “lowest payment guarantee.”
12. LiftFund (Nonprofit / CDFI)
LiftFund operates across 14 states, offering loans to startups often overlooked by traditional banks. With rates starting at 9.5%, it supports underserved communities with capital and education. LiftFund’s inclusive mission and flexible underwriting make it a top choice for early-stage entrepreneurs.
- Interest rate: Varies (often below market)
- Loan amount: $500–$5 million
- Terms: Up to 10 years
- Best for: Diverse and first-time entrepreneurs; offers personalized support.
13. Traditional Bank Loans (Chase, Wells Fargo, Bank of America)
Secured and unsecured loans from major banks.
- Interest rate: 6.7%–7.5%
- Loan amount: Typically $25,000–$5 million
- Terms: 1–10 years
- Best for: Startups with strong credit and business history; lowest possible rates.
14. Business Lines of Credit (Major Banks)
Flexible credit lines for working capital.
- Interest rate: 7.8%–9.25%
- Loan amount: Varies
- Terms: Revolving
- Best for: Ongoing short-term expenses and cash flow management.
15. Funding Circle
Funding Circle offers term loans up to $500,000 with competitive rates and fast decisions. Ideal for startups with some revenue history, it provides transparent terms, no prepayment penalties, and personalized service. Great for growth-stage businesses seeking longer repayment periods and predictable monthly payments.
- Interest rate: Average APR ~11.29%
- Loan amount: Up to $500,000
- Terms: 6 months–7 years
- Best for: Startups seeking predictable monthly payments.
16. Credibly
Credibly provides working capital and equipment loans tailored for startups. With flexible underwriting and funding up to $400,000, it’s accessible to businesses with modest credit. Fast approvals and daily or weekly repayment options make it ideal for managing cash flow and short-term needs.
- Interest rate: From 9.99%
- Loan amount: Up to $400,000
- Terms: 6–24 months
- Best for: Startups with consistent revenue needing flexible financing.
17. OnDeck
OnDeck specializes in short-term loans and lines of credit for startups. With fast funding and amounts up to $250,000, it’s perfect for businesses needing quick access to capital. OnDeck uses proprietary scoring to evaluate creditworthiness beyond traditional metrics, helping newer businesses qualify.
- Interest rate: 9%–24%
- Loan amount: Up to $250,000
- Terms: 3–24 months
- Best for: Startups with stable income needing fast, smaller loans.
18. Fundbox
Fundbox offers revolving credit lines up to $150,000 with simple, automated approvals. Designed for startups with active invoicing or bank activity, it’s ideal for managing cash flow gaps. Flexible repayment and no prepayment penalties make it a smart choice for agile, service-based businesses.
- Interest rate: 4.66%–8.99%
- Loan amount: Up to $150,000
- Terms: 12–24 weeks
- Best for: Startups needing cash flow support and quick funding.
19. National Funding
National Funding provides equipment financing and working capital loans up to $500,000. Startups benefit from fast approvals, tailored terms, and support for credit-challenged applicants. It’s especially useful for businesses needing to invest in tools, vehicles, or technology without large upfront costs.
- Interest rate: Starting at 6%
- Loan amount: Up to $500,000
- Terms: 1–5 years
- Best for: Equipment purchases and business expansion.
20. CDC Small Business Finance
CDC offers SBA and community loans with rates starting at 8.75%. It’s known for personalized service and mentoring, especially in California. Startups benefit from flexible terms and strong support networks. CDC’s mission-driven approach helps new businesses thrive with both capital and guidance.
21. DreamSpring
DreamSpring offers loans up to $250,000 with rates starting at 9.75%. It prioritizes inclusive lending and fast approvals. Startups benefit from a streamlined process and strong community focus. DreamSpring is ideal for founders seeking ethical financing and support beyond just capital.
22. Hebrew Free Loan Society (NY) – 0% (if Jewish)
This nonprofit offers interest-free loans to Jewish entrepreneurs in New York. With no fees or collateral required, it’s a unique opportunity for community-based funding. Ideal for startups needing ethical, zero-cost capital, the society emphasizes trust, dignity, and financial empowerment.
23. Grameen America – 15% (women only)
Grameen America provides flat-rate loans to low-income women entrepreneurs. With peer support and no credit score required, it’s a powerful tool for financial independence. Though the rate is 15%, the model includes mentoring and group accountability, fostering resilience and community growth.
24. Fundera by NerdWallet (SBA matches) – 6.5%
Fundera matches startups with SBA lenders offering rates around 6.5%. The platform simplifies loan discovery and application, helping founders compare options easily. It’s ideal for time-strapped entrepreneurs seeking vetted, low-interest funding with minimal hassle and strong customer supports.
25. CDFI Loans (Justine PETERSEN)
Justine PETERSEN is a Community Development Financial Institution CDFI offering loans to credit-challenged entrepreneurs. With rates around 8.5%, it also provides credit-building services and financial education. Ideal for startups in underserved areas, it emphasizes empowerment and long-term financial health.
Choosing the Right Loan
Consider your startup’s:
- Stage and revenue
- Credit history (personal and business)
- Loan purpose (working capital, equipment, expansion)
- Repayment capacity and timeline
Whether you’re a solo founder, a minority-owned business, or a tech startup scaling fast, there’s a loan option that fits your journey.
Startup Business Loan at Lower Loan Rate
- Build strong personal credit (680+): Higher credit scores qualify you for the best interest rates and loan terms.
- Provide collateral or a personal guarantee: Doing so can lower your rate by 2–4 percentage points.
- Follow a smart funding sequence: Start with Kiva (0%), then move to SBA Microloans (8–13%), followed by SBA Community Advantage or 7(a) loans before exploring online lenders.
- Use Lendio or similar marketplaces: Compare multiple offers through one simple application to find the most affordable option.
Pro Tip: The current prime rate is 7.00%, but upcoming Federal Reserve changes could affect loan costs—apply soon to lock in a lower rate.
Leave a Reply