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Best Small Business Loans

We use Lendio's marketplace to help business owners find which alternative lender has the best loan option for their unique needs. Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas. *Does not represent the typical rate for every borrower, and other fees may apply.

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With all the financing options out there, trying to compare business loans can feel overwhelming. You can borrow from traditional lenders (banks or credit unions) to get the best deals, or you can borrow from online lenders for lower loan qualifications. You can choose from term loans, lines of credit, invoice financing, microloans, and more. It’s a lot. 

We’ve taken all those financing options and narrowed them down to the best small-business loans out there. In this roundup, we’ll tell you what makes these lenders great and help you decide which is the best fit for your business.

Ready to find your funding?

Your best chance of securing funds is with a personal loan because of their looser borrower requirements.

We've included 2 options for young businesses: Avant and Upstart .

5 Best Small-Business Loans

• Lendio : Best overall small-business loan
• Backd : Best for flexible repayment
• OnDeck : Best for repeat borrowers
• Bluevine : Best for fast funding
• SmartBiz : Best for SBA loans

Compare the best small-business loans of 2023

How to choose the right small-business financing

Don’t think you’ll qualify for a small-business loan quite yet? Try a personal loan from Avant instead.

Unlike many personal lenders, Avant lets you use its personal loans for your business. And since it’s a personal lender, not a business lender, Avant doesn’t care about things like your business revenue and business age (as long as you meet other requirements, of course). That makes Avant easier to qualify for than many lenders on this list. But Avant’s personal loans max out at well under $50,000 ($35,000), making them too small for many business uses. And while the starting APR isn’t that high, you can definitely find cheaper business loans. Overall, we do recommend using a business loan if you can, however, if you want to use a personal loan for your business , Avant is the best lender to do it with.

Lendio: Best overall for small business

Starting at 4.25% interest

• Lines of credit, term loans, & more
• Loan amounts from $1,000 to $5 million
• Min. credit score: 560
• Funding in as little as 2 days

Data effective post date. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

Bottom line:  Lendio  offers the best loans for most small-business owners.

As a lending marketplace, Lendio partners with more than 75 lenders. Just fill out its 15-minute application, and within 72 hours, Lendio will get back to you with a list of loan offers. Pick your favorite option, finalize your application, and enjoy your new loan.

Lendio loan details

Lendio partners with over 75 lenders (including some on this list), which improves your odds—not to mention your efficiency. Those lenders offer everything from short-term business loans to merchant cash advances to equipment financing to real estate loans. (The table above shows just a small sampling of Lendio’s financing options.)

Given its many options and personalized loan matchmaking, Lendio should be a no-brainer for just about any business.

Avant: Best personal loan for business

Starting at 5.99% APR

• Personal loans only
• Min. credit score: 600
• Min. revenue: N/A
• Min. time in business: N/A

Unlike many personal lenders, Avant lets you use its personal loans for your business. And since it’s a personal lender, not a business lender, Avant doesn’t care about things like your business revenue and business age (as long as you meet other requirements, of course). That makes Avant easier to qualify for than many lenders on this list. But Avant’s personal loans max out at well under $50,000, making them too small for many business uses. And while the starting APR isn’t that high, you can definitely find cheaper business loans. So overall, we do recommend using a business loan if you can.

But if you want to use a personal for your business , Avant is the best lender to do it with.

Backd: Best for flexible repayment

• Lines of credit and working capital
• Loans up to $2 million
• Min. credit score: 640
• Funding as fast as next-day

Data effective 10/29/23. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

Backd offers lines of credit with flexible repayment terms that allow you to repay weekly in 6 months or 12 months. But unlike other lenders that offer lines of credit, Backd also offers working capital loans. Working capital makes it easy to bridge any cashflow issues you might have while you are committing to more long-term funding.

Backd makes it so easy to apply for funding. All you have to do is fill out an online application that takes less than five minutes to fill out. You will get a response within 24 hours. To secure funding for your business, Backd requires proof of ownership and bank verification. You will also have to present your most recent tax return and your year-to-date profit and loss and/or balance sheet for accounts receivable.

While Backd’s lines of credit aren’t the cheapest out there, its accessibility to businesses open for less than a year makes it a great option for businesses that can’t qualify for low-interest term loans .

Backd makes it so easy to apply for funding. It's just an online application that takes less than five minutes to fill out. You will get a response within 24 hours. To secure funding for your business, Backd requires proof of ownership and bank verification. You will also have to present your most recent tax return and your year-to-date profit and loss and/or balance sheet accounts receivable.

While Backd’s lines of credit aren’t the cheapest out there, its accessibility makes it a great option for businesses that can’t qualify for low-interest term loans .

OnDeck: Best for repeat borrowers

• Lines of credit and term loans
• Min. credit score: 625
• Min. revenue: $100,000/yr.
• Min. time in business: 1 yr.

If you think you’ll need plenty of credit over the next few years, you may want to give OnDeck a look. OnDeck offers unique perks for repeat borrowers, making it a good deal for business owners who expect to seek more funding in the future. These benefits include reduced loan origination fees , lower interest rates and even waived interest on existing loans.

Keep in mind, though, that OnDeck is far from the cheapest loan option out there, even with those perks. It has a high starting APR ( annual percentage rate ) of 29.90%, so even if you’ve got a great credit score, you won’t get a low interest rate. But to be fair, plenty of other online lenders have pricey loans, too.

That means that OnDeck can still be a good deal for businesses that will have more credit needs in the future.

Bluevine: Best for fast funding

Starting at 6.2% interest

• Invoice factoring & lines of credit
• Loan amounts up to $5 million
• Min. credit score: 530
• Funding as fast as same day

If you need funding right away ― like you can’t wait two days ―  Bluevine is the lender you want. It offers same-day funding with its line of credit and next-day funding through invoice factoring. Put simply, it’s fast.

It all starts with an automated application process. You submit information about your business, and Bluevine can make a decision on your loan application nearly instantly or within a few hours. Then, if you opt for the line of credit, you can pay a small wire transfer fee to get your funds in just a few more hours. Otherwise, your funds should show up the next day via ACH transfer.

And to be clear, Bluevine has more going for it than just fast funding times. It offers two flexible kinds of working capital, lines of credit and invoice financing . And while it has stricter revenue requirements than other lenders on this list, Bluevine has relatively lax application requirements otherwise ― three months in business, $40,000 in monthly revenue and a 625 personal credit score can get you invoice factoring.

That means that whether you need fast funding or just good working capital, Bluevine can help.

SmartBiz: Best for SBA Loans

Starting at 11.25% interest 

• SBA 7(a) loans only
• Loan amount from $30,000 to $500,000
• Min. credit score: 660
• Funding as fast as one week

If you’re interested only in U.S. Small Business Administration loans, then give SmartBiz a try. It claims to simplify the SBA application process with its loan marketplace. Much like Lendio, SmartBiz delivers your one application to multiple lenders, matching you with your best options. 

Unlike other lending marketplaces, SmartBiz deals exclusively in government-backed SBA loans , bank term loans, and lines of credit.

Upstart: Best personal loan lending experience

Starting at 4 .6% APR

• As fast as next-day funding
• 3- or 5-yr. loan terms
• Monthly payment schedule
• 0–12% origination fee

There’s a lot to like about Upstart , and we’re not the only ones to think so: Upstart has the best customer reviews of the lenders on this list.

Upstart has a 4.9 out of 5 on Trustpilot, giving it an excellent score. That’s not from a handful of customers, either ― 44,099 people have reviewed Upstart, with 97% of them giving it an excellent score.

What do these rave reviews say? Well, they praise a lot of the things you’d expect: fast approval and funding, helpful customer service, and fair pricing. We saw many reviews praising Upstart’s competitive rates and fees, too. In other words, people like pretty much everything about Upstart―even though it doesn’t have the lowest rates or the biggest loans.

If you’re looking for a tried-and-true lender for your personal loan that also happens to have a super low credit score requirement, then give Upstart a try. See our full review here.

Other small business loan lenders

• Bank of America
• Wells Fargo
• Funding Circle
• Fora Financial
• American Express Business Loan
• National Funding
• Triton Capital
• U.S. Small Business Administration

FAQS about small-business loans

To figure out which loan is best for you and your business, you need to compare things like types of loans, loan amounts, interest rates, fees, and repayment terms. You’ll want to figure out both the kind of loan you need as well as the kinds of deals you can qualify for.

For example, if you’re making a big commercial real estate purchase, you’ll want a big real estate loan rather than a small line of credit—but the qualifications on the real estate loan might be stricter.

We’ve done a lot of the legwork for you with our rankings, but remember that lenders may not offer you the lowest rates or the largest loan amounts. So, before you accept a loan offer, make sure you understand the details of your offer. (This is one of the reasons we like Lendio: it lets you compare loan offers for your specific business.)

Want more help narrowing things down? We’ve got a guide to choosing a business loan .

We’ve done a lot of the legwork for you with our rankings, but remember that lenders may not offer you the lowest rates or the biggest loan amounts. So before you accept a loan offer, make sure you understand the details of your offer. (This is one of the reasons we like Lendio: it lets you compare loan offers for your specific business.)

Direct lending means that you get your business loan directly from a financial institution, like banks or alternative lenders. With peer-to-peer lenders, on the other hand, your “lender” is really a platform that connects you with investors—and those are the people actually giving you money.

For more nitty-gritty details, you can take a look at our explanation of peer-to-peer lending .

Not exactly; the same anti-discrimination laws that keep lenders from denying someone because she’s a woman also keep companies from approving someone because she’s a woman. That being said, there are small-business lending companies that have programs to help women access loans or that have loans that might work well for women business owners.

You can find out more in our guide to business loans for women .

There used to be several loans specifically for veterans, but most of those programs have expired. But it’s not all bad news; there are still several grants, franchising opportunities, and business programs for veterans—all of which we round up in our article on financing for veteran-owned businesses .

Sure, you can. In fact, some personal loan companies (like Prosper) advertise their personal loans for business use. But is it a good idea? Maybe. A personal loan won’t build business credit, which could make it harder to get business financing in the future. But if you can’t qualify for a business loan yet, you might find that a personal loan is better than nothing.

We can’t tell you what’s right for your business; we trust you to figure it out, though. And if you need a little more guidance, we’ve got a guide to using personal loans for business .

You can find the easiest SBA loan to get approved for with SmartBiz loan marketplace.

It deals exclusively in government-backed Small Business Administration loans and delivers your one application to multiple lenders, matching you with your best options. 

Methodology

We researched more than 60 online and traditional lenders to come up with our list of the best small-business loans. We scored lenders based on factors such as loan amounts, interest rates, borrower requirements, customer reviews, funding times, and more. These scores formed the basis of our rankings as well as our recommendations.

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

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• Small Business

Best Small Business Loans for August 2024

Lendio is our top choice when it comes to the best small business loans for borrowers. Lendio won out because this marketplace gives you a larger pool of lenders for small businesses from which to choose.

Small business loans are an integral component of the business world. Business owners rely on them to invest in new equipment or supplies, cover payroll, or manage cash flow. With a small business loan, business owners and entrepreneurs can access a lump sum of cash or a line of credit , which they can use to remain operational and continue growing their business for years to come.

The best small business loans have convenient application and funding processes, with competitive fees and flexible terms. Investopedia compared more than 20 of the top small business loan lenders based on their loan products, rates, fees, eligibility requirements, and overall transparency, among other factors. We narrowed down the list to the following five lenders.

• Best Lender Comparison Site: Lendio
• Best Revolving Line of Credit: Fundbox
• Best for Microloans: Kiva
• Best for SBA Loans: Fundera
• Best for Same-Day Funding: OnDeck
• Our Top Picks
• See More (2)

The Bottom Line

• Compare Loans
• How to Choose
• How to Qualify and Apply
• Alternatives

Why You Should Trust Us

Best lender comparison site : lendio.

• Mobile app: Yes
• Best perk: 24-hour funding
• Loan/LOC amount: $25,000-$500,000

We chose Lendio as one of the best loan comparison sites based on the fact that it lets you compare loan options from more than 75 lenders in one place, more than other marketplace sites. You can also have your loan funded in as little as 24 hours, which can be a major boon for business owners who need cash fast.

Compare loan offers from more than 75 lenders

Funding in as little as 24 hours

Offers small business loans, SBA loans, and business lines of credit

Lendio does not lend money directly.

Eligibility requirements vary, depending on the lender.

Lendio is a loan marketplace , so it won't lend you funds directly. We believe it shines in this category since it lets you compare loan offers with more than 75 lenders in the small business space. Having lenders compete for your business is the best way to ensure you get a small business loan with the best rate and terms.

Lendio was founded in 2011, yet it has grown dramatically since then. The site claims to have funded over 400,000 small business loans worth more than $15 billion, and they don't plan to stop anytime soon.

The marketplace lets you borrow between $25,000 and $500,000, depending on your needs. You can repay your loan over one to five years, and your interest rate could be as low as 4.5%. Lendio has just a 15-minute application process, and you can get a decision on the same business day, making it an efficient place to shop for a loan.

Best Revolving Line of Credit : Fundbox

• Best perk: Decision in minutes
• Loan/LOC amount: Up to $150,000

Fundbox focuses on offering lines of credit for business owners, and they make it possible to get prequalified online without a hard inquiry on your credit report. Its focus on business lines of credit makes Fundbox an expert on this particular type of small business funding. It offers decisions in minutes as well as funding as soon as the next business day.

Get prequalified online without a hard credit inquiry

Get a decision in minutes

Only borrow what you need, unlike a lump sum small business loan

Lines of credit are only available for up to $150,000.

We chose Fundbox as the lender offering the best revolving line of credit , which allows you to qualify for a specific amount and borrow only what you need. Fundbox was founded in 2013, and the company uses technology to facilitate its B2B lines of credit to help small businesses achieve significant success.

Lines of credit from Fundbox are only available in amounts up to $150,000, but you can get prequalified online without completing a full loan application . Once you apply, you can get a credit decision within minutes, and you’re under no obligation to accept the loan funds. 

Because Fundbox focuses on lines of credit, you get the chance to borrow only as much money as you need. You can transfer funds from your line of credit to your business checking account as soon as the next business day. This provider gives you the option to save money by paying off your balances early and ahead of schedule without any prepayment fees. 

Fundbox lets you see the fees for your line of credit upfront, and it'll automatically debit your bank account to pay your amount due, so you won’t have to think about it. You get the option to repay your line of credit over 12 or 24 weeks.

Best for Microloans : Kiva

• Best perk: 0% interest
• Loan/LOC amount: Up to $15,000

Kiva is the best option for small business owners who only need to borrow a small amount of money. Its microloans currently come with a 0% interest rate, and you can borrow up to $15,000.

Borrow money with no interest

Market your product to a growing community of Kiva lenders

Repay your loan for up to 36 months

You can only borrow up to $15,000 with Kiva

Can take 30 days or longer for your loan to be funded

We chose this lender as the best option for microloans based on the fact that you can borrow money at an annual percentage rate (APR) of 0% and repay it over three full years. Founded in 2005, Kiva aims to help underserved community members qualify for the small business funding they need to get their dreams off the ground. As many as 2.2 million Kiva lenders have funded more than $2.07 billion in loans to more than five million borrowers in 81 countries around the globe.

Kiva is not a bank. Rather, it's a peer-to-peer lending platform. Kiva loans are geared toward disadvantaged entrepreneurs , so investors who lend money through the platform get the chance to help people around the world.

In terms of their loan product, Kiva only lets you borrow up to $15,000. You can apply online in 20 to 30 minutes and earn the ability to advertise your funding project on their marketplace within 30 days; you get the chance to repay your loan over 36 months.

Kiva also lists easy requirements to qualify, including living in the U.S. and being at least 18 years old. To qualify for a Kiva loan, you also have to agree to use your loan for business purposes only.

Best for SBA Loans : Fundera

• Mobile app: No
• Best perk: Many lenders
• Loan/LOC amount: Up to $5.5 million for an SBA loan

We chose Fundera as the best option for Small Business Administration (SBA) loans because it offers the most SBA options, including loans through the popular SBA 7(a) loan program. You can apply for an SBA loan directly on Fundera with your loan funded through a variety of top SBA lenders.

Offers wide range of business loans and lines of credit, including SBA-approved loans

Compare loan options through multiple lenders in one place

Gauge your ability to qualify without a hard inquiry on your credit report

Is a marketplace rather than a direct lender

Credit score of at least 550 required

Collateral required for some SBA loans and loan amounts

Fundera is an excellent option for consumers who want to qualify for an SBA loan, mostly because it lets you fill out a single application and compare multiple SBA loan options in one place.

Founded in 2013, Fundera is a loan marketplace instead of a direct lender. This means the company connects small business owners with the best small business loans and lines of credit on the market today, but it does not lend money itself.

Because Fundera is a marketplace, it can offer nearly any type of business loan or line of credit available today. This includes loans through the SBA, which tend to come with flexible repayment terms and affordable interest rates.

Loan amounts and repayment terms vary, but it’s possible to qualify for an SBA loan in amounts up to $5.5 million. You may also be able to repay your loan for up to 25 years, although it can take two weeks to get your loan funded. Note that SBA loans may require collateral, and that’s especially true for larger loan amounts.

Best for Same-Day Funding : OnDeck

• Best perk: Same-day funding
• Loan/LOC amount: Up to $250,000 for a loan; up to $100,000 for a line of credit

We chose OnDeck because it offers small business loans with funding as soon as the same business day. This can be crucial for business owners who need fast access to cash to keep up with business expenses or pay for an important piece of equipment right away.

Funding available as soon as the same business day

Lends up to $250,000 for small business loans and up to $100,000 for lines of credit

Transparent about loan details and eligibility requirements.

Minimum personal credit score of 600 required

Applicants need at least one year in business with a minimum of $100,000 in annual business revenue.

Since its founding in 2006, OnDeck has grown to become one of the most prominent small business lenders offering capital on the market today. We chose OnDeck as best for same-day funding due to its easy online application process and rapid approval and fulfillment of your small business loan.

OnDeck makes it easy to qualify for a line of credit in amounts from $6,000 to $100,000 or a small business loan in amounts from $5,000 to $250,000. Repayment terms on small business loans are available for up to 24 months, and you will benefit from transparent pricing and no prepayment penalties .

You can repay one of OnDeck's lines of credit over 12 months, plus you get the benefit of borrowing only what you need. Either option can work for small business owners who need access to capital, and both types of funding let you apply and receive a decision within the day.

OnDeck lists some basic requirements to qualify for a business loan , which include a minimum personal credit score of at least 600 for a long-term loan. You also need to be in business for at least two years and you need to have a least $250,000 in annual business revenue to qualify.

A small business loan or line of credit can help you grow your business without having to tap into your own capital. There are many options available, including small business lenders, loan marketplaces, and even the Small Business Administration, which can guarantee your loan with an approved lender.

Lendio is our top choice because this marketplace connects you with a wide range of lenders. If you're looking for a microloan , consider applying through Kiva. Fundbox has the best options for revolving credit lines while Fundera tops the list of SBA loan providers. But if you're looking for same-day funding, OnDeck is your best bet.

Compare Small Business Loans

Guide to Choosing Small Business Loans

What is a small business loan.

A small business loan is capital borrowed by a small business owner from a lender to pay for business expenses. Funding can be used to pay for startup costs, real estate, equipment, materials, and other expenses. Business owners can apply for and borrow capital from banks, credit unions, peer-to-peer lenders, and other financing companies.

Small business loans work just like personal loans. Once the loan is approved and funded, the small business owner is required to make regular payments with interest (at either a fixed or variable rate) over the life of the loan until it is paid in full. Loans may be secured with collateral or unsecured, usually with a personal guarantee from the business owner.

How to Qualify and Apply for a Small Business Loan

There are several things small business owners need to qualify for a small business loan:

• Credit scores: Your credit scores help lenders determine your likelihood to repay the loan. Lenders typically look at both a small business owner's business and personal credit scores to see if they qualify for a small business loan. Most lenders have a minimum credit score while others may be more lenient.
• Business revenue: Lenders may require your business to bring in a minimum amount of revenue to qualify for a loan. This amount may vary from lender to lender, so it's a good idea to check with them before you apply.
• Business plan: This is a proposal that tells the lender what your business is all about. It is also meant to show the lender how you intend to use the loan and your plan to repay it. Drafting a business proposal helps the lender trust you and your ability to meet your financial obligations.
• Number of years in business: Being in business longer usually means that you'll be more likely to pay off the debt. Many lenders want to see that you've been in business for at least two years before you apply for a loan. But, you may find some that have a lower threshold.

There are several steps you'll have to follow to apply for a business loan:

• Identify your needs and determine the type of loan required. Different purposes require a different loan. For instance, you may need one type of loan for startup costs and a different type of loan to pay for regular business expenses. This will also help you figure out how much money you'll need to borrow.
• Determine whether you'll qualify. Check your credit score to see if you'll be able to qualify for a loan. You should also review your cash flow figures to see if you have enough revenue to be approved.
• Research lenders. Make a list of suitable lenders based on the information you gathered about your qualification criteria. Review their terms and conditions so you only choose the lenders that meet your needs.
• Fill out the application. Depending on the lender, you can do this online, in person, or over the phone.
• Provide supporting documents. Your lender will require supporting documents, such as tax returns, business proposal, financial statements, personal guarantee, and information about your collateral if you're applying for a secured loan.
• Sign the loan papers and get your funding. Once you're approved, sign your loan documents and receive your money.

FICO Credit Score Ranges

Alternatives to Small Business Loans

If you don't qualify with a traditional lender, you may want to consider other ways to access capital for your small business. Here are some other ways you can get funding for your small business:

• Family and friends
• Crowdfunding
• Peer-to-peer lenders
• Invoice factoring
• Lines of credit
• Business credit cards
• Business grants
• Venture capitalists

We looked at more than 20 lenders who offer small business loans, small business lines of credit, and unique funding options like invoice factoring. We looked for lenders who offer transparency when it comes to their loan products and eligibility requirements, and we also looked for lenders who post fees and ongoing costs prominently on their websites. 

To find the best small business loans, we compared loan options and lenders to find companies with excellent ratings and user reviews on websites like Trustpilot. We also looked for lenders who offer high loan amounts and flexible repayment options, as well as the ability to apply and set up loan funding online.

Frequently Asked Questions

What is a business loan.

A business loan is a type of loan business owners take out to access funds for inventory, payroll, and other business expenses. Business loans come in many different forms, although traditional small business loans tend to be offered in one lump sum and with a fixed monthly payment and interest rate.

However, there are other types of funding available for small businesses . Lines of credit are a popular option since they let business owners borrow only what they need. Invoice factoring can help some business owners who are short on cash but have plenty of unpaid invoices to use as collateral.

Small business owners can also apply for an SBA loan , which is a type of loan that is backed by the Small Business Administration. While the SBA does not loan money themselves, they connect borrowers with SBA-approved lenders that offer SBA-backed loans with competitive rates and terms.

Are You Personally Liable for an SBA Loan?

When applying for an SBA loan, you must provide an unlimited personal guarantee if you own 20% or more of the business. This means that if you fail to repay the loan because the business fails, you are still on the hook for repaying the entire loan amount. Also note that, in the case of a borrower defaulting, the lender can recover 50% to 85% of the outstanding loan balance from the SBA.

How Can I Use a Small Business Loan?

Approved applicants can use their small business loan funds to pay for any ongoing expenses as well as payroll or investments in equipment or inventory. Small business loans are also frequently used as a means to manage or smooth out cash flow in times when expenses exceed income. If you’re a small business owner who needs to buy some equipment but you’re waiting to be paid by a few major clients, for example, it could help you keep up with your expenses and buy equipment while you wait for your invoices to be paid.

Other popular uses of small business loans include raising capital to hire new staff or to launch a new marketing or ad campaign that could help boost revenue.

Does the Small Business Administration Approval Loans?

The Small Business Administration is a government agency that helps small businesses in the United States. The SBA doesn't approve loans. Rather, its loan program is designed to connect small business owners who are interested in borrowing capital with SBA-approved lenders. This means that they loans are backed or guaranteed by the SBA. These loans come with longer repayment terms and may be easier to obtain.

What Are the Alternatives to Small Business Loans?

If you are declined or don't want to borrow money for your small business, you may want to consider some other ways to raise capital for your small business. Some of the alternatives include:

• Peer-to-peer lending
• Microfinancing
• Credit cards
• Personal savings
• Non-traditional lenders
• Venture capital
• Private lenders

This isn't meant to be an exhaustive list. Make sure you do your research to see what other options fit your needs and budget.

Guide to Small Business Loans

• Small Business Financing: Debt or Equity?
• 4 Steps to Getting a Small Business Loan Without Collateral
• How Do Business Loans Work?
• The Basics of Financing a Business
• What Is an SBA Loan?
• How SBA Loans Can Help Your Small Business
• Small-Business Grants: Everything You Need to Know
• 8 Unusual Ways Businesses Can Borrow Money
• What Is the Average Business Loan Term?
• Working Capital Loan: Definition, Uses in Business, Types

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Lendio. " Business Loan Types | Lendio ."

Lendio. " Frequently Asked Questions ."

Lendio. " Lendio Surpasses $15 Billion in Financing to Small Businesses Across America, With More Than 400,000 U.S. Small Businesses Funded ."

Fundbox. " Working capital made simple ."

Fundbox. " About us ."

Kiva. " Crowdfund your dream, change your life ."

Kiva. " How Kiva US works ."

Kiva. " About ."

Small Business Administration. " 504 Loan Program - Small Business Administration ."

OnDeck. " Move forward with fast business funding ."

Small Business Administration. " Loan Fact Sheet - Small Business Administration ."

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• Best Small Business Loans for 2024
• Businessloans.com Review
• Biz2Credit Review
• SBG Funding Review
• Rapid Finance Review
• 26 Great Business Ideas for Entrepreneurs
• Startup Costs: How Much Cash Will You Need?
• How to Get a Bank Loan for Your Small Business
• Articles of Incorporation: What New Business Owners Should Know
• How to Choose the Best Legal Structure for Your Business

Small Business Resources

• Business Ideas
• Business Plans
• Startup Basics
• Startup Funding
• Franchising
• Success Stories
• Entrepreneurs
• The Best Credit Card Processors of 2024
• Clover Credit Card Processing Review
• Merchant One Review
• Stax Review
• How to Conduct a Market Analysis for Your Business
• Local Marketing Strategies for Success
• Tips for Hiring a Marketing Company
• Benefits of CRM Systems
• 10 Employee Recruitment Strategies for Success
• Sales & Marketing
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• Best Business Phone Systems of 2024
• The Best PEOs of 2024
• RingCentral Review
• Nextiva Review
• Ooma Review
• Guide to Developing a Training Program for New Employees
• How Does 401(k) Matching Work for Employers?
• Why You Need to Create a Fantastic Workplace Culture
• 16 Cool Job Perks That Keep Employees Happy
• 7 Project Management Styles
• Women in Business
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• Best Accounting Software and Invoice Generators of 2024
• Best Payroll Services for 2024
• Best POS Systems for 2024
• Best CRM Software of 2024
• Best Call Centers and Answering Services for Busineses for 2024
• Salesforce vs. HubSpot: Which CRM Is Right for Your Business?
• Rippling vs Gusto: An In-Depth Comparison
• RingCentral vs. Ooma Comparison
• Choosing a Business Phone System: A Buyer’s Guide
• Equipment Leasing: A Guide for Business Owners
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Business News Daily provides resources, advice and product reviews to drive business growth. Our mission is to equip business owners with the knowledge and confidence to make informed decisions. As part of that, we recommend products and services for their success.

We collaborate with business-to-business vendors, connecting them with potential buyers. In some cases, we earn commissions when sales are made through our referrals. These financial relationships support our content but do not dictate our recommendations. Our editorial team independently evaluates products based on thousands of hours of research. We are committed to providing trustworthy advice for businesses. Learn more about our full process and see who our partners are here .

Best Business Loans for 2024

Every business needs funding, but choosing the right loan is key. You can’t go wrong financing with these reputable lenders.

• Loans from $5,001 to $3 million
• One to 20-year repayment
• No minimum credit score

• Loans up to $6 million
• 12 to 36 months repayment
• 660 credit score

• Loans up to $150,000
• 12 – 24 weeks repayment
• 600 credit score

• Loans from $500 to $10 million
• Flexible repayment
• 500 credit score

• Variety of loan types and terms
• Approval within hours
• Same-day funding

Table of Contents

Why you should trust us.

At Business News Daily, we’ve spent years researching and testing the financial tools and services entrepreneurs need to manage their money and grow their businesses. Our team of small business finance specialists conducts independent evaluations of leading financial service providers to determine which provide the most value. We also regularly consult with finance experts, including accountants, bookkeepers, payroll managers, payment experts and tax professionals, to stay on top of the latest finance trends impacting small businesses. And every review we publish is evaluated by our editorial staff to ensure objectivity, accuracy and fairness are at the core of our decision-making. Learn more about our editorial guidelines.

How We Decided

To find the best business loans and lenders, our team of small business finance experts examined the market to identify the best rates, the fastest approvals and the most efficient application processes. Our research covered direct lenders and lending marketplaces, as well as alternative lenders that provided financing options like invoice factoring and equipment financing. We met with these lenders and asked detailed questions about their application processes, borrower requirements, approval and funding timelines, and interest rates. We also looked at reviews from real-life borrowers to see how well these lenders lived up to their promises.

Unless you have stellar credit and a booming business that’s been around for a while, securing a traditional business loan can be tough. That’s where the best business loan companies we examined in our reviews come in. These lenders, such as BusinessLoans.com and Fundbox, are typically willing to work with borrowers that traditional banks may turn down for business financing.

These lenders offer a wide range of financing options, including working capital loans, merchant cash advances, equipment financing, invoice factoring and term loans. Many alternative lenders also make it easy to get financing with online applications and same-day funding.

We researched the options to help you find the best business loan for your needs. Below are the best loan companies that offer financing for a wide range of businesses and use cases.

Best Business Loans of 2024

• BusinessLoans.com: Best for Comparing Loan Options
• Biz2Credit: Best for Marketplace Lending
• Fundbox: Best for Line of Credit
• SBG Funding: Best for Flexible Terms
• Rapid Finance: Best for Fast Funding

Compare Our Best Picks

Our Reviews

• Funding Amount: $5,001 to $3 million
• Loans Offered: Term loan, merchant cash advance, invoice factoring, working capital loan, line of credit, equipment financing
• Application requirements: $100,000 in annual revenue, no minimum credit score, one to six months in business.

Why We Chose BusinessLoans.com

BusinessLoans.com is a relative newcomer on our list, launched in 2020 to streamline the loan application process and seamlessly connect borrowers with the best loans for them. The platform excels at welcoming borrowers with minimal knowledge about or prior experience with business loans. The company is known to work with any borrower to get them the funding they need — even borrowers who don’t meet the qualification criteria.

Applying for BusinessLoans.com funding is straightforward. You’ll provide about a dozen data points that you should almost certainly know offhand. The process shouldn’t take more than three minutes. The BusinessLoans.com algorithm will match you with lending partners that best fit your needs. The company works with over 35 lenders, so your likelihood of finding a lender is high.

We like that BusinessLoans.com is committed to demystifying loans and making them work for any borrower. The company will teach you how to effectively compare loans while providing hands-on assistance. This is why BusinessLoans.com is our top pick for comparing loan options.

BusinessLoans.com has a simple application process that is easy to understand. (Source: BusinessLoans.com)

BusinessLoans.com Rates and Fees

BusinessLoans.com Pros

• BusinessLoans.com helps borrowers who are unfamiliar with the lending space understand and compare loans.
• Applying for BusinessLoans.com funding is straightforward.
• After a simple, quick application, you’ll receive assistance in comparing your loan options and choosing the best one for your circumstances.

BusinessLoans.com Cons

• Collateral is required for most loans.
• You might wait as long as one week for funding. This is several days longer than you’d wait with many other lenders on this list.
• BusinessLoans.com doesn’t provide all information about loan rates and amounts.

BusinessLoans.com User Scores

Trust Pilot: 4.9/5

“This is my second loan with Business Loans. Simple, Fast, Seamless and same day funding,” one user wrote .

Learn more about BusinessLoans.com in our complete review .

• Funding Amount: Up to $6 million
• Loans Offered: Term loans, working capital loans. ERTC loans, commercial real estate loans
• Application requirements: $250,000 in annual sales, 660 credit score, 18 months in business

Why We Chose Biz2Credit

We selected Biz2Credit as the best choice for marketplace lending because the company has a long track record of arranging small business loans and works with a network of lending partners to find you the best financing option. Since its founding, Biz2Credit has leveraged its network to fund more than $7 billion in small business loans.

We also like Biz2Credit’s multiple loan options. You can apply for a term loan, a working capital loan or a commercial real estate loan . Rates start at 7.99% and depend on your credit score. The better your credit, the lower your interest rate. Biz2Credit charges simple interest — another unique feature we like that many business lenders don’t offer. Simple interest is calculated based on the principal balance each month. In contrast, compounding interest is calculated based on the principal balance plus any outstanding interest already accrued, which raises the loan costs. Biz2Credit offers an additional discount if you connect your business checking account .

We appreciate that applying for Biz2Credit is a simple four-step process. Source: Biz2Credit

Biz2Credit Rates and Fees

Biz2Credit offers term loans with interest rates as low as 7.99%, but the rate varies depending on your creditworthiness. Keep in mind there’s also a $250 to $400 underwriting fee on top of any closing costs.

Biz2Credit Pros

• Biz2Credit offers various business financing options at competitive rates.
• Its funding specialists match you with loans that best meet your needs.
• Not many vendors offer ERTC loans.

Biz2Credit Cons

• Biz2Credit has tougher eligibility requirements than other lenders we considered.
• Repayment periods for term loans only extend to 36 months.
• Detailed rates and terms aren’t readily available for all loan types.

Biz2Credit User Scores

Trust Pilot: 4.6/5

“Partnering with Biz2Credit was one of the most seamless, efficient and customer-friendly experiences I’ve ever had with a lender,” one user wrote .

Learn more about Biz2Credit in our complete review .

• Funding Amount: Up to $150,000
• Loan Offered: Line of credit only.
• Application requirements: $100,000 in annual revenue, 600 credit score, six months in business.

Why We Chose Fundbox

We recommend Fundbox as the best lender for lines of credit because it has competitive rates and transparent pricing. When you get a line of credit from Fundbox, you’ll know exactly what the cost will be before you finalize the transaction. This helps you make informed decisions, and not many lenders offer this much transparency. We also like that Fundbox makes repayment easy with weekly installments through its Flex Pay program. Some business owners may prefer monthly payments, but paying weekly means smaller chunks come out of your cash flow.

Fundbox goes beyond lending when supporting its customers. Another feature that stood out to us is its integration with popular programs that many businesses already use. The lender integrates with Freshbooks, QuickBooks and Zoho, three of the best business accounting software platforms.

Fundbox has a line of credit calculator that makes it easy to see how much you would pay over a 12- or 24-week timeframe. (Source: Fundbox)

Fundbox Rates and Fees

Fundbox can extend up to $150,000 in credit, with repayment terms of 12 or 24 weeks and a starting interest rate of 4.66%.

Fundbox Pros

• With a Fundbox line of credit, you know exactly how much you’ll pay before drawing any funds.
• This lender provides lines of credit as high as $150,000 and can fund your account 24 hours after approval.
• Fundbox provides a mobile app.

Fundbox Cons

• To qualify for a line of credit, you must be an established business bringing in at least $100,000 in sales.
• Fundbox doesn’t offer other types of loans other than a business line of credit.
• Repayment terms only stretch to 24 weeks.

Fundbox User Scores

Trust Pilot: 4.4/5

“Fundbox has by far one of the best products for small business owners. The flexibility is amazing! FLEXPAY is like no other product on the market,” one user wrote .

• Funding Amount: Up to $10 million
• Loans Offered: Term loans, bridge loans, line of credit, equipment financing, invoice financing, SBA loans
• Application requirements: $250,000 in annual revenue, 500 credit score, six months in business

Why We Chose SBG Funding?

Whether you need short-, medium-, or long-term funding, SBG Funding has an option for you. We like that SBG Funding’s loan terms can be as short as six months or as long as 10 years.

SBG Funding’s flexibility doesn’t end with its terms. You can borrow as much as $10 million, depending on the loan type. That allows you to grow with the lender. You may need a $10,000 short-term loan to start with, but later need a loan to buy a $1 million piece of equipment. SBG Funding can support that growth with its loan product, which is why it’s worth serious consideration if you’re looking for a flexible lender.

SBG Funding is also willing to work with borrowers who have credit issues. It can make a qualifying decision in 24 hours and get funding to you the same day in some cases. However, SBG Funding requires more documentation to approve a loan than most other business lenders we reviewed. That may dissuade some borrowers. But with competitive rates, flexible terms and loans of up to $10 million, the extra effort may be worthwhile.

SBG Funding’s application process is worth the time. Source: SBG Funding

SBG Funding Rates and Fees

SBG Funding Pros

• SBG Funding provides fast funding on loans as high as $10 million.
• Small business owners receive favorable pricing and flexible terms.
• SBG Funding is more transparent with its loan rates and terms.

SBG Funding Cons

• SBG Funding requires a lot of documentation when you apply for a loan.
• Applicants must have over $10,000 in monthly sales.
• Determining APR can be difficult because SBG only advertises its monthly rates.

SBG Funding User Scores

Trust Pilot: 5/5

“The business money arrived when they said it would, even earlier. Thank you. I look forward to working with you in the future for my business needs,” one user wrote .

Learn more about SBG Funding in our complete review .

• Funding Amount: $500 to $10 million
• Funding Types: Term loans, merchant cash advances, lines of credit, invoice factoring, SBA loans, bridge loans, asset-backed loans and commercial real estate loans
• Application requirements: 500 credit score, 3 months in business

Why We Chose Rapid Finance

Rapid Finance is true to its name, delivering fast funding to approved loan applicants. We like that both approval and funding can occur within hours, which is much faster than most lenders we reviewed. Rapid Finance offers merchant cash advances of up to $500,000. You repay your loans by giving Rapid Finance a fixed percentage of future credit card transactions.

To apply with Rapid Finance, you must provide a government-issued photo ID, a business tax ID, your business’s checking routing and account numbers, and the last three months of your company’s bank account statements. The application can be completed online in about 15 minutes if your documentation is readily accessible.

Rapid Finance offers a variety of funding options. (Source: Rapid Finance)

Rapid Finance Rates and Fees

Rapid Finance doesn’t advertise rates and fees upfront; loan details depend on the specific product you choose.

Rapid Finance Pros

• Rapid Finance has an easy online application, quick approval times and same-day funding.
• Rapid Finance offers various loan options and flexible repayment terms.
• Many of the platform’s loans don’t require collateral.

Rapid Finance Cons

• If you have a low credit score, the interest rate Rapid Finance charges may make the loan too expensive.
• Rapid Finance requires at least two years in business for term loans.
• The company doesn’t post its rates and terms publicly.

Rapid Finance User Scores

Trustpilot: 4.2/5

“The team paid attention to my needs and expectations and they were very professional during the entire process,” one user wrote .

Learn more about Rapid Finance in our complete review .

Alternatives to Consider

Fora financial.

Fora Financial offers business loans up to $1.4 million for short-term needs, with flexible repayment plans and potential discounts for early payback. We like their relaxed requirements, including a minimum of 6 months in business, $12,000 in sales, and a credit score of 500. Additionally, you won’t need any collateral and can easily track your loan progress through their online portal.

Noble Funding

Noble Funding stands out for its commitment to transparency and customer service. They offer competitive rates and terms for various loan options, with a focus on in-person assistance and zero hidden fees. We were also impressed that customers consistently praise their service on independent review sites.

If you’re looking for long-term financing, Noble has loans up to $500,000 and bridge loans exceeding $4 million for short-term needs. While they don’t require collateral, a credit score of at least 650 is needed to qualify.

Balboa Capital

Balboa Capital is known for its fast and streamlined application process, allowing you to apply and potentially receive funding within minutes – all online. We appreciate that they avoid excessive paperwork and hidden fees, making them an attractive option for businesses seeking a hassle-free approval process.  In addition to standard business loans, Balboa Capital offers niche financing solutions, including options for franchises and vendor financing programs.

Crest Capital

Crest Capital specializes in equipment financing for businesses, offering loans between $5,000 and $500,000 with fast funding and competitive rates. They can finance up to 100% of the equipment cost, including installation fees. For equipment under $250,000, a simple online application is all that’s required. For borrowers seeking equipment financing, Crest Capital is our best pick.

Accion Opportunity Fund is a non-profit lender dedicated to supporting small businesses that might struggle to get traditional funding. They offer loans from $500 to $150,000 and are willing to work with businesses with less-than-perfect credit.  Their commitment to helping underserved markets like women-owned, minority-owned, and startup businesses makes them a unique resource. Accion even offers microloans and financing options for food and beverage businesses, often excluded from traditional lending. Term loan rates start as low as 5.99%.

Choosing a Business Loan Provider

When seeking a loan, you must understand the ins and outs of the lending process, the lender’s qualification requirements, and loan terms to secure the capital you need without compromising your business’s future. As you compare various lenders, consider the following elements to ensure you choose the right loan .

Loan Application Ease

While you evaluate lenders, ask how long or detailed the application process is. Your lender will collect information about your business income and debts and use that to assess your ability to repay the loan. Some lenders require a lot of paperwork, while others don’t, depending on the loan size and term length.

If you need money quickly, select a lender with an online application and relaxed requirements about necessary documentation. Speed up the approval process by having certain documents ready, including your business’s tax returns, bank statements, financials, articles of incorporation and franchise agreements.

Interest Rate

Small business loans accrue interest, which is the price you pay for a loan. Rates are either fixed or variable. Generally, alternative lenders offer a fixed interest rate. Your interest rate will depend on the lender you partner with; your business’s financials, credit score and years in business; and your personal financial history. It is important to weigh the cost of the loan against the benefits of borrowing. If the cost does not make sense for your needs, seek a lower-cost alternative.

Rules and Requirements

Lenders charge business borrowers money to access capital. That includes interest, an origination fee and other charges such as maintenance and late payments. Pay attention to the annual percentage rate (APR). That tells you the full cost of the loan, including fees.

The size of the loan also impacts how much interest you’ll pay. The loan term is the amount of time you have to repay the loan. Loan contract terms can range from as short as a few weeks to as long as several years.

Qualifying Criteria

Depending on the loan type and lender, the qualifications for approval vary. Most lenders look at your business and personal credit score, years in business, annual sales, and business plan . Lenders don’t want to lose money and will scrutinize you and your business to ensure you can repay the loan.

To build business credit , ensure your business’s legal structure is established, register the business with your secretary of state, and get your EIN (employer identification number ).

Business collateral is an asset you pledge to secure your loan. If you can’t repay the loan, you forfeit the collateral to the lender. Collateral can be your building (if you own it), equipment, accounts receivables, property, or something else of value. Lenders offering secured loans require the business owner to put up a certain amount of collateral. Unsecured business loans do not require collateral.

Many lenders also require a personal guarantee , a binding legal document in which you pledge to personally pay back the loan if your business can’t. If the debt is nondischargeable and you file personal bankruptcy , you’re still obligated to repay the loan.

Funding Speed

It is important to know when you’ll have the loan funds in your bank account so you can plan accordingly and avoid a cash crunch for payroll or other business operating expenses. Some alternative lenders can fund your loan the same day you’re approved, while others take a few business days.

Some lenders require you to provide additional documentation, such as tax returns, photo ID, bank and credit processing statements, or a voided check. Each lender has specific requirements.

There is much to consider when applying for a small business loan, such as costs and terms. The more information you have before shopping for a loan, the better prepared you’ll be to make a good choice and properly manage your business’s finances .

What Type of Business Loan Is Best for Your Small Business?

There are many business loan options aside from traditional bank loans . The one that makes the most sense for you depends on your credit score, time in business, and the amount you’re looking to borrow. Funding speed and specific terms will vary from one product to the next. With that in mind, here’s a look at the small business financing options available to you.

U.S. Small Business Administration loans are processed by lenders and banks. These low-interest loans are intended to help owners expand their businesses (e.g., buy a business, land or equipment) or recover after a natural disaster. The maximum amount you can receive from an SBA loan is $5.5 million.

There are four specific types of SBA loans.

• SBA 7(a) loans: These are a good option for working capital, debt consolidation or buying equipment for your enterprise. You can borrow up to $5 million. SBA 7(a) loans feature a variable interest rate tied to the prime rate. Collateral is required.
• SBA 504 loans: This loan type also has a cap of $5 million, with rare extensions to $5.5 million for manufacturing or energy-efficient projects. Many business owners use a 504 loan to purchase machinery or land. SBA 504 loans cannot be used for working capital or inventory. Interest rates are typically fixed and are based on five- and 10-year U.S. Treasury bond rates. No collateral is required.
• Microloans: Microloans can be used for working capital and to purchase supplies, equipment or fixtures, and furniture. Rates vary from 6% to 9%. Loans are available from community-based nonprofits; the maximum amount you can borrow is $50,000.
• Disaster loans: In case of emergency, disaster loans offer borrowers up to $2 million. They are designed specifically for small business owners who must rebuild after a natural disaster or global crisis. In late 2022, the SBA announced it would waive interest on disaster loans during the first 12 months. After that, the interest rate for for-profit businesses will be 3.04%.

With a term loan , you get a lump sum and must repay it in installments over a set period. Term loans have different repayment schedules depending on your business needs.

• Long-term loans : These loans have terms of at least six years. They are typically used for big purchases, such as company vehicles or property.
• Medium-term loans : These loans have terms ranging from two to five years. They’re commonly used to purchase business equipment or to fund expansion.
• Short-term loans : These loans have terms of less than two years. They are typically used to purchase inventory, fill cash flow gaps for working capital, or meet other short-term cash needs.

Lines of Credit

Lines of credit, or LOCs , give business owners quick access to capital. There are no rules for how the money can be used, and you only pay interest on the money you draw. The lender determines the loan size and interest rate. Many LOC loans have qualification requirements such as a minimum annual revenue, the length of time your company has been in business, and minimum credit scores of 500 or higher.

Merchant Cash Advance

With a merchant cash advance , the lender offers merchants an advance in exchange for future credit card sales. You get access to cash quickly and must repay the advance daily via a percentage of your credit card sales.

Peer-to-Peer Lending

Peer-to-peer (P2P) lending is a loan from another business owner or individual investor interested in financing your business. This cuts out the need for banks. These loans have drawbacks and are not allowed in all states.

Unsecured and Secured Loans

An unsecured business loan doesn’t require you to put up collateral. However, you must have good credit to qualify. A secured loan requires collateral, including an asset, equipment, accounts receivable or real estate property.

Equipment Financing

Equipment financing occurs when a business owner takes out a loan to pay for equipment. The collateral is the equipment you are financing. Most business owners can get approved thanks to the collateral component.

Invoice Financing

With invoice financing, business owners receive an advance on unpaid invoices. This financing is also called accounts receivable financing. Invoicing companies can advance you as much as 80% of the value of your unpaid invoices. You receive the final 20%, minus any fees when the invoices are paid.

Alternative Loans

Alternative lenders are another small business financing option . These nonbank lenders provide loans to business borrowers. They’re typically more flexible than banks and have a quicker application process and funding time. The approval requirements are usually more relaxed than those of a bank. Any financing outside of a bank is considered an alternative loan.

Business owners have many options for accessing capital, all with varying costs and terms. SBA loans, term loans, lines of credit, equipment financing, private funding and alternative lending are popular options.

Methodology

To find the best business loan providers, our team of financial experts meticulously combed through an initial pool of 38 potential lenders. After a rigorous narrowing process, we identified 19 top contenders for further examination. These finalists were then evaluated across 19 key criteria reflecting the priorities of business owners seeking financing. Ultimately, we selected five for inclusion on our list.

We grouped these criteria into weighted categories, which we evaluated based on what is typically most important to a business owner when selecting a business loan. Here’s how we made our decisions.

• Rates and fees: (30%): Our team meticulously compared interest rates, origination fees, and any additional charges to identify the most budget-friendly lenders. We also looked carefully for hidden fees to ensure that there are no surprises. This empowers you to secure the capital you need without sacrificing your financial well-being.
• Loan types (25%): We prioritized the variety and adaptability of loan products on offer. This includes analyzing loan types (term loans, lines of credit, equipment loans), loan amounts available, and repayment terms. We ensured a diverse range of options exists to meet the specific needs of your business.
• Ease of application (20%): We evaluated the eligibility requirements and application process for each lender. This analysis considers factors like minimum credit score, time in business, and revenue requirements. Additionally, we assessed the application process itself, ensuring that it’s streamlined and efficient.
• Customer service: (15%): Because unforeseen situations can arise, we looked closely at the customer service offered by each lender. This included assessing phone support availability, online resources, and the responsiveness of customer service representatives. We also checked out customer testimonials on user review sites.
• Expert analysis (10%): Our recommendations were also informed by the insights of our in-house business and finance experts. Their years of experience and analysis ensure that the providers on our list make financial sense.

Evaluating these factors helped us identify not only trustworthy business loan options, but also how each lender best fits specific business needs. We recognized that some lenders excel at certain loan types or cater to particular company sizes. This analysis led to the “Best For” categories you see on this page, ensuring you can easily find the loan that aligns perfectly with your business goals.

To learn more about our methodology, see our full editorial process .

Business Loan FAQs

What are the types of sba loans.

Several types of SBA loans are available for business owners. Three of the most common include SBA 7(a) loans, SBA 504 loans and microloans, which we discussed in this article. The SBA 7(a) loan is ideal for small to midsize businesses, with low interest rates and long repayment terms. The 504 loan is well-suited for purchasing real estate or paying for construction or renovations. Finally, microloans are best for very small businesses that must offset startup or early expansion costs, because these loans are capped at $50,000.

Are SBA loans fixed rate or variable?

The interest rates on SBA 7(a) loans are typically variable, though they can occasionally be fixed rate. SBA 504 loans and microloans are fixed rate.

Will lenders look at my personal credit?

If you’re a startup, your company doesn’t have a financial history. Instead of evaluating your business’s credit, lenders will check your personal credit. This is a common lender practice, especially for new business owners. Sometimes looking at your personal credit is the only option lenders have.

What credit score is necessary to qualify for a small business loan?

The minimum credit score you need to qualify for a business loan ranges from 500 to 640 or higher. The requirements depend on the type of loan you’re seeking and your lender.

For an SBA Express loan or SBA 7(a) loan, borrowers need a score of at least 600 or 640, respectively. If you’re interested in the SBA CAPLines program or an SBA export loan, you need a credit score of at least 660. SBA CDC/504 loans require a minimum score of 680, and for an SBA microloan, a score of at least 620 to 640 is preferred.

Online lenders often have more flexible requirements. Some provide loans to those with credit scores between 500 and 550. However, if your credit score is that low, you will likely pay higher interest rates.

What are some assets business owners can use as collateral for a loan?

Acceptable collateral varies. In general, anything valuable can be used. Common types of collateral for business loans are equipment, vehicles, real estate, inventory and accounts receivables. Some lenders may require you to offer personal collateral not tied to your business. This could include vehicles, real estate and cash in the bank.

Where can I apply for an SBA loan?

You can apply by searching for lenders approved by the SBA. Armed with that list, comparison shop and apply directly on the lenders’ websites or through their mobile apps.

An easier option is to use the SBA’s Lender Match tool, which connects borrowers with SBA lenders. Answer a series of questions, which the SBA says takes five minutes. Two days later, you’ll receive an email with offers from lenders. It’s up to you to pick the lender, but once you’ve settled on one, you apply directly with it. (The SBA’s Lender Match tool is not for its disaster relief loans and assistance.)

What is a business installment loan, and why would I need one?

An installment loan is financing you use to pay for equipment or property over a set period. Unlike a credit card , which gives you a revolving line of credit , loan payments are fixed over the loan’s term. Once you pay off the loan, the debt is settled. Interest rates on installment loans are typically lower than credit card interest rates, but more risk is involved. If you can’t repay the loan, the lender claims your collateral.

Installment loans are common for purchasing property, expensive equipment, business vehicles or other high-priced items. You can also use an installment loan to fund your startup. If you want the loan for this purpose, you’ll need good credit, collateral, a sound business plan and a willingness to sign a personal guarantee.

What to Expect in 2024

Credit availability and rising interest rates are two major themes for business loans in 2024. Over the last two years, the U.S. Federal Reserve significantly raised its benchmark interest rates. The WSJ Prime Rate, an index of prime rates from 30 major banks, has ballooned to 8.5%, which remains unchanged from the same period in 2023.

Over the last few months, inflation readings have fallen to the mid-3 percent range. More recently, the central bank has paused its rate hike campaign, and many analysts believe that rates are at or near a peak. Federal Reserve Chair Jay Powell has publicly indicated that rates could fall somewhat in 2024. For now, policymakers are holding interest rates at elevated levels and assessing the impact on the economy.

The good news for businesses in need is that many lenders are still approving small business loans at high rates. A down economy and rising inflation may leave many small business owners looking for additional funding. Alternative lenders are ready to meet that demand, and it also appears that the SBA will have more money to lend in 2024.

Additionally, artificial intelligence and machine learning are reducing loan approval wait times and increasing the speed with which funds are deposited into business owners’ bank accounts. Credit scores still matter, but lenders are increasingly scrutinizing other aspects of a business owner’s finances to ascertain their creditworthiness. Altogether, these changes are designed to make getting a small business loan easier and faster in 2023.

In response to rising inflation, the SBA has expanded its size standards for what is considered a small business. That means more businesses are now eligible for SBA loans and federal contracts.

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25+ Essential Small Business Lending Statistics [2023]: What Percentage Of SBA Loans Get Approved

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Research Summary. Whether you need property, renovations, or are simply looking for some investment money, having money loaned out can be a regular part of owning a small business. These statistics can help you understand the trends behind small business lending in the US:

Large, nonlocal banks are responsible for 89.5% of smaller loans (less than $100,000) given to small businesses.

The average SBA loan is $417,316 , while the maximum loan amount is $5 million.

SBA loans have a 49% approval rate at small banks.

SBA loans only have a 25% approval rate at large banks.

33% of small business owners struggle or fail due to a lack of capital.

In 2020 the SBA distributed over 14 million loans worth $764 billion to small businesses.

Small Business Financial Statistics

Despite the rewards, it can also be expensive to run a small business in the U.S. Additionally, many who have great ideas can only afford to jumpstart them with small business loans.

Overall, when it comes to the financial status of American small businesses, here are the facts:

As a whole, only 48% of small businesses in the U.S. have their financing needs met.

That number includes the 20% of small businesses that achieved financing through loans and 28% that didn’t have sufficient capital without loans. On the other hand, a considerable 52% of small businesses receive no financing, only receive a portion of the financing they need or have too much debt to apply for loans.

At least 70% of small businesses in the U.S. have outstanding debt.

While that means nearly 3/4 of small businesses are in debt in the U.S., it’s also important to note the varying amounts of debt. 38% of small businesses with debt owe less than $100,000, with that number being divided into 17% owing $1 to $25,000 and 21% owing between $25,000 to $100,000.

The average Small Business Administration (SBA) loan is $417,316.

However, the maximum loan amount for a standard loan is up to $5 million, with other smaller SBA loan types capping out between $350,000 and $500,000. Additionally, most loans over $25,000 require the lender to take some form of collateral, including trading assets.

Only 38% of small businesses took out a loan to expand in 2020.

The COVID-19 pandemic hit small businesses particularly hard, with the percentage taking out loans to expand reducing from 58% in 2019 to 38% in 2020. Instead, many small businesses have had to take out loans just to stay afloat.

The average interest rate for a small business loan is between 2.54% – 7.01%.

A majority of this disparity is connected to which bank, program, or administration the loan comes from. For instance, SBA loans have average interest rates between 5.50% to 8%.

Only 33% of small businesses will survive ten years in business.

While the majority, 79.8%, can survive their first year. Unfortunately, survival rates continue to decrease over time until a small business reaches the ten-year mark, with 69.2% surviving two years and 50.2% making it five years.

Small Business Loan Statistics

Many businesses needed loans to expand, and during the height of the COVID-19 pandemic, many also needed loans to survive. Here are the facts about small business loans:

Overall, the average small business loan is $633,000.

This includes smaller regional and large banks , but it’s important to note the massive disparity between possible loan amounts. A small business can generally receive anything from $13,000 to $1.2 million from banks.

In 2020 the SBA distributed over fourteen million loans worth $764 billion to small businesses.

And of that $764 billion, $736 billion fell under the category of COVID-19 relief loans. That means that 96% of the loans distributed by the SBA in 2020 were for COVID-19 relief.

The average small business loan from alternative lenders is between $50,000-$80,000.

These lenders are typically private companies that operate online. Some of the most well-known alternative lenders include Fundbox, BlueVine, OnDeck, Credibly, Balboa Capital, QuarterSpot, and Funding Circle.

The average loan amount from large national banks is $593,000.

Unlike small regional banks, which only loan out an average of $146,000 to small businesses. At the other extreme, foreign banks give an average of $8.5 million to small businesses.

Small Business Loan Application Statistics

No one enjoys applying for loans, even if it’s necessary. However, it’s a common process, with just under half of all small businesses needing to apply for one. Here are the facts about small business loan applications, according to our research:

43% of small businesses applied for a loan in 2020.

Most of these businesses were those who needed COVID-19 relief, meaning that nearly half of American small businesses deeply struggled through the height of the pandemic.

Loan approval rates for small businesses applying to large banks are only 13.8%.

Whereas the approval rates from small banks are up to 19%, and non-bank loans have an approval rating of 24.7%. Overall, all of these approval rates are much lower than the rates for SBA loans.

32% of small businesses applying for loans now apply to non-bank lenders.

More and more small businesses are applying for loans from non-bank lenders, as this percentage is up from 24% in 2017 and 19% in 2016.

20% of small business loans are denied due to credit issues.

If a small business has weak or non-existing credit, this can have a huge impact on loan approval odds. It’s important to note that your business’s credit isn’t necessarily your personal credit, so you should watch both.

Small Business Loan Demographics

Given that there are huge disparities between the rural areas and cities in the U.S., it’s unsurprising that small businesses in different areas can have different outcomes. Additionally, the disparities between race, gender, and class can also play a role. Some common small business loan demographics include:

Rural small businesses are more likely to receive loans, with 51% acquiring all of the financing requested.

On the other hand, only 38% of urban small businesses receive the full financing amount they requested. This is especially interesting, given that only 17% of small businesses operate in rural areas.

Rural small businesses rely more heavily on small banks, with 62% of loan applications going to them.

Comparatively, 53% of urban small businesses apply for loans from larger banks , with only 43% reaching out to smaller banks. Of course, this isn’t surprising when you consider that 55% of the banks in rural areas are small banks, compared to only 25% in cities.

Black-owned businesses receive less than 2% of small business loans.

This is despite Black Americans making up 13% of the total population. In fact, studies have shown that Black-owned firms are twice as likely to see loan rejections, with less than 47% of financing applications being approved.

Women-owned small businesses receive only 16% of small business loans.

And this is even though women own roughly 30% of small companies. Overall, research has shown that women are more likely to be rejected or face more stringent terms than their male counterparts.

Small Business Loan Statistics by Industry

The type of industry a small business is in can also impact whether or not that business will be approved for loans. After all, the U.S. is home to small businesses that deal in anything from retail , fitness, car repair, and more. Overall, when it comes to small business loans by industry, here are the facts:

The construction and renovation industry receives the highest proportion of small business loans, roughly 15%.

Similarly, the second highest is Transportation and Trucking small businesses, receiving around 15% of small business loans. These industries tend to need loans to cover equipment, repairs, maintenance, and even turn a profit.

Full-service restaurants receive the highest volume of SBA small businesses loans, reaching 28,680 in 2019 alone.

Additionally, the limited-service restaurant businesses hold the #2 spot, with 19,141 loans distributed. This massive number of loans totaled over $17.1 billion combined. For context, the closest runner-up to the restaurant industries was the dental industry, which only amounted to 10,699 loans totaling $6 billion.

At least 11 potentially legal industries are not eligible for SBA small business loans.

These include Gambling, Government-Owned, Lending Loan Packaging Firms, Multi-Sales Distribution, Nonprofit, MLM, Real Estate Investment firms, Religious, and Speculation-Based industries.

Small Business Lending FAQ

What percent of small business loans are approved?

General small business loans have a 57% approval rate, while SBA loans, in particular, have a higher or lower approval rate based on the size of the bank. Overall though, approval odds can be affected by the applicant’s location and the type of bank used, as well as race or gender.

For example, rural small businesses have 51% of applications approved, compared to only 38% of urban businesses.

This can be explained by the fact that urban businesses favor large banks, with approval ratings as low as 13.8%. With the approval rating for small banks being nearly 1.5x higher than that.

Additionally, Black Americans and other minorities also struggle with approval rates, as only 47% of loans requested by Black individuals are approved.

How are most small businesses financed?

Most small businesses are financed through the owner’s personal investments. This can include anything from their savings to personal assets. Even in 2020, when loan applications peaked, only 43% of small businesses applied for a small business loan.

However, when small businesses do require loans, the four most common ways of being financed are through: the SBA, large national banks, small regional banks, and alternative lenders. Financing through these lenders can be anything from a few thousand dollars to over a million.

Is small business lending profitable?

Small business lending is sometimes profitable, but also risky. Due to increasing interest rates , small business loans can indeed be very profitable for lenders. Plus, a $500,000 loan might take as long as a mortgage to pay off, creating a large amount of time for that interest to add up.

On the other hand, small loans (less than $25,000) can be incredibly unprofitable for lenders, and if a lender sees a business venture as too risky, they probably won’t finance it. That’s because if the business collapses, the bank will lose its entire investment.

How much debt does the average small business have?

In the United States, the average small business owner is roughly $195,000 in debt. However, it’s important to note that a small business debt shouldn’t exceed more than 30% of your business capital .

How do small businesses qualify for loans?

There are four basic steps small businesses should take to qualify for loans. These include:

Building Credit. The first step to qualifying for any loan is building an attractive credit score, and small businesses are no different. You can either choose to improve your own personal credit or create solid business credit.

Research Qualifications & Requirements. You won’t know if you qualify for a loan if you don’t research it. Research any loan you’re interested in and understand the key differences between federal and bank loans.

Gather Documents. You’ll need to have the required financial and legal documents on hand if you want to qualify for a small business loan. This can include anything from personal, and business income tax returns to commercial licenses.

Show Lenders a Business Plan. Showing potential investors your business plan is a great way to build confidence. These plans include things like: company description, product/service description, industry analysis, facilities and operations plans, Current and projected financials, marketing strategies, and more.

Can you get a business loan with no revenue?

Yes, you can get a small business loan with no revenue. Though it may be more difficult, it is possible to achieve a small business loan with no revenue. After all, many businesses need loans to start operating.

With that in mind, here are some steps you can take to get a small business loan when you have no revenue:

Credit. Investors love high credit scores. If you have one, they’ll be far more likely to trust you with a loan.

Financial Projections. If you can at least somewhat accurately project how much money your business will make, lenders will feel more comfortable lending you money.

Business Plan. Like financial projections, a business plan will tell investors about your product/service, so they can decide whether or not they believe it’s worth investing in.

What credit score do I need for an SBA loan?

You should try to have a credit score of at least 690 or higher if you plan to apply for an SBA loan. Having a score between 690-720 will give you good odds of landing a loan, while scores of 720+ will give you great odds.

Due to the impact of the COVID-19 pandemic on small businesses, the process of acquiring loans is more important than ever before. After all, 33% of small business owners struggle or fail due to a lack of capital, and only 48% have their financing needs met. In 2020 alone, 43% of small businesses applied for small business loans.

Of course, there is a disparity between loans and lenders. While the average small business loan is between $400,000 and $650,000, depending on the lender, loans can theoretically be as low as a few thousand dollars or as high as a million. And, with approval ratings no higher than 57%, it’s no surprise that a portion of applications is denied due to credit and capital issues.

Luckily, there are several avenues small businesses can take to acquire financing, such as reaching out to the SBA, large national banks, small regional banks, and alternative lenders.

Federal Reserve Banks. “Small Business Credit Survey.” Accessed on November 22nd, 2021.

SBA. “Types of 7(a) loans.” Accessed on November 22nd, 2021.

Nerdwallet. “Average Business Loan Rate: What to Know About Interest Costs.” Accessed on November 22nd, 2021.

Entrepreneur . “The True Failure Rate of Small Businesses.” Accessed on November 22nd, 2021.

ValuePenguin. “Average Small Business Loan Amount: Across Banks and Alternative Lenders.” Accessed on November 23rd, 2021.

SBA. “SBA Achieves Historic Small Business Lending for Fiscal Year 2020 with More Than $17 Billion in SBA Seattle District.” Accessed on November 23rd, 2021.

Small Business Trends. “Small Business Loan Approval Rates Up at Big Banks.” Accessed on November 23rd, 2021.

FRB. “Access to Financial Services Matters to Small Businesses.” Accessed on November 23rd, 2021.

FORA Financial. “4 Steps to Take If You Aren’t Approved for an SBA Loan.” Accessed on November 23rd, 2021.

Fundera. “Rural Small Businesses Earn Better Profits and More Financing vs. City Ones.” Accessed on November 23rd, 2021.

The Guardian. “Black-owned firms are twice as likely to be rejected for loans. Is this discrimination?” Accessed on November 23rd, 2021.

Ondeck. “How the Gender Gap Affects Small Business Loan Approvals.” Accessed on November 23rd, 2021.

FORA Financial. “The Industries Most Likely to Ask for a Business Loan and Why.” Accessed on November 23rd, 2021.

WestTown Bank Trust. “The Top 40 Industries for SBA Financing in 2020.” Accessed on November 23rd, 2021.

SBA. “Does Your Industry Qualify for an SBA 7(a) Loan? Will You Benefit?” Accessed on November 23rd, 2021.

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Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.

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Persistent Effects of the Paycheck Protection Program and the PPPLF on Small Business Lending

Mark Spiegel

Lora Dufresne

Download PDF (875 KB)

2024-26 | August 13, 2024

Using bank-level U.S. Call Report data, we examine the longer-term effects of the Paycheck Protection Program (PPP) and the PPP Liquidity Facility on small business (SME) lending. Our sample runs through the end of 2023H1, by which time almost all PPP loans were forgiven or repaid. To identify a causal impact of program participation, we instrument based on historical bank relationships with the Small Business Administration and the Federal Reserve discount window prior to the onset of the pandemic. Elevated bank participation in both programs was positively associated with a substantial cumulative increase in small business lending growth. However, we find a negative impact of both programs during the final year of our sample, suggesting that the increase may not prove permanent. Our results are driven by the small and medium-sized banks in our sample, which are not stress-tested and hence not included in Y-14 banking data, illustrating the importance of considering small and medium-sized banks in evaluating the performance of SME lending programs.

Suggested citation:

Dufresne, Lora and Mark M. Spiegel. 2024. “Persistent Effects of The Paycheck Protection Program and the PPPLF On Small Business Lending.” Federal Reserve Bank of San Francisco Working Paper 2024-26. https://doi.org/10.24148/wp2024-26

Download appendix  (pdf, 222 kb)

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Run » business financing, 63 grants, loans and programs to benefit your small business.

When you know where to look, help for your small business is there for the taking.

Whether you’re starting a new small business or looking to grow the one you already own, finding funding can be a challenge for businesses of all sizes. If you’re looking for a small business loan or grant, CO— is here to help.

Each week, we update this list of loans, small business grants, or other opportunities to connect with programs and organizations that can help you with your business. Come back often to see the latest. And, if your organization has a program or grant you’d like to see listed here, email us at [email protected] .

If you’re not sure of the difference between a loan and a grant, check out our explainer here . You can also learn more about all funding options in our small business financing guide here .

Government grants

Begin your search for a grant from the federal government at Grants.gov . This government site offers the most comprehensive database of funds the government is going to give away. There are thousands of grants to apply for, with opportunities for companies from all backgrounds.

Keep in mind that not all assistance flows directly from the federal government to small businesses. Some funds are distributed to state and local governments and agencies, nonprofit organizations, and institutions of higher learning. These entities, in turn, distribute the funds or use them to provide technical or educational assistance on a local level.

In addition to the programs listed here, be sure to check with your state and local governments and use the resources listed below. When searching through grant and contracting options, note that you may qualify for more than one program.

As illustrated by the following sampling of grants, the assistance available to you from the government will vary, depending on your specific situation.

• The Blueprint Medtech Small Business Translator Grant. This is a government grant for small businesses working on creating medical devices to treat nervous system disorders. It supports activities like making prototype devices, safety testing, and clinical studies to get approval from the FDA. The grant is a cooperative program where the NIH helps plan and monitor the research. It also provides funding and access to experts for things like regulations, patents, and manufacturing. Small businesses with their device ideas or collaborations with manufacturers can apply for this grant to advance their projects. The next deadline to apply is September 27, 2024.
• Employee Retention Credit. The Employee Retention Credit (ERC), sometimes called the Employee Retention Tax Credit, is a stimulus program established by the CARES Act. This refundable tax credit functions as a grant that helps businesses impacted during the COVID-19 pandemic. Eligibility guidelines are available on the IRS website .
• Illinois Infrastructure Grants. In 2020, Governor Pritzker launched an initiative to improve Illinois' infrastructure. $3 billion of this was allocated for capital grants through the Department of Commerce and Economic Opportunity (DCEO) . These capital grants, part of Illinois' $45 billion infrastructure initiative, are designed to support various projects that benefit local communities and businesses. The DCEO maintains a transparent list of these grants, which can be either general or specific project grants. You can find more information about these grants on the GATA website .
• The Minnesota Emerging Entrepreneur Loan Program (ELP). ELP is an initiative aimed at supporting the growth of Minnesota businesses owned by minorities, low-income individuals, women, veterans, and persons with disabilities. The program provides grant funds to nonprofit lenders across the state, which in turn offer loans to startup and expanding businesses. These loans not only foster business development but also aim to create jobs for minority and low-income individuals, strengthen minority-owned enterprises, and boost economic growth in disadvantaged areas. To participate in the program, eligible businesses must apply through certified nonprofit lenders, with DEED assisting in lender identification if needed, and loans are subject to DEED's approval.
• National Institute of Health Grants . The National Institute of Health (NIH) is currently funding grant opportunities related to COVID-19 research. These grants are reserved for small businesses that develop and research biomedical technology. There are multiple grants available with deadlines throughout 2024 and beyond.
• NIDILRR's SBIR program . The SBIR program aims to support organizations to help advance technology and research, as well as support the social/economic benefits for the nation. The SBIR will be backing the National Institute on Disability, Independent Living, and Rehabilitation Research (NIDILRR) through the Administration for Community Living (ACL) to provide 10 grants that support the improvement of the lives of those with disabilities. The total grant funding is estimated to be $1 million, and an outline of the available grants under this program can be found on the ACL website.
• San Francisco Accessibility Grant. Small business owners in San Francisco can apply for a grant to enhance accessibility in their establishments. The grant can cover expenses like accessible equipment, construction to remove ADA barriers, CASp inspections, design services, and relevant permit fees, with a maximum grant amount of $10,000. Eligible businesses must be registered in San Francisco, have less than $2.5 million in gross revenue for a single location, and employ an average of 100 or fewer employees. The application process is fast, and applicants can expect a response within 15 days of submission. Upon approval, they will need to provide proof of payment and photos showcasing accessibility improvements.
• Small Business Innovation Research Program (SBIR) . The SBIR offers grants to small businesses so they can participate in federal research and development with the potential for commercialization. It’s a highly competitive awards-based program that helps businesses achieve scientific excellence and technological innovation. To qualify for SBIR grants, you must operate a for-profit company and satisfy other requirements.
• Small Business Technology Transfer Program (STTR) . Similar to SBIR, the STTR program focuses on funding research in the R&D arena. However, what separates the STTR is the requirement that the small business has a formal collaboration with a research institution. To qualify for STTR grants, you must operate a for-profit company and satisfy other requirements.
• Texas Enterprise Fund (TEF). The Texas Enterprise Fund (TEF) offers "deal-closing" grants to companies competing with out-of-state sites for new projects in Texas. These grants are based on performance, encouraging significant capital investment and job creation. Eligible companies must meet criteria related to job creation, capital investment, financial stability, and local support. Once approved, grantees sign contracts committing to job and wage targets, with clawback provisions in case of non-compliance. The application process includes a thorough screening, and unanimous support from top state officials is required for approval.
• U.S. Department of Agriculture Rural Development Business Programs. The USDA’s Rural Development Business Programs provide financial support and technical assistance to promote rural business growth. They offer loans, grants, and guarantees with the goal of enhancing economic opportunities and job creation in rural communities; deadlines and eligibility requirements vary by program.
• U.S. Department of Commerce Minority Business Development Agency (MBDA) . Targeted grants and loans designed to aid minority-owned businesses are offered throughout the year. Minority-owned businesses can find information about local MBDA Business Centers at MBDA.gov .
• U.S. Department of Education (DOE) Grants. The U.S. DOE has various grants available to small businesses in the education sector. Each grant has unique eligibility criteria, with some opportunities set aside for public schools, state agencies, or nonprofit organizations; however, others allow applications from for-profit private sector companies. Deadlines for currently available DOE grants run through September 16, 2024.
• U.S. Small Business Administration State Trade Expansion Program (STEP) . Intended to assist small businesses desiring to export product, this program distributes federal funds through state entities . Small businesses that meet the criteria set by each state can use the financial assistance to participate in foreign trade missions and shows, obtain entry to foreign markets, develop websites, and design international marketing products or campaigns.
• U.S. Economic Development Administration (EDA) . The EDA is part of the U.S. Department of Commerce and offers ongoing funding opportunities for projects that support regional and national economic development. Applicants can apply for a variety of rolling-basis EDA investments that fund projects in construction, non-construction, planning, technical assistance, research and evaluation, higher education, and more.

As you would expect, acceptance of free money from the government comes with a fair amount of paperwork. Applying for a grant can be time-consuming and technical. You want to make sure, therefore, that you are eligible before applying. In addition to the legal and administrative prerequisites, there are ongoing reporting and auditing requirements.

Government contract assistance

The federal government spends billions of dollars on goods and services each year. A lot of that money is spent through a competitive bidding process. Programs have been put in place to assist some small businesses with the process, allowing them a better chance to compete for those federal dollars.

• Service-Disabled Veteran-Owned Small Business Program . The federal government seeks to award at least 3% of all federal contracting dollars to veteran-owned businesses annually, so this program helps with meeting that target. This federal contracting program offers assistance to small business owners who are service-disabled veterans . Eligible small businesses must be over 50% owned/controlled by one or more service-disabled veterans, have day-to-day operations and long-term goals managed by at least one service-disabled veteran and have a service-connected disability.
• Women-Owned Small Business (WOSB) Federal Contracting Program . The federal government seeks to award at least 5% of federal contracting dollars to women-owned small businesses annually. Through this SBA program , the Office of Women’s Business Ownership provides support to women entrepreneurs by offering business training, counseling, federal contracts and access to credit and capital. Their goal is to offer equal opportunities for all women in business.
• 8(a) Business Development Program . The purpose of this program is to assist small businesses owned by socially and economically disadvantaged entities. This is achieved by limiting competition for certain government contracts to businesses participating in the 8(a) business development program. To participate a business must be certified as an 8(a) entity.
• HUBZone Program . This program aids businesses in underutilized business zones by making them more competitive in regard to some government contracts. Businesses that join the HUBZone program can compete for set-aside contracts as well as receive preference on others, including a 10% price evaluation preference in open contract competitions.

Natural Resource Sales Assistance Program

In addition to the billions of dollars spent purchasing goods and services, the federal government also sells large amounts of natural resources and surplus property. The SBA Natural Resource Sales Assistance Program sets aside a percentage of these goods for bidding by small businesses only. In addition, federal agencies sometimes divide surplus materials into smaller parcels, making it easier for small businesses to purchase. The five categories are:

• Timber and related forest products.
• Strategic materials.
• Royalty oil.
• Leases involving rights to minerals, coil, oil and gas.
• Surplus real and personal property.

The program also provides training for small businesses on government sales and leasing.

General small business grants

There are many nonprofit and corporate entities offering grants and other assistance to small businesses. Here are a few such programs that are open to qualifying small businesses in any industry:

• 500 Global Flagship Accelerator Program . Startups and small businesses seeking funding can do so on a rolling, year-round basis with the 500 Global Flagship Accelerator program . Since 2010, this program has offered businesses the opportunity for a four-month accelerator program based in San Francisco in addition to a $150,000 investment. Rules for applying can be found on the company's website.
• Awesome Foundation Grants. Each month, the Awesome Foundation awards grants of $1,000 to individuals and groups looking to fund various projects. The Awesome Foundation is made of 84 independently-run chapters, with members contributing to a micro-funding pool that goes towards grant projects. Though funding is not limited to businesses, startups, and small businesses have been among the recipients of the monthly grants. Applications are accepted on a rolling basis.
• Bizee Entrepreneur Grant . Bizee (formerly Incfile) offers two grants to support aspiring entrepreneurs and students. The "Young Entrepreneur Scholarship Grant" provides $2,500 to a high school senior, undergraduate, graduate, or trade school student in the U.S. with a GPA of 3.0 or higher and an interest in starting a business. The "Fresh Start Business Grant" offers $2,500 and Bizee's Gold plan for free to adult entrepreneurs (21 years or older) in the U.S. planning to start a new business or significantly grow an existing one. Though dates for the next round of funding are "coming soon," entrepreneurs can review eligibility and application criteria in the interim.
• Faire Small Business Grant. The Faire Small Business Grant provides $5,000 grants to select new retail businesses to help them stock their stores and cover their inventory expenses. To be eligible, applicants must be U.S.-based and have opened their retail store in 2023-2024 or plan to open this year. Applicants are asked to submit a short video about their store concept and community involvement, along with a few business and financial details. Applications for the first cycle are open through August 31, 2024. Learn more and apply here .
• Fast Break for Small Business. The Fast Break for Small Business grant program, in collaboration with the NBA, WNBA, and NBA G League, offers small business owners and entrepreneurs the chance to win a $10,000 grant and/or up to $500 in LegalZoom products and services. Awarding a monumental $3 million in total grants and services, the initiative, currently in its third run, has already aided over 3,150 small businesses. The application window closes on September 13, 2024, at 8:00 p.m. ET.
• The Freed Fellowship Grant. U.S.-based small business owners can apply for a monthly $500 grant from The Freed Fellowship . Applicants are evaluated based on the 5C Framework, which assesses various aspects of applicants’ business. Along with the grant, applicants receive feedback on their business and a two-month free membership in the Freed Studio, a community of ambitious business owners. Grant recipients are also eligible for an end-of-year grant of $2,500.
• GoFundMe Small Business Relief Fund . GoFundMe’s Small Business Relief Fund will match $500 grants to qualifying small businesses that have been negatively impacted by COVID-19 and raise at least $500 through a GoFundMe campaign. The fund is backed by GoFundMe and corporations like Intuit QuickBooks, Yelp, GoDaddy, and Bill.com. Small business owners with existing campaigns can add the hashtag #SmallBusinessRelief to their campaign and fill out this form to confirm their business.
• Hustler’s Microgrant. The Hustler's MicroGrant offers $1,000 in funding to support passionate entrepreneurs in their small business ventures. Presented by Deja Vu Parker of WBLS and HerSuiteSpot, this grant provides financial assistance and resources to promising small businesses across the United States, helping them grow their operations. Applications are accepted monthly, and eligible small business owners are encouraged to apply.
• Skip Monthly Grants. Small business aggregator Skip offers monthly grants for U.S.-based small business owners and entrepreneurs; grants are typically set at $1,000, though the exact amount varies by Skip’s monthly YouTube revenue. To be considered, you must have a Skip account and add the monthly grant to your Funding Assistant, as well as be subscribed to Skip’s YouTube channel. Deadlines for the next round of grant applications are expected to be announced soon.
• Skip Instant Grants. Skip offers Instant Grants on a rolling basis, providing funding opportunities with shorter turnaround windows. These grants are announced a couple of days in advance and generally occur twice a month. Applicants are required to participate in Skip’s YouTube livestream during the selection process. Learn more about these ongoing funding opportunities by following Skip on social media.
• Small Business Digital Readiness Program. In partnership with Verizon, National ACE has developed a digital readiness program to help small business owners succeed in a digital world. The free online curriculum includes expert coaching, peer networking, and other resources to support your small business. Those who register for the program and take two courses are eligible for a $10,000 grant. This opportunity is rolling and you can learn more at the program’s webpage .
• Small Business Readiness for Resiliency Program. Small businesses often feel the effects of a natural disaster the hardest. It can be difficult when starting a business to suddenly have to raise money to repair a roof or attend to flood damage. To help offset some of these concerns and costs, the U.S. Chamber of Commerce Foundation and FedEx have teamed up to create the Small Business Readiness for Resiliency (R4R) Program. The program helps small businesses put plans in place to prepare for disaster and also provides immediate emergency funding when necessary. Businesses are asked to complete a four-step process to be eligible for funding opportunities.
• Walmart Spark Good Local Grants. Organizations can apply for the Walmart Spark Good Local Grants program provided by Walmart and Sam’s Club, which offers grants ranging from $250 to $5,000 to address the unique needs of local communities. Tax ID status determines eligibility, with 501(c)(3) charities, public entities, and educational institutions qualifying. Grant applications are accepted quarterly, with the current round open through October 15, 2024. All organizations must be Deed verified and have a Spark Good account to apply.

Industry-specific and diversity small business grants and programs

Some small business grant programs are confined to a specific entrepreneur demographic or business profile and they often have an application process that is easier to navigate. This is a sample list, so be sure to check with nonprofits and large corporations in your geographic area or industry.

• 2024 Black Girl Ventures Pitch Program. The 2024 Black Girl Ventures Pitch Program is designed to support Black and Brown entrepreneurs from Los Angeles, Chicago, and NYC by offering coaching, a live crowdfunded pitch competition, and networking opportunities. To qualify, applicants must be revenue-generating, in good standing, and located in the city for which they are applying. The remaining application deadlines are October 9 for NYC applicants and November 6 for Los Angeles applicants. Winners will receive cash prizes ranging from $5,000 to $15,000, as well as access to the BGV Connect Incubator and a new network of business owners and investors.
• Accion Opportunity Fund. The Accion Opportunity Fund grants small business loans ranging from $5,000-$250,000, along with educational resources, coaching, and support networks in both English and Spanish. This program offers mentorship programs, microloans, and a hubzone program for small business owners’ financial needs. Accion Opportunity Fund works with a clientele that is 90% diverse, has created and retained over 50,000 jobs, and has generated $1 billion in economic activity. Those interested in applying for a loan can do so here .
• Amazon’s Black Business Accelerator Program. If you're a seller in Amazon's store, you may be eligible for the Black Business Accelerator Program. Created to support Black entrepreneurs, the program offers financial support, mentorship, business advice, and promotional support. Eligible sellers will have access to free imaging services, cash grant opportunities, advertising credits, and money toward start-up costs. You can learn more about this opportunity at their website .
• Amazon Business Small Business Grant Program. Amazon Business’s third annual Small Business Grant Program is set to award over $250,000 this year to eligible U.S.-based small businesses. There will be one grand prize winner who will receive $25,000, along with four $20,000 finalists and 10 $15,000 semi-finalists. Grant recipients will also walk away with one year of free Business Prime membership, Amazon devices, and Amazon Basics products. Current Amazon Business customers with an annual revenue of $1 million or less are eligible to apply; applications are due on May 24, 2024, with winners announced on July 22, 2024.
• Amber Grant Foundation . With a simple goal of supporting women entrepreneurs, the Amber Grant Foundation was founded by WomensNet in 1998. The foundation awards a series of grants throughout the year, including the $10,000 Monthly Amber Grant, two $25,000 Annual Amber Grants, and $10,000 each quarter for The Startup Grant and The Non-Profit Grant, respectively. There are also 12 Business Category Grants — an additional $10,000 each month — with all eligible applications remaining active until the month of their specific category.
• America’s Seed Fund. America’s Seed Fund, sponsored by the National Science Foundation (NSF), offers up to $2 million for U.S.-based startups and small businesses that are developing innovative technology. Project pitches are accepted on a rolling basis, and official responses from NSF typically take one month.
• Backstage Capital. Backstage Capital supports underrepresented founders by investing in startups led by women, people of color, and LGBTQ+ entrepreneurs. They focus primarily on U.S.-based, scalable businesses with the potential for high growth. Investments typically range from $100,000 and up, predominantly targeting early-stage companies. Applications are reviewed regularly and feedback is provided to those not selected with encouragement to reapply in the future.
• Beyond Open Small Business Grants. This competitive grant program supports diverse-owned small businesses in the Charlotte, North Carolina area, offering funds for capital assets such as equipment, technology, inventory, and real estate, with a total of $15 million being awarded across three rounds. In 2023, Foundation For The Carolinas selected 116 small businesses in Charlotte's Corridors of Opportunity, which “supports six underinvested areas in Charlotte,” to receive a total of $4.8 million in grants from the Beyond Open program's second round, aiming to enhance economic mobility. Those interested in the 2024 Beyond Open funding can subscribe to learn more ahead of the open application period beginning on August 5, 2024.
• Binc Foundation Emergency Financial Assistance. The Binc Foundation provides emergency financial assistance to bookstore owners, booksellers, and comic store employees and owners facing unforeseen financial needs. Eligibility criteria include specific employment durations and financial hardship resulting from qualifying life events. Binc's assistance process involves a confidential application and documentation verification, aiming to help individuals regain financial stability.
• Carhartt For the Love of Labor Grant. Carhartt, a popular workwear distributor, created the Love of Labor grant program to help connect workers with trade programs in their local communities during an unprecedented labor shortage. Awards will be distributed on a rolling basis to “like-minded organizations” that are dedicated to the education, training, and placement of workers into trade jobs. Organizations with interest in the program can apply by reaching out to Carhartt directly. Nominations are accepted as well.
• Casper Accelerate Grant Program. The Casper Association aims to support the adoption of blockchain technology via Casper, a scalable blockchain network. To support innovation within the blockchain industry, Casper has opened the Casper Accelerate Grant Program. Those who want to build apps to support infrastructure, end-user applications, and research innovation are invited to apply. This $25 million grant program has a rolling application deadline, so you can apply anytime here .
• Child Care Business Opportunity Fund. The Child Care Business Opportunity Fund , offered by the Women's Business Development Council (WBDC) in partnership with the Connecticut Office of Early Childhood, offers grants of up to $25,000 to support child care businesses in Connecticut. These grants are designed to help both licensed and aspiring businesses at different stages, whether they're just starting or ready to expand. Eligibility differs based on each grant offering, with application deadlines running through November 15, 2024.
• Etsy Emergency Relief Fund. If you’re an Etsy business owner, you may be qualified to apply for relief funding courtesy of a partnership with CERF+, a nonprofit organization dedicated to helping artists prepare for and recover from emergencies and disasters. The partnership was established in 2017, and both companies continue to provide up to $2,500 in funding through the grant program. To apply, you must have been a registered Etsy business for at least one year and have been affected by a natural disaster. This grant opportunity is rolling.
• Female Founder World Grant . The Female Founder World Grant , offered by VistaPrint and Female Founder World , will award a $15,000 cash grant plus marketing support to one small business owner. To qualify, businesses must be part of the Female Founder World community, have annual revenue between $40,000 and $1,000,000 and fewer than 10 employees, and sell a physical product. The grant funding must be used for marketing, manufacturing, or research and development. Applications are open through September 17, 2024.
• Foundation for a Just Society Grants . Foundation for a Just Society offers grants to local, national, regional, and global organizations and networks that support the rights of women, girls, and LGBTQI individuals. Grants are issued four times each year (March, June, September, and November), with invitations for proposals extended two months prior.
• Galaxy Grants. Galaxy Grants is on a mission to support women and minority entrepreneurs with their small businesses by offering valuable resources, tools, funding, and knowledge. They are running a $4,250 Galaxy Grant Giveaway , sponsored by Hidden Star, a 501(c)(3) organization, with a quick 30-second entry process. The deadline to enter is September 30, 2024, and winners will be announced the following week. Plus, there's an opportunity to win for both you and a friend, as each of you could receive a $4,250 grant if your friend wins, subject to the Terms and Conditions.
• Hawai'i FoundHer Business Accelerator. The Hawai'i FoundHer Business Accelerator offers capital and resources to women-founded businesses in Hawai’i, focusing on AAPI and Native Hawaiian wāhine who have historically been overlooked. To qualify, businesses must be for-profit entities based in Hawai'i, with at least 51% ownership by women of Native Hawaiian, Pacific Islander, or Asian descent, and should be in the early stages of development. Applications are due by September 30, 2024, at 11:59 PM HST, and participants must engage in regular mentorship meetings, complete surveys, and attend various program events if selected.
• HerRise MicroGrant. The HerRise MicroGrant offers financial aid to U.S.-registered businesses that are majority-owned by women of color, with a focus on businesses with innovative community solutions that are still struggling to obtain funding. Applications are reviewed monthly, with winners announced during the subsequent month's HerSuiteSpot First Friday Mixer. Nonprofits, franchises, direct sellers, authorized resellers, and independent consultants are ineligible to apply.
• Hivers and Strivers Investment Program. As an angel investment group, Hivers and Strivers works to provide capital to qualifying businesses. Specifically, the investment group funds projects submitted by veteran-owned and veteran-led businesses. Funding opportunities can range from $250,000 to $1 million. Those who qualify can apply for funding for a business idea on a rolling basis, but businesses reliant on government contracts are not eligible to apply.
• IFundWomen Universal Grant Application. This is a resource for female entrepreneurs seeking grants . Through partnerships with brands like Visa, Caress, and Comcast, IFundWomen has deployed over $170 million in grants to entrepreneurs. Applicants gain priority access to funding opportunities and resources within the IFundWomen community.
• #MomsMeanBusiness. ZenBusiness, a company that helps others launch and run their own businesses, has created the #MomsMeanBusiness campaign to recognize the resilience of moms and celebrate their accomplishments. To help mothers take the first step toward entrepreneurship, ZenBusiness is covering business formation costs and will help entrepreneurs form an LCC, track expenses, secure a business name, and more. All mothers are eligible and costs will be covered for “every mom in America.” The program is rolling and you can sign up here .
• National Association for the Self-Employed (NASE) Growth Grants . According to its website, the NASE has distributed over $1,000,000 in grants to its members. Its growth grants provide up to $4,000 to assist with training, marketing, and more. You must be a member for 90 days before you are eligible to apply.
• Olga Loizon Memorial Foundation. The Olga Loizon Memorial Foundation offers grants of up to $10,000 to aspiring women entrepreneurs in Michigan who embody the passion and vision of Olga Loizon, the founder of metro Detroit's Olga's Kitchen. Applicants must have a business located in Michigan and demonstrate financial need through a personal statement; a formal business plan is also required. Applications are accepted on a rolling basis.
• Patagonia Corporate Grant Program . Patagonia’s corporate grant program offers between $10,000 and $20,000 of funding to nonprofits with missions to protect and preserve the environment. Though grants are awarded by invitation only, Patagonia accepts recommendations for organizations that meet program criteria.
• Queer To Stay. The Queer to Stay: LGBTQ+ Business Preservation Initiative supports LGBTQ+ small businesses that serve as crucial community spaces, particularly for LGBTQ+ people of color, women, and transgender individuals. The initiative is a collaboration between the Human Rights Campaign (HRC) and SHOWTIME®, providing financial support to at least 25 businesses demonstrating financial need and community impact. Eligible businesses must be U.S.-based, for-profit entities that primarily serve the LGBTQ+ community and have been financially impacted by COVID-19. Applications for this year's initiative are open until 11:59:59 p.m. on August 31, 2024.
• RTC Women in Tech Fund. Rewriting The Code (RTC) works to support college and early-career women in tech by providing them with opportunities to help disrupt gender and racial inequality in the industry. The RTC Women in Tech Fund provides financial resources to women enrolled in undergraduate tech programs to help cover costs that may be an obstacle to education. There are three different grants available depending on each applicant’s specific financial needs. All applications are accepted on a rolling basis.
• StartOut Scholarship Program . StartOut offers scholarship opportunities to LGBTQ+ entrepreneurs who wish to participate in their Founder Program and become a Giving Member. The initiative provides a 12-month membership for those LGBTQ+ entrepreneurs who have been underrepresented, underserved, and underestimated within their community.
• Supplier Innovative Finance Program. The Empire State Development’s Supplier Innovative Finance Program offers up to $5,000 in unrestricted grants to help socially and economically disadvantaged businesses (SEDI) in New York grow and access capital. In addition to funding, businesses can access educational resources designed to help founders improve their funding readiness and connect them with funders in matchmaking sessions. To be eligible, companies must be headquartered in New York with annual revenues between $250,000 and $10 million and certified as minority, women, veteran, or LGBTQ+ owned. Applications are accepted on a rolling basis.
• Veteran Shark Tank . Veteran business owners can compete for $50,000 in the 11th annual Veteran Shark Tank , held on December 9, 2024, in Philadelphia. To qualify, businesses must be less than three years old, and veterans must own at least 50% of their company, have a clean legal record, and use the prize money for business improvement. Applications, due by October 6, 2024, must include a brief video pitch and a PowerPoint presentation detailing the business plan.
• The Wish Local Empowerment Program. This program brought to you by the e-commerce brand, Wish, assists Black-owned small businesses by dedicating a $2 million fund to support approximately 4,000 Wish Local partners. Recipients can receive financial assistance ranging from $500 to $2000, with flexibility in fund allocation. Eligible businesses must meet criteria such as having a Black-owned business with 20 or fewer employees and an average annual revenue under $1 million. Successful applicants will also join Wish Local, gaining access to its consumer base through various partnership opportunities.

Additional resources

The programs listed above are a good start when it comes to grants and funding. You may find additional resources available by following the links below.

• Agricultural Justice Project (AJP) , a program offering free resources and guidance for owners of farms and food businesses.
• Challenge.Gov , part of the General Services Administration's Technology Transformation Services, aids federal agencies in utilizing prize competitions and crowdsourcing to advance their goals. Hosting over 1,300 challenges since 2010, Challenge.Gov facilitated 105 in 2021 alone, totaling a prize pool of over $60 million alongside non-monetary rewards.
• Community Development Financial Institutions (CDFI) Fund , a government agency that offers financial support to certified lenders serving low-income communities. The CDFI is broken up into several different program areas, including Native Initiatives that provide training and assistance to Native communities, and the Capital Housing Fund that delivers affordable housing for low-income communities.
• Fearless Fund , a venture capital firm that actively invests in businesses led by women of color across the United States. Concentrating on early-stage investments in various industries, the fund looks for companies at the Pre-seed, Seed, or Series A financing stages, offering up to $3 million in exchange for a minimum equity stake of 10%.
• Funding options for Black-owned businesses , including venture capital firms and programs offering financing to Black entrepreneurs.
• Funding options for LGBTQ+-owned businesses , including resource networks and organizations that offer grants to LGBTQ+ entrepreneurs and those from other underrepresented backgrounds.
• Funding options for Hispanic-owned businesses , including funding sources and organizations aimed at supporting Latinx and Hispanic entrepreneurs.
• Funding options for minority-owned businesses , including multiple grants, funding sources, and low-cost loans that are intended to help minority-owned businesses grow.
• Funding options for veteran-owned businesses , from government-backed programs to pitch competitions and business accelerators.
• Funding options for women-owned businesses , including ten programs, agencies and organizations that are helping women entrepreneurs be better represented in the ranks of American business owners.
• GrantsForWomen.org , an online directory that provides a comprehensive database of grants for women globally, along with valuable advice on securing grants and information on relevant events and workshops for female business owners. The grants featured in the directory are sourced from reputable organizations, foundations, and venture capital funds, covering both nonprofit organizations and for-profit businesses.
• Live Your Dream Awards , sponsored by Soroptimist International of the Americas, which offers grants of up to $16,000 in financial support to help women overcome financial barriers and achieve their educational and career goals. Applications for this cycle are accepted through November 15, 2024.
• Resources and funding opportunities for AAPI-owned businesses , including accelerator programs, grants for AAPI entrepreneurs, and networking groups.
• SBA Small Business Development Centers , which can help companies of all kinds locate additional funding opportunities at the national and local level.
• SCORE , which can assign a volunteer business mentor who can provide guidance on numerous topics, including funding and operations.
• Tory Burch Foundation Funding Finder , a tool for founders that provides personalized funding recommendations and resources based on their responses to a few questions about their business financials and aspirations.
• Warrior Rising , a national organization designed to turn Veterans (and their immediate families) into “vetrepreneurs” through business opportunities in the form of mentorship, funding, education, and training. Since its inception in 2015, the program has supported over 26,000 Veterans — more than 5,400 so far in 2024 alone — and helped 21 Veteran-run businesses achieve a $1 million valuation.

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Explaining the Basics of Small Business Loans and SBA Loans

Starting or growing a small business can feel like an uphill climb. Fortunately, small business loans can make the journey easier, offering crucial financial support to help entrepreneurs reach their goals. This guide will discuss how small business loans work, with a special emphasis on SBA loans. Whether you are a veteran starting a security business, a military spouse launching a mobile consulting venture, or a retiree opening a local café, understanding your financial options is the key to achieving success.

What are Small Business Loans?

Small business loans are designed to help entrepreneurs fund their businesses. These financial products are available from various lenders (including banks, credit unions, and online platforms) and are specifically tailored to meet the needs of small business owners. Loans for small businesses can cover startup costs, boost working capital, or support expansion efforts.

One major benefit of small business loans is their competitive interest rates. When combined with flexible repayment options, these loans offer a practical financing solution for businesses at various growth stages.

It's also worth mentioning that small business loans are not one-size-fits-all. They vary in terms of amount, repayment period, eligibility requirements, and usage, making it essential to find the right type of loan that aligns with your business goals. This is where SBA loans come into play, offering distinct advantages over traditional loans.

What are SBA Loans?

SBA loans are basically a partnership between the borrower, lender, and the Small Business Administration (SBA). While banks or other financial institutions issue these loans, the SBA backs a portion of the loan. This means the SBA promises to cover part of the loan amount if the borrower defaults. Ultimately, this guarantee reduces the lender's risk and allows them to offer more favorable terms to borrowers.

These loans cater to a wide range of small business needs, from starting new ventures to expanding existing ones. Additionally, the SBA backs multiple types of loans designed to meet specific requirements, like purchasing real estate, acquiring equipment, or refinancing existing debt.

SBA loans are especially beneficial for small businesses that struggle to qualify for traditional loans due to limited collateral or credit history. With lower down payment requirements and longer repayment terms, SBA loans offer an accessible financing solution for many entrepreneurs.

How Do SBA Loans Work?

To enjoy the advantages of SBA loans, it is important to understand how they work. Here is a breakdown of the steps involved:

• Application: Begin by applying for an SBA loan through a participating lender, such as a military bank. This process involves submitting a detailed business plan, financial projections, and personal credit history.
• Approval: Once your application is reviewed, the lender will determine if the loan can be approved. If it is approved, the SBA offers a guarantee that minimizes the lender's risk. This guarantee usually covers a percentage of the loan, allowing the lender to provide more favorable terms.
• Disbursement: After approval, the funds are released to the borrower, enabling them to begin utilizing the money to meet their business objectives. These funds can be used for a variety of purposes, including purchasing assets and equipment, staffing, or handling daily operations.
• Repayment: SBA loans typically offer flexible repayment options, which can extend up to 25 years depending on the type of loan. This flexibility helps businesses manage their cash flow more efficiently while paying back the loan.

Let Armed Forces Bank Be Your Preferred Small Business Lender

A small business loan, particularly a SBA loan, can be a helpful lending solution for entrepreneurs seeking to start or grow their businesses. By understanding the various loan options available and their benefits, you can make informed decisions that support your business's long-term success.

At Armed Forces Bank, we are committed to helping small business owners achieve their goals. As a preferred SBA lender , we offer a range of SBA loans, including the 7(a) Loan, 504 Loan, and SBA Express Loan program. Whether you are starting a new business or expanding an existing one, our dedicated business banking team is here to support you throughout your journey.

Join our community of successful small businesses that bank with us and experience the difference personalized service can make. This includes: TDE Backflow Services , Rico Steele’s Martial Arts Academy , House of Real Estate , The Barber Shop by Todd Enterprises, and many others!

Contact us today at [email protected] to learn more about how our SBA loans for small businesses can equip your business for success.

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More From Forbes

How banks can drive economic resilience by supporting small businesses.

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Monique Johnson is Beneficial State Bank 's Senior Vice President, Director of Client & Community Partnerships.

Small businesses are the backbone of the economy, responsible for creating almost 63% of net jobs between 1995 and 2021. Yet small businesses remain underserved by our financial system. This is not only detrimental to the economic health of our communities, but to banks that are overlooking what supporting small businesses can do to build community relationships and retain and recruit loyal clients.

Financial institutions that support small businesses and tailor services to meet their specific needs can benefit in several ways. By offering specialized services, institutions can attract and retain loyal customers, strengthen community relationships and bolster their reputation.

Small Businesses Lack Access To Capital And Financial Services

Despite their cultural and economic contributions, small businesses often face difficulties accessing affordable credit and banking services. Many small-business owners have limited collateral and shorter credit histories, which banks typically perceive as a risk. Even when small businesses do qualify for credit, they often face higher interest rates . As a result, many entrepreneurs turn to alternative lenders who often have higher interest rates and rigid repayment terms.

Businesses owned by women and people of color are disproportionately impacted. Black entrepreneurs are about half as likely as white business owners to secure full financing. The disparity in loan approval rates between businesses owned by white entrepreneurs and businesses owned by entrepreneurs of color hinders the latter from growing their businesses and perpetuates racial wealth gaps.

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Additionally, a recent study found that 71% of small businesses felt more pressure from rising prices in the previous three months, and 77% were worried they wouldn’t be able to get the money they needed. At the same time, the rise in interest rates has led many banks to tighten their lending criteria.

As large banks become more stringent, small businesses may benefit from turning to community banks. Community banks have a deeper understanding of local economic conditions and focus on building long-term client relationships. This allows them to make more informed and flexible lending decisions, leading to a 50% higher small-business loan approval rate than big banks.

Why Working With Small Businesses Is Good For Financial Institutions

Banks can benefit from increasing their support and tailoring their services to the small-business customer segment. Small businesses typically hold more substantial deposit volumes compared to individual account holders, which is important as banks look to increase their deposits. By extending credit to small businesses, banks can also diversify their loan portfolios, mitigating risks associated with economic fluctuations.

Additionally, government agencies such as the Small Business Administration offer incentives for financial institutions that lend to small businesses. For instance, the SBA offers loan guarantees, covering up to 85% of a loan if a borrower defaults, significantly reducing the risk to banks. Lending to small businesses, particularly in underserved communities, can also help banks meet their obligations under the Community Reinvestment Act, which encourages banks to meet credit needs in their communities, especially low- and moderate-income neighborhoods.

Since small businesses create new jobs and generate 43.5% of GDP , banks that support them are also contributing positively to the economic health of the communities in which they operate. This economic vibrancy is a net positive for a bank’s balance sheet, potentially leading to more money in circulation and more lending and deposit volume.

Support for small businesses also showcases financial institutions’ commitment to community well-being, which can attract new customers and build loyalty with existing ones.

How Financial Institutions Can Attract And Retain Small-Business Clients

So how can financial institutions better attract and serve small-business customers? First, think about how you can meet the needs of small businesses on both the deposit and lending sides. Bankers should strive to understand what success means for each small business in their day-to-day operations, build personalized relationships with small-business owners and provide tailored business consultation to support their customers at all stages of the business life cycle.

On the lending front, financial institutions can provide tailored financing options to help small businesses grow, including by helping them access SBA loans. Financial institutions can also adopt new underwriting standards that go beyond traditional metrics such as credit scores and collateral. Broader credit assessments, including rental payment histories and utility bill payments, can provide a greater view of a business’s financial health.

Banks should also consider going beyond traditional lending and deposit services. For example, one survey of black small-business owners found that half said they did not have high financial literacy before starting their business.

Banks can help empower small-business owners through financial education initiatives that equip professionals and small-business owners with crucial financial knowledge and skills, helping them make informed decisions for their businesses. This is a win-win for banks, as offering these kinds of services can not only attract small-business customers but also contribute to business growth that leads to on-time repayment and increased loan volume.

By offering support tailored to small-business customers’ specific needs, financial institutions can recruit small-business clients and build long-lasting relationships with them. These partnerships diversify banks’ portfolios and contribute to the overall financial well-being of the communities they serve. Investing in small businesses is an impactful business strategy. More importantly, it’s a powerful way to support local and national economies and build a more financially inclusive future for all.

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Filing instructions guide for small business lending data collected in 2025

Changes from 2024 filing instructions guide:

• Section 1: Updated reporting period dates to reflect 2025 as the reporting year
• Section 3.2: Updated "Application Date" year to 2025
• Section 3.10: Updated "Action Taken Date" year to 2025 and validation to reflect current reporting period
• Section 4: Updated validation "E0321" with current reporting period dates

1. What is the filing instructions guide?

The 2025 filing instructions guide is a set of resources to help you file small business lending data with the Consumer Financial Protection Bureau (CFPB) in 2026 covering the period from July 18, 2025 to December 31, 2025. These resources are briefly described in this section and are further detailed throughout this web page in individual sections.

These resources may be useful for employees in a variety of roles, for example:

• Staff who collect, prepare, and submit data
• Technology support staff
• Compliance officers

The guide includes the following sections:

Filing process overview.

Section 2 provides an overview of the process to file small business lending data with the CFPB. It describes the data filing platform (the platform), which is the system that filers will use to submit their data. It also describes the file format that will be required for submitting the data.

Data points

Section 3 provides instructions for what to enter into each data field in the small business lending application register (register). A machine-readable version of the data specification is provided.

Data validation

Section 4 lists the validation requirements that a register must meet before it can be filed with the CFPB. A machine-readable version of the validation specification is provided.

Where to get help

Section 5 provides a summary of resources available from the CFPB to assist with small business lending rule-related inquiries.

2. Filing process overview

This section provides instructions on filing small business lending data with the CFPB. This document is not a substitute for the small business lending rule, found in Regulation B (12 CFR part 1002), Subpart B. Refer to the rule for guidance and clarification regarding the reporting requirements for each data field.

2.1. About the small business lending platform

Filers will submit their data to the platform via a web interface. There will be a process for individuals representing a financial institution to register for an account to access the online filing platform.

Using the platform, each filer will provide financial institution identifying information per 12 CFR § 1002.109(b). The platform will walk filers through the small business lending application register filing process, including uploading data, performing validation checks on the data, and certifying the data. An authorized representative of the filer with knowledge of the data submitted will certify to the accuracy and completeness of the data submitted.

2.2. File format

Your register must be submitted in a comma-separated values (CSV) file format.

Your CSV file should adhere to the following standards:

• The register must be a comma-delimited text file.
• The first line of the file is a header row. The contents of the header row must be the column names specified in the Data points section of this guide, in the order of the field numbering used in the guide, separated by commas.
• Each following line of the file represents a covered application record. Each record in the file must contain the data fields described in the Data points section of this guide, in order, corresponding to the order of the column names in the header row.
• Each data field within each row must be separated with a comma (","). That means that if you leave a field blank, the field should still be denoted by commas (example: three fields containing 1, [blank], 3 would be formatted as 1,,3 ).
• If any field contains space(s) (" ") before and/or after the comma delimiter, the space(s) will be ignored.
• This is not a fixed-width formatted file. Do not include leading zeros, tabs, or spaces for the purpose of making a data field a specific number of characters.
• If a field contains a comma character, the field must be enclosed in double quotes (e.g., "Confederated Tribes of the Coos, Lower Umpqua and Siuslaw Indians of Oregon"). Fields not containing a comma can also be enclosed in double quotes, but this is not required.
• No field in a row may contain a line break, newline, or carriage-return. Line breaks should only appear at the end of a row. Each row of the file should represent a whole application record.
• Files must use UTF-8 encoding (note that all-ASCII files are always valid UTF-8).

Any file not conforming to these specifications cannot be submitted as a register.

3. Data points

This section provides instructions on entering data in the small business lending application register for small business lending data collected in 2025. This document is not a substitute for the rule, found in Regulation B (12 CFR part 1002), Subpart B. Refer to the rule for guidance and clarification regarding the reporting requirements for each data field.

Data fields are presented below in the order they are recorded in the register. For a machine-readable view of the data specification, see the following link:

Data spec (CSV)

3.1 Unique identifier

Rule section: 12 CFR 1002.107(a)(1)

Field 1: Unique identifier

Column name, instructions.

• Field type: Text (width 21 to 45 characters)
• Required for all application records
• Begins with the financial institution's Legal Entity Identifier as defined in comment 1002.109(b)(6)-1
• May be uppercase letters, numerals, or a combination of uppercase letters and numerals (cannot contain dashes, other special characters, or characters with diacritics)
• Must be unique within the financial institution
• Must not include any information that could be used to directly identify the applicant or borrower
• 10BX939C5543TQA1144M999143938

Validations

• Must be at least 21 characters in length and at most 45 characters in length
• May contain any combination of numbers and/or uppercase letters (i.e., 0-9 and A-Z), and must not contain any other characters
• May not be used in more than one record within a small business lending application register
• The first 20 characters should match the Legal Entity Identifier (LEI) for the financial institution

3.2 Application date

Rule section: 12 CFR 1002.107(a)(2)

Field 2: Application date

• Field type: Date
• For October 1, 2025, enter 20251001
• Must be a real calendar date using YYYYMMDD format

3.3 Application method

Rule section: 12 CFR 1002.107(a)(3)

Field 3: Application method

• Field type: Single response

• Must equal 1, 2, 3 or 4

3.4 Application recipient

Rule section: 12 CFR 1002.107(a)(4)

Field 4: Application recipient

• Must equal 1 or 2

3.5 Credit type

Rule section: 12 CFR 1002.107(a)(5)

Field 5: Credit product

Field 6: free-form text field for other credit products, field 7: type of guarantee, field 8: free-form text field for other guarantee, field 9: loan term: na/np flag, field 10: loan term.

Rule section: 12 CFR 1002.107(a)(5)(i)

• Must equal 1, 2, 3, 4, 5, 6, 7, 8, 977, or 988
• Field type: Text (width up to 300 characters)
• Conditionally required if 'credit product' is code 977. Leave blank if code 977 is not entered.
• Must not exceed 300 characters in length

Rule section: 12 CFR 1002.107(a)(5)(ii)

• Field type: Multiple response

• Each value (separated by semicolons) must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 977, or 999
• Must contain at least one and at most five values, separated by semicolons
• When code 999 is reported, should not contain any other values
• Should not contain duplicated values
• Conditionally required if 'type of guarantee' contains code 977. Leave blank if code 977 is not entered.

Rule section: 12 CFR 1002.107(a)(5)(iii)

• Must equal 900, 988, or 999
• Field type: Numeric
• Conditionally required if 'credit type: loan term: NA/NP flag' is code 900. Leave blank if code 900 is not entered.
• For a loan term of 36 months, enter 36
• For a loan term of less than 1 month, enter 1
• When present, must be a whole number
• When present, must be greater than or equal to 1
• When present, should be less than 1200 (100 years)

3.6 Credit purpose

Rule section: 12 CFR 1002.107(a)(6)

Field 11: Credit purpose

• Each value (separated by semicolons) must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 977, 988, or 999
• Must contain at least one and at most three values, separated by semicolons
• When code 988 or 999 is reported, should not contain any other values

Field 12: Free-form text field for other credit purpose

• Conditionally required if 'credit purpose' contains code 977. Leave blank if code 977 is not entered.

3.7 Amount applied for

Rule section: 12 CFR 1002.107(a)(7)

Field 13: Amount applied for: NA/NP flag

• Must equal 900, 988 or 999

Field 14: Amount applied for

• Conditionally required if 'amount applied for: NA/NP flag' is code 900. Leave blank if code 900 is not entered.
• The dollar amount for initial amount of credit/credit limit requested by applicant at the application stage
• If application is in response to a firm offer that specifies an amount or limit, the dollar amount of the firm offer, unless the applicant requested a different amount
• If application is in response to a firm offer that does not specify an amount or limit and the applicant did not request a specific amount, the dollar amount underwritten
• If application is in response to a firm offer that specifies an amount or limit as a range and the applicant did not request a specific amount, the dollar amount underwritten
• If applicant did not request a particular amount but the financial institution underwrites for a specific amount, the dollar amount underwritten
• If applicant requested a range of dollar amounts, the midpoint of that range
• If application is a request for additional amounts on an existing account, the dollar amount of additional credit requested
• For $12,345, enter 12345
• When present, must be a numeric value
• When present, must be greater than 0

3.8 Amount approved or originated

Rule section: 12 CFR 1002.107(a)(8)

Field 15: Amount approved or originated

• Conditionally required if 'action taken' is code 1 or 2. Report not applicable by leaving blank if codes 1 or 2 are not entered.
• For a closed-end origination, the amount of the originated loan
• For a closed-end application, the highest amount approved if the application was approved but not accepted
• For an open-end origination, the amount of the credit limit established
• For an open-end application, the highest amount approved if the application was approved but not accepted
• For additional credit amounts that were approved for or originated on an existing account, report the additional credit amount approved or originated, and not any previous amount extended
• Leave blank if amount approved or originated is not applicable because an application is denied, withdrawn, or incomplete
• For $101.23, enter 101.23

3.9 Action taken

Rule section: 12 CFR 1002.107(a)(9)

Field 16: Action taken

• Must equal 1, 2, 3, 4, or 5

3.10 Action taken date

Rule section: 12 CFR 1002.107(a)(10)

Field 17: Action taken date

• For October 25, 2025, enter 20251025
• The date indicated must occur within the current reporting period: July 18, 2025 to December 31, 2025

3.11 Denial reasons

Rule section: 12 CFR 1002.107(a)(11)

Field 18: Denial reason(s)

• If Cashflow, enter 4
• If Cashflow, Collateral, Time in business, and Government loan program criteria, enter 4;5;6;7 or 7;5;6;4 etc.

• Each value (separated by semicolons) must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 977, or 999
• Must contain at least one and at most four values, separated by semicolons

Field 19: Free-form text field for other denial reason(s)

• Conditionally required if 'denial reason(s)' contains code 977. Leave blank if code 977 is not entered.

3.12 Pricing information

Rule section: 12 CFR 1002.107(a)(12)

Field 20: Interest rate type

Field 21: initial rate period, field 22: fixed rate: interest rate, field 23: adjustable rate transaction: margin, field 24: adjujstable rate transaction: index name, field 25: adjustable rate transaction: index name: other, field 26: adjustable rate transaction: index value, field 27: total origination charges, field 28: amount of total broker fees, field 29: initial annual charges, field 30: mca/sales-based: additional cost for merchant cash advances or other sales-based financing: na flag, field 31: mca/sales-based: additional cost for merchant cash advances or other sales-based financing, field 32: prepayment penalty could be imposed, field 33: prepayment penalty exists.

Rule section: 12 CFR 1002.107(a)(12)(i)

• Must equal 1, 2, 3, 4, 5, 6, or 999

Rule section: 12 CFR 1002.107(a)(12)(i)(B)

• Conditionally required if 'interest rate type' is code 3, 4, 5, or 6. Leave blank if codes 3, 4, 5, or 6 are not entered.

Rule section: 12 CFR 1002.107(a)(12)(i)(A)

• Conditionally required if 'interest rate type' is code 2, 4, or 6. Leave blank if codes 2, 4, or 6 are not entered.
• If 4.125%, enter 4.125
• If 4.500%, enter 4.5, 4.50, or 4.500
• When present, should generally be greater than 0.1
• Conditionally required if 'interest rate type' is code 1, 3, or 5. Leave blank if codes 1, 3, or 5 are not entered.
• If 2.525%, enter 2.525
• If 2.500%, enter 2.5, 2.50, or 2.500

• Must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 977 or 999
• Conditionally required if 'adjustable rate transaction: index name' is code 977. Leave blank if code 977 is not entered.
• Conditionally required if 'interest rate type' is code 1 or 3. Leave blank if codes 1 or 3 are not entered.
• If 1.025%, enter 1.025
• If 3.100%, enter 3.1, 3.10, or 3.100

Rule section: 12 CFR 1002.107(a)(12)(ii)

• If $2,500, enter 2500 or 2500.00
• If $2,582.91, enter 2582.91
• If $0, enter 0
• If -$100, enter -100

Rule section: 12 CFR 1002.107(a)(12)(iii)

• If $1,125, enter 1125 or 1125.00
• If $1,125.76, enter 1125.76

Rule section: 12 CFR 1002.107(a)(12)(iv)

• If $1,034, enter 1034 or 1034.00
• If $1,034.97, enter 1034.97

Rule section: 12 CFR 1002.107(a)(12)(v)

• Must equal 900 or 999
• Conditionally required if 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing: NA flag' is code 900. Leave blank if code 900 is not entered.
• If $3,500, enter 3500 or 3500.00
• If $3,527.14, enter 3527.14

Rule section: 12 CFR 1002.107(a)(12)(vi)(A)

• Must equal 1, 2 or 999

Rule section: 12 CFR 1002.107(a)(12)(vi)(B)

3.13 Census tract

Rule section: 12 CFR 1002.107(a)(13)

Field 34: Type of address

• Must equal 1, 2, 3 or 988

Field 35: Tract number

• Field type: Special (width 11 characters)
• Conditionally required if 'type of address' is code 1, 2, or 3. Leave blank if code 988 is entered.
• Address where the loan proceeds will principally be applied, if known
• If the proceeds address is not known, location of borrower's main office or headquarters
• If neither of those addresses are known, another address or location associated with the applicant
• 06037264000 (a census tract within Los Angeles County, CA)
• When present, must be a GEOID with exactly 11 digits
• When present, should be a valid census tract GEOID as defined by the U.S. Census Bureau

3.14 Gross annual revenue

Rule section: 12 CFR 1002.107(a)(14)

Field 36: Gross annual revenue: NP flag

• Must equal 900 or 988

Field 37: Gross annual revenue

• Conditionally required if 'gross annual revenue: NP flag' is code 900. Leave blank if code 900 is not entered.
• If $855,430, enter 855430 or 855430.00
• If $855,430.17, enter 855430.17

3.15 North American Industry Classification System (NAICS) code

Rule section: 12 CFR 1002.107(a)(15)

Field 38: North American Industry Classification System (NAICS) code: NP flag

Field 39: North American Industry Classification System (NAICS) code

• Field type: Special (width 3 characters)
• Conditionally required if 'North American Industry Classification System (NAICS) code: NP flag' is code 900. Leave blank if code 900 is not entered.
• 311 (a business engaged in the food processing sector)
• When present, must be exactly three numeric characters
• When present, should be a valid NAICS code

3.16 Number of workers

Rule section: 12 CFR 1002.107(a)(16)

Field 40: Number of workers

• Must equal 1, 2, 3, 4, 5, 6, 7, 8, 9 or 988

3.17 Time in business

Rule section: 12 CFR 1002.107(a)(17)

Field 41: Type of response

• Must equal 1, 2, 3, or 988

Field 42: Time in business

• Conditionally required if 'time in business: type of response' is code 1. Leave blank if code 1 is not entered.
• When present, must be greater than or equal to 0

3.18 Minority-owned, women-owned, and LGBTQI+-owned business statuses

Rule section: 12 CFR 1002.107(a)(18)

Field 43: Business ownership status

• If women-owned, enter 2
• If women-owned and LGBTQI+-owned, enter 2;3 or 3;2
• If LGBTQI+-owned and the applicant responded that they did not wish to provide this information, enter 3

• Each value (separated by semicolons) must equal 1, 2, 3, 955, 966, or 988
• Must contain at least one value
• When code 966 or 988 is reported, should not contain any other values

3.19 Number of principal owners

Rule section: 12 CFR 1002.107(a)(20)

Field 44: Number of principal owners: NP flag

Field 45: Number of principal owners

• Conditionally required if 'number of principal owners: NP flag' is code 900. Leave blank if code 900 is not entered.
• When present, must equal 0, 1, 2, 3, or 4

3.20 Demographic information of principal owner 1

Rule section: 12 CFR 1002.107(a)(19)

Field 46: Ethnicity of principal owner 1

Field 47: ethnicity of principal owner 1: free-form text field for other hispanic or latino ethnicity, field 48: race of principal owner 1, field 49: race of principal owner 1: free-form text field for american indian or alaska native enrolled or principal tribe, field 50: race of principal owner 1: free-form text field for other asian race, field 51: race of principal owner 1: free-form text field for other black or african american race, field 52: race of principal owner 1: free-form text field for other pacific islander race, field 53: sex/gender of principal owner 1: np flag, field 54: sex/gender of principal owner 1: free-form text field for self-identified sex/gender.

• Conditionally required if there is at least one principal owner. Report not applicable by leaving blank if there are no principal owners.
• If Mexican, enter 11
• If Mexican and Puerto Rican, enter 11;12 or 12;11
• If Mexican and the applicant responded that they did not wish to provide this information, enter 11
• If responded Argentinean in the free form-text field but the applicant did not select Other Hispanic or Latino ethnicity, enter 977. May also enter 14.

• When present, each value (separated by semicolons) must equal 1, 11, 12, 13, 14, 2, 966, 977, or 988
• Conditionally required if 'ethnicity of principal owner 1' contains code 977. Report not applicable by leaving blank if code 977 is not entered.
• If Haitian and White, enter 33;5 or 5;33
• If Asian and the applicant responded that they did not wish to provide this information, enter 2.
• If responded Thai in the free form-text field for other Asian race but the applicant did not select Other Asian race, enter 972. May also enter 27.

• When present, each value (separated by semicolons) must equal 1, 2, 21, 22, 23, 24, 25, 26, 27, 3, 31, 32, 33, 34, 35, 36, 37, 4, 41, 42, 43, 44, 5, 966, 971, 972, 973, 974, or 988
• Conditionally required if 'race of principal owner 1' contains code 971. Report not applicable by leaving blank if code 971 is not entered
• Conditionally required if 'race of principal owner 1' contains code 972. Report not applicable by leaving blank if code 972 is not entered
• Conditionally required if 'race of principal owner 1' contains code 973. Report not applicable by leaving blank if code 973 is not entered
• Conditionally required if 'race of principal owner 1' contains code 974. Report not applicable by leaving blank if code 974 is not entered
• Marshallese
• If the applicant responded in free-form text field and also responded that they did not wish to provide this information, enter 1.

• When present, must equal 1, 966, or 988
• Conditionally required if 'sex/gender of principal owner 1' is code 1. Report not applicable by leaving blank if code 1 is not entered.

3.21 Demographic information of principal owner 2

Field 55: ethnicity of principal owner 2, field 56: ethnicity of principal owner 2: free-form text field for other hispanic or latino ethnicity, field 57: race of principal owner 2, field 58: race of principal owner 2: free-form text field for american indian or alaska native enrolled or principal tribe, field 59: race of principal owner 2: free-form text field for other asian race, field 60: race of principal owner 2: free-form text field for other black or african american race, field 61: race of principal owner 2: free-form text field for other pacific islander race, field 62: sex/gender of principal owner 2: np flag, field 63: sex/gender of principal owner 2: free-form text field for self-identified sex/gender.

• Conditionally required if there are at least two principal owners. Report not applicable by leaving blank if there are fewer than two principal owners.
• Conditionally required if 'ethnicity of principal owner 2' contains code 977. Leave blank if code 977 is not entered.
• Conditionally required if 'race of principal owner 2' contains code 971. Leave blank if code 971 is not entered.
• Conditionally required if 'race of principal owner 2' contains code 972. Leave blank if code 972 is not entered.
• Conditionally required if 'race of principal owner 2' contains code 973. Leave blank if code 973 is not entered.
• Conditionally required if 'race of principal owner 2' contains code 974. Leave blank if code 974 is not entered.
• Conditionally required if 'sex/gender of principal owner 2' is code 1. Leave blank if code 1 is not entered.

3.22 Demographic information of principal owner 3

Field 64: ethnicity of principal owner 3, field 65: ethnicity of principal owner 3: free-form text field for other hispanic or latino ethnicity, field 66: race of principal owner 3, field 67: race of principal owner 3: free-form text field for american indian or alaska native enrolled or principal tribe, field 68: race of principal owner 3: free-form text field for other asian race, field 69: race of principal owner 3: free-form text field for other black or african american race, field 70: race of principal owner 3: free-form text field for other pacific islander race, field 71: sex/gender of principal owner 3: np flag, field 72: sex/gender of principal owner 3: free-form text field for self-identified sex/gender.

• Conditionally required if there are at least three principal owners. Report not applicable by leaving blank if there are fewer than three principal owners.
• Conditionally required if 'ethnicity of principal owner 3' contains code 977. Leave blank if code 977 is not entered.
• Conditionally required if 'race of principal owner 3' contains code 971. Leave blank if code 971 is not entered.
• Conditionally required if 'race of principal owner 3' contains code 972. Leave blank if code 972 is not entered.
• Conditionally required if 'race of principal owner 3' contains code 973. Leave blank if code 973 is not entered.
• Conditionally required if 'race of principal owner 3' contains code 974. Leave blank if code 974 is not entered.
• Conditionally required if 'sex/gender of principal owner 3' is code 1. Leave blank if code 1 is not entered.

3.23 Demographic information of principal owner 4

Field 73: ethnicity of principal owner 4, field 74: ethnicity of principal owner 4: free-form text field for other hispanic or latino ethnicity, field 75: race of principal owner 4, field 76: race of principal owner 4: free-form text field for american indian or alaska native enrolled or principal tribe, field 77: race of principal owner 4: free-form text field for other asian race, field 78: race of principal owner 4: free-form text field for other black or african american race, field 79: race of principal owner 4: free-form text field for other pacific islander race, field 80: sex/gender of principal owner 4: np flag, field 81: sex/gender of principal owner 4: free-form text field for self-identified sex/gender.

• Conditionally required if there are four principal owners. Report not applicable by leaving blank if there are fewer than four principal owners.
• Conditionally required if 'ethnicity of principal owner 4' contains code 977. Leave blank if code 977 is not entered.
• Conditionally required if 'race of principal owner 4' contains code 971. Leave blank if code 971 is not entered.
• Conditionally required if 'race of principal owner 4' contains code 972. Leave blank if code 972 is not entered.
• Conditionally required if 'race of principal owner 4' contains code 973. Leave blank if code 973 is not entered.
• Conditionally required if 'race of principal owner 4' contains code 974. Leave blank if code 974 is not entered.
• Conditionally required if 'sex/gender of principal owner 4' is code 1. Leave blank if code 1 is not entered.

4. Data validation

Data validations are a series of checks that run on a small business lending application register to ensure that the data entries are correct and ready to submit, meaning the data are both internally consistent and consistent with the syntax and logic specified by this guide. When data are uploaded to the small business lending data filing platform, before the register can be certified and submitted, the platform will review the submission to determine if the data pass the validations described in this section. What follows is a description of the types of validations that will be performed on a register prior to its certification and acceptance.

First, validations vary by type:

• An error validation checks that each data field contains valid data and that each value submitted matches the expected type. Each record must pass all of these validations in order for the register to be certified and submitted.
• A warning validation checks for values that could indicate a mistake in the register. These are quality checks to assist filers in checking that their register has been compiled correctly and alerting them to possible problems. The filer may confirm the accuracy of all values flagged by warning validations as part of the filing process in order to certify and submit their data.

Validations also vary by scope:

• Each single-field validation pertains to only one specific field in each record. These validations check that the data held in an individual field match the values that are expected. A single-field validation may be an error validation or a warning validation.
• Multi-field validations check that the values of certain fields make sense in combination with other values in the same record. These validations have a list of “affected data fields,” which are the individual fields within the record whose values will be compared to identify whether the record passes the validation checks. For example, many multi-field validations check for the presence of conditionally required data, meaning that such checks ensure that fields that should be blank are blank, and fields that should be populated are populated. A multi-field validation may be an error validation or a warning validation.
• There is also one register-level validation . This validation checks that the register does not contain duplicate IDs.

Below is a comprehensive list of validations that will be applied to each register before submission. For multi-field validations, we provide a pseudocode interpretation of each validation. This pseudocode is an illustration of the logic of the validation, exclusively for the purpose of ensuring that the validation logic is clear and unambiguous. It is not code which can be compiled and run. For a tabular view of the validation specification in CSV file format, see the following link:

Validation spec (CSV)

4.1. Single-field errors

Validation id: e0001, validation name.

• uid.invalid_text_length

Affected data field

Description.

• 'Unique identifier' must be at least 21 characters in length and at most 45 characters in length.

Validation ID: E0002

• uid.invalid_text_pattern
• 'Unique identifier' may contain any combination of numbers and/or uppercase letters (i.e., 0-9 and A-Z), and must not contain any other characters.

Validation ID: E0020

• app_date.invalid_date_format
• 'Application date' must be a real calendar date using YYYYMMDD format.

Validation ID: E0040

• app_method.invalid_enum_value
• 'Application method' must equal 1, 2, 3, or 4.

Validation ID: E0060

• app_recipient.invalid_enum_value
• app_recipient
• 'Application recipient' must equal 1 or 2.

Validation ID: E0080

• ct_credit_product.invalid_enum_value
• ct_credit_product
• 'Credit product' must equal 1, 2, 3, 4, 5, 6, 7, 8, 977, or 988.

Validation ID: E0100

• ct_credit_product_ff.invalid_text_length
• ct_credit_product_ff
• 'Free-form text field for other credit products' must not exceed 300 characters in length.

Validation ID: E0120

• ct_guarantee.invalid_enum_value
• ct_guarantee
• Each value in 'type of guarantee' (separated by semicolons) must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 977, or 999.

Validation ID: E0121

• ct_guarantee.invalid_number_of_values
• 'Type of guarantee' must contain at least one and at most five values, separated by semicolons.

Validation ID: E0140

• ct_guarantee_ff.invalid_text_length
• ct_guarantee_ff
• 'Free-form text field for other guarantee' must not exceed 300 characters in length.

Validation ID: E0160

• ct_loan_term_flag.invalid_enum_value
• ct_loan_term_flag
• 'Loan term: NA/NP flag' must equal 900, 988, or 999.

Validation ID: E0180

• ct_loan_term.invalid_numeric_format
• ct_loan_term
• When present, 'loan term' must be a whole number.

Validation ID: E0181

• ct_loan_term.invalid_numeric_value
• When present, 'loan term' must be greater than or equal to 1.

Validation ID: E0200

• credit_purpose.invalid_enum_value
• credit_purpose
• Each value in 'credit purpose' (separated by semicolons) must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 977, 988, or 999.

Validation ID: E0201

• credit_purpose.invalid_number_of_values
• 'Credit purpose' must contain at least one and at most three values, separated by semicolons.

Validation ID: E0220

• credit_purpose_ff.invalid_text_length
• credit_purpose_ff
• 'Free-form text field for other credit purpose' must not exceed 300 characters in length.

Validation ID: E0240

• amount_applied_for_flag.invalid_enum_value
• amount_applied_for_flag
• 'Amount applied For: NA/NP flag' must equal 900, 988, or 999.

Validation ID: E0260

• amount_applied_for.invalid_numeric_format
• amount_applied_for
• When present, 'amount applied for' must be a numeric value.

Validation ID: E0261

• amount_applied_for.invalid_numeric_value
• When present, 'amount applied for' must be greater than 0.

Validation ID: E0280

• amount_approved.invalid_numeric_format
• amount_approved
• When present, 'amount approved or originated' must be a numeric value.

Validation ID: E0281

• amount_approved.invalid_numeric_value
• When present, 'amount approved or originated' must be greater than 0.

Validation ID: E0300

• action_taken.invalid_enum_value
• action_taken
• 'Action taken' must equal 1, 2, 3, 4, or 5.

Validation ID: E0320

• action_taken_date.invalid_date_format
• action_taken_date
• 'Action taken date' must be a real calendar date using YYYYMMDD format.

Validation ID: E0321

• action_taken_date.invalid_date_value
• The date indicated by 'action taken date' must occur within the current reporting period: July 18, 2025 to December 31, 2025.

Validation ID: E0340

• denial_reasons.invalid_enum_value
• denial_reasons
• Each value in 'denial reason(s)' (separated by semicolons) must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 977, or 999.

Validation ID: E0341

• denial_reasons.invalid_number_of_values
• 'Denial reason(s)' must contain at least one and at most four values, separated by semicolons.

Validation ID: E0360

• denial_reasons_ff.invalid_text_length
• denial_reasons_ff
• 'Free-form text field for other denial reason(s)' must not exceed 300 characters in length.

Validation ID: E0380

• pricing_interest_rate_type.invalid_enum_value
• pricing_interest_rate_type
• 'Interest rate type' must equal 1, 2, 3, 4, 5, 6, or 999.

Validation ID: E0400

• pricing_init_rate_period.invalid_numeric_format
• pricing_init_rate_period
• When present, 'adjustable rate transaction: initial rate period' must be a whole number.

Validation ID: E0401

• pricing_init_rate_period.invalid_numeric_value
• When present, 'adjustable rate transaction: initial rate period' must be greater than 0.

Validation ID: E0420

• pricing_fixed_rate.invalid_numeric_format
• pricing_fixed_rate
• When present, 'fixed rate: interest rate' must be a numeric value.

Validation ID: E0440

• pricing_adj_margin.invalid_numeric_format
• pricing_adj_margin
• When present, 'adjustable rate transaction: margin' must be a numeric value.

Validation ID: E0460

• pricing_adj_index_name.invalid_enum_value
• pricing_adj_index_name
• 'Adjustable rate transaction: index name' must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 977, or 999.

Validation ID: E0480

• pricing_adj_index_name_ff.invalid_text_length
• pricing_adj_index_name_ff
• 'Adjustable rate transaction: index name: other' must not exceed 300 characters in length.

Validation ID: E0500

• pricing_adj_index_value.invalid_numeric_format
• pricing_adj_index_value
• When present, 'adjustable rate transaction: index value' must be a numeric value.

Validation ID: E0520

• pricing_origination_charges.invalid_numeric_format
• pricing_origination_charges
• When present, 'total origination charges' must be a numeric value.

Validation ID: E0540

• pricing_broker_fees.invalid_numeric_format
• pricing_broker_fees
• When present, 'amount of total broker fees' must be a numeric value.

Validation ID: E0560

• pricing_initial_charges.invalid_numeric_format
• pricing_initial_charges
• When present, 'initial annual charges' must be a numeric value.

Validation ID: E0580

• pricing_mca_addcost_flag.invalid_enum_value
• pricing_mca_addcost_flag
• 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing: NA flag' must equal 900 or 999.

Validation ID: E0600

• pricing_mca_addcost.invalid_numeric_format
• pricing_mca_addcost
• When present, 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing' must be a numeric value.

Validation ID: E0620

• pricing_prepenalty_allowed.invalid_enum_value
• pricing_prepenalty_allowed
• 'Prepayment penalty could be imposed' must equal 1, 2, or 999.

Validation ID: E0640

• pricing_prepenalty_exists.invalid_enum_value
• pricing_prepenalty_exists
• 'Prepayment penalty exists' must equal 1, 2, or 999.

Validation ID: E0660

• census_tract_adr_type.invalid_enum_value
• census_tract_adr_type
• 'Census tract: type of address' must equal 1, 2, 3, or 988.

Validation ID: E0680

• census_tract_number.invalid_text_length
• census_tract_number
• When present, 'census tract: tract number' must be a GEOID with exactly 11 digits.

Validation ID: E0700

• gross_annual_revenue_flag.invalid_enum_value
• gross_annual_revenue_flag
• 'Gross annual revenue: NP flag' must equal 900 or 988.

Validation ID: E0720

• gross_annual_revenue.invalid_numeric_format
• gross_annual_revenue
• When present, 'gross annual revenue' must be a numeric value.

Validation ID: E0740

• naics_code_flag.invalid_enum_value
• naics_code_flag
• 'North American Industry Classification System (NAICS) code: NP flag' must equal 900 or 988.

Validation ID: E0760

• naics_code.invalid_text_length
• When present, 'North American Industry Classification System (NAICS) code' must be three digits in length.

Validation ID: E0761

• naics_code.invalid_naics_format
• 'North American Industry Classification System (NAICS) code' may only contain numeric characters.

Validation ID: E0780

• number_of_workers.invalid_enum_value
• number_of_workers
• 'Number of workers' must equal 1, 2, 3, 4, 5, 6, 7, 8, 9, or 988.

Validation ID: E0800

• time_in_business_type.invalid_enum_value
• time_in_business_type
• 'Time in business: type of response' must equal 1, 2, 3, or 988.

Validation ID: E0820

• time_in_business.invalid_numeric_format
• time_in_business
• When present, 'time in business' must be a whole number.

Validation ID: E0821

• time_in_business.invalid_numeric_value
• When present, 'time in business' must be greater than or equal to 0.

Validation ID: E0840

• business_ownership_status.invalid_enum_value
• business_ownership_status
• Each value in 'business ownership status' (separated by semicolons) must equal 1, 2, 3, 955, 966, or 988.

Validation ID: E0841

• business_ownership_status.invalid_number_of_values
• 'Business ownership status' must contain at least one value.

Validation ID: E0860

• num_principal_owners_flag.invalid_enum_value
• num_principal_owners_flag
• 'Number of principal owners: NP flag' must equal 900 or 988.

Validation ID: E0880

• num_principal_owners.invalid_enum_value
• num_principal_owners
• When present, 'number of principal owners' must equal 0, 1, 2, 3, or 4.

Validation ID: E0900

• po_1_ethnicity.invalid_enum_value
• po_1_ethnicity
• When present, each value in 'ethnicity of principal owner 1' (separated by semicolons) must equal 1, 11, 12, 13, 14, 2, 966, 977, or 988.

Validation ID: E0920

• po_1_ethnicity_ff.invalid_text_length
• po_1_ethnicity_ff
• 'Ethnicity of principal owner 1: free-form text field for other Hispanic or Latino' must not exceed 300 characters in length.

Validation ID: E0940

• po_1_race.invalid_enum_value
• When present, each value in 'race of principal owner 1' (separated by semicolons) must equal 1, 2, 21, 22, 23, 24, 25, 26, 27, 3, 31, 32, 33, 34, 35, 36, 37, 4, 41, 42, 43, 44, 5, 966, 971, 972, 973, 974, or 988.

Validation ID: E0960

• po_1_race_anai_ff.invalid_text_length
• po_1_race_anai_ff
• 'Race of principal owner 1: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not exceed 300 characters in length.

Validation ID: E0980

• po_1_race_asian_ff.invalid_text_length
• po_1_race_asian_ff
• 'Race of principal owner 1: free-form text field for other Asian' must not exceed 300 characters in length.

Validation ID: E1000

• po_1_race_baa_ff.invalid_text_length
• po_1_race_baa_ff
• 'Race of principal owner 1: free-form text field for other Black or African American' must not exceed 300 characters in length.

Validation ID: E1020

• po_1_race_pi_ff.invalid_text_length
• po_1_race_pi_ff
• 'Race of principal owner 1: free-form text field for other Pacific Islander race' must not exceed 300 characters in length.

Validation ID: E1040

• po_1_gender_flag.invalid_enum_value
• po_1_gender_flag
• When present, 'sex/gender of principal owner 1: NP flag' must equal 1, 966, or 988.

Validation ID: E1060

• po_1_gender_ff.invalid_text_length
• po_1_gender_ff
• 'Sex/gender of principal owner 1: free-form text field for self-identified sex/gender' must not exceed 300 characters in length.

Validation ID: E1080

• po_2_ethnicity.invalid_enum_value
• po_2_ethnicity
• When present, each value in 'ethnicity of principal owner 2' (separated by semicolons) must equal 1, 11, 12, 13, 14, 2, 966, 977, or 988.

Validation ID: E1100

• po_2_ethnicity_ff.invalid_text_length
• po_2_ethnicity_ff
• 'Ethnicity of principal owner 2: free-form text field for other Hispanic or Latino' must not exceed 300 characters in length.

Validation ID: E1120

• po_2_race.invalid_enum_value
• When present, each value in 'race of principal owner 2' (separated by semicolons) must equal 1, 2, 21, 22, 23, 24, 25, 26, 27, 3, 31, 32, 33, 34, 35, 36, 37, 4, 41, 42, 43, 44, 5, 966, 971, 972, 973, 974, or 988.

Validation ID: E1140

• po_2_race_anai_ff.invalid_text_length
• po_2_race_anai_ff
• 'Race of principal owner 2: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not exceed 300 characters in length.

Validation ID: E1160

• po_2_race_asian_ff.invalid_text_length
• po_2_race_asian_ff
• 'Race of principal owner 2: free-form text field for other Asian' must not exceed 300 characters in length.

Validation ID: E1180

• po_2_race_baa_ff.invalid_text_length
• po_2_race_baa_ff
• 'Race of principal owner 2: free-form text field for other Black or African American' must not exceed 300 characters in length.

Validation ID: E1200

• po_2_race_pi_ff.invalid_text_length
• po_2_race_pi_ff
• 'Race of principal owner 2: free-form text field for other Pacific Islander race' must not exceed 300 characters in length.

Validation ID: E1220

• po_2_gender_flag.invalid_enum_value
• po_2_gender_flag
• When present, 'sex/gender of principal owner 2: NP flag' must equal 1, 966, or 988.

Validation ID: E1240

• po_2_gender_ff.invalid_text_length
• po_2_gender_ff
• 'Sex/gender of principal owner 2: free-form text field for self-identified sex/gender' must not exceed 300 characters in length.

Validation ID: E1260

• po_3_ethnicity.invalid_enum_value
• po_3_ethnicity
• When present, each value in 'ethnicity of principal owner 3' (separated by semicolons) must equal 1, 11, 12, 13, 14, 2, 966, 977, or 988.

Validation ID: E1280

• po_3_ethnicity_ff.invalid_text_length
• po_3_ethnicity_ff
• 'Ethnicity of principal owner 3: free-form text field for other Hispanic or Latino' must not exceed 300 characters in length.

Validation ID: E1300

• po_3_race.invalid_enum_value
• When present, each value in 'race of principal owner 3' (separated by semicolons) must equal 1, 2, 21, 22, 23, 24, 25, 26, 27, 3, 31, 32, 33, 34, 35, 36, 37, 4, 41, 42, 43, 44, 5, 966, 971, 972, 973, 974, or 988.

Validation ID: E1320

• po_3_race_anai_ff.invalid_text_length
• po_3_race_anai_ff
• 'Race of principal owner 3: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not exceed 300 characters in length.

Validation ID: E1340

• po_3_race_asian_ff.invalid_text_length
• po_3_race_asian_ff
• 'Race of principal owner 3: free-form text field for other Asian' must not exceed 300 characters in length.

Validation ID: E1360

• po_3_race_baa_ff.invalid_text_length
• po_3_race_baa_ff
• 'Race of principal owner 3: free-form text field for other Black or African American' must not exceed 300 characters in length.

Validation ID: E1380

• po_3_race_pi_ff.invalid_text_length
• po_3_race_pi_ff
• 'Race of principal owner 3: free-form text field for other Pacific Islander race' must not exceed 300 characters in length.

Validation ID: E1400

• po_3_gender_flag.invalid_enum_value
• po_3_gender_flag
• When present, 'sex/gender of principal owner 3: NP flag' must equal 1, 966, or 988.

Validation ID: E1420

• po_3_gender_ff.invalid_text_length
• po_3_gender_ff
• 'Sex/gender of principal owner 3: free-form text field for self-identified sex/gender' must not exceed 300 characters in length.

Validation ID: E1440

• po_4_ethnicity.invalid_enum_value
• po_4_ethnicity
• When present, each value in 'ethnicity of principal owner 4' (separated by semicolons) must equal 1, 11, 12, 13, 14, 2, 966, 977, or 988.

Validation ID: E1460

• po_4_ethnicity_ff.invalid_text_length
• po_4_ethnicity_ff
• 'Ethnicity of principal owner 4: free-form text field for other Hispanic or Latino' must not exceed 300 characters in length.

Validation ID: E1480

• po_4_race.invalid_enum_value
• When present, each value in 'race of principal owner 4' (separated by semicolons) must equal 1, 2, 21, 22, 23, 24, 25, 26, 27, 3, 31, 32, 33, 34, 35, 36, 37, 4, 41, 42, 43, 44, 5, 966, 971, 972, 973, 974, or 988.

Validation ID: E1500

• po_4_race_anai_ff.invalid_text_length
• po_4_race_anai_ff
• 'Race of principal owner 4: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not exceed 300 characters in length.

Validation ID: E1520

• po_4_race_asian_ff.invalid_text_length
• po_4_race_asian_ff
• 'Race of principal owner 4: free-form text field for other Asian' must not exceed 300 characters in length.

Validation ID: E1540

• po_4_race_baa_ff.invalid_text_length
• po_4_race_baa_ff
• 'Race of principal owner 4: free-form text field for other Black or African American' must not exceed 300 characters in length.

Validation ID: E1560

• po_4_race_pi_ff.invalid_text_length
• po_4_race_pi_ff
• 'Race of principal owner 4: free-form text field for other Pacific Islander race' must not exceed 300 characters in length.

Validation ID: E1580

• po_4_gender_flag.invalid_enum_value
• po_4_gender_flag
• When present, 'sex/gender of principal owner 4: NP flag' must equal 1, 966, or 988.

Validation ID: E1600

• po_4_gender_ff.invalid_text_length
• po_4_gender_ff
• 'Sex/gender of principal owner 4: free-form text field for self-identified sex/gender' must not exceed 300 characters in length.

4.2. Multi-field errors

Validation id: e2000.

• ct_credit_product_ff.conditional_field_conflict

Affected data fields

• When 'credit product' does not equal 977 (other), 'free-form text field for other credit products' must be blank.
• When 'credit product' equals 977, 'free-form text field for other credit products' must not be blank.

Validation ID: E2001

• ct_guarantee_ff.conditional_field_conflict
• When 'type of guarantee' does not contain 977 (other), 'free-form text field for other guarantee' must be blank.
• When 'type of guarantee' contains 977, 'free-form text field for other guarantee' must not be blank.

Validation ID: E2003

• ct_loan_term_flag.enum_value_conflict
• When 'credit product' equals 1 (term loan - unsecured) or 2 (term loan - secured), 'loan term: NA/NP flag' must not equal 999 (not applicable).
• When 'credit product' equals 988 (not provided by applicant and otherwise undetermined), 'loan term: NA/NP flag' must equal 999.

Validation ID: E2004

• ct_loan_term.conditional_field_conflict
• When 'loan term: NA/NP flag' does not equal 900 (applicable and reported), 'loan term' must be blank.
• When 'loan term: NA/NP flag' equals 900, 'loan term' must not be blank.

Validation ID: E2005

• credit_purpose_ff.conditional_field_conflict
• When 'credit purpose' does not contain 977 (other), 'free-form text field for other credit purpose' must be blank.
• When 'credit purpose' contains 977, 'free-form text field for other credit purpose' must not be blank.

Validation ID: E2007

• amount_applied_for.conditional_field_conflict
• When 'amount applied for: NA/NP flag' does not equal 900 (applicable and reported), 'amount applied for' must be blank.
• When 'amount applied for: NA/NP flag' equals 900, 'amount applied for' must not be blank.

Validation ID: E2008

• amount_approved.conditional_field_conflict
• When 'action taken' does not equal 1 (originated) or 2 (approved but not accepted), 'amount approved or originated' must be blank.
• When 'action taken' equals 1 or 2, 'amount approved or originated' must not be blank.

Validation ID: E2009

• action_taken_date.date_value_conflict
• The date indicated by 'action taken date' must occur on or after 'application date'.

Validation ID: E2011

• denial_reasons.enum_value_conflict
• When 'action taken' equals 3 (denied), 'denial reason(s)' must not contain 999 (not applicable).
• When 'action taken' does not equal 3, 'denial reason(s)' must equal 999.

Validation ID: E2012

• denial_reasons_ff.conditional_field_conflict
• When 'denial reason(s)' does not contain 977 (other), field 'free-form text field for other denial reason(s)' must be blank.
• When 'denial reason(s)' contains 977, 'free-form text field for other denial reason(s)' must not be blank.

Validation ID: E2014

• pricing_all.conditional_fieldset_conflict
• pricing_origination_charge

When 'action taken' equals 3 (denied), 4 (withdrawn by applicant), or 5 (incomplete), the following fields must all equal 999 (not applicable):

• 'Interest rate type'
• 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing: NA flag'
• 'Prepayment penalty could be imposed'
• 'Prepayment penalty exists'

And the following fields must all be blank:

• 'Total origination charges'
• 'Amount of total broker fees'
• 'Initial annual charges'

Validation ID: E2015

• pricing_charges.conditional_fieldset_conflict

When 'action taken' equals 1 (originated) or 2 (approved but not accepted), the following fields all must not be blank:

And the following fields must not equal 999 (not applicable):

Validation ID: E2016

• pricing_init_rate_period.conditional_field_conflict
• When 'interest rate type' does not equal 3 (initial rate period > 12 months, adjustable interest), 4 (initial rate period > 12 months, fixed interest), 5 (initial rate period <= 12 months, adjustable interest), or 6 (initial rate period <= 12 months, fixed interest), 'initial rate period' must be blank.
• When 'interest rate type' equals 3, 4, 5, or 6, 'initial rate period' must not be blank

Validation ID: E2017

• pricing_fixed_rate.conditional_field_conflict
• When 'interest rate type' does not equal 2 (fixed interest rate, no initial rate period), 4 (initial rate period > 12 months, fixed interest rate), or 6 (initial rate period <= 12 months, fixed interest rate), 'fixed rate: interest rate' must be blank.
• When 'interest rate type' equals 2, 4, or 6, 'fixed rate: interest rate' must not be blank.

Validation ID: E2018

• pricing_adj_margin.conditional_field_conflict
• When 'interest rate type' does not equal 1 (adjustable interest rate, no initial rate period), 3 (initial rate period > 12 months, adjustable interest rate), or 5 (initial rate period <= 12 months, adjustable interest rate), 'adjustable rate transaction: margin' must be blank.
• When 'interest rate type' equals 1, 3, or 5, 'adjustable rate transaction: margin' must not be blank.

Validation ID: E2019

• pricing_adj_index_name.enum_value_conflict
• When 'interest rate type' does not equal 1 (adjustable interest rate, no initial rate period), 3 (initial rate period > 12 months, adjustable interest rate), or 5 (initial rate period <= 12 months, adjustable interest rate), 'adjustable rate transaction: index name' must equal 999.
• When 'interest rate type' equals 1, 3, or 5, 'adjustable rate transaction: index name' must not equal 999.

Validation ID: E2020

• pricing_adj_index_name_ff.conditional_field_conflict
• pricing_adj_index_name;
• When 'adjustable rate transaction: index name' does not equal 977 (other), 'adjustable rate transaction: index name: other' must be blank
• When 'adjustable rate transaction: index name' equals 977, 'adjustable rate transaction: index name: other' must not be blank.

Validation ID: E2021

• pricing_adj_index_value.conditional_field_conflict
• When 'interest rate type' does not equal 1 (adjustable interest rate, no initial rate period), or 3 (initial rate period > 12 months, adjustable interest rate), 'adjustable rate transaction: index value' must be blank.
• When 'interest rate type' equals 1 or 3, 'adjustable rate transaction: index value' must not be blank.

Validation ID: E2022

• pricing_mca_addcost_flag.enum_value_conflict
• When 'credit product' does not equal 7 (merchant cash advance), 8 (other sales-based financing transaction) or 977 (other), 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing: NA flag' must be 999 (not applicable).

Validation ID: E2023

• pricing_mca_addcost.conditional_field_conflict
• When 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing: NA flag' does not equal 900 (applicable), 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing' must be blank.
• When 'MCA/sales-based: additional cost for merchant cash advances or other sales-based financing: NA flag' equals 900, ‘MCA/sales-based: additional cost for merchant cash advances or other sales-based financing’ must not be blank.

Validation ID: E2024

• census_tract_number.conditional_field_conflict
• When 'census tract: type of address' equals 988 (not provided by applicant and otherwise undetermined), ‘census tract: tract number’ must be blank.
• When 'census tract: type of address' equals 1 (address or location where the loan proceeds will principally be applied), 2 (address or location of borrower’s main office or headquarters), or 3 (another address or location associated with the applicant), 'census tract: tract number' must not be blank.

Validation ID: E2025

• gross_annual_revenue.conditional_field_conflict
• When 'gross annual revenue: NP flag' does not equal 900 (reported), 'gross annual revenue' must be blank.
• When 'gross annual revenue: NP flag' equals 900, 'gross annual revenue' must not be blank.

Validation ID: E2026

• naics_code.conditional_field_conflict
• When 'North American Industry Classification System (NAICS) code: NP flag' does not equal 900 (reported), 'North American Industry Classification System (NAICS) code' must be blank.
• When 'North American Industry Classification System (NAICS) code: NP flag' equals 900, 'North American Industry Classification System (NAICS) code' must not be blank.

Validation ID: E2027

• time_in_business.conditional_field_conflict
• When 'time in business: type of response' does not equal 1 (the number of years an applicant has been in business is collected or obtained by the financial institution), 'time in business' must be blank.
• When 'time in business: type of response' equals 1, 'time in business' must not be blank.

Validation ID: E2028

• num_principal_owners.conditional_field_conflict
• When 'number of principal owners: NP flag' does not equal 900 (reported), 'number of principal owners' must be blank.
• When 'number of principal owners: NP flag' equals 900, 'number of principal owners' must not be blank.

Validation ID: E2040

• po_1_ethnicity_ff.conditional_field_conflict
• When 'ethnicity of principal owner 1' does not contain 977 (the applicant responded in the free-form text field), 'ethnicity of principal owner 1: free-form text field for other Hispanic or Latino' must be blank.
• When 'ethnicity of principal owner 1' contains 977, 'ethnicity of principal owner 1: free-form text field for other Hispanic or Latino' must not be blank.

Validation ID: E2041

• po_2_ethnicity_ff.conditional_field_conflict
• When 'ethnicity of principal owner 2' does not contain 977 (the applicant responded in the free-form text field), 'ethnicity of principal owner 2: free-form text field for other Hispanic or Latino' must be blank.
• When 'ethnicity of principal owner 2' contains 977, 'ethnicity of principal owner 2: free-form text field for other Hispanic or Latino' must not be blank.

Validation ID: E2042

• po_3_ethnicity_ff.conditional_field_conflict
• When 'ethnicity of principal owner 3' does not contain 977 (the applicant responded in the free-form text field), 'ethnicity of principal owner 3: free-form text field for other Hispanic or Latino' must be blank.
• When 'ethnicity of principal owner 3' contains 977, 'ethnicity of principal owner 3: free-form text field for other Hispanic or Latino' must not be blank.

Validation ID: E2043

• po_4_ethnicity_ff.conditional_field_conflict
• When 'ethnicity of principal owner 4' does not contain 977 (the applicant responded in the free-form text field), 'ethnicity of principal owner 4: free-form text field for other Hispanic or Latino' must be blank.
• When 'ethnicity of principal owner 4' contains 977, 'ethnicity of principal owner 4: free-form text field for other Hispanic or Latino' must not be blank.

Validation ID: E2060

• po_1_race_anai_ff.conditional_field_conflict
• When 'race of principal owner 1' does not contain 971 (the applicant responded in the free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe), 'race of principal owner 1: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must be blank.
• When 'race of principal owner 1' contains 971, 'race of principal owner 1: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not be blank.

Validation ID: E2061

• po_2_race_anai_ff.conditional_field_conflict
• When 'race of principal owner 2' does not contain 971 (the applicant responded in the free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe), 'race of principal owner 2: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must be blank.
• When 'race of principal owner 2' contains 971, 'race of principal owner 2: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not be blank.

Validation ID: E2062

• po_3_race_anai_ff.conditional_field_conflict
• When 'race of principal owner 3' does not contain 971 (the applicant responded in the free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe), 'race of principal owner 3: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must be blank.
• When 'race of principal owner 3' contains 971, 'race of principal owner 3: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not be blank.

Validation ID: E2063

• po_4_race_anai_ff.conditional_field_conflict
• When 'race of principal owner 4' does not contain 971 (the applicant responded in the free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe), 'race of principal owner 4: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must be blank.
• When 'race of principal owner 4' contains 971, 'race of principal owner 4: free-form text field for American Indian or Alaska Native Enrolled or Principal Tribe' must not be blank.

Validation ID: E2080

• po_1_race_asian_ff.conditional_field_conflict
• When 'race of principal owner 1' does not contain 972 (the applicant responded in the free-form text field for other Asian race), 'race of principal owner 1: free-form text field for other Asian' must be blank.
• When 'race of principal owner 1' contains 972, 'race of principal owner 1: free-form text field for other Asian' must not be blank.

Validation ID: E2081

• po_2_race_asian_ff.conditional_field_conflict
• When 'race of principal owner 2' does not contain 972 (the applicant responded in the free-form text field for other Asian race), 'race of principal owner 2: free-form text field for other Asian' must be blank.
• When 'race of principal owner 2' contains 972, 'race of principal owner 2: free-form text field for other Asian' must not be blank.

Validation ID: E2082

• po_3_race_asian_ff.conditional_field_conflict
• When 'race of principal owner 3' does not contain 972 (the applicant responded in the free-form text field for other Asian race), 'race of principal owner 3: free-form text field for other Asian' must be blank.
• When 'race of principal owner 3' contains 972, 'race of principal owner 3: free-form text field for other Asian' must not be blank.

Validation ID: E2083

• po_4_race_asian_ff.conditional_field_conflict
• When 'race of principal owner 4' does not contain 972 (the applicant responded in the free-form text field for other Asian race), 'race of principal owner 4: free-form text field for other Asian' must be blank.
• When 'race of principal owner 4' contains 972, 'race of principal owner 4: free-form text field for other Asian' must not be blank.

Validation ID: E2100

• po_1_race_baa_ff.conditional_field_conflict
• When 'race of principal owner 1' does not contain 973 (the applicant responded in the free-form text field for other Black or African race), 'race of principal owner 1: free-form text field for other Black or African American' must be blank.
• When 'race of principal owner 1' contains 973, 'race of principal owner 1: free-form text field for other Black or African American' must not be blank.

Validation ID: E2101

• po_2_race_baa_ff.conditional_field_conflict
• When 'race of principal owner 2' does not contain 973 (the applicant responded in the free-form text field for other Black or African race), 'race of principal owner 2: free-form text field for other Black or African American' must be blank.
• When 'race of principal owner 2' contains 973, 'race of principal owner 2: free-form text field for other Black or African American' must not be blank.

Validation ID: E2102

• po_3_race_baa_ff.conditional_field_conflict
• When 'race of principal owner 3' does not contain 973 (the applicant responded in the free-form text field for other Black or African race), 'race of principal owner 3: free-form text field for other Black or African American' must be blank.
• When 'race of principal owner 3' contains 973, 'race of principal owner 3: free-form text field for other Black or African American' must not be blank.

Validation ID: E2103

• po_4_race_baa_ff.conditional_field_conflict
• When 'race of principal owner 4' does not contain 973 (the applicant responded in the free-form text field for other Black or African race), 'race of principal owner 4: free-form text field for other Black or African American' must be blank.
• When 'race of principal owner 4' contains 973, 'race of principal owner 4: free-form text field for other Black or African American' must not be blank.

Validation ID: E2120

• po_1_race_pi_ff.conditional_field_conflict
• When 'race of principal owner 1' does not contain 974 (the applicant responded in the free-form text field for other Pacific Islander race), 'race of principal owner 1: free-form text field for other Pacific Islander race' must be blank.
• When 'race of principal owner 1' contains 974, 'race of principal owner 1: free-form text field for other Pacific Islander race' must not be blank.

Validation ID: E2121

• po_2_race_pi_ff.conditional_field_conflict
• When 'race of principal owner 2' does not contain 974 (the applicant responded in the free-form text field for other Pacific Islander race), 'race of principal owner 2: free-form text field for other Pacific Islander race' must be blank.
• When 'race of principal owner 2' contains 974, 'race of principal owner 2: free-form text field for other Pacific Islander race' must not be blank.

Validation ID: E2122

• po_3_race_pi_ff.conditional_field_conflict
• When 'race of principal owner 3' does not contain 974 (the applicant responded in the free-form text field for other Pacific Islander race), 'race of principal owner 3: free-form text field for other Pacific Islander race' must be blank.
• When 'race of principal owner 3' contains 974, 'race of principal owner 3: free-form text field for other Pacific Islander race' must not be blank.

Validation ID: E2123

• po_4_race_pi_ff.conditional_field_conflict
• When 'race of principal owner 4' does not contain 974 (the applicant responded in the free-form text field for other Pacific Islander race), 'race of principal owner 4: free-form text field for other Pacific Islander race' must be blank.
• When 'race of principal owner 4' contains 974, 'race of principal owner 4: free-form text field for other Pacific Islander race' must not be blank.

Validation ID: E2140

• po_1_gender_ff.conditional_field_conflict
• When 'sex/gender of principal owner 1: NP flag' does not equal 1 (the applicant responded in the free-form text field), 'sex/gender of principal owner 1: free-form text field for self-identified sex/gender' must be blank.
• When 'sex/gender of principal owner 1: NP flag' equals 1, 'sex/gender of principal owner 1: free-form text field for self-identified sex/gender' must not be blank.

Validation ID: E2141

• po_2_gender_ff.conditional_field_conflict
• When 'sex/gender of principal owner 2: NP flag' does not equal 1 (the applicant responded in the free-form text field), 'sex/gender of principal owner 2: free-form text field for self-identified sex/gender' must be blank.
• When 'sex/gender of principal owner 2: NP flag' equals 1, 'sex/gender of principal owner 2: free-form text field for self-identified sex/gender' must not be blank.

Validation ID: E2142

• po_3_gender_ff.conditional_field_conflict
• When 'sex/gender of principal owner 3: NP flag' does not equal 1 (the applicant responded in the free-form text field), 'sex/gender of principal owner 3: free-form text field for self-identified sex/gender' must be blank.
• When 'sex/gender of principal owner 3: NP flag' equals 1, 'sex/gender of principal owner 3: free-form text field for self-identified sex/gender' must not be blank.

Validation ID: E2143

• po_4_gender_ff.conditional_field_conflict
• When 'sex/gender of principal owner 4: NP flag' does not equal 1 (the applicant responded in the free-form text field), 'sex/gender of principal owner 4: free-form text field for self-identified sex/gender' must be blank.
• When 'sex/gender of principal owner 4: NP flag' equals 1, 'sex/gender of principal owner 4: free-form text field for self-identified sex/gender' must not be blank.

4.3. Register-level errors

Validation id: e3000.

• uid.duplicates_in_dataset
• Any 'unique identifier' may not be used in more than one record within a small business lending application register.

4.4. Single-field warnings

Validation id: w0003.

• uid.invalid_uid_lei
• The first 20 characters of the 'unique identifier' should match the Legal Entity Identifier (LEI) for the financial institution.

Validation ID: W0122

• ct_guarantee.multi_value_field_restriction
• When 'type of guarantee' contains 999 (no guarantee), 'type of guarantee' should not contain more than one value.

Validation ID: W0123

• ct_guarantee.duplicates_in_field
• 'Type of guarantee' should not contain duplicated values.

Validation ID: W0182

• ct_loan_term.unreasonable_numeric_value
• When present, 'loan term' should be less than 1200 (100 years).

Validation ID: W0202

• credit_purpose.multi_value_field_restriction
• When 'credit purpose' contains 988 (not provided by applicant and otherwise undetermined) or 999 (not applicable), 'credit purpose' should not contain more than one value.

Validation ID: W0203

• credit_purpose.duplicates_in_field
• 'Credit purpose' should not contain duplicated values.

Validation ID: W0340

• denial_reasons.multi_value_field_restriction
• When 'denial reason(s)' contains 999 (not applicable), 'denial reason(s)' should not contain more than one value.

Validation ID: W0341

• denial_reasons.duplicates_in_field
• 'Denial reason(s)' should not contain duplicated values.

Validation ID: W0420

• pricing_fixed_rate.unreasonable_numeric_value
• When present, 'fixed rate: interest rate' should generally be greater than 0.1.

Validation ID: W0441

• pricing_adj_margin.unreasonable_numeric_value
• When present, 'adjustable rate transaction: margin' should generally be greater than 0.1.

Validation ID: W0680

• census_tract_number.invalid_geoid
• When present, 'census tract: tract number' should be a valid census tract GEOID as defined by the U.S. Census Bureau.

Validation ID: W0762

• naics_code.invalid_naics_value
• When present, 'North American Industry Classification System (NAICS) code' should be a valid NAICS code.

Validation ID: W0842

• business_ownership_status.duplicates_in_field
• 'Business ownership status' should not contain duplicated values.

Validation ID: W0843

• business_ownership_status.multi_value_field_restriction
• When 'business ownership status' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'business ownership status' should not contain more than one value.

Validation ID: W0901

• po_1_ethnicity.duplicates_in_field
• 'Ethnicity of principal owner 1' should not contain duplicated values.

Validation ID: W0902

• po_1_ethnicity.multi_value_field_restriction
• When 'ethnicity of principal owner 1' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'ethnicity of principal owner 1' should not contain more than one value.

Validation ID: W0941

• po_1_race.duplicates_in_field
• 'Race of principal owner 1' should not contain duplicated values.

Validation ID: W0942

• po_1_race.multi_value_field_restriction
• When 'race of principal owner 1' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'race of principal owner 1' should not contain more than one value.

Validation ID: W1081

• po_2_ethnicity.duplicates_in_field
• 'Ethnicity of principal owner 2' should not contain duplicated values.

Validation ID: W1082

• po_2_ethnicity.multi_value_field_restriction
• When 'ethnicity of principal owner 2' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'ethnicity of principal owner 2' should not contain more than one value.

Validation ID: W1121

• po_2_race.duplicates_in_field
• 'Race of principal owner 2' should not contain duplicated values.

Validation ID: W1122

• po_2_race.multi_value_field_restriction
• When 'race of principal owner 2' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'race of principal owner 2' should not contain more than one value.

Validation ID: W1261

• po_3_ethnicity.duplicates_in_field
• 'Ethnicity of principal owner 3' should not contain duplicated values.

Validation ID: W1262

• po_3_ethnicity.multi_value_field_restriction
• When 'ethnicity of principal owner 3' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'ethnicity of principal owner 3' should not contain more than one value.

Validation ID: W1301

• po_3_race.duplicates_in_field
• 'Race of principal owner 3' should not contain duplicated values.

Validation ID: W1302

• po_3_race.multi_value_field_restriction
• When 'race of principal owner 3' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'race of principal owner 3' should not contain more than one value.

Validation ID: W1441

• po_4_ethnicity.duplicates_in_field
• 'Ethnicity of principal owner 4' should not contain duplicated values.

Validation ID: W1442

• po_4_ethnicity.multi_value_field_restriction
• When 'ethnicity of principal owner 4' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'ethnicity of principal owner 4' should not contain more than one value.

Validation ID: W1481

• po_4_race.duplicates_in_field
• 'Race of principal owner 4' should not contain duplicated values.

Validation ID: W1482

• po_4_race.multi_value_field_restriction
• When 'race of principal owner 4' contains 966 (the applicant responded that they did not wish to provide this information) or 988 (not provided by applicant), 'race of principal owner 4' should not contain more than one value.

4.5. Multi-field warnings

Validation id: w2002.

• ct_guarantee_ff.multi_invalid_number_of_values
• 'Type of guarantee' and 'free-form text field for other guarantee' combined should not contain more than five values. Code 977 (other), within 'type of guarantee', does not count toward the maximum number of values for the purpose of this validation check.

Validation ID: W2006

• credit_purpose_ff.multi_invalid_number_of_values
• 'Credit purpose' and 'free-form text field for other credit purpose' combined should not contain more than three values. Code 977 (other), within 'credit purpose', does not count toward the maximum number of values for the purpose of this validation check.

Validation ID: W2010

• action_taken_date.unreasonable_date_value
• The date indicated by 'application date' should generally be less than two years (730 days) before 'action taken date'.

Validation ID: W2013

• denial_reasons_ff.multi_invalid_number_of_values
• 'Denial reason(s)' and 'free-form text field for other denial reason(s)' combined should not contain more than four values. Code 977 (other), within 'Denial reason(s)', does not count toward the maximum number of values for the purpose of this validation check.

Validation ID: W2035

• po_demographics_0.conditional_fieldset_conflict
• When 'number of principal owners' equals 0 or is blank, demographic fields for principal owners 1, 2, 3, and 4 should be blank.

Validation ID: W2036

• po_demographics_1.conditional_fieldset_conflict
• When 'number of principal owners' equals 1, 'ethnicity of principal owner 1', 'race of principal owner 1', and 'sex/gender of principal owner 1: NP flag' should not be blank.
• Demographic fields for principal owners 2, 3, and 4 should be blank.

Validation ID: W2037

• po_demographics_2.conditional_fieldset_conflict
• When 'number of principal owners' equals 2, 'ethnicity of principal owner 1 and 2', 'race of principal owner 1 and 2', and 'sex/gender of principal owner 1 and 2: NP flag' should not be blank.
• Demographic fields for principal owners 3 and 4 should be blank.

Validation ID: W2038

• po_demographics_3.conditional_fieldset_conflict
• When 'number of principal owners' equals 3, 'ethnicity of principal owner 1, 2, and 3', 'race of principal owner 1, 2, and 3', and 'sex/gender of principal owner 1, 2, and 3: NP flag' should not be blank.
• Demographic fields for principal owner 4 should be blank.

Validation ID: W2039

• po_demographics_4.conditional_fieldset_conflict
• When 'number of principal owners' equals 4, 'ethnicity of principal owner 1, 2, 3, and 4', 'race of principal owner 1, 2, 3, and 4', and 'sex/gender of principal owner 1, 2, 3, and 4: NP flag' should not be blank.

5. Where to get help

Resources to help industry understand and comply with the small business lending rule are available on the CFPB’s website. Learn about complying with the small business lending rule.

You may also sign up for an email distribution list that the CFPB will use to announce future updates and additional resources as they become available. If you have a specific regulatory interpretation question about the small business lending rule after reviewing these resources, you can submit the question to the CFPB on its website.

6. Paperwork Reduction Act

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and, notwithstanding any other provision of law, a person is not required to respond to a collection of information unless it displays a valid OMB control number. The OMB control number for this collection is 3170-0013. It expires on November 30, 2025. The obligation to respond to this collection of information is mandatory under section 704B of the Equal Credit Opportunity Act, 15 U.S.C. 1691c-2, as implemented by Consumer Financial Protection Bureau’s Regulation B, 12 CFR part 1002. Comments regarding this collection of information, including the estimated response time, suggestions for improving the usefulness of the information, or suggestions for reducing the burden to respond to this collection should be submitted to the Bureau of Consumer Financial Protection (Attention: PRA Office), 1700 G Street NW, Washington, DC 20552, or by email to [email protected] .

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• Funder Directory (USA)
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Search Engine Algorithm Changes Impacted NerdWallet’s Small Business Lending Business

This hypothetical was posed by NerdWallet CEO Tim Chen during the company’s recent quarterly earnings call. And that’s because a search engine update (which intuitively sounds like Google) actually impacted their SMB loan business in Q2.

“So during Q2, yes, like we said, [there was a] major algorithm update and [it] created meaningful headwinds on our search ads, and to a lesser extent, our traffic,” Chen explained. “So I’d characterize it as saying it’s stabilized and started getting a little better. Generally speaking, we think search is working well when it matches user intent and surfaces the best answers. And by that standard, we and a lot of industry observers felt like things went a bit haywire last quarter. So we think it’s inevitable, some of these kinks get worked out because there are strong commercial incentives for search engines to get it right. They want happy customers who keep coming back so they can sell more search ads.”

NerdWallet is one of the few companies in the business lending space to specifically draw attention to organic search traffic’s impact on its bottom line. NerdWallet, who previously acquired Fundera , has dominated in organic search rankings for top keywords for years. An investigation carried out by deBanked in 2018, for example, showed that NerdWallet and Fundera were consistently the top result(s) for basic business loan queries on Google.

But search wasn’t the only thing on their minds:

“SMB loans, particularly in originations, saw an increasing amount of pressure in Q2 as elevated rates and tighter underwriting persisted, combined with some of the organic search traffic challenges,” said NerdWallet CFO Lauren StClair. “So we continue to drive growth in the quarter with our diversified product offerings for small and midsized businesses in areas such as credit cards and banking. We believe we have a substantial runway for growth in both diversifying SMB subcategories as well as scaling SMB loans over the long run, though expect to face a tougher growth profile in the near term as we await a more robust lending environment.”

NerdWallet also recently laid off 100 employees.

Category : Business Lending , seo

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• Personal Finance

How Much Money Can You Really Make on YouTube?

Published on Aug. 4, 2024

By: Matt Frankel, CFP®

Writer, Analyst

• I have a YouTube channel with about 6,000 subscribers and make some money from YouTube advertising revenue.
• It takes a lot of views to make serious money through YouTube ads.
• There are several other ways to monetize a YouTube channel, including sponsorships, product placements, and premium memberships.

How much money can you make being a YouTube influencer? Sure, there are creators out there that generate millions of dollars per year from their YouTube channels, but it also helps to have a realistic view of how much you could make if you have a moderately successful channel -- not an absolute home run.

To be clear, I hope that you find tremendous success on your YouTube journey. But it's important to keep in mind that million-dollar success stories are a small minority, so don't adjust your budget just yet.

As of this writing, I have approximately 6,100 channel subscribers and the channel has generated 159,500 views over the past month. This is a reasonable level of success for a new creator to aim to achieve in a year or two, so here's a rundown of how it makes money, and other ways that it could make money.

YouTube advertising revenue

Once you've reached 1,000 subscribers and a certain amount of watch time, you can activate YouTube ads on your channel. If you regularly watch YouTube videos, I'm sure you're familiar with this -- these are the ads you see at the beginning and in the middle of many videos. Some are skippable after a few seconds, some aren't. But this is the basic way that creators can start to monetize their channel once they reach the 1,000-subscriber threshold.

When it comes to YouTube ad revenue, it's important to manage your expectations. For most creators (myself included), ad revenue isn't the biggest source of monetization . But since it's the first major monetization source most creators achieve, I'll share my numbers.

I mentioned earlier that my channel has generated 159,500 views over the past month. From this, it has produced $910.50 in ad revenue. Dividing the latter number by views shows that I get about $5.71 per 1,000 views from YouTube ads.

And it's worth noting that investing content like I create tends to get above-average ad rates. So, if I wanted to know what I could make if I scaled it to 1 million monthly views, some simple math could show me. If I make $5.71 for 1,000 views, multiplying it by 1,000 (to get to a million) shows that I could expect $5,710 in ad revenue for 1 million views.

Other ways of monetizing YouTube

Different creators monetize their channels in different ways, and some are very creator specific. For example, some travel agents make videos at certain resorts and attractions and use them to get people to call their agency for travel needs.

Having said that, one common way creators monetize their channels is by getting sponsors. This can take several forms. Some sponsors will ask you to read an advertisement during your videos, some want separate product review videos, and some might want you to wear their logo while you're recording.

Sponsorship revenue is highly dependent on the industry, the number of followers you have, and the average views of your video. You might get a flat rate, or you might get paid based on conversions. It's impossible to say how much you can get, but the short answer is that for successful creators, sponsorship revenue can be several times what YouTube pays you for ads. From personal experience, 5,000 subscribers is the threshold when you can expect to start hearing from potential sponsors.

In addition to sponsors, there are several other ways you can monetize a YouTube channel, including but not limited to:

• Channel memberships: YouTube allows creators to turn on premium memberships to their channel, where viewers can pay a monthly subscription fee in exchange for perks like members-only videos.
• Affiliate marketing: Using affiliate links to send your audience to a brand's landing page to generate sales.
• Merchandise sales: If you have a significant following, selling branded merchandise can be a great way to make extra money.
• Other YouTube sources: YouTube offers other monetization methods, such as Super Thanks, where your viewers can essentially give you a tip if they like your video.

The bottom line

There's certainly money to be made on YouTube. But it's important to realize that in the early stages of building your channel, the opportunities are quite limited. And while some YouTube channels make millions and millions of dollars, it's important to know what to expect when you achieve a more modest level of success.

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Our Research Expert

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina, and has been writing about personal finance since 2011.

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