The largest business loan amount seems to be getting smaller. For example, compare loans supported by the Small Business Administration (SBA). In 2021, over 37% of SBA 7(a) loans were over $500,000. In 2025, it surpassed 500,000 people just north of 18% of the 7(a) loan.
In fact, today the average SME loan amount is $437,482.
For startups looking for business loans, the maximum ceiling drops even further. They have no consistent revenue evidence over the years, so lenders consider their new business a risk.
How much can I earn for a startup business loan? It depends, but you expect startup business loans to be smaller than one for an established business.
How much can I borrow for a startup business?
Last year, 40% of businesses seeking funding applied for a maximum business loan of under $50,000, according to the Federal Reserve 2024 Small Business Credit Survey (SBCS).
How much can I earn from a startup business loan for a specific company? It depends on factors that are inherent to you. When lenders evaluate companies for small business loans, they set the amount based on factors such as the company’s business hours, revenue, and credit history.
Startups are usually not strong in these areas, so lenders can consider additional factors when approving the maximum business loan amount, such as:
- industry: Lenders may consider the startup industry when making loan decisions and provide more money to companies in a profitable and stable industry.
- Personal Credits: As a startup loan applicant, you need a strong individual credit score and credit history to receive funds. In your case The credits aren’t bigyou can find lenders to work with your business, but the cost of borrowing may be higher.
- Industry experience: Industry experience gives lenders confidence that they can pay off their loans. Next, they may offer you a ton of money.
- collateral: If securing a loan can offset the risk of lenders collateral Or on another asset, the lender may be more likely to approve a larger loan.
Why do startup loans tend to be smaller than other business loans?
Startups are new companies, usually ambitious growth plans and products or services leverage their own markets. But that’s not the way lenders define them. Instead, in the eyes of most lenders, if you’re in business within two years, you’re a startup.
Startups often don’t provide strong business outcomes yet, don’t build a lot of business credits, and don’t have many assets, which puts more risk to lenders. Additionally, if the startup fails, there is a risk that the loan will not be repaid.
Because of this, lenders may hesitate to fund the startup. If they provide business loans, the maximum ceiling will be less than the established business will receive. More evidence? According to SBCS in 2023, 72% of startup businesses used their personal funds to survive financial challenges. When they applied for funding, only 43% were fully approved.
How much can a startup business borrow from various lenders?
Not all lenders offer startup loans. Although it may not be very successful with traditional lenders such as banks and credit unions, they work with some new businesses.
Luckily, new business owners who need startup funding have other options. The maximum business loan amount can be lower than the overall ceiling advertised by lenders.
So, how much can you earn for a startup business loan? Exploring loan caps from a variety of sources can help you get better ideas.
SBA Loan
Supported by US Small Business Management, SBA loans are designed to help business owners grow their businesses and cover equipment-like expenses. There are several types of SBA loans with maximum amounts ranging from $50,000 to $5 million.
According to a weekly report issued by the SBA, of the 67,000 7(a) loans approved as of April 2025, more than 28% have been issued to new businesses or startups.
SBA startup loans are known for their low interest rates and generous repayment periods. These loan features keep costs low while keeping your business off the ground. And because they are supported by the SBA, they offset the risks of lenders and are more likely to get approved for startups. The downside is that the application process is involved and can take weeks or months to be approved.
Online lender
Online and alternative lenders are popular options for startup owners looking for capital. These lenders offer everything from working capital loans to credit lines and bill factoring.
These companies and their offerings may differ materially. Some are known for their flexible repayment terms and lower rates than traditional lenders like banks. Others specialize in helping business owners lose their trust.
In fact, according to SBCS in 2024, online lenders were the biggest option for business owners with moderate to high credit risk. 45% pursued this option, but business owners in this category applied fewer (31%) and smaller (24%) banks.
However, borrowers should know that they are less satisfied when working with online lenders. In 2024, SBCS revealed that between 2023 and 2024, net satisfaction for online lenders among rejected fundraisers plummeted from 15% to 2%. Authorized borrowers cite common challenges such as high interest rates and adverse repayment terms as issues of borrowing experience. So, online lenders are more flexible, but be prepared to pay more in a short period of time.
micron
Microloans are a type of small loan that is often funded through nonprofits and may be targeted at small business owners who are underprivileged groups, such as women and veterans. The SBA has a microloan program that offers up to $50,000. Other microloan programs exist at different loan amounts, and many companies use microloans to fund costs such as inventory and consumables.
As the name suggests, microloans have a lower maximum business loan amount. Data voluntarily reported to the SBA shows the average microloan is around $16,000 in 2025.
Conclusion
When you are trying to grow your young business, a startup business loan can provide you with much-needed liquid capital. However, it can be difficult to get especially large quantities. Typically, for startup business loans, the maximum average amount is hovering around $500,000, and the actual loan amount could be that sliver.
That said, how much you get for a startup business loan depends on your company, your personal credit history, and other factors that are unique to you. Explore options with different lenders to find the capital you need.
