Small business term loans
You get a lump sum and repay it in fixed payments over a set term. Banks, credit unions and online lenders all offer them, with different speeds, requirements and costs.
At a glance
- Typical amount
- $25,000 to $500,000
- Time to funds
- Often 1–4 weeks
- What lenders look at
- A year or more in business, steady revenue and credit.
- How it's repaid
- A lump sum repaid in fixed payments, usually monthly, over a set term.
Ranges vary by lender and are not offers.
When it fits
- A one-time cost with a clear payoff: an expansion, a second location, a renovation.
- Replacing more expensive debt with one fixed payment. See consolidating business debt.
- You've been in business a year or more with steady revenue.
When it doesn't
- Your need goes up and down month to month. A line of credit lets you borrow only what you use.
- You want the longest possible term on a large amount. An SBA 7(a) loan can run up to 10 years, or 25 for real estate.
- The payment would strain your cash flow in a slow month.
Bank or online lender
| Feature | Bank or credit union | Online lender |
|---|---|---|
| Time in business | Often two years or more | Often a year or less |
| Paperwork | Tax returns and financial statements | Often bank statements first |
| Speed | Weeks | Days to a couple of weeks |
| Cost | Usually lower | Usually higher |
| Payments | Usually monthly | Monthly, or sometimes weekly or daily |
What it costs
Cost depends on the rate, the term and fees such as origination charges. A longer term lowers the payment and raises the total interest. Ask whether there's a prepayment penalty.
The payment calculator shows the monthly payment, total interest and full schedule for the rate you're quoted.
What to have ready
- Business bank statements. The last three to six months. Nearly every lender asks for these first.
- Tax returns. Two years of business and personal returns, mainly for SBA and term loans. Some lenders ask for more.
- Profit and loss statement and balance sheet. Year to date is usually enough. Your bookkeeping software can export both.
- Formation documents and EIN. Articles of organization or incorporation, plus your IRS EIN letter.
- Business licenses. Your state or city operating license, and any trade or health permits your work needs.
- ID for each owner with 20% or more. A driver's license or passport. Lenders verify everyone with a significant stake.
- Debt schedule. A list of current business loans and advances, with balances and payments.
Related guides
Sources
Last reviewed October 14, 2026.
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