Business Insights

What are Startup Loans

Updated on July 31, 2024
Category: Business Loans
5 minutes to read

Are you a small business owner seeking funding to grow your startup? You’ve probably encountered many ads for startup loans. Let’s explore what they are and how to obtain one.

What are startup loans?

Startup loans are specifically designed to help new businesses get off the ground. Unlike traditional business loans that typically require extensive business history, these type of loans are specifically for entrepreneurs who are just beginning their journey. These loans provide funding for various initial costs, including inventory, marketing, and working capital to grow your business. Startup loans can come from banks, online lenders, or government programs, and they have specific eligibility criteria and repayment terms.

The leading option: SBA Loans

Many traditional lenders are hesitant to fund startups because they are more risky than established businesses. At NEWITY, we help small businesses get startup loans through the SBA 7(a) loan program. These loans provide the capital needed for various business activities, such as:
Short- and Long-term working capital
Refinancing current business debt
Investing in AI-related tools
Payroll, rent or other operational expenses

The Small Business Administration (SBA) offers several loan programs designed to support new businesses. The SBA 7(a) loan, for example, is a popular choice for startups due to its favorable terms and government-backed guarantee.
This loan option offers long-term, low interest loans, with no collateral for small businesses. This can be favorable when comparing the financial weight of long versus short-term loans.

How to get a startup loan

Receiving an SBA 7(a) loan can be challenging for startups due to a lack of financial history, credit reports, and revenue. For emerging small businesses looking for funding, NEWITY has streamlined the SBA loan application process making it easier than ever.
Small businesses with two or more months of operation can get access to startup capital. You can discover how much you can qualify for in less than 10 minutes by filling out our online loan application. You will need to come prepared with these 3 documents.
Most recent personal tax return for majority owner(s)
Most recent business tax return, if applicable
Last 3 months of bank statements, as applicable for business history

See how much you can qualify to receive.

Apply Here

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