SBA 7(a) Loans up to $500k Now Available

Business Insights

What are Startup Loans

A startup company getting a startup loan.

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 startup loans 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, startup loans are for entrepreneurs who are just beginning their journey. These loans provide funding for various startup costs, including equipment, inventory, marketing, and working capital. 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:

  • Acquiring, refinancing, or improving real estate and buildings
  • Short- and Long-term working capital
  • Refinancing current business debt
  • Purchasing and installing machinery and equipment, including AI-related expenses
  • Purchasing furniture, fixtures, and supplies 

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.  

  1. Most recent person tax return for majority owner(s) 
  2. Most recent business tax return, if applicable 
  3. Last 3 months of bank statements, as applicable for business history  
See how much you can qualify to receive.

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To qualify for an SBA 7(a) small business loan, your business must be:

  1. U.S.-based and operated
  2. Owner supported / owner funded
  3. Eligible per the SBA’s requirements

Your loan amount will determined by the business’ average annual revenue, FICO score, and years in business