Yes, a new business can get a loan, but the options depend on age and revenue. Once a business has at least 4 months of history and $5,000 or more in monthly deposits, lines of credit, term loans, and equipment financing open up. Before that, startups usually rely on SBA microloans, SBA start-up loans, personal credit, or home equity.
The first year is not one stage. A business at month 2 and a business at month 10 look completely different to a lender, so this guide goes by age.
What financing can a business get in its first 4 months?
Before a business has a few months of deposits, revenue-based lenders have nothing to underwrite. The options that work lean on something other than business history.
| Option | What it's based on | Typical fit |
|---|---|---|
| SBA microloan | Business plan, owner, local intermediary review | Up to $50,000 for start-up and early costs |
| SBA 7(a) start-up loan | Business plan, projections, owner equity, credit | Larger start-up projects with cash to inject |
| 0% business credit cards | Owner's personal credit (650+ typically) | Early purchases, inventory, marketing |
| HELOC | Home equity and personal income (620+ typically) | Owners with meaningful home equity |
SBA microloans
As of 2026, SBA microloans go up to $50,000, and the SBA reports an average of about $13,000. They are made by nonprofit, community-based intermediary lenders, must be repaid within six years, and can cover working capital, inventory, equipment, and supplies. Many intermediaries require training or planning sessions before they consider an application. For a small start-up budget, this is often the most accessible structured loan.
Personal credit and home equity
Business credit cards with 0% introductory APR offers typically need a 650+ personal score. Some issuers have no minimum time in business, and responsible use starts building a business credit file. A HELOC uses your home as collateral, so it can fund a business at month zero, but it puts your home on the line. Weigh that tradeoff carefully.
Can a startup get an SBA loan?
Yes, with more requirements than an established business faces. Under the SBA's SOP 50 10 8, in effect since June 1, 2025, a start-up is a business that has been generating revenue from its intended operations for one year or less. Start-ups must inject equity of at least 10% of total project costs, meaning all costs required to become operational.
The math is straightforward. Say a hypothetical physical therapist plans a new clinic:
| Cost | Amount |
|---|---|
| Buildout | $140,000 |
| Equipment | $70,000 |
| Working capital for the first months | $40,000 |
| Total project cost | $250,000 |
| Minimum equity injection (10%) | $25,000 |
| Largest loan at the 10% minimum | $225,000 |
Other 2026 requirements to plan for:
- Ownership: effective March 1, 2026, 100% of the direct and indirect owners of a 7(a) or 504 applicant must be U.S. citizens or U.S. nationals whose principal residence is in the U.S. Lawful permanent residents can no longer hold any share.
- Credit: Sagamore's SBA lending partners typically look for a 650+ personal score.
- A business plan with projections: lenders underwrite a start-up on projected cash flow, so the projections carry real weight.
- Relevant experience: a first-time clinic owner who spent ten years as a staff therapist reads very differently from someone changing industries.
The SBA's updated SOP 50 10 8.1 takes effect October 1, 2026, so confirm the current rules with the lender before you apply. SBA loans through Sagamore typically take 30 to 90 days to fund, which matters if you have a lease signing or opening date to hit.
What changes once a business reaches 4 months?
At 4 months, revenue-based lending opens up. Sagamore's lending partners start with three minimums for most working capital and equipment products:
- 4+ months in business
- $5,000+ in monthly bank deposits
- 500+ personal credit score
Meeting them opens the core products:
| Product | Range through Sagamore | What a new business should expect |
|---|---|---|
| Line of credit | $5K to $500K | Lower starting limits that can grow as the business matures |
| Term loan | $10K to $2M | Shorter terms or smaller amounts at first |
| Equipment financing | $10K to $5M | The equipment as collateral helps offset thin history |
| Factoring | $10K to $5M | Qualification leans on your customers' credit, not your history |
| Bridge loan | $25K to $1M | A signed contract or purchase order carries the file |
A newer business should expect offers at the smaller, shorter end of these ranges. That is normal, and each on-time payment builds toward the next, larger offer.
How do lenders evaluate a business with only a few months of history?
With little track record, lenders weigh the most recent months heavily and look for direction. Say a hypothetical catering company is six months old with these deposits:
| Month | Deposits |
|---|---|
| 1 | $8,000 |
| 2 | $11,000 |
| 3 | $14,000 |
| 4 | $17,000 |
| 5 | $19,000 |
| 6 | $21,000 |
The six-month average is $90,000 ÷ 6 = $15,000. The most recent four months average $76,000 ÷ 4 = $19,000. A lender reviewing the last four statements sees a business doing about $19,000 a month and climbing. That same business at month 3 would not have met the 4-month minimum at all, even though its trajectory was already clear.
Beyond deposits, lenders look at:
- Owner credit: with no business credit file, the owner's personal score carries more weight.
- Industry experience: years in the same trade reduce the perceived risk of a young company.
- Contracts and customers: signed contracts, purchase orders, or invoices to established businesses show where future revenue comes from.
- Collateral: equipment, receivables, or real estate can support a loan that cash flow history alone cannot.
Which options fit which stage of a young business?
Putting it together, the realistic menu widens at a few predictable points:
| Business age | Realistic options | What usually holds the business back |
|---|---|---|
| 0 to 4 months | SBA microloan, SBA 7(a) start-up loan, 0% business credit cards, HELOC | No deposit history for revenue-based lenders to read |
| 4 to 12 months | Lines of credit, term loans, equipment financing, factoring, bridge loans | Smaller amounts and shorter terms at first |
| 1 to 2 years | Larger limits and longer terms; the SBA start-up label no longer applies | Tax returns may show little profit yet |
| 2+ years | Full range, including standard SBA loans and commercial mortgages | Mostly credit, cash flow, and existing debt |
Crossing each line changes what a lender can underwrite, not just how it feels about your business. Timing an application just after one of these points is often worth more than any other preparation.
What should a new business do now to qualify sooner?
Most of what gets a young business approved is set up in the first weeks:
- Get an EIN and open a business bank account on day one. Run every dollar of revenue through it. Deposits that land in a personal account are hard for a lender to count.
- Avoid overdrafts. Returned items on a short history stand out more than on a long one.
- Protect your personal credit. Keep card balances low and pay on time. For a new business, your score is the business's score.
- Start a business credit file. A business card used lightly and paid in full begins a track record separate from yours.
- Keep simple books from the start. A monthly P&L makes the jump to larger loans and SBA financing much easier later.
- Document your pipeline. Save signed contracts and large purchase orders; they can support a bridge loan or factoring before your deposit history does.
If your business is already past 4 months with $5,000 or more in monthly deposits and you have a 500+ credit score, you can apply now. If you're earlier than that, the options above can carry you until your statements tell the story for you.
