The first option you should consider while looking for the best business loans for new businesses is the Small Business Administration (SBA) programs. Community Advantage Program (up to $250,000 available) and the Microloan Program (up to $50,000 available) that one of the most startups friendly options. Their APRs are usually around 6-9%. Still, they might be difficult to qualify for.
They usually require a credit score of 680+ and collateral in a form of real estate. These loans prefer self-financed startups. It means that business owner should invest at least 30% of the whole investment balance. If you are a trustworthy borrower, you can try to apply for SBA 7a loans with very strict requirements.
Microloans from a Nonprofit Lender are also a good option if you are looking for business loans for new businesses with no credit. These lenders don’t require high credit or collateral. They have other criteria to choose a borrower. A good case would be if your desires match (a lender wants to invest in a restaurant and you are going to open it). APRs vary from 8% to 22%.
Rollover for Business Startups – ROBS are the other reasonable solution for borrowers looking for small business loans for new businesses. This option allows you to finance your startup with funds from your retirement account without income taxes and withdrawal fees.
Unsecured business loans for new businesses are a good idea but if you can’t find the right one, you should consider crowdfunding.