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Business Loans: What They Cost and What to Check

By AssistQuote Editorial Team

Published September 24, 2026 · Last updated September 30, 2026

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The short answer

Small business loan costs depend on the lender, your credit, and how long your business has been open. Banks and SBA loans usually cost less. Online lenders are often faster but cost more. In a 2026 Federal Reserve survey, 60% of small businesses that borrowed from online lenders said the cost was higher than they expected.

Always compare the APR, not just the payment.

  • No phone number neededSee costs and options before you share any contact details.
  • Real price ranges, with sourcesWe name where every number comes from and when it was published.
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We never ask for a Social Security number, date of birth or documents.

What is a small business loan?

A small business loan is money a lender gives your business that you pay back over time, with interest. You can use it for equipment, stock, hiring, or a new location.

Types of small business loans

Term loan. One lump sum you pay back in regular payments over a set time. Good for a known cost, like an expansion.

SBA 7(a) loan. A bank loan partly backed by the U.S. Small Business Administration, which makes lenders more willing to say yes. Loans go up to $5 million, and the SBA caps how far the rate can go above the prime rate.

SBA 504 loan. For big fixed assets, like buildings or major equipment. Loans go up to $5.5 million. Since July 2026, a business can get up to $10 million combined from 7(a) and 504 loans.

SBA microloan. Small loans up to $50,000, often through nonprofit lenders. A good fit for newer businesses.

Equipment financing. The equipment backs the loan, which can make it easier to get.

Line of credit. Borrow what you need, when you need it, up to a limit.

Working capital and cash advances. Fast money for day-to-day costs. Often the most expensive option.

Business loan requirements

Lenders usually look at:

  • Your credit. Both your business credit and your personal credit.
  • Time in business. Many lenders want at least one or two years.
  • Your sales and profits. Lenders want to see that you can make the payments.
  • Collateral. Property or equipment you pledge to back the loan.
  • A personal guarantee. Most small business loans require one. It means you're personally on the hook if the business can't pay.

Can a new LLC get a loan? Often, yes, but it's harder. New businesses may have better luck with SBA microloans, equipment financing, or a small line of credit.

How to get a small business loan

  1. Know how much you need and what it's for.
  2. Check your credit, both personal and business.
  3. Gather your paperwork. Tax returns, bank statements, financial statements, and a business plan for newer businesses.
  4. Compare several lenders, including a bank or credit union, an SBA lender, and an online lender.
  5. Compare offers by APR and total cost, not just the monthly payment.

What affects your business loan cost

Price range

Rates vary too much by lender and borrower to list one number.

Not a quote, offer or approval. Your rate comes from the lender. Sources: SBA; Federal Reserve Small Business Credit Survey, 2026.

What moves the number

  • Your credit.
  • Time in business. Newer businesses often pay more.
  • Your sales and profits.
  • Collateral. Pledging property or equipment can lower your rate.
  • The type of lender. Banks, credit unions, SBA lenders, and online lenders all price differently.

What to ask before you choose

  • "What's the APR?" APR includes interest and fees in one yearly number. It's the best way to compare.
  • "What fees are there?" Ask about origination, closing, and prepayment fees.
  • "Do I have to sign a personal guarantee?"
  • "How often do I pay?" Some online loans take payments daily or weekly.
  • "Is there a penalty if I pay it off early?"

The catch: some lenders show a "factor rate" or a flat fee instead of an APR. A factor rate of 1.3 sounds low, but it can mean a very high yearly cost, especially on a short loan. Always ask for the APR. Some states, like California and New York, now require many business lenders to show an estimated APR.

Keep reading

Starting out? See business formation and LLC insurance. Many lenders require business insurance.

Business financing: Equipment financing · Working capital · Business lines of credit · All business services

Why AssistQuote is different

Most quote sites ask who you are first. Here you can look at business loans costs and options first.

On some websites

They ask who you are first

Some forms want your name and phone number before they show you anything useful. You may not know which companies will get it, or how many will call.

Here, you choose

Answer a few questions without giving your name, email or phone number. See prices, what to ask, and providers to explore. You choose who to contact and what to share with them.

  1. 1

    Check local costs

    See typical price ranges for your area and what moves the price up or down.

  2. 2

    Tell us what you need

    Answer a few questions about the work, not about who you are.

  3. 3

    You decide what's next

    Save or email your options, or visit a provider when you're ready.

Cost information is not a live rate, quote or offer. A provider shown here is not an endorsement. Each provider sets its own prices, privacy and contact rules.

Questions people ask

Bank and SBA loans usually cost the least, but they're harder to get and slower. Online loans and cash advances are faster but usually cost more.

A loan from a bank or other lender that's partly backed by the U.S. Small Business Administration. The backing makes lenders more willing to lend.

Most lenders look at your credit, time in business, sales, and collateral. Most also want a personal guarantee.

Often, but it's harder. SBA microloans, equipment financing, and small lines of credit can be easier to get.

No. You can see what to compare with just your ZIP code.

No. AssistQuote isn't a lender and doesn't decide who gets a loan.

Ready to see business loans options in your area?

Start with your ZIP code. You will see typical local costs and options to explore. No phone number, email or name needed to look.

You choose if, when and who to contact.

Related services

Equipment Financing

Explore financing options tied to business equipment.

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Working Capital

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Lines of Credit

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General Liability

Compare general liability options for your business.

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Sources

  1. U.S. Small Business Administration, 7(a) loans
  2. U.S. Small Business Administration, 504 loans
  3. U.S. Small Business Administration, Loans overview (7(a), 504, microloans)
  4. U.S. Small Business Administration, Small businesses now eligible for $10 million in SBA financing (July 7, 2026)
  5. Federal Reserve Banks, 2026 Report on Employer Firms (Small Business Credit Survey)