Start Up Funding

Small Business Funding
The Best for your Small Business

Get Pre Approved in Minutes!

Small Business Funding
The Best for your Small Business

Get Pre Approved in Minutes!







What is a Startup Business Loan?

A business startup loan is financing meant to help with the financial needs of a new business. New business owners can also consider business credit cards, business grants, and crowdfunding. One of the biggest challenges a new small business must face is obtaining the capital necessary to support their initial growth without any business history.

Maximum Loan Amount

$150K

Loan Term

6 months to 4 years

Interest Rates

7.9 – 19.9%

Speed

As fast as 2 weeks

Advantages of First Down Funding Start Up Funding

Quick access to cash

Equipment serves as collateral

Great for business owners with limited financial history

Who Qualifies for Startup Business Loans?

To qualify for a startup loan, you typically need to be in business for at least 6 months and have a credit score of 779 or higher. However, if your business is younger than 6 months, options will still be available. Most lenders will also want to see that you have experience in a field that’s related to your small business. The most important factor in all of these small business startup financing options will be your personal credit score: The higher the score, the better your chances of qualifying for an SBA microloan, business credit card, or even a personal loan for business.

Your eligibility for more alternative startup business loans like grants, crowdfunding, or friends and family will depend less on your credit score and more on the details of your business—like what your business model is, who your customers are, what community you operate in, and so on.

Most customers who were approved had

**Based on past customers

Annual Revenue

Over $75K

Credit Score

779+

Time in Business

n/a

How Do You Apply for Startup Business Loans?

The application depends on which method of financing you’re applying to. Here’s a short list of what to expect:

  • SBA microloans will typically have the most intensive application process. Many documents will be required and the process as a whole can take at least a few weeks.
  • Business credit cards have a very simple application process, only requiring your federal tax ID or your Social Security number.
  • The application process for a small business grant depends on the grant you’re applying for.
  • Creative funding options like friends and family or crowdfunding won’t have traditional business startup loan applications, and will depend on your unique funding situation.

Documents you need:

  • Driver’s License
  • Credit Score
  • Bank Account Number
  • Business Plan
  • Equipment Quote

How Do Small Business Startup Loans Work?

For first time business owners, starting their business and looking for the best funding option can be confusing.

Getting capital in the form of a startup business loan is riskier for any business lender. But with First Down Funding you don’t need to worry, contact us and we will show you what is the best direction to take. Below are some options available, let us know if you have any questions.

SBA Microloans

Through the SBA Microloan Program, the Small Business Administration (SBA) loans money to intermediary nonprofit lenders. These lenders then provide business loans of up to $50,000 to startups and small businesses, many of them run by women, minorities, or veterans. The average SBA microloan is $13K.

Despite the name, SBA microloans aren’t really loans issued by the SBA. Instead, the SBA loans to intermediary, non-profit lenders and financial institutions who then make the ultimate decision of which startup businesses to fund.

One of the benefits of applying to SBA microloans as a small business startup loan is that most of the partnered intermediary lenders are mission-oriented organizations that work specifically in their local communities.

Business Credit Cards

Business owners with less than 6 months in business should absolutely consider getting a business credit card to help cover startup costs.

While not a traditional startup business loan, a business credit card can give you access to a credit limit that you can borrow up to when you need to cover big expenses. Just as long as you pay off your balance each month, you won’t have to worry about high interest rates on the balances you carry over.

Advantages:

  • Very fast to apply to.
  • They give you the freedom to borrow as much or as little as you need each month.
  • No collateral required.

With 0% APR offers, make sure you can pay the balance before that rate spikes at the end of your introductory APR period. Also, you might need a certain credit score to qualify for the promotional rate in the first place.

Small Business Grants

Small business grants are a great way to raise money for your startup business. The federal government generally offers grants only to nonprofits, educational institutions, and state and local governments. Sometimes, nonprofits and state or local governments offer economic development grants directly to small businesses. But small business grants from non-profit or government organizations can be challenging to secure, as many small businesses across the country are applying to them. On top of that, some grants are reserved for certain kinds of businesses, like mission-oriented businesses, non-profits, or businesses operating in specific communities.

While small business grants aren’t a traditional replacement for startup business loans, they’re certainly worth applying to if you think you have a shot at receiving one.

Friends and Family

When more traditional small business startup loans aren’t available to your new business, another option is to turn to friends and family to raise initial funds.

When you fund your startup with the money of friends and family, both your business’s financials and your personal relationships are on the line.

Before you get into a funding agreement, make sure that the contributors understand your business plan, what you’ll be doing with the money, and what their role will be in the funding relationship.

Crowdfunding

Small businesses can raise money with crowdfunding in exchange for rewards, future repayment, or equity in the company. Startups and more established companies can raise funds online while getting new customers. The best crowdfunding sites offer low fees, a large audience, and allow a variety of campaigns.

Crowdfunding lets you raise capital from online campaigns—typically through a dedicated crowdfunding platform, like Kickstarter or IndieGogo.

With crowdfunding, you set a specific amount of capital as a “goal” you’re trying to hit. Users on the platform can donate money to your campaign if they feel inspired to do so. Unlike equity or debt financing, you don’t have to give up ownership in your business or pay interest to these funders.

Crowdfunding is a good way to raise a small amount of capital from a large amount of people. It tends to work best for product-based businesses or those with creative, innovative ideas.

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