Lending Library

Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

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Every business has its version of a rainy day. An unexpected expense, a delayed customer payment, or a slow sales month that throws you off your rhythm.

These moments don’t always spell disaster, but they can create serious cash flow strain—especially if you’re unprepared. That’s why building a business safety net is one of the smartest financial moves you can make.

Whether it’s a small emergency fund, access to flexible capital, or a combination of both, having backup resources on hand can help you weather the storm and keep your business moving forward.

1. Build a basic emergency fund.

Your first layer of protection is straightforward: an emergency savings account dedicated to your business.

Many business owners skip this step because their margins are thin. But that’s exactly why it matters. By treating savings like a recurring expense—just like rent or payroll—you can gradually build a cushion that helps you stay afloat when things don’t go as planned.

A good rule of thumb? Aim to set aside three to six months’ worth of operating expenses. That might sound ambitious, but you don’t need to get there overnight. Start small and build consistently.

Your emergency fund can cover:

• Unexpected equipment repairs
• Delays in customer payments
• Temporary dips in sales
• Even growth opportunities—like a chance to buy discounted inventory or expand your space

If you’re using QuickBooks Online, you can monitor income, expenses, and trends to help determine how much to save each month. Then, you can set a recurring transfer to automate your contributions.

2. Secure a business line of credit

Think of a business line of credit as your second layer of defense—funding that’s there when you need it, and invisible when you don’t.

Unlike a traditional term loan, a line of credit (LOC) gives you access to a set amount of capital that you can draw from at any time, and you only pay interest on what you use.

It’s ideal for:

• Covering delayed receivables
• Managing unexpected costs like repairs or supply chain delays
• Taking advantage of time-sensitive growth opportunities

3. Have a plan for when you don’t have a cushion.

Not every business has the luxury of a fully stocked emergency fund or a pre-approved line of credit. That doesn’t mean you’re out of options—it just means you need a plan.

If an unexpected expense hits and you don’t have cash on hand, here’s what to do:

• Assess the urgency: Is it something that needs to be handled today, or can it wait 30 days while you adjust?
• Revisit your cash flow forecast: Look for slow-paying invoices, unnecessary spending, or opportunities to shift resources.

Explore financing options: You may still qualify for a line of credit or a term loan based on your business performance—even if you haven’t saved up.

Having a plan—even if it includes financing—is better than being caught off guard. Smart business owners know that preparation doesn’t mean perfection. It means thinking ahead.

Be prepared, not panicked.

Rainy days in business are inevitable—but stress doesn’t have to be.

By building a financial safety net with three simple layers—emergency savings, access to flexible credit, and a clear plan for when funds run low—you give your business the resilience to face challenges and pursue opportunities without hesitation.

Whether you’re just getting started or ready to strengthen your current financial strategy, the best time to prepare is now.

Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

Financing a seasonal business isn’t easy. You need up-front capital to prep for the busy season, and then you need ongoing cash to keep up with mid-season expenses and unexpected slowdowns. For many business owners, relying on sales alone isn’t sustainable.

First, we’ll explore how seasonal financing can support your day-to-day operations. Then we’ll dive into six funding methods that work well for seasonal businesses.

How to use seasonal financing.

Whether you're gearing up for opening day or navigating a mid-season rush, seasonal financing can be a powerful tool to keep your business operating smoothly year-round. 

Here are a few smart ways to put seasonal financing to work:

• Hire extra help to serve more customers during peak periods.
• Stock up on inventory before the season starts, or replenish mid-season to meet demand.
• Purchase equipment or make repairs to keep operations efficient.
• Launch marketing campaigns to build buzz ahead of your busy season.
• Cover cash flow gaps when income is delayed but expenses can’t wait.

6 financing methods for seasonal businesses.

1. Term loan.

A business term loan gives you a lump sum of capital that you repay over a set period—typically with predictable, fixed payments. It’s ideal for seasonal businesses that need funding upfront to prepare for their busy months, or bridge slower periods.

You can use a term loan to cover large expenses like equipment, inventory, marketing, or payroll. By spreading out your payments, you maintain cash flow flexibility while investing in growth. 

2. Business line of credit.

For seasonal businesses, cash needs can change quickly—and that’s where a business line of credit shines. You get approved for a set credit limit and can draw from it whenever you need funds, up to the limit.

A line of credit is especially helpful when you’re not sure how much you’ll need, or when you’ll need a financial safety net for surprise expenses. You only pay interest on the amount you borrow, making it a flexible, cost-effective option for covering instances like payroll, inventory restocks, or last-minute opportunities.

3. Accounts receivable financing.

Making strong sales doesn’t always mean you have cash on hand. If your customers take 30, 60, or even 90 days to pay, you could be stuck waiting on income you need right now.

That’s where accounts receivable financing—also known as factoring—can help. A factoring provider will buy your outstanding invoices and give you an advance (usually 80-95% of their value), then collect payment from your customers. Once paid, they’ll send you the remainder minus any fees.

Sometimes less money today is more valuable than more money tomorrow. If business is booming but your cash is tied up in accounts receivables, this can be a great way to get you the money you need to fund your busy season.

4. Revenue-based financing.

Revenue-based financing (RBF)—sometimes called business or merchant cash advance—provides a lump sum of capital that you repay as a percentage of your daily or weekly sales. That means your payments flex with your business—higher during the busy season, lower during the off-season. 

While this model can offer convenience and fast access to funds, it often comes with higher fees and less transparent terms than traditional financing options. Plus, lenders typically evaluate your recent revenue history, which could impact the accuracy of your true seasonal earning potential assessment.

RBF can be helpful in a pinch, but it’s best used after other options have been examined.

5. Small business credit card.

A business credit card can be a helpful tool for managing day-to-day expenses—like restocking supplies, covering minor repairs, or handling last-minute overtime costs. It functions similarly to a line of credit, offering revolving access to funds with flexible repayment.

Some cards come with generous credit limits (up to $50,000 or more), but they also tend to carry higher interest rates. It’s important to use credit cards strategically and aim to pay off the balance in full each month to avoid costly interest charges.

6. Equipment financing

The right equipment can make or break your peak season. Whether it’s a new register to speed up checkouts, a truck to expand deliveries, or a new espresso machine to handle morning rushes, investing in equipment can help you serve more customers and boost revenue.

Equipment financing is one way to spread out the cost of these purchases over time. In some cases, the equipment itself acts as collateral for the loan, making it easier to qualify without putting up additional assets.

An extra cash register or blender can help you process customers faster, helping you make more sales and capitalize on the peak season. More sales now is worth the monthly expense, especially since you'll own the new piece of equipment moving forward and can sell it at a later point if necessary.

Capitalize on peak season.

When you’re running a seasonal business, timing is everything. With the right financing in place, you can stock up, staff up, and step into your busy season with confidence. Whether you’re preparing months in advance or navigating a mid-season surprise, funding can give you the flexibility to perform at your best.

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Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

Running a business means staying ready for anything—whether it’s a sudden expense, a slow sales month, or a new growth opportunity you didn’t see coming. That’s where a business line of credit comes in.

A line of credit (LOC) is a flexible funding solution that gives you access to a set amount of capital, which you can draw from as needed. Unlike a traditional loan, you don’t receive a lump sum up front. Instead, you borrow only what you need, when you need it—and repay only what you use.

This makes a line of credit ideal for:

• Bridging cash flow gaps
• Covering unexpected costs
• Investing in short-term growth initiatives

Whether you’re stocking up on seasonal inventory, managing a delay in customer payments, or launching a new marketing campaign, a line of credit gives you the flexibility to act without disrupting your cash flow.

Through QuickBooks Capital, eligible Intuit QuickBooks Online users can apply for a line of credit directly within their account—making it easier to manage both your books and your borrowing in one place.¹

Why a Business Line of Credit Works for Small Businesses

Choosing the right type of funding is critical, especially when you need flexibility. Here’s why a business line of credit is one of the most useful financial tools for small business owners.

1. Use it when you need it, repay it when you don’t.

Unlike a term loan, a line of credit gives you access to funds on demand. You can typically draw exactly what you need, when you need it, and repay early without penalties. It’s working capital, on your terms.

2. Only pay for what you use.

You’re only charged interest on the portion you borrow—not your total approved limit. That makes a line of credit more cost-effective than taking out a lump sum loan when you’re unsure how much funding you’ll actually need.

3. Bridge short-term cash flow gaps.

Use a line of credit to smooth over delayed customer payments, cover unexpected repairs, or handle months with three payrolls. It’s ideal for the “in-between” expenses that don’t warrant a full loan, but can’t go on a credit card.

4. Fuel business growth without delay.

Whether you’re launching a new marketing campaign, hiring seasonal help, or taking on a big new client, a line of credit gives you the power to act fast without draining your reserves.

5. Separate your business and personal finances.

Keeping business expenses separate is key for accurate bookkeeping and financial planning. A dedicated business line of credit helps you draw clear lines, while building credit in your business’s name.

6. Build business credit over time.

Making on-time payments and using your credit line responsibly can help improve your business credit profile—potentially unlocking better terms and higher limits in the future.

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Did you know? QuickBooks Capital offers access to lines of credit using your QuickBooks account information. This solution is faster and easier to apply for than traditional financing options, factoring in your business performance—with no impact on your personal credit score when you apply.

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Your line of credit isn’t just for emergencies, it’s a tool

Here are six strategic ways small business owners can use their credit lines to move faster, think bigger, and grow on their own terms.

Collaborate or co-market with another business

Forming a temporary alliance, like co-hosting an event or running a joint campaign, is a smart way to reach new customers and share costs.

Use your line of credit to cover upfront expenses like design work, contract fees, or shared marketing, without dipping into your cash reserves.

Bring in expert help when it counts

Want to shake up your sales strategy, refine your pricing, or improve operations before peak season? A consultant or coach can bring fresh thinking, but often require upfront fees.

Your line of credit lets you invest in expertise when the time is right, and repay gradually.

Go after government contracts

Landing a government contract can be a game-changer, but the bidding process often requires new tools, team members, and compliance investments—long before you get paid.

A line of credit bridges that cash flow gap and positions your business to compete confidently.

Launch or scale a marketing campaign

Digital advertising, content creation, and campaign testing can be expensive—but often essential. A line of credit allows you to fund your campaign in stages, matching spend to ROI.

With a line of credit, you can launch now, then replenish as results roll in.

Expand through franchising

Franchising is a smart way to grow with lower overhead—but getting started takes time and capital. Legal, training, and marketing costs can add up quickly.

Your line of credit helps you build the foundation, without locking into a fixed loan you may not need all at once.

Fulfill a major contract without draining cash flow

Winning a big job or client is exciting, but delivering can be expensive. A line of credit gives you working capital to hire help, purchase supplies, or ramp up production—then pay it back as revenue comes in.

What to look for in a business line of credit

A business line of credit can be one of your most powerful financial tools—but only if it works the way your business does. Here are four things to look for when evaluating your options.

Business-based underwriting

Many lenders rely on your personal credit score. Look for a provider that evaluates your business’s actual performance, like revenue trends, transaction history and cash flow.

Speed and simplicity

The application process shouldn’t take days. A modern line of credit should offer a quick, online application, fast approval decisions, and access to funds in a day or two—if not faster.

Flexibility without surprises

Look for a lender that offers clear terms, no hidden fees, and the freedom to draw only what you need. Bonus points if you can repay early without penalty!

Integration with your financial tools

Your line of credit should work with—not against—your financial systems. When your funding lives in the same ecosystem as your bookkeeping, forecasting, and reporting, everything gets easier.

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If you’re a small business owner looking for funding that you don’t have to repay later, you might be wondering whether SBA grants are the answer. While most entrepreneurs are familiar with SBA loans, not everyone knows that the U.S. Small Business Administration also offers grants to small businesses. Yet although SBA grants represent an attractive source of business funding, these federal grant opportunities are often difficult to access due to competition and strict eligibility requirements. 

This guide breaks down how SBA grants work, who qualifies, and the top funding programs currently available. You’ll also find guidance on how to apply, additional funding options if you don’t qualify, and answers to some of the most frequently asked questions about federal small business grants. 

What is an SBA Grant?

An SBA grant is a type of federal funding that’s available through the U.S. Small Business Administration. Unlike SBA loans—which lenders issue and businesses must pay back over time with interest—you don’t have to repay SBA grant funds. However, SBA grants are less flexible than loans and are only available to eligible organizations that must use the funds for specific projects which align with the SBA’s mission. 

In general, SBA grants don’t fund general business expenses or startups. The typical purpose of these grants is to support organizations and programs that help small businesses thrive—such as educational institutions, nonprofits, community organizations, and scientific research and development efforts.

Who is eligible for SBA grants?

SBA grants aren’t available to most individual business owners. Eligible grant applicants usually include:

• Nonprofit organizations
• Universities and colleges
• SBA resource partners (like SCORE and Small Business Development Centers)
• Community-based organizations supporting underserved business owners
• Small businesses conducting qualified scientific or technical R&D
  
  

Of course, each grant features its own eligibility rules. To qualify, your organization must meet specific requirements that may include the community your business serves, your mission, the proposed project, etc.

Types of SBA Grants

Although the SBA doesn’t offer grants for general business operations, the federal agency does offer support through a variety of specialized grant programs to promote innovation, manufacturing, and entrepreneurship for eligible small businesses and organizations throughout the United States. Below are some of the key SBA grant opportunities available at this time.

1. Manufacturing grants

Empower to Grow (E2G) Manufacturing in America Grant

As part of the new (as of April 2025) Made in America Manufacturing Initiative, this new grant provides funding support for small manufacturing businesses and nonprofit organizations. Eligible recipients can receive up to $1.1 million for technical assistance and workforce development in key industries like steel, timber, aluminum, and energy. 

2. Research and development grants

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs

These highly competitive federal grant programs fund small businesses in technology and scientific research and development (R&D)—provided those companies show strong potential for commercialization. They’re ideal for startups and tech firms that are developing innovative products and services. The SBA distributes these grants, alongside 11 federal agencies, and invests around $4 billion per year.  

3. Grants for community organizations supporting small business 

The SBA offers grant funding to mission-driven organizations so they can provide education, training, and other resources to small business owners, especially underserved groups. Below are some examples of SBA grants for community organizations.

Organizations supporting veteran-owned businesses

• Boots to Business (B2B): Boots to Business is a free entrepreneurial training program for active duty service members, veterans, and military spouses. The program empowers eligible participants with skills and resources to start and manage successful businesses. 
• Service-Disabled Veteran Entrepreneurship Training Program (SDVETP): Veterans who are injured in the line of duty have access to several SBA resources to support startups and existing businesses. The SDVETP program features training programs for entrepreneurs through Oklahoma State University, St. Joseph’s University, Warrior Rising, and the Veteran Entrepreneurial Training & Resource Network. 
• Veterans Business Outreach Centers (VBOC): The VBOC offers no-cost entrepreneurial development services to eligible service members, veterans, military spouses, and family members who want to start or grow a small business. There are 31 locations nationwide that provide free business development services to eligible participants.
• Veteran Federal Procurement Entrepreneur Training Program (VFPETP): This training program teaches eligible veterans how to secure and manage federal job contracts. Since 2010, graduates of the program have received over $41 billion dollars in federal prime contract awards. 
• Women Veteran Entrepreneurship Training Program (WVETP): Women veterans and service members have access to targeted entrepreneurship training programs through institutions like Syracuse University, Utah Veteran Business Resource Center, and ONABEN.

4. Grants for organizations supporting innovation

• Federal and State Technology (FAST) Program: The FAST Program provides funding to groups that support small businesses in the scientific and technological R&D space that are applying for federal innovation grants (like SBIR and STTR). FAST grants may help with proposal preparation, team development, and the eventual commercialization of new technology. 

5. SBA resource partner grants

The following grants fund SBA-backed organizations that support entrepreneurs.

• SCORE: SCORE is a non-profit organization that receives funding from the SBA and offers free mentoring and business education to small businesses. Current recipients of the SBA SCORE Award can apply for this grant opportunity. For-profit businesses are ineligible. 
• Small Business Development Centers (SBDCs): Specific funding is available for SBDCs in Northeast California and Pennsylvania to help fill critical vacancies in those areas. 
• Portable Assistance Program: Funding is available for regions facing economic hardship due to a business or government facility closing or downsizing. The goal of this grant is to encourage small business success through technical assistance supporting job creation, employee retention, access to capital, etc.

6. Program for Investors in Microentrepreneurs (PRIME)

The PRIME program is a competitive federal grant for eligible low-income nonprofit organizations and microenterprises (typically with fewer than five employees). PRIME grant recipients are often microenterprise development organizations (MDOs) and similar organizations that use the funds to provide training and technical support to other small businesses—including low-income entrepreneurs who lack access to conventional loans, equity, and other banking services. 

How to apply for an SBA grant

Applying for an SBA grant takes time and planning. If you believe your small business or nonprofit organization may be eligible for an SBA grant, here’s a step-by-step guide to help you start the process.

1. Search for grants. Visit SBA.gov and Grants.gov to look for active opportunities that seem like a good fit for your business or organization.
2. Review eligibility criteria. Make sure your organization qualifies before you spend time filling out an SBA grant application.
3. Register your organization. Typically you need to register your business with the federal government (SAM.gov) to apply for federal grants.
4. Complete the grant application. Applications often require a detailed project proposal, business plan, budget, and supporting documentation. Follow the instructions and be sure to submit a complete application without skipping any steps.
5. Meet the application deadline. Submit your grant application before the deadline since late or incomplete applications are typically disqualified.

SBA grants are highly competitive. So, it may be wise to consult with grant writing experts or review previously funded proposals for additional insight if possible.

Additional resources for small business funding

If your business isn’t eligible for an SBA grant, or if you’re looking for faster, more flexible funding, there are alternative options to explore. Below are several additional business funding resources to consider.

Non-grant SBA funding opportunities

• SBA Microloans: Borrow up to $50,000 for working capital, inventory, equipment, and other eligible business expenses.
• SBA 7(a) Loans: Receive up to $5 million for real estate, working capital, furniture, and business supplies. 
• SBA 504 Loans: Borrow up to $5 million for fixed assets like land and buildings. (Up to $5.5 million is available for eligible energy projects.)

Other business funding opportunities

• Minority small business grants: Minority entrepreneurs, who often face additional barriers, can apply for grant opportunities for startups and existing businesses.
• Women-owned business grants: Small business grants for women offer funding to help start or grow women-owned businesses—companies that often receive far less access to capital compared to male-owned enterprises.
• Online business loans: These flexible funding solutions provide capital for startups and established businesses to support a wide variety of business financing needs.

Final thoughts

SBA grants offer key support for nonprofits, educators, researchers, and community partners who help America’s small businesses succeed. These federal grant programs can be a powerful tool for driving innovation and expanding entrepreneurship throughout the country.

If your business doesn’t qualify for this type of funding, don’t be discouraged. There are many other funding paths to explore. You can research other business grants or financing options to help launch or expand your business. The right capital at the right time can make all the difference in growing your business sustainably both now and in the years to come.

Running a restaurant is a labor of love, but it’s also one of the most capital-intensive businesses there is.

From equipment and inventory, to leasing a storefront or expanding into a second location, having access to reliable funding can make or break your growth.

The Small Business Administration provides restaurant owners with affordable ways to secure the capital they need to launch, expand, or stabilize their operations.

In this guide, we’ll walk you through SBA loan options for restaurants, so you can find the ideal funding option to start, expand, or sustain your business.

SBA loans for restaurants

Two SBA loan programs stand out for restaurant owners:

SBA 7(a) loans because they offer flexible funding that can be used for working capital, equipment, inventory, renovations—or even buying an existing restaurant.

• Loan amount: Up to $5 million
• Terms: Up to 10 years for working capital and equipment; up to 25 years for real estate
• Interest: Variable or fixed, typically prime + 2–3%

SBA 504 loans because they’re built for big-ticket purchases like commercial real estate or large equipment upgrades, while offering long repayment terms and fixed rates.

• Loan amount: Up to $5.5 million (often more for energy-efficient projects)
• Terms: 10, 20, or 25 years
• Structure: 50% bank loan, 40% SBA-backed loan, 10% borrower contribution
• Interest: Fixed, often below market rates

Each program comes with its own advantages. The key is knowing which loan type fits your exact goals, and what you need to do to put them to work.

Pros and cons of SBA loans for restaurant owners

Why restaurant owners like SBA loans

1. Access to working capital:

Whether you're covering payroll, stocking up on inventory, or managing a seasonal lull, 7(a) loans offer flexible funding that you can put to work fast—with as much going towards working capital as you need.

2. Favorable interest rates and terms:

Because SBA loans are partially guaranteed by the government, lenders can offer lower rates and longer repayment terms than many traditional loans.

3. Support for real estate and equipment purchases:

Need to buy a building or invest in a new kitchen line? The SBA 504 loan is designed specifically for major fixed assets.

What to watch for

1. Slower approval processes:

Compared to online lenders or revenue-based financing, SBA loans can take longer to process—typically 30 to 90 days, depending on your documentation.

2. Heavy documentation:

You’ll need to provide business financials, a plan for the funds, and personal financials. It’ll never be one-click lending.

3. May require collateral or personal guarantees:

Especially for larger loans, lenders may want additional security. It’s something you should be prepared for. Sometimes that requires you to put up personal collateral along with your business.

Which SBA loan makes sense for your restaurant?

Not every restaurant needs a million-dollar renovation. Some just need new fryers. Others are scaling across state lines.

Whatever the case may be, the right SBA loan depends on your stage, your strategy, and how fast you need to move.

Consider the guidance below.

Working capital

Best fit: SBA 7(a)

If you need breathing room between payroll and vendor invoices, SBA 7(a) loans will be your best bet.

The SBA 7(a) loan is a fit here because it allows for unrestricted working capital use (within the flexible terms mentioned above of up to $5 million in funding and repayment terms up to 10 years).

It gives you time to stabilize cash flow without choking your margins.

Real estate purchase, Improvement, or Build

Best fit: SBA 504

If you're planning to buy your building, renovate a commercial space, or build a new location, the SBA 504 loan is what you’ll need.

The 504 loan offers long-term, fixed-rate financing (up to $5.5 million, with repayment terms of 10, 20, or 25 years).

It typically requires just 10% down from the borrower, which makes it easier to preserve working capital while investing in property you’ll own and control.

To get a 504 loan, you’ll need to occupy at least 51% of the property.

Equipment purchase

Best fit: SBA 7(a) or 504

From commercial ovens and refrigeration systems to POS terminals and kitchen hoods, restaurant equipment doesn’t come cheap.

Depending on where you fall on the matrix of time urgency to size of need, you can turn to either 7(a) loans or 504 loans.

If your needs are under $500K or tied to other expenses like working capital, the SBA 7(a) loan provides faster, more flexible funding.

For large-scale or long-life equipment, the SBA 504 offers better fixed rates and extended repayment terms—letting you finance major upgrades without depleting your short-term cash flow.

Inventory purchase

Best fit: SBA 7(a)

You never want to be strapped down at the liberty of your capital when prepping for holidays or seasonal peaks.

The SBA 7(a) loan is the best fit here because it allows for working capital use—including inventory—under the favorable terms we mentioned earlier (up to $5 million in funding and 10-year repayment timelines).

It’s a flexible, low-cost way to keep your shelves stocked and your kitchen moving no matter what.

Furniture or fixture upgrades

Best fit: SBA 7(a)

Need to upgrade your dining room, invest in new booths, or improve your outdoor seating? These improvements often don’t qualify as fixed assets.

The SBA 7(a) loan covers furniture, fixtures, and other soft costs that traditional loans (and 504 loans) may not, and with more favorable terms than other loans that do.

It gives you up to 10 years to repay and the freedom to bundle these upgrades with other expenses like marketing, hiring, or signage.

Expansion (adding a new location)

Best fit: SBA 7(a) or 504

Opening a second (third, fourth, etc.) location is a major milestone, but also a major expense.

The SBA 7(a) loan is ideal if you’re leasing a new space and need flexible capital for improvements, equipment, staffing, marketing, and other launch costs.

If you're buying property as part of the expansion, SBA 504 loans offer longer terms, lower down payments, and fixed-rate financing that protects your cash flow as you grow. As previously mentioned, 504 loans can be used specifically for purchasing real estate.

Buying a restaurant

Best fit: SBA 7(a)

Acquiring an existing restaurant can be a faster route to profitability, but it requires upfront capital and a lender that understands your business model well.

SBA 7(a) loans support full business acquisitions, including goodwill, equipment, and real estate (if applicable).

It’s one of the few programs designed specifically to help entrepreneurs buy an existing business without needing a massive injection of equity.

Using SBA loans to grow your restaurant

The restaurant industry isn’t easy—but the right financing can make life a lot easier for you, and a lot more pleasant for your diners.

SBA loans offer a rare combination of affordability, flexibility, and support. Whether you’re opening your doors or leveling up existing operations, knowing your options is the first step.

Need help finding the right SBA lender—or figuring out what you qualify for? Lendio can help. One application, multiple offers, no guesswork.

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The U.S. Small Business Administration (SBA) opens the door to a wide range of opportunities for women looking to launch, grow, or strengthen their businesses. 

Whether you're seeking startup capital, expansion funding, or access to government contracts, the SBA offers programs, partnerships, and loan options designed to help women move forward with confidence.

From funding programs like SBA 7(a) and microloans to specialized initiatives that support women-owned businesses in federal contracting, the SBA can serve as a powerful springboard for female entrepreneurs ready to start and scale their businesses.

Women-owned businesses are one of the fastest-growing and most dynamic forces in the U.S. economy. Here, we’ll take a look at how you can get access to capital, as well as how you can connect to a larger ecosystem of support, education, and long-term growth.

Types of SBA Loans for Women Entrepreneurs

Women business owners have access to the full suite of SBA loan programs. 

These loans are designed to support small businesses at various stages—whether you're starting out, expanding operations, or investing in long-term assets.

SBA 7(a) Loan Program

The SBA 7(a) loan is the most popular and versatile SBA program. It's commonly used for working capital, equipment purchases, inventory, hiring, refinancing existing debt, or even buying a business.

• Loan amounts: Up to $5 million
• Repayment terms: Up to 10 years for working capital, up to 25 years for real estate
• Interest rates: Competitive, partially backed by the SBA
• Best for: Established businesses looking for flexibility in how they use funds

SBA Microloan Program

Microloans are smaller loans often distributed by nonprofit community lenders, many of which focus specifically on underserved or underrepresented groups—including women.

• Loan amounts: Up to $50,000
• Average loan size: ~$13,000
• Best for: Startups, early-stage businesses, or entrepreneurs with limited credit history
• Additional perks: Lenders often provide business training or mentorship alongside financing

SBA 504 Loan Program

The 504 loan is ideal for businesses making large investments in fixed assets—like buying commercial property, renovating a facility, or purchasing major equipment.

• Loan amounts: Up to $5.5 million
• Terms: 10, 20, or 25 years
• Best for: Businesses planning long-term investments in infrastructure or expansion

To recap, here’s a comparison chart of each SBA loan feature. For more information on each loan feature, visit the guides linked below! 

Unique Loan and Grant Opportunities for Female Entrepreneurs

In addition to SBA loans, women entrepreneurs can benefit from alternative funding sources that cater specifically to women-owned or minority-owned businesses, including SBA grants.

CDFIs and Nonprofit Microlenders

Community Development Financial Institutions (CDFIs) are local lenders that prioritize underserved entrepreneurs. 

Many provide microloans, business coaching, and flexible underwriting that makes funding more accessible for women-owned businesses.

Examples include:

• Accion Opportunity Fund – A national lender supporting women, minority, and low-to-moderate-income entrepreneurs with loans and mentoring.
• Grameen America – Offers group-based microloans to women in low-income communities across major U.S. cities.
• LiftFund – Based in Texas and serving the Southeast, LiftFund provides microloans and SBA options for women and minority founders.
• Women’s Economic Ventures (WEV) – A California-based nonprofit offering up to $50,000 in small business loans and robust business training programs.

Women’s Business Centers (WBCs)

WBCs are SBA-funded resource hubs that provide free or low-cost business advising, training, and access to capital—all tailored to the needs of women entrepreneurs.

Notable centers include:

• Renaissance Entrepreneurship Center (CA) – Serving the Bay Area with workshops, mentorship, and financing support.
• Women’s Business Development Center (IL) – One of the largest WBCs, based in Chicago, offering certification help, loan readiness, and bilingual programming.
• The Catalyst Center (AL) – Supporting women- and minority-owned businesses in the Southeast through education, coaching, and capital access.

You can find your nearest Women’s Business Center using the SBA’s WBC locator tool.

Grants and Private Programs

Although harder to get, grants offer another option—especially for women-led ventures focused on innovation or impact. 

Grants don’t require repayment, but they’re often very competitive and come with specific eligibility requirements.

Well-known grant programs for women entrepreneurs include:

• Amber Grant: Offers $10,000 monthly grants to women-owned businesses across industries.
• Tory Burch Foundation Fellows Program: Provides a $5,000 grant and fellowship for early-stage, mission-driven women entrepreneurs.
• Cartier Women’s Initiative: Awards up to $100,000 to women-led, socially impactful businesses worldwide.

Many states and cities offer local or regional grants for women-owned businesses through economic development programs.

Your local Women’s Business Center (WBC) or Small Business Development Center (SBDC) can help you identify grant opportunities in your area.

SBA Programs & Certifications for Women-Owned Businesses

These programs don't provide direct loans—but they significantly expand the opportunities and advantages available to women-owned businesses through training, certification, and access to government contracts.

WOSB Federal Contracting Program

The Women-Owned Small Business (WOSB) Federal Contracting Program helps women gain access to government contracts in industries where women have been historically underrepresented.

• What it does: Sets aside specific federal contracts for certified WOSBs
• Eligibility: At least 51% women-owned and controlled; U.S. citizens
• Certification: Apply via wosb.certify.sba.gov

This program opens the door to millions in federal spending across sectors like construction, cybersecurity, staffing, and professional services.

8(a) Business Development Program

Designed for socially and economically disadvantaged entrepreneurs, the 8(a) program offers support through mentorship, government contracting assistance, and access to business development resources.

• Length: 9-year program
• Benefits: Sole-source government contracts, networking, and training
• Eligibility: Business must be at least 51% owned by an individual who is both socially and economically disadvantaged. Many women qualify.

SBA’s Ascent Learning Platform

Ascent is a free, SBA-backed digital learning platform built specifically for women entrepreneurs. It includes in-depth modules on:

• Financial strategy
• Scaling operations
• Marketing and branding
• Goal setting

Ideal for business owners who want self-paced training or additional prep before applying for funding.

National Women’s Business Council (NWBC)

The NWBC is an independent federal advisory council that conducts research and advocates for policy that supports women in business. 

While it doesn't offer funding directly, it's a valuable resource for understanding national trends and tapping into the broader network of women-led enterprises.

Navigating SBA Resources as a Woman Entrepreneur

Getting funding is about making strategic use of the resources available to you. So, as you move forward:

• Use support programs strategically – for example, combine a microloan with free advising from a WBC or pair a 7(a) loan with WOSB certification.
• Know your numbers – have a business plan, revenue projections, and clear credit profile before you apply.
• Leverage local resources – WBCs, SCORE mentors, and SBA district offices can help you prep for applications and certifications.
• Apply through multiple channels – Lendio allows you to compare SBA loan offers from multiple lenders with one application.

With the right strategy and support, the funding you need to grow your business is well within reach.

Whether you’re a seasoned investor or a novice entrepreneur, commercial real estate rates will always be a focal point guiding your investment decisions.

This article will simplify commercial mortgage rates, shedding light on key points of consideration and practical strategies to optimize your investments.

Current commercial real estate rates.

As of July 2025, we're seeing rates that range from about 5.3% to 15%, depending on the asset type and specific circumstances of the loan.

Key elements of commercial real estate rates.

Commercial mortgage rates are determined based on a combination of market factors, property-specific factors, the stance of the lender and borrower, and the loan structure.

Market conditions

Overall market conditions play a role in determining commercial real estate rates. Several macroeconomic factors contribute to rate fluctuations.

Economic factors

Commercial mortgage rates are influenced by broader economic conditions, such as inflation, economic growth, and the overall health of the economy.

Interest rates

The general level of interest rates in the economy—often indicated by benchmark rates such as the prime rate, LIBOR (London Interbank Offered Rate), or the U.S. Treasury yields—can impact the rates offered by lenders.

It's important for borrowers to carefully consider these factors and work with lenders to secure the most favorable terms, based on their financial situation and the specific details of the commercial property transaction.

Property-specific factors

The nature of the property itself will significantly impact mortgage rates, namely property type and location will also impact your final rate.

Property type

Different types of commercial properties may have varying risk profiles, affecting the interest rates. For example, rates for office spaces might differ from those for industrial properties.

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Location

The location of the property can impact rates. Properties in high-demand or economically thriving areas may have lower rates compared to those in less desirable locations.

Borrower's creditworthiness

Your creditworthiness and general financial situation will impact your rate.

Credit score

The creditworthiness of the borrower is a crucial factor. Lenders assess the borrower's credit history, financial stability, and debt-to-income ratio to determine the risk associated with the loan.

Business financials

Lenders may also evaluate the financial health and performance of the business occupying the commercial property.

Loan-to-value (LTV) ratio

The loan-to-value (LTV) ratio is the percentage of the property’s value that you’re looking to finance with the loan.

If you’re looking for a high LTV ratio, it means you’re seeking to borrow a larger portion of the property’s value, which could present a higher risk to the lender. Because of this increased risk, you may find that higher LTV ratios are typically accompanied by higher commercial mortgage rates.

Loan term and amortization period

Rates will also vary based on the length of the loan and the repayment schedule.

Loan term

The length of the loan term can influence the interest rate. Shorter-term loans may have lower rates but higher monthly payments, while longer-term loans might have slightly higher rates but lower monthly payments.

Amortization period

The time it takes to repay the loan (i.e. the amortization period) can also impact the interest rate. A longer amortization period may result in a higher overall interest cost.

Lender's policies and competition

Every lender's rates are impacted by its investment portfolio and competition.

Lender policies

Each lender may have its own criteria and policies, impacting the rates they offer. Some lenders may specialize in certain property types or industries.

Competition

The competitive landscape among lenders can affect rates. Borrowers may get more favorable rates if lenders are competing for their business.

Fixed vs. variable rates

Commercial mortgage rates can be fixed (i.e. unchanging throughout the loan term) or variable (i.e. fluctuating based on market conditions). Fixed rates provide stability, while variable rates may offer initial cost savings but involve more risk. Borrowers should choose the type of rate that aligns with their financial goals and risk tolerance.

SBA 504 loan rates: An option for small businesses.

For entrepreneurs seeking to finance major fixed assets like real estate or equipment, the Small Business Administration's (SBA) 504 loan can be a great option. The SBA 504 loan is known for its competitive and predictable rates, making it a popular choice among borrowers.

Fixed-rate loans under this program are tied to U.S. Treasury bonds, which typically carry some of the market's best rates.

• The rates for SBA 504 loans are set when the SBA sells the bond to fund the loan. This means borrowers can lock in a low, long-term fixed rate, protecting their business from future interest rate increases. The 10-year Treasury rate as of July 20, 2025 is around 4.4%.

It's also essential to understand that SBA 504 loan rates include two different loans—one from a Certified Development Company (CDC) and one from a bank or other financial institution.

• The CDC loan, which covers up to 40% of the total project cost, has a fixed interest rate.
• In contrast, the bank loan, covering 50% or more of the total project cost, can have a variable or fixed rate, depending on the specifics of the agreement.

Remember, despite these attractive rates, it's important to consider all aspects of your financial situation and business goals before deciding on a loan product. Consult with financial professionals to make sure you're making the best choice for your business.

Wrapping up

By familiarizing yourself with the primary elements that influence these rates, and keeping an eye on current market conditions, you’re already on the right path.

Whether you're considering a traditional commercial mortgage or exploring options like the SBA 504 loan, remember that the best choice will depend on your unique financial situation and business goals.

Your small business has limited or no financial history, and you find yourself needing a business loan. With no tax returns on-hand and limited paperwork, what are your options?

As you might imagine, this is a very common question for entrepreneurs and new small business owners. The good news is that there are options.

Here, we’ll walk you through no-doc business loans, as well as some other alternative options that don’t require tax returns, and what you do need to qualify for them.

First off, can I get a business loan without tax returns?

Yes, you can. Many lenders offer business loans without requiring tax returns, typically referred to as no-doc business loans or low-doc business loans (meaning no or low documentation).

Traditional banks often require extensive documentation and financial history. Online and alternative lenders are making it easier to secure funding with minimal paperwork.

If you’re looking for a no-doc business loan, you’re probably in one of the following categories:

• Startup without tax history
• Small business owner with no/fluctuating income
• Entrepreneur prioritizing fast access to funds (regardless of tax history)

What are no-doc business loans?

A no-doc business loan is a type of financing that doesn’t require traditional financial statements like tax returns, profit and loss statements, or detailed revenue reports.

Instead, lenders evaluate eligibility with more day-to-day items, like bank statements, credit scores, merchant transactions, and invoices (both incoming and outgoing).

How do no-doc loans work?

Unlike traditional business loans, no-doc loans prioritize speed and accessibility. They’re typically offered by online or alternative lenders, and less so from traditional banks.

Instead of tax returns, lenders assess:

• Business bank statements (typically 3–12 months)
• Personal or business credit score
• Merchant processing statements (for businesses with credit card sales)
• Outstanding invoices (for invoice financing options)

As is the case for any alternative or fast loan options, no-doc business loans typically come with higher interest rates, lower funding amounts, and less favorable repayment terms. 

Personal and business credit scores, the steadiness of your business (revenue and spending), and collateral will typically be the biggest determinants of the terms you qualify for.

No-doc business loan options

As discussed above, no-doc loan options don’t require the same level of paperwork as traditional loans.

Most no-doc lenders still require business bank statements, credit scores, outstanding invoices, and proof of ownership (business info like EIN, entity type) and a voided check.

No-doc loans do not require:

• Tax returns
• (Some) Financial statements
• Business plans
• Personal collateral

1. Revenue-based financing (Business cash advance / Merchant cash advance)

Outside of specific no-doc loans, you still have a selection of options that won’t require a tax return. A business cash advance, for example, is an advance based on the future sales of your business.

How does it work?

A lender provides a lump sum upfront. For business cash advances, daily or weekly repayments are determined based on your cash flow. With MCAs, repayment is based on a percentage of your daily credit card transactions. Because repayment is based on sales, it’s a good option for business with strong, steady revenue.

Want to learn more? Read about your options for revenue-based financing.

When you shouldn’t use a business cash advance:

1. If you have tight profit margins. Repayments come daily/weekly, which can drain cash fast.
2. If you’re not as familiar with factor rates - these rates are expressed differently than typical interest rates and require some additional calculation to understand the total cost of your loan.
3. If you’re looking for long-term growth capital. Cash advances are for short-term growth, not strategic scaling.

2. Business lines of credit

A business line of credit works like a personal credit card, allowing small businesses to draw funds as needed up to a set limit. Unlike traditional loans, a line of credit is not delivered as a lump sum, but can be accessed as needed at any time (so long as the amount stays within the credit limit).

A business line of credit serves as a great safety net for different types of small businesses.

When you shouldn’t use a business line of credit:

1. If your startup is brand new. Lenders typically want 6–12+ months in business.
2. If you need a lump sum of cash upfront.
3. If you need money yesterday. LOC approvals can take a few days.

3. Invoice financing & factoring

Invoice factoring allows businesses to get an advance on unpaid invoices.

Lenders front a percentage of the invoice amount, giving small businesses access to immediate capital, instead of having to wait for customers to pay in-full. Repayment happens when the customer pays their invoice.

When you shouldn’t use invoice factoring:

1. If you don’t have invoices to factor (i.e. consumer retail, restaurants, etc.)
2. If you have low-margin invoices. Factoring fees can eat into profits.
3. If you don’t want clients to know you’re factoring (some lenders notify your customers during the process).

4. Short-term business loans

Short-term small business loans give you access to a lump sum upfront, with fixed repayment over a short period (usually 3 to 24 months, though sometimes up to 36).

Payments are daily, weekly, or monthly, depending on your terms. Like no-doc business loans, short-term loans require little documentation, but come with higher interest rates compared to traditional loans.

When you shouldn’t look for a short-term business loan:

1. If you have tight cash flow. Daily or weekly repayments can get rough fast
2. If you’re looking for long-term, low-cost funding. You’ll get a better deal with SBA or term loans.
3. If you don’t have revenue. You likely won’t qualify.

Feature comparison of small business loans that don't require tax returns

Qualifying for a no-doc business loan

Even without tax returns, lenders still need to evaluate the financial health of your business. So, even if you’re looking for a no-doc or low-doc business loan option, you should still be prepared with:

• A Strong Credit Score: No-doc lenders often rely heavily on personal or business credit scores.
• Bank Statements: Demonstrating steady cash flow helps prove repayment ability.
• Proof of Revenue: Alternative documentation, like merchant account statements or invoices, can replace tax returns.‍
• Collateral (Optional): Some lenders offer secured no-doc loans if you can provide business assets as collateral, which will help you qualify for more favorable terms.

Explore your options

Not having tax returns shouldn’t stop you from securing the funding your business needs. By exploring alternative financing options like no-doc loans, BCAs, and short-term loans, you can find something that works for you, and works for you now.

If you’re ready to explore your options, Lendio can connect you with lenders offering business loans without tax returns. Get started today!

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