Finimpact

FAQ

Can I get a startup business loan with bad credit?

People with bad credit may be able to get loans to start a business through online lenders, CDFIs, and microlenders. But you won't have many choices, and the ones you do have can be expensive. Most of the time, you'll need to have been in business for at least six months and have a credit score of at least 500 to apply.

Can I get an SBA loan with bad credit?

With bad credit you can’t get an SBA loan. Most SBA loans will only allow borrowers with 690 credit score or more. But because SBA microloans are given out by lenders who act as middlemen, the credit score requirements are less strict.

What documents are needed to apply for a bad credit business loan?

You'll need personal and/or business tax returns, copies of your business licenses and permits, proof of business registration, and the Employer Identification Number (EIN) or Federal Tax Identification Number (TIN). Most lenders also need the company plan and copies of financial statements like - the profit and loss statement, balance sheet, and cash flow statement before approving a loan.

How do you get business loans for veterans with bad credit?

The Small Business Administration (SBA) website has a Lender Match database where people who want to get loans can look for lenders.

Also, the Veterans Business Outreach Center (VBOC) Program helps veterans who want to start or grow a business by giving them a mentor, helping them make a business plan and more. Contacting a local VBOC could be great if you want to know more about funding choices and whether or not you qualify.

About the Author

Lyle Solomon

Written by: Lyle Solomon

Principal Attorney and Consumer Finance Writer

Lyle Solomon has extensive legal experience, in-depth knowledge, and experience in consumer finance and writing. He has been a member of the California State Bar since 2003. He graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, in 1998 and currently works for the Oak View...

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