Best $25,000 Loans for New Businesses

To get $25,000 for a new business, the best options are the ones built for small amounts and short track records. If you're already selling consistently and need the money within days, Merchant Fund Express, our recommended funder, reviews your sales and deposits starting at FICO 500. If you're just getting started and can wait, an SBA microloan (up to $50,000) or a CDFI loan is usually the cheapest. If the money is for a specific piece of equipment, equipment financing is often easier to get approved.

Here are the options in order, how long each takes, what they ask for, and a plan to make your $25,000 request convincing.

The best options for $25,000, in order

How we picked. We don't use ratings or scores. We compared every option on the same criteria: speed, minimum time in business, minimum credit, whether it accepts an ITIN or owners without an SSN, documents required, amounts and collateral. We only publish details about other companies that we verified on their official sites; if we couldn't confirm it, we left it out. Read how we rank business funding options.

1. Merchant Fund Express (recommended funder). If your business is young but already selling every month, this is the option we recommend for getting $25,000 fast. It reviews sales and deposits, not just credit; funds $5,000 to $5,000,000, works with FICO 500+ and its decisions often come in 2 to 4 hours. Collateral is not required in most cases, it accepts applicants with an ITIN (no SSN needed), and applying is free with no impact to your credit.
2. SBA microloan. Per sba.gov, the program lends up to $50,000 through nonprofit community organizations, with a maximum term of seven years and rates that generally fall between 8% and 13%. It covers working capital, inventory, supplies, furniture, machinery and equipment, but not repaying existing debt or buying real estate. Many microlenders include coaching.
3. CDFI loan. Community development financial institutions are certified by the U.S. Treasury's CDFI Fund and focus on communities with limited access to credit. Several work with new businesses, owners with thin credit and, in some cases, ITIN holders. Confirm requirements with each one.
4. Equipment financing. If the $25,000 is for a work van, a machine or an oven, the equipment backs the deal. It's usually easier for a new business to get approved than a loan with no specific purpose.
5. Small SBA 7(a) loan through a bank. Some banks make small SBA loans, and Capital One states there's no time-in-business requirement on its SBA loans (per its site, checked October 2026). It takes good credit, a plan and, since March 2026, all owners being U.S. citizens or U.S. nationals.
6. Business credit card. Useful for recurring expenses while you build history, but it rarely gives you $25,000 at the start, and the rates are high if you don't pay the full balance.

Comparison by criteria

For slightly different amounts, see the best funding options under $50,000.

Where to find a microlender or CDFI. The SBA publishes a list of approved microlenders by state on sba.gov, and the Treasury's CDFI Fund publishes the list of certified institutions. Before you call, check which area each one serves, what amounts it handles and whether it offers coaching or classes for new businesses. Also ask how long its process usually takes and which documents it wants up front. Many of these organizations work with owners who've been open only a few months and have thin credit, but almost all want a simple plan, your own contribution and attendance at one or more orientation sessions. That extra time pays off if you're after the lowest cost.

What to do with $25,000: uses that convince funders

A funder doesn't lend $25,000 "for the business"; it lends for something that generates sales and that you can explain. Examples of uses that usually make sense for a new business:

• Opening or seasonal inventory for a shop, a food truck or an online store.
• Work equipment: a machine for a shop, tools for a contractor, commercial cleaning equipment.
• Deposit and build-out for a small space, if you already have customers to justify it.
• Working capital to cover payroll while you collect on your first contracts.
• Marketing with measurable return: a website, a Google Business Profile and local ads with a set budget.

What usually doesn't convince: repaying personal debts, covering months of losses with no plan to change course, or "having a cushion" with no concrete use. And if your idea needs much more than $25,000, don't force the amount: ask the right option for what the plan actually requires.

Which option fits your stage

You haven't opened yet or you've been open under three months

Without sales, revenue-based options have nothing to measure you against. Your best doors are an SBA microloan or a CDFI, with a simple plan and your own contribution. Read how to get startup funding.

You've been open three to 12 months and you're selling

More doors open here. If you have steady deposits, compare a sales-based offer with a microloan. The first is usually faster; the second, cheaper.

You've been open more than a year

Your first business tax return and your bank statements give you access to nearly every option on the list, including an SBA loan if you meet the ownership citizenship rule.

You have an ITIN

SBA 7(a) loans are now off the table for owners who aren't U.S. citizens or U.S. nationals. Look for a CDFI that accepts ITINs or a funder that reviews your deposits; Merchant Fund Express accepts ITIN applicants. This isn't immigration advice: talk to an immigration attorney about your situation.

How to prepare a $25,000 application

1. Write one page on what the money is for, what each piece costs and how it will generate sales.
2. Organize your documents: ID, EIN, business registration, licenses and business bank statements for every month you have.
3. Check your personal credit. For a new business it carries a lot of weight. Fix errors and lower your card utilization.
4. Figure out your own contribution. Many microlenders and CDFIs want to see that you're putting something in too.
5. Apply to two or three options that fit, not ten. Compare total cost, term and how you repay.
6. If you sell consistently and need speed, you can apply with Merchant Fund Express; it's free and doesn't affect your credit.

Common mistakes with small amounts

• Assuming a small amount is easy. For a bank, $25,000 costs nearly as much to process as $250,000, which is why many don't want to do it. Go straight to the lenders who do work small amounts.
• Asking for $25,000 because it's a round number. If your plan needs $18,000, ask for that. The extra only raises your payment.
• Combining several credit cards to reach the amount. It's expensive and can hurt your credit if you can't keep up with the balances.
• Choosing on speed alone. If you can wait three weeks for a cheaper microloan, sometimes it's worth it.
• Not reading the whole contract. Check for upfront fees, prepayment penalties and whether the payment is monthly, weekly or daily. A daily payment feels very different in a business that's just starting.
• Forgetting the track record. Pay this first financing on time: it's the foundation for larger, cheaper amounts later.

More ideas in the best business funding for startups. Leer en español.