For a Latino-owned business that wants financing with scheduled payments, the best options are: Merchant Fund Express, our recommended funder, if you want Spanish-speaking support and a fast decision based on your sales; the SBA 7(a) loan if every owner is a U.S. citizen or national and you want the lowest cost; Lendistry's term loan if your FICO is 620 or higher; Accion Opportunity Fund if you've been open two years, sell $300,000 or more, and want coaching in Spanish; and the SBA microloan if you need up to $50,000.
Being Latino doesn't change a loan's requirements, but the immigration status of a business's owners does change which programs are open. That's the single biggest difference in 2026, and we break it down below.
Key takeaways
- A term loan gives you a lump sum that you repay in installments over a set period.
- Since March 1, 2026, SBA 7(a) requires 100% of owners to be U.S. citizens or nationals.
- Accion Opportunity Fund offers coaching in English and Spanish and lends up to $250,000 on terms up to 36 months.
- Lendistry publishes term loans of $10,000 to $350,000, for 1 to 5 years, with a 620 minimum FICO.
- Our recommended funder offers Spanish-speaking support, accepts ITIN applicants and FICO from 500, and reviews sales and deposits.
- If you have an ITIN or a green card, check each option's owner-status rules before you apply.
How we chose these options
We measured each option on the same criteria: speed, minimum time in business, minimum credit, acceptance of ITIN, green card or no-SSN owners, documents, amounts and collateral. For this page we also looked at whether Spanish-language support is available. We don't give ratings or scores. Facts come from each option's official website, checked in October 2026; if we couldn't confirm something, we left it out. The full method is in how we rank business funding options.
If you want to understand first how a term loan works, how the installment is calculated and which terms exist, read our complete guide to business term loans.
The best term loan options for Latino-owned businesses
- Merchant Fund Express (recommended funder). It offers Spanish-speaking support and bases approval on your sales and deposits, not just your credit. It handles $5,000 to $5,000,000, accepts credit from FICO 500 and often decides in 2 to 4 hours. It accepts applicants with an ITIN (no SSN needed). In most cases collateral isn't required, and applying is free with no impact to your credit. It's the move when the bank is too slow or says no but your business sells consistently.
- SBA 7(a) loan. The best-known term loan in the U.S. and usually one of the cheapest. It goes up to $5 million. But since March 1, 2026, 100% of direct and indirect owners must be U.S. citizens or nationals whose principal residence is in the U.S. If one partner holds a green card, the business no longer qualifies.
- Lendistry. Publishes a term loan of $10,000 to $350,000, with terms of 1 to 5 years and an estimated turnaround of 3 to 7 business days. It asks for 2 years in business (or 1 year with 5 years of industry experience), a minimum FICO of 620, a personal guarantee from owners with 20% or more, and no bankruptcy, charge-off or active collections in the last 3 years.
- Accion Opportunity Fund. A nonprofit with coaching in English and Spanish. Its term loan goes up to $250,000, with terms up to 36 months and no prepayment penalty. It asks for 2 years in business, $300,000 or more in annual sales, and shareholders who are citizens or permanent residents.
- SBA microloan. Community nonprofits lend up to $50,000 with SBA funds; the average is about $13,000. Each lender sets its own requirements, and many include coaching. A solid choice for small businesses that need a first term loan.
Comparison table
| Option | Amounts | Term | Credit | Owner status | Spanish |
|---|---|---|---|---|---|
| Recommended funder | $5,000 to $5,000,000 | Depends on the offer | From FICO 500 | Accepts ITIN applicants | Yes |
| SBA 7(a) | Up to $5 million | Long term | Evaluated by the bank | 100% citizens or nationals | Depends on the bank |
| Lendistry | $10,000 to $350,000 | 1 to 5 years | 620 minimum | Not specified for this product | Not published |
| Accion Opportunity Fund | Up to $250,000 | Up to 36 months | Not published | Citizens or permanent residents | Coaching in Spanish |
| SBA microloan | Up to $50,000 | Set by the lender | Set by the lender | Set by the lender | Depends on the lender |
What changes depending on your status
This is the part that confuses Latino owners most in 2026, so let's take it step by step:
- Every owner is a U.S. citizen or national: every option on this list is open to you, including SBA 7(a).
- An owner holds a green card: since March 1, 2026 (SBA Procedural Notice 5000-876626 and SOP 50 10 8), SBA 7(a) and 504 are off the table if any owner, even with a small share, isn't a citizen or national. Accion Opportunity Fund does accept permanent residents on its term loan.
- An owner has an ITIN: the SBA is out, and several traditional lenders require an SSN. Look for funders that explicitly accept ITIN applicants, like our recommended funder, and bring your bank statements and tax returns in order. More in term loans with an ITIN.
These are lending program rules, not immigration advice. Talk to an immigration attorney about your situation before making decisions about who owns your business.
A practical point: if your business has several partners with different statuses, check how ownership is recorded in your LLC or corporate documents and on your tax returns. Funders will ask for information on every owner above a certain percentage, and those documents are what count. If the percentages don't match across documents, fix it with your accountant before you apply. Any change in who owns the business has legal and tax consequences, so don't do it just to qualify for a loan without professional advice.
How to get ready for a term loan
Plenty of Latino-owned businesses sell well but show up to the application with disorganized paperwork. These steps make the difference:
- Deposit all your sales. If you collect cash and don't deposit it, those sales don't exist to a funder.
- Report your full income. Banks and the SBA rely on your tax returns. Report little, and you'll be offered little.
- Separate your accounts. An account used only for the business makes your numbers easy to read.
- Check your personal credit and dispute errors before you apply.
- Keep your EIN and state registration current, with the business name identical on every document.
- Write down what the money is for and how it gets repaid, on one page.
Many Latino-owned businesses start with more flexible financing and, after a year or two of on-time payments and clean books, move to cheaper term loans. You don't have to be perfect the first time, but you do need a plan.
Term loan or sales-based financing?
Many owners compare a term loan with sales-based financing. The main differences:
- Cost: a bank or SBA term loan usually costs less if you qualify. Sales-based financing usually costs more, but approves faster with more flexible requirements.
- Speed: a bank loan takes weeks; sales-based financing often takes days or less.
- Requirements: the bank looks at taxes, credit and collateral; sales-based funders look mostly at your deposits.
- Payments: a term loan is usually monthly; sales-based financing may be daily or weekly.
If you qualify for an SBA loan and can wait, it's usually your best deal. If you don't qualify because of status, time in business or credit, or the opportunity won't wait, sales-based financing is a valid tool as long as the payment fits your cash flow. To see every route, check the best business loans for Latino-owned businesses.
Which one fits your situation
- You want Spanish-speaking support and a fast answer: Merchant Fund Express. Apply for free without affecting your credit.
- Every owner is a citizen and you can wait: SBA 7(a).
- You have a 620+ FICO and 2 years in business: Lendistry.
- You sell $300,000+ a year and want coaching in Spanish: Accion Opportunity Fund.
- You need up to $50,000 to grow: an SBA microloan.
Frequently asked questions
Are there special term loans for Latino business owners?
Loan requirements don't change because you're Latino. What does exist are organizations with Spanish-language service and experience with Latino-owned businesses, such as Accion Opportunity Fund, and funders that serve you in your language, like our recommended funder. What really changes your options is owner status, credit and sales.
Can I get a term loan with an ITIN?
It's harder, but there are options. The SBA is no longer available if any owner isn't a U.S. citizen or national, and many banks require an SSN. Look for funders that explicitly accept ITIN applicants and bring organized bank statements and tax returns. For questions about your status, talk to an immigration attorney.
Can a green card holder get an SBA loan?
Not a 7(a) or 504 anymore. Since March 1, 2026, 100% of direct and indirect owners must be U.S. citizens or nationals with their principal residence in the U.S. Accion Opportunity Fund does accept permanent residents on its term loan, and some private funders focus mainly on your sales.
How long do I need to be in business for a term loan?
It varies. Accion Opportunity Fund asks for 2 years; Lendistry asks for 2 years, or 1 year with 5 years of industry experience. Banks and the SBA usually want a history backed by tax returns. Microloans and sales-based financing can be more flexible with younger businesses.
Which is better, a term loan or a line of credit?
If you need a lump sum for a specific expense, like a remodel or equipment, a term loan fits better. If your needs change through the year, like seasonal inventory, a line of credit lets you draw and repay as needed. Many businesses use both.
Can I repay a term loan early?
It depends on the contract. Accion Opportunity Fund says its term loan has no prepayment penalty. Other lenders charge a penalty or don't reduce your cost if you repay early. Always ask in writing what happens if you repay ahead of schedule.