Yes, you can get a business term loan with an ITIN, but rarely from a big bank. The best options are usually funders that review your deposits, CDFIs, community microlenders and some credit unions. For fast, fixed-amount capital, Merchant Fund Express is our recommended funder: it accepts applicants with an ITIN (no SSN needed), reviews sales and deposits rather than just credit, and offers Spanish-speaking support. If you want the lowest cost and can wait weeks, compare a CDFI or a microloan.
A term loan gives you a fixed amount up front that you repay in installments over a set period. Below we compare six options on clear criteria and explain how to prepare an ITIN application. This is financing information, not immigration advice; for your personal situation, talk to an immigration attorney.
Key takeaways
- A term loan gives you a fixed amount repaid in installments over a set period; it's for one-time expenses, not day-to-day costs.
- With an ITIN, the most common options are revenue-based funders, CDFIs, microlenders and credit unions.
- Per the SBA, microloans go up to $50,000, with a 7-year maximum term and rates that usually run 8% to 13%.
- Since March 2026, SBA 7(a) and 504 require all owners to be U.S. citizens or U.S. nationals.
- The IRS says an ITIN is for tax purposes only; check that yours is current before you apply.
- Compare offers in plain words: how much you get, how often you pay, for how long, and what happens if you're late.
The 6 best term loan options with an ITIN
- Merchant Fund Express (recommended funder). Best if your business has steady deposits and you need a fixed amount soon, for example for a remodel, a large order or a second location. It accepts applicants with an ITIN (no SSN needed), reviews your sales and deposits as well as credit, works with scores from FICO 500, funds $5,000 to $5,000,000, often decides in 2 to 4 hours and doesn't require collateral in most cases. Applying is free with no impact to your credit.
- CDFIs with term loans. Best if you want a moderate cost and aren't in a hurry. CDFIs are institutions certified by the U.S. Treasury to serve communities with limited access to credit. Several work with immigrant owners and ITIN holders, and many help you prepare your application.
- SBA program microlenders and community loan funds. Best for small amounts. Per the SBA, microloans go up to $50,000 (the average is around $13,000), with a 7-year maximum term and rates that usually run 8% to 13%. They're made by nonprofits that make their own credit decisions and set their own requirements, so ask directly whether they accept an ITIN. They can't be used to repay existing debt or buy real estate.
- Credit unions that work with ITINs. Best for members with a local relationship. Some credit unions open accounts and lend with an ITIN, often at lower rates than online funders. They usually require you to be a member before they lend.
- Equipment financing. Best when the money is for a machine, a van or kitchen equipment. The term matches the equipment's useful life and the equipment backs the payment, which helps when your history is short. We cover it in equipment financing with an ITIN.
- Online lenders that accept ITINs. Best if you prefer a digital process and have solid sales. Not all of them accept ITINs; check before you hand over your information, and compare the total cost carefully.
How we picked. We don't use ratings, scores or made-up statistics. We compared each option only on criteria you can verify: speed, minimum time in business, minimum credit, whether it accepts an ITIN or owners without an SSN, documents required, amounts and collateral. On this page we gave extra weight to ITIN acceptance and how clear the payments are. The full method is in how we rank business funding options.
Comparison table: term loans with an ITIN
| Option | Accepts ITIN? | Speed | Amounts | Collateral |
|---|---|---|---|---|
| Recommended funder (#1) | Yes, no SSN needed | Decisions often in 2 to 4 hours | $5,000 to $5,000,000 | Not required in most cases |
| CDFI | Several do | Weeks | Varies by institution | Varies |
| Microloan | Each microlender decides | Weeks | Up to $50,000 | Each microlender decides |
| Credit union | Some do | Weeks | Varies | Varies |
| Equipment | Depends on the funder | Days | Based on the equipment | The equipment itself |
| Online | Some do | Days | Varies | Varies |
If you have time, apply first with the lowest-cost option you qualify for, and save the fast option for when the urgency justifies it.
Why SBA 7(a) isn't on this list
The 7(a) is the SBA's best-known term loan and usually one of the cheapest. But since March 1, 2026, under Procedural Notice 5000-876626 (SOP 50 10 8), 100% of the direct and indirect owners of a business applying for a 7(a) or 504 loan must be U.S. citizens or U.S. nationals with their principal residence in the country. Not even permanent residents can hold a share. So if you're an ITIN owner, you don't qualify for these two programs today.
The rule covers 7(a) and 504. For microloans, each organization sets its own requirements, so ask directly. To compare alternatives to the SBA, read the best SBA loan alternatives.
When a term loan makes sense (and when it doesn't)
A term loan works best when the expense is one-time and the benefit lasts months or years:
- It makes sense for remodeling your space, buying equipment, opening another location, funding the deposit on a big contract or buying seasonal inventory you'll sell within weeks.
- It doesn't for expenses that repeat every week, like regular payroll or rent. For those, a line of credit or better cash-flow management makes more sense.
- Be careful about using a short term for something that takes years to pay for itself. If you're buying a van, a longer equipment-financing term usually fits better than frequent short-term payments.
A decision example: a taqueria that wants a new hood and a second flat-top grill will use that equipment for years. That's a fit for equipment financing or a longer term loan. But if the same taqueria needs to stock up for a festival weekend, the money comes back in days, and a small short-term amount or a line of credit makes more sense. The key question is always the same: how long until this expense pays me back? The loan term should look like that answer. If the loan is much shorter than the benefit, the installment squeezes you; if it's much longer, you end up paying for something that no longer earns.
To understand terms, installments and amortization, see the complete business term loan guide.
Documents you'll need with an ITIN
- Your IRS ITIN assignment letter or a tax return showing your number.
- Government photo ID, depending on what each funder accepts (a passport or consular ID card, for example).
- 3 to 6 months of business bank statements, complete and downloaded from your bank.
- Business tax returns, especially for larger amounts or longer terms.
- Business registration (LLC or DBA) and EIN.
- A use-of-funds plan: one page on what the money is for and how you'll repay it. CDFIs and microlenders value this highly.
The IRS notes that an ITIN can expire and must be renewed if you need it to file a return, and that no one can hold both an ITIN and an SSN. If you receive an SSN, stop using the ITIN, notify the IRS and update your details with your funders. To see what changes between the two numbers, read ITIN vs. SSN for business funding.
How to compare offers without falling into traps
- Get everything in writing. The amount you receive after fees, the installment, the frequency (daily, weekly or monthly), the number of payments and late fees.
- Ask about early repayment. Some loans lower your cost if you repay early and others don't. Knowing this changes the comparison a lot.
- Review the personal guarantee. Many business loans require one. Understand what it means before you sign.
- Test the installment against your worst month. If it only fits in your good months, the loan is too big.
- Be wary of pressure. No serious funder promises approval without reviewing your business or charges you to apply.
When your documents are ready, you can apply with Merchant Fund Express to see what you qualify for. It's free and doesn't affect your credit. Leer en español.
Frequently asked questions
Can I get a business term loan with an ITIN?
Yes. CDFIs, several microlenders, some credit unions and many revenue-based funders work with ITINs; our recommended funder accepts applicants with an ITIN, no SSN needed. Big banks rarely do, and SBA 7(a) and 504 currently require all owners to be U.S. citizens or U.S. nationals. Always confirm ITIN acceptance before applying.
What's the cheapest term loan with an ITIN?
In general, loans from CDFIs, credit unions and microlenders cost less than fast online options because their mission is community-focused. In exchange, they take weeks and ask for more documents. If you have time and qualify, start there; if the urgency is real, a fast option can be worth the difference.
How long do I need to be in business?
It varies. Many private funders want several months of consistent deposits; banks and some CDFIs prefer one or two years. Microlenders may support new businesses, especially if you have experience in the trade and a clear plan for how you'll repay.
Do I need collateral for a term loan with an ITIN?
It depends. In equipment financing, the equipment itself is the backing. Many revenue-based funders don't require it; our recommended funder doesn't require collateral in most cases. CDFIs and credit unions may ask for some backing depending on the amount.
What if my ITIN has expired?
Renew it before you apply. Per the IRS, you must renew an expired ITIN if you need it to file a tax return, and processing usually takes about 7 weeks, longer during tax season. An expired number can hold up identity verification on a loan application.
Can I get help in Spanish?
Merchant Fund Express offers Spanish-speaking support. Many CDFIs and credit unions that serve Latino communities also have bilingual staff; check their official sites or ask before you apply. Always ask for the contract to be explained in your language before you sign.