Free tools Windows power users keep installed
One-click scans. No signup required.
If a conventional bank loan is unavailable, first pin down how much money the business needs, when it needs it, and exactly what it will pay for. Then check whether an SBA-backed loan or microloan is realistic; consider equity or crowdfunding if repayment is a poor fit; and look for grants only when the business activity matches a specific program. None of these routes is automatic or cost-free: debt requires repayment, equity gives up ownership, and crowdfunding and grants bring their own conditions.
This guide focuses on U.S. programs and rules. An SBA-backed loan is still made by a participating lender—not directly by the SBA—and the lender must assess the business’s eligibility and ability to repay.
What can I do if my startup can’t get a bank loan?
Being turned down for a conventional loan does not, by itself, rule out every form of financing. It does mean that the next step should be to match the funding need to a route the business can actually qualify for and carry. Start with the use of funds: financing for inventory or working capital may be treated differently from a request to refinance existing debt or buy real estate.
- Define the need. Write down the amount, the date it is needed, and each intended use. Separate recurring working capital from one-time purchases such as equipment.
- Test repayment capacity. Estimate how scheduled payments would fit into cash flow, including slower sales or delayed customer payments. If a realistic forecast cannot support repayments, look at equity or other non-debt routes rather than borrowing simply because a loan is available.
- Prepare the case. Assemble a business plan, itemized expenses, cash-flow assumptions, and financial projections before approaching lenders or investors.
- Compare suitable routes. Consider eligibility, permitted uses, total cost, time to funding, collateral or guarantees, dilution, compliance obligations, and fit with the company’s stage.
The SBA recommends preparing a business plan, expense sheet, and financial projections—including five-year projections in its planning guidance. Its [business planning resources] and [loan information] can help organize the search; referrals or lender-matching tools are starting points, not promises of approval.
Recommended Free Tools
#1 Best Overall
How can I fund a startup without a bank loan?
“Without a bank loan” can mean different things. Some alternatives remain loans, while others exchange ownership, offer products or rewards in return for support, or provide restricted-purpose grants. The amounts and conditions below are U.S.-specific; current SBA program pages were accessed in 2026, and terms may change.
| Route | What it may fund | Main tradeoff or limit |
|---|---|---|
| SBA 7(a) loan | Eligible business purposes including working capital, equipment, and supplies; maximum loan amount is $5 million on the SBA’s current program page. | It is debt from a participating lender. The lender decides whether to approve and on what terms; the business must satisfy SBA and lender requirements and demonstrate repayment ability. |
| SBA microloan | Up to $50,000 through nonprofit intermediary lenders for eligible needs such as working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. | It must be repaid. It cannot be used to pay existing debts or buy real estate; the intermediary sets actual rates and terms. |
| SBIC investment | Debt, equity, or a combination from a privately owned investment fund licensed by the SBA. | Debt brings repayment obligations; equity dilutes ownership. Fit depends on the company and fund. The SBA licenses these funds but does not directly invest in the operating business through the program. |
| Other private or venture equity | Capital from investors for companies whose growth prospects and expected returns fit their investment goals. | Owners give up a share of the company and may take on investor diligence, governance, reporting, or growth expectations. Equity is not free money. |
| Rewards or pre-sale crowdfunding | Support from customers or other backers in return for a reward or a promised product; potentially useful for a product or creative project. | Requires a compelling offer and a credible plan to deliver. Platform terms and obligations vary. |
| Regulation Crowdfunding securities offering | An eligible company may raise up to $5 million in a 12-month period under the SEC’s current guidance, through an SEC-registered broker-dealer or funding portal. | This is an investment offering, not a donation page: securities rules, disclosures, an intermediary, and investor limits apply. |
| Targeted grant | Potential support for a defined eligible activity, such as certain research and development, export, manufacturing, or entrepreneurship-support work. | Eligibility and permitted uses are narrow; this is not general-purpose startup cash. |
Could an SBA-backed loan work if a bank already said no?
Possibly, but an SBA guarantee does not turn a loan into a grant, erase repayment, or ensure approval. For a 7(a) loan, the borrower applies through a participating lender. The SBA says applicants generally must be creditworthy and show a reasonable ability to repay; the business must also meet program requirements, including being an operating, for-profit small business based in the United States. The SBA’s current 7(a) page lists a maximum loan amount of $5 million. See the [SBA 7(a) program requirements].
A prior denial may be a reason to ask a lender what issue needs to be addressed—such as the amount requested, the repayment case, or eligibility—rather than assume another lender will reach the same decision or a different one. SBA-backed lending still involves lender underwriting, and lender terms and requirements vary.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
When a microloan may be a closer fit
For a smaller startup or expansion need, SBA microloans are delivered by nonprofit intermediaries rather than directly by the SBA. The current program page says the maximum is $50,000 and the average microloan is about $13,000. It generally quotes interest rates of 8% to 13%; these are not guaranteed terms, because actual rates and other terms are set by the intermediary. The maximum repayment term is seven years.
Eligible uses include working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. Microloan funds cannot be used to pay existing debts or purchase real estate. Check the [SBA microloan guidance] and ask an intermediary about its application process, underwriting, fees, and payment schedule before relying on a quoted rate or term.
Should I use crowdfunding or give investors equity?
Choose based on what the business is offering and what it can afford to give up. Crowdfunding describes more than one arrangement: a product pre-sale or reward campaign is not the same thing as selling securities to investors. Equity may avoid fixed loan payments, but it transfers ownership and may affect control. Neither route is universally better.
Rewards and pre-sales: raise money by making an offer
A rewards or pre-sale campaign can suit a product or creative project with an identifiable audience. Backers may provide early demand signals as well as funds, but the company takes on the obligation to deliver what it promised. Account for production, shipping, taxes, timing, platform terms, and what happens if costs rise or delivery is delayed. SBA’s [planning guidance] discusses crowdfunding as a funding option.
Securities crowdfunding: raise investment under SEC rules
Regulation Crowdfunding lets eligible companies offer securities to investors through an SEC-registered broker-dealer or funding portal. Under the SEC’s current guidance, a company may raise up to $5 million in a 12-month period. An offering has securities-law, disclosure, intermediary, and investor-limit requirements; it is not a simple donation campaign. Review the [SEC’s Regulation Crowdfunding guidance] and get qualified securities-law advice before proceeding.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Private equity and SBICs: evaluate the control trade
Equity investors provide capital in exchange for ownership. The SBA notes that selling an ownership stake dilutes existing owners; investors may also seek rights or involvement that affect decisions. Discuss valuation, voting and information rights, board participation, future fundraising, and potential exits before agreeing to terms. SBICs are privately owned funds licensed by the SBA that can invest through debt, equity, or both; the SBA itself does not invest directly in the operating company through the SBIC program. See [SBA investment capital information] and [SBA guidance on growing a business].
Rank #4
Are there grants to start or grow a small business?
For an ordinary for-profit startup seeking general launch or expansion money, a grant is not a realistic default. The SBA states, “SBA does not provide grants for starting and expanding a business.” Its limited grant support is targeted to activities such as research and development, exporting, manufacturing, or organizations that support entrepreneurship—not broadly available cash for any small business. See [SBA additional funding opportunities] and its [grants information].
Search only when a program appears to match the company’s specific activity, location, eligibility, and application cycle. Verify the awarding agency’s requirements and allowed expenses. Treat anyone promising an SBA grant in exchange for an upfront fee with caution; a broker’s promise is not an award or evidence that the business qualifies.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should I compare funding offers before accepting?
Compare the full burden, not just the amount offered or the monthly payment. A loan with a manageable payment can still have a high total cost; an equity offer with no monthly payment can still be expensive in ownership and control. Record the terms side by side and confirm them in the final documents.
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
- Amount and timing: How much will be available, when will it arrive, and will it cover the whole need or leave a cash gap?
- Use restrictions: Are all intended expenses permitted? This matters particularly for microloans, which cannot refinance existing debt or fund real estate purchases.
- Total debt cost: Add interest, fees, payment frequency, maturity, and any variable-rate terms; test payments against conservative cash-flow assumptions.
- Security and personal exposure: Identify collateral, guarantees, and default consequences in the documents. Do not assume an SBA guarantee eliminates the borrower’s obligations.
- Ownership and governance: For equity, calculate dilution and understand voting, board, information, and future-financing rights.
- Compliance and delivery obligations: Securities offerings bring disclosure and intermediary requirements; rewards campaigns bring commitments to backers.
- Eligibility, process, and fit: Confirm the business qualifies, the approval path and time to close are workable, and the funder’s expectations suit the company’s stage and plans.
In 2024, the SBA Office of Advocacy’s Small Business Finance Frequently Asked Questions, attributing the figures to the Small Business Credit Survey, reported that 80% of employer businesses and 76% of nonemployers used personal savings for startup capital. Those figures describe businesses reporting use of savings; they do not mean that savings supplied those percentages of all startup capital. They are context, not a recommendation to risk personal reserves. Keep household emergency funds and business funding decisions distinct, and assess the consequences of putting personal assets at risk. See the [2024 SBA Office of Advocacy report].
What to prepare before approaching a lender, investor, or funder
A concise funding package helps a reviewer see what the money is for and how the business expects to use it. It cannot guarantee approval, but it can expose gaps before they become expensive.
- Business plan describing the product or service, customers, operating model, and near-term milestones.
- Itemized use-of-funds budget linked to the amount requested and timing.
- Cash-flow assumptions and financial projections, with a clear explanation of expected sales, costs, and repayment capacity where relevant.
- Available financial records and a realistic account of existing obligations.
- For equity, a clear ownership picture and questions about investor rights and involvement.
- For crowdfunding, the offer, delivery plan, costs, and—if selling securities—an eligibility and compliance plan developed with qualified counsel.
Free SBA [planning resources] can help structure the plan and projections. An optional workbook can help organize expenses and assumptions, but no template or paid preparation product can secure a lender’s or investor’s approval.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
