Business Loans for People with No Credit
Starting a business without an established credit history is challenging but achievable. Federal and state programs, including SBA loans, microloans, and community development grants, specifically support entrepreneurs with limited or no credit history. Below are 45 verified business funding opportunities designed for people building their credit while launching successful enterprises.
Types of Business Loans & Grants for No Credit
SBA Microloans
Small loans (up to $50K) from community lenders for startups and small businesses. Designed for entrepreneurs who can't access traditional bank loans. May require collateral but credit history less critical.
Community Development Grants
Federal and state grants supporting business development in underserved communities. Focus on underrepresented entrepreneurs, including those with limited credit history or financial resources.
SBA 7(a) Guaranteed Loans
Federal loan guarantees making it easier for small businesses to get bank financing. Personal credit history reviewed but SBA guarantee reduces lender risk, improving approval odds.
Alternative Lending Programs
Non-traditional lenders, including community banks, credit unions, and nonprofit organizations offering loans based on business potential and cash flow rather than personal credit score.
Major Federal Programs for No-Credit Business Loans
SBA Microloan Program
Purpose: Provide small loans to startups and small businesses unable to access traditional bank financing
Loan Amounts: Up to $50,000 (average $10,500)
Interest Rates: 7-8.5% (below market rate)
Credit Requirements: Flexible; credit history less critical than business plan quality
Use of Funds: Equipment, inventory, supplies, working capital, furniture, fixtures
Website: SBA.gov Microloans
SBA 7(a) Guarantee Loan Program
Purpose: Federal guarantee reduces lender risk, helping small businesses access larger loans
Loan Amounts: Up to $5M (typical $300K-$2M)
Interest Rates: Prime rate + 2-3% (competitive)
Credit Score Flexibility: Minimum 620-650 typical, but SBA guarantee often enables approval with lower scores
Use: Working capital, equipment, real estate, inventory expansion
Website: SBA.gov 7(a) Loans
Community Development Financial Institutions (CDFI) Loans
Purpose: Mission-driven lenders funding businesses in underserved communities
Loan Amounts: $5K-$500K+ depending on CDFI
Credit Requirements: Flexible; emphasis on business viability and community impact
Advantages: Personalized support, financial coaching, flexible terms
Website: CDFI Fund Directory
Women Entrepreneurs & Minority Business Loans
Purpose: Federal programs and grants supporting underrepresented entrepreneurs
Programs: Women's Business Center assistance, HUBZone loans, 8(a) loans, Native American financing
Credit Flexibility: Designed for historically disadvantaged groups; credit history less critical
Support: Includes mentoring, technical assistance, training beyond just financing
Website: SBA Women Business Centers
Who Can Apply for No-Credit Business Loans?
Business loans for people with no credit are specifically designed for entrepreneurs and business owners whose traditional credit history is limited, non-existent, or impaired. Eligibility typically includes:
- First-Time Business Owners: Entrepreneurs with limited business credit history but viable business plans
- People with Limited/No Personal Credit: Those with no credit score or very new credit file
- People Rebuilding Credit: Entrepreneurs recovering from bankruptcy, late payments, or financial setbacks
- Immigrants & Recent Citizens: People with limited U.S. credit history but business experience
- Young Entrepreneurs: Age 18+ with viable business concepts but no established personal credit
- Underrepresented Groups: Women, minorities, LGBTQ+ business owners with dedicated support programs
- Self-Employed & Gig Workers: Those with irregular income but viable business concept
Key Requirement: Strong business plan matters more than credit history. Lenders focus on: (1) Business viability, (2) Cash flow projections, (3) Industry experience, (4) Collateral if available, (5) Personal commitment to success.
Frequently Asked Questions
Can I get a business loan if I have no credit history?
Yes. SBA microloans and CDFI lenders specifically serve entrepreneurs with no or limited credit history. Key factors considered: (1) Solid business plan with realistic projections, (2) Industry experience or skill, (3) Personal investment/collateral if possible, (4) References from suppliers/customers, (5) Debt-to-income ratio. Credit score less important than business fundamentals. Microloan average: $10,500 at 7-8.5% interest. Apply through SBA Microloan intermediaries (community nonprofit lenders) or CDFI locator. Process: 4-8 weeks from application to funding.
What's the difference between microloans and SBA 7(a) loans?
Microloans: $0-$50K, 7-8.5% interest, faster approval (4-8 weeks), more flexible credit, designed for startup/small business needs. Best for equipment, inventory, working capital under $50K. SBA 7(a) Loans: Up to $5M, 5-8% interest (depending on prime rate), 2-6 week approval, requires decent credit (620+) but SBA guarantee eases requirements. Better for larger needs: equipment, real estate, major expansion. Start with microloans if: (1) You need <$50K, (2) Your credit score is below 600, (3) You want fast approval. Use 7(a) if: (1) You need $50K-$5M, (2) Your credit is 620+, (3) You can wait 4-6 weeks for approval.
Do I need collateral for a no-credit business loan?
Collateral requirements vary. Microloans: Sometimes required but often waived for first-time borrowers with strong business plans. May use inventory or equipment as collateral. CDFI loans: Collateral evaluated case-by-case; mission-driven lenders often flexible. SBA 7(a): Collateral typically required (real estate, equipment, accounts receivable) but SBA guarantee reduces requirement. Alternative: Personal guarantee plus business assets. Tip: Stronger business plan can reduce or eliminate collateral requirement. Have detailed projections, market research, and competitive analysis ready.
How do I improve my chances of loan approval with no credit?
(1) Develop a detailed, realistic business plan: market research, competitor analysis, 3-year financial projections. (2) Show personal investment: savings, collateral, or equipment contribution. (3) Document experience: years in industry, relevant skills, certifications. (4) Build personal credit before applying if possible: secure credit card, authorized user status, personal loan (3-6 months before). (5) Reduce personal debt: lower debt-to-income ratio improves approval odds. (6) Get a business mentor through SBA Small Business Development Center (free). (7) Use SBA Prequalification Loan Program: Pre-approval letter strengthens application to lenders. (8) Consider microloan first as stepping stone to larger SBA loan.
What grants are available for business startups with no credit?
Direct grants (non-repayable funding) for businesses are limited and highly competitive. Typical sources: (1) SBA Microgrant programs (state/federal): $500-$50K, competitive. (2) Community development grants for disadvantaged groups: women, minorities, low-income areas (check state/local programs). (3) Sector-specific grants: agriculture (USDA), energy efficiency (DOE), green business (EPA). (4) Nonprofit microgrants: search GrantStation or Foundation Center. Most offer $2K-$15K. Loans more common than grants. Alternative: Combine microloan (7-8% interest) with small grant (5-10% of capital) for best results. Check state economic development office and local nonprofit organizations for available grants.
How long does it take to get a business loan with no credit?
Timeline by program: (1) SBA Microloan: 4-8 weeks from application to funding. (2) SBA 7(a) Loan: 4-6 weeks typical (via bank). (3) CDFI Loan: 2-8 weeks depending on CDFI. (4) Community Bank Loan: 3-6 weeks. Speed factors: (1) Completeness of application, (2) Quality of business plan, (3) Collateral availability, (4) Lender volume. Accelerate by: (1) Preparing all documents upfront, (2) Using SBA Prequalification Loan Program (shortens approval), (3) Applying to multiple lenders (compare offers). Start process 2-3 months before you need funds.
How to Apply for Business Loans with No Credit
- Assess Your Needs: Determine how much you need ($5K-$50K = microloan, $50K-$5M = SBA 7(a), specialty programs = targeted loan). Identify loan use: equipment, inventory, working capital, real estate.
- Build Your Business Plan: Write 1-2 page executive summary and detailed plan including: company description, market analysis, competitive advantage, 3-year financial projections, management team, use of funds. Quality plan significantly improves approval odds. Use SBA template: SBA.gov Business Plan Template.
- Gather Documentation: Prepare: personal identification, proof of residency, bank statements (6 months), tax returns if self-employed, business license/application, proof of industry experience/training, list of equipment/assets, personal financial statement. Most lenders want organized documentation package.
- Find Appropriate Lender: Microloans: Search SBA Microloan Intermediaries in your state. CDFI Loans: Use CDFI Fund Locator. Women/Minority: Check SBA Women Business Centers. SBA 7(a): Contact local SBA office or community bank.
- Submit Application: Complete lender's application with all documentation. Many accept online applications. Submit cover letter explaining: (1) Your background, (2) Why you're starting this business, (3) How you'll use the funds, (4) How you'll repay. Personal narrative helps humanize application.
- Participate in Interview/Review: Lender reviews application and may request additional information or interview. Be prepared to discuss: business plan in detail, industry experience, financial projections, use of funds, personal commitment. Show genuine passion for your business.
- Get Approval & Fund: Upon approval, sign loan agreement, provide personal guarantee, arrange collateral if required. Funds typically available 1-2 weeks after approval. Monitor spending and repayment schedule.
Business Loan Resources for No Credit
SBA Microloan Program
Find microloan intermediaries and apply for loans up to $50K for startups and small businesses.
SBA 7(a) Guaranteed Loans
Explore SBA 7(a) loans up to $5M with federal guarantee making bank financing more accessible.
CDFI Fund Locator
Find community development financial institutions offering flexible lending to underserved entrepreneurs.
SBA Women Business Centers
Free mentoring and training for women entrepreneurs, including loan preparation assistance.
Small Business Development Centers
Free counseling, training, and business planning assistance from SBDC network across all 50 states.
Business.gov
Official government business portal with resources, tools, and links to funding programs nationwide.
Available Business Loan & Grant Opportunities (45)
Showing 1-20 of 45 grants
Microsystems Technology Office (MTO) Office-wide
DARPA - Microsystems Technology Office
Made in California Program
Governor's Office of Business and Economic Development
The purpose of this announcement is to solicit applications from eligible organizations to apply to provide marketing and engagement services to support the awareness and use of the Made in California label and promotional services by California’s manufacturing businesses. “Made in California” is California’s manufacturing promotion and product labeling program (herein defined as “Program”). The Program is designed to develop and promote the Made in California label, to encourage consumer product awareness, and to foster purchases of high-quality products in this state. The Program is administered by the California Office of the Small Business Advocate (herein referred to as “CalOSBA”) within the Governor's Office of Business & Economic Development (herein referred to as GO-Biz). The...
Paid Family Leave Small Business Grant 4 (PFL SB 4 Grant)
Employment Training Panel
The PFL SB Grant will provide to California small businesses (within the grant) equal to or between 100–51 employees a payment of $1,000 and a payment of $2,000 to small businesses less than or equal to 50 for each employee who is utilizing the PFL program, to help offset the costs involved with training other employees to cover the duties of this individual on PFL leave. The Employment Training Panel (ETP) and Labor and Workforce Development Agency (LWDA),announce the availability of up to $920,000 in California State General Fund dollars, for Multiple Employer organizations to outreach to California’s small businesses impacted by the Paid Family Leave (PFL) program, to help offset the costs incurred when training employees to cover the duties of the individual utilizing PFL. PFL is part...
Social Entrepreneurs for Economic Development 3 (SEED 3)
Employment Training Panel
SEED supports the entrepreneurship of immigrants and limited English proficient (LEP) individuals who face significant employment barriers. The SEED Initiative will provide micro-grants, entrepreneurial training, and technical assistance to support them in starting or maintaining a small business in California aimed at addressing a social problem or meeting a community need. In June 2020, the California Legislature approved Assembly Bill 82 (Chapter 14, Stats. 2020), which established the Social Entrepreneurs for Economic Development (SEED) Initiative (See California Unemployment Insurance Code, sections 14106 to 14110). The Employment Training Panel (ETP), within the Labor and Workforce Development Agency (Agency), is administering this round of SEED funding on behalf of the California...
PON-24-002 – K–12 Energy Efficiency Program (KTEP)
CA Energy Commission
The Kindergarten through Twelfth Grade Energy Efficiency Program’s (KTEP) goal is to provide zero-interest loans to Kindergarten through Twelfth Grade (K-12) schools in California for energy efficiency retrofits and renewable energy projects. Funds in this Program Opportunity Notice (PON) are made available by the Infrastructure Investment and Jobs Act (IIJA), also referred to as the Bipartisan Infrastructure Law (BIL), Pub. L. No. 117-58, enacted on November 15, 2021[1]. Section 40502 of BIL states the purpose of this provision is to establish revolving loan funds (RLF) under which states can provide loans and grants for energy upgrades and retrofits to increase the energy efficiency, physical comfort, and air quality of existing building infrastructure. Loan funds for this program are...
2025 Tribal Multifamily Finance Super Notice of Funding Availability
Department of Housing and Community Development
The Department announces the availability of approximately $50 million in funds available through this first round of the Tribal Multifamily Finance Super Notice of Funding Availability (Tribal MFSN). This NOFA makes funds more easily accessible to Tribes and Tribal Entities and provides flexible options to address the unique needs of Indian communities to achieve better outcomes in health, climate, and household stability. Rather than utilizing a set-aside within the standard MFSN Program, this NOFA operates independently and is tailored to meet the specific affordable housing needs of California Tribes. Funds offered under this NOFA and the criteria specified herein are available solely and exclusively to eligible Tribal Entities. This NOFA provides forgivable loans to assist with the...
2024 LHTF NOFA Round 5
Department of Housing and Community Development
The principal goal of this program is to provide grants to Local Housing Trust Funds established by cities and counties, Native American Tribes, and incorporated 501(c)(3) nonprofit organizations to increase the supply of housing to households with incomes of 80 percent or less of area median income. Program Funds awarded under this NOFA shall be used to provide construction loans and/or permanent financing loans at simple interest rates of no higher than three percent per annum, for payment of predevelopment costs, acquisition, construction, or rehabilitation as well as to construct, convert, reconstruct, rehabilitate, and/or repair Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs). Eligible activitiesPursuant to Guidelines, Section 105, the LHTF funds shall be...
Charter FinE Enhancement (Charter FinE) Program
State Treasurer's Office
Aimed to assist charter schools lower costs to access facility acquisition, renovation, and construction financing. The federally-funded Charter Finance Enhancement (Charter FinE) Program was created from an $10 million grant awarded through the federal “Expanding Quality Charter Schools Program – Grants for Credit Enhancement for Charter School Facilities” (CFDA #84.354A) grant competition in 2023. This program enhances financings to charter schools to lower costs associated for permanent charter school facilities.
CHFFA Commercial Paper Program
State Treasurer's Office
This program will provide a borrower with access to low interest rate capital markets through the issuance of tax-exempt and taxable commercial paper notes. Eligibility General Requirements -Must be a health facility as defined in the Authority's Act (Section 15432(d) of the California Government Code) -Must be a non-profit 501(c)(3) corporation or public health facility (e.g., district hospital) as defined in the Authority's Act (Section 15432(e) of the California Government Code) -Must have been in existence for at least three years, providing the same types of services -Must demonstrate evidence of fiscal soundness and the ability to meet the terms of the proposed loan Use of Funds Funds may be used for: -Construction, remodeling, renovation, and/or improvements -Land...
Proposition 68 – Water Recycling
State Water Resources Control Board
The purpose of the funding is to provide technical and financial assistance to local agencies for the construction of water recycling projects that promote the beneficial use of treated municipal wastewater in order to augment fresh water supplies in California. Eligible Applicants: Local public agencies, 501(c)(3) nonprofit organizations qualified to do business in California, Public Utilities, Federally and non-federally recognized Native American tribes on the Native American Heritage Commission’s list, and Mutual water companies. Eligible Uses: Eligible projects include recycled water treatment; recycled water storage, distribution, and pumping; groundwater recharge; indirect potable reuse; and surface water augmentation. Ineligible Uses: Operation and maintenance costs. Eligible...
Proposition 1 – Water Recycling
State Water Resources Control Board
The purpose of the funding is to provide technical and financial assistance to local agencies for the construction of water recycling projects that promote the beneficial use of treated municipal wastewater in order to augment fresh water supplies in California. Eligible Applicants: Local public agencies, 501(c)(3) nonprofit organizations qualified to do business in California, Public Utilities, Federally and non-federally recognized Native American tribes on the Native American Heritage Commission’s list, and Mutual water companies. Eligible Uses: Eligible projects include recycled water treatment; recycled water storage, distribution, and pumping; groundwater recharge; indirect potable reuse; and surface water augmentation. Ineligible Uses: Operation and maintenance costs. Eligible...
Children's Hospital Program of 2008 – Children's Hospitals (3rd funding round)
State Treasurer's Office
The purpose of the program is to improve the health and welfare of California's critically ill children, by providing a stable and ready source of funds for capital improvement projects for children's hospitals. On November 4, 2008, California voters passed Proposition 3, the Children's Hospital Bond Act of 2008. The purpose of the program is to improve the health and welfare of California's critically ill children, by providing a stable and ready source of funds for capital improvement projects for eligible hospitals. The California Health Facilities Financing Authority (CHFFA) is responsible for administering the program. Language in Proposition 3 identifies 13 children's hospitals in California (referred to as "Children's Hospitals") as eligible for $980 million in funding. The 13...
Children's Hospital Program of 2018 -Children's Hospitals
State Treasurer's Office
The purpose of the program is to improve the health and welfare of California’s critically ill children, by providing a stable and ready source of funds for capital improvement projects for children's hospitals. On November 6, 2018, California voters passed Proposition 4, the Children's Hospital Bond Act of 2018. The purpose of the program is to improve the health and welfare of California’s critically ill children, by providing a stable and ready source of funds for capital improvement projects for eligible hospitals. The California Health Facilities Financing Authority (CHFFA) is responsible for administering the program. Language in Proposition 4 identifies 13 children’s hospitals in California (referred to as “Children’s Hospitals”) as eligible for $1.35 billion in funding. The 13...
Local Airport Loan Program
Department of Transportation
This program provides discretionary State loans to eligible public-use airports for projects that enhance an airport’s ability to provide general aviation services. Types of projects funded by these loans include hangars, General Aviation (GA) terminals, utilities, GA fueling facilities, Caltrans Acquisition and Development eligible projects, or local share for a federal Airport Improvement Program grant. The maximum term of a loan is 17 years. The Department approves the amount of the loan in accordance with the project’s feasibility and the sponsor’s financial situation. For details including eligibility, please see the publication, State Dollars for Your Airport (PDF), Chapter 2; and the California Code of Regulations, Title 21, Division 2.5, Chapter 5, California Airport Loan...
Brownfields Revolving Loan Fund (RLF) Grant Program
Department of Toxic Substances Control
The Revolving Loan Fund (RLF) Grant Program purpose is to help facilitate assessing and cleaning up contaminated sites by granting funds to nonprofits, tribal entitles, and local governments. The RLF Grant Program provides grants to help nonprofits, tribal entities, and local governments who are not potentially liable under CERCLA section 107 assess or clean up brownfields that they own. DTSC accepts applications continuously, subject to fund availability. In 2023, there is not sufficient funding in the Revolving Loan Fund, therefore DTSC is not accepting applications at this time.
Charter Access Bank Loan Enhancement Program (Charter ABLE)
State Treasurer's Office
Aimed to assist charter schools lower costs to access facility acquisition, renovation, and construction financing. The federally-funded Charter Access to Bank Loan Enhancement (Charter ABLE) Program was created from an $20 million grant awarded through the federal “Expanding Quality Charter Schools Program – Grants for Credit Enhancement for Charter School Facilities” (CFDA #84.354A) grant competition in 2019. This program enhances financing to charter schools to lower costs associated with financings for permanent charter school facilities.
Greenhouse Gas Reduction Loan Program
Department of Resources Recycling and Recovery
The GHG Reduction Loan Program provides funds to support new or expanded organics infrastructure, such as composting and anaerobic digestion facilities, as well as for facilities that manufacture fiber, plastic or glass waste materials into beneficial products. The purpose of this investment is to further the purposes of the California Global Warming Solutions Act (Assembly Bill 32), reduce methane emissions from landfills and further GHG reductions in upstream resource management and manufacturing processes; benefit disadvantaged communities by upgrading existing facilities and, where warranted, establishing new facilities that reduce GHG emissions; result in air and water quality improvements; and create jobs.
Recycling Market Development Zone Revolving Loan Program
Department of Resources Recycling and Recovery
The Recycling Market Development Zone (RMDZ) program combines recycling with economic development to fuel new businesses, expand existing ones, create jobs, and divert waste from landfills. The Department of Resources Recycling and Recovery (CalRecycle) administers a Recycling Market Development Zone Loan Program to encourage California-based recycling businesses located within California financing businesses that prevent, reduce, or recycle recovered waste materials through value-added processing or manufacturing. The purpose and importance of the RMDZ Program is set forth in Section 42001 of the California Public Resources Code: “The purpose of this chapter [is] to stimulate the use of postconsumer waste materials and secondary waste materials generated in California as raw materials...
Cleanup Loans and Environmental Assistance to Neighborhoods (CLEAN) Program
Department of Toxic Substances Control
Department of Toxic Substances Control's (DTSC) CLEAN Program helps developers, businesses, schools, and local governments accelerate the pace of assessment, cleanup, and redevelopment at abandoned and underutilized urban brownfield sites in California. DTSC's CLEAN Loan Program provides loans for property owners, developers, community groups, and local governments to investigate, cleanup and redevelop abandoned and underutilized urban properties. Loan used for the cleanup or removal of hazardous materials where redevelopment is likely to have a beneficial impact on the property values, economic viability, and quality of life of a community. Per Health and Safety Code § 80370, applicant must not have any: Felony convictions or misdemeanors involving the regulation of hazardous materials...
Infrastructure State Revolving Fund (ISRF) Program
Infrastructure and Economic Development Bank
IBank's ISRF Loan Fund program provides low-cost, direct loans to local governments and nonprofits sponsored by public agencies for a wide variety of public infrastructure and economic expansion projects (excluding housing) that improve and sustain communities, helping individuals and families thrive. We focus on small and mid-/moderate-sized local governments and special districts — including those in underserved regions and communities. ISRF loans can fund a wide variety of projects – including water and wastewater treatment plant upgrades or construction, venue or airport construction, or street repair and upgrades. ISRF financing is available in amounts ranging from $1 million to $65 million with loan terms for the useful life of the project up to 30 years. With IBank You: • Save...