What is the average small business loan amount?
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The average small business loan amount is $663,000. That’s according to the most recent data from the Federal Reserve released in 2017 for commercial and industrial (C&I) loans. If you’re looking for a small business loan, there are more factors to consider, including alternative lending sources, eligibility requirements and repayment terms.
To help you find the best small business loan for you, here’s an in-depth look at the average small business loan amounts.
Average SBA loan amounts
SBA loans are low-interest, government-backed loans offered by private lenders through the Small Business Administration. SBA loan interest rates are typically lower than average small business interest rates. That said, like all business loans, other factors play a large part in the rate you receive, including your credit score, finances and time in business.
|SBA loan type||Description||Average loan amount in 2022||Maximum loan amount|
|Standard 7(a)||Can be used for nearly all purposes, including working capital, payroll, expansion and equipment.||$999,210||$5 million|
|Express||Short- and long-term working capital, inventory purchases, construction financing, renovations and purchasing real estate.||$97,097||$500,000|
|Export Express||Can be used to cover the costs of participating in foreign trade shows, financing export orders and expansions, real estate acquisitions, equipment purchases and inventory.||$275,424||$500,000|
|504||Fixed assets that promote job creation and business growth.||$972,506||$5 million to $5.5 million|
|CAPLines||Helps fund seasonal increases in costs, including inventory or labor, or the labor and material costs for particular projects.||$1,025,408||$5 million|
|Community Advantage||Designed to assist small businesses in underserved markets. Similar to 7(a) loans, they can be used for real estate, equipment purchases, working capital and more.||$177,387||$350,000|
Average small business loan amount by lender
In addition to the types of business loans offered, the amount you can borrow also depends on the lender. Large national and foreign banks lend more on average than smaller regional banks, while alternative lenders often offer a smaller range of loan amounts.
|Large national banks||$593,000|
|Foreign banks (made by U.S. branches)||$8,512,000|
According to the 2022 Small Business Credit Survey, the percentage of small businesses that received all the funding they applied for continued to decline from 36 percent in 2020 to 30 percent in 2021. Ensure you know all your small business financing options to get the funding you need.
What are alternative lenders?
Alternative lenders are nontraditional finance companies, also known as online or fintech lenders. Alternative lenders often offer the same types of business loans as traditional banks and credit unions, like term loans and business lines of credit, but provide alternative lending solutions, with a shorter approval and funding time — typically minutes to a few days. Alternative lenders are worth investigating as you review your options, but be sure you understand the pros and cons.
Below are some of the top alternative small business lenders and their average loan amounts.
|Bluevine||$25,000 to $30,000|
|Credibly||$53,000 to $56,000|
|Fundbox||$5,000 to $40,000|
Lenders have been tightening their loan standards recently, making it harder for businesses to access credit, especially from traditional banks. Fortunately, there are alternative lenders, which typically have business loan requirements that are more flexible.
Where to find business loans
There are plenty of lending options if you’re looking for a small business loan. Here are some of the most popular types of small business lenders and the loans they offer.
- Online lenders: Offers traditional and nontraditional types of loans, such as microloans, term loans, business lines of credit and merchant cash advances. A good option if you’re looking for business loans for bad credit.
- Traditional banks: Offers more traditional financing options, such as term loans, lines of credit, equipment loans and commercial real estate loans.
- SBA lenders: Offers SBA loans, such as 7(a) loans, 504 loans, microloans, Express loans and CAPLines. You can use the SBA’s Lender Match program to find the best lender for your needs.
The average small business loan amount varies considerably depending on what type of loan you take out and what lender you choose. Always compare interest rates, repayment terms, loan amounts, eligibility criteria and fees when selecting a loan to ensure you find the most affordable option for your circumstances. A business loan calculator can also help you determine the best loan for your circumstances.
Frequently asked questions
Based on the latest data from the Federal Reserve in 2017, the average small business loan amount is about $663,000.
The maximum loan amount for small business loans depends on the lender, the type of loan you choose and your credit history, among other factors. Looking at the SBA 7(a) loan program, the maximum amount you can borrow is $5 million.
The minimum SBA loan size is $500, but the average approval amount of all types of 7(a) loans in 2022 that were $50,000 or less was $29,282.