Understanding typical loan amounts helps you set realistic expectations and choose the right lender for your funding need.
One of the most common questions small business owners ask is: how much can I actually borrow? The answer depends on the type of loan, the lender, and your business's financial profile. Here's a breakdown of average small business loan amounts by product type.
Average Loan Amounts by Product Type
SBA 7(a) Loans
The average SBA 7(a) loan amount is approximately $479,000, though loans range from $500 to $5 million. For smaller needs, SBA Small Loans (under $350,000) and SBA Express loans (up to $500,000) offer streamlined processing. Learn more about SBA loan programs.
SBA 504 Loans
Used for major fixed assets like real estate and heavy equipment. Average loan amounts typically range from $500,000 to $5 million.
SBA Microloans
The average SBA microloan is around $13,000, with a maximum of $50,000. See our microloan guide for details.
Business Term Loans
Traditional bank term loans average $150,000--$500,000 for qualified businesses, while online lenders typically offer $10,000--$500,000. Use our loan calculator to model monthly payments.
Business Lines of Credit
Business lines of credit average $20,000--$250,000 for small businesses. Lines of credit are ideal for cash flow management.
Equipment Financing
Equipment loans range from $5,000 for a commercial oven to $2 million+ for heavy machinery. Most lenders finance 80%--100% of equipment cost. See our equipment financing guide.
Merchant Cash Advances
MCAs typically range from $5,000 to $500,000, sized as a multiple of monthly revenue.
What Determines Your Loan Amount?
- Annual revenue: Most lenders cap loans at 10%--20% of annual revenue
- DSCR: Your business must generate enough cash flow to cover loan payments -- typically 1.25x or higher
- Credit score: Higher scores unlock larger amounts and better rates
- Collateral: Secured loans typically allow for larger amounts
- Time in business: Established businesses with 2+ years qualify for larger amounts
How to Maximize Your Loan Amount
If the amount you qualify for is less than you need, consider improving your credit score, adding collateral, reducing existing debt, or applying after a strong revenue quarter.
At Approvd, we match business owners with lenders suited to their revenue, credit profile, and industry. Check your options today with no impact to your credit score.
Frequently Asked Questions
What's the minimum credit score to borrow more than $100,000?
For bank and SBA loans over $100,000, most lenders want a personal credit score of 680+. Alternative lenders may approve larger amounts with scores as low as 600.
Can a startup get a large business loan?
Most lenders cap startup loans at $50,000--$150,000 unless you have strong collateral or are purchasing an existing business.
Average Loan Amounts by Lender Type
| Lender Type | Average Loan Amount | Typical Range |
|---|---|---|
| Traditional Bank | $593,000 | $100K–$5M+ |
| SBA 7(a) Loan | $479,685 | $50K–$5M |
| Online Lender | $77,000 | $5K–$500K |
| Credit Union | $185,000 | $25K–$1M |
| SBA Microloan | $16,557 | $500–$50K |
| MCA / RBF | $48,000 | $5K–$500K |
How Lenders Calculate Your Maximum Loan Amount
Lenders don't just pick a number — they use formulas based on your financial profile to determine the maximum they'll lend. Understanding these formulas helps you know what to expect before you apply.
Revenue-Based Approach
Many online lenders offer loan amounts of 10–15% of annual revenue, or 1–2x monthly revenue. A business doing $600,000 annually might qualify for $60,000–$90,000 from a revenue-based lender. This is a quick benchmark for working capital products.
DSCR-Based Approach
Banks and SBA lenders use debt service coverage ratio (DSCR) to determine how much debt your cash flow can support. The maximum loan amount is the amount where your projected loan payments keep your DSCR at 1.25 or above. Higher net operating income = higher maximum loan amount.
Collateral-Based Approach
For secured loans, the maximum loan amount is also limited by collateral value. Most lenders lend 70–80% of real estate appraised value, 50–70% of equipment value, and 70–80% of accounts receivable. If your collateral is limited, your loan amount is capped regardless of revenue.
Find out exactly how much you can borrow
Use Approvd's business loan calculator to estimate your borrowing capacity, or explore SBA financing options for the highest loan amounts available to small businesses.
Related Financing Product
Business Term Loans
Get a lump-sum business loan with fixed payments from $10K–5M.