Can a New LLC Get a Business Loan?
Yes, but the options depend on how new the business is and whether it has revenue yet. Forming an LLC does not by itself create a credit history. Lenders look at time in business, revenue, and the owner's personal credit, and most will ask the owner for a personal guarantee.
Funding Options by Stage
| Option | Typical time in business | What lenders focus on |
|---|---|---|
| SBA microloans (up to $50,000) | Startups considered | Business plan, personal credit, and the intermediary lender's criteria |
| CDFI and community lenders | Startups often considered | Business plan, personal credit, local impact |
| Equipment financing | Varies; some programs from day one | The equipment's value, personal credit, down payment |
| Business credit cards | New businesses considered | Personal credit of the owner |
| Merchant cash advance | Often from 3 to 6 months of deposits | Monthly deposits and bank activity |
| Working capital and lines of credit | Often 3 to 12+ months | Revenue and bank statements |
| Bank and SBA 7(a) term loans | Usually 2+ years | Financials, credit, collateral, repayment ability |
General patterns, not cutoffs. Each lender sets its own minimums.
How to Get a Business Loan for a New LLC
Set up the basics
Get your EIN, open a business bank account, and keep business and personal money separate from day one.
Know your personal credit
For a new LLC, your personal credit stands in for business history. Check your reports and fix errors first.
Write a short business plan
Startup lenders want to see what the money is for, projected revenue, and how you will repay.
Start with the right program
Before revenue: microloans, CDFIs, equipment financing. After a few months of deposits: revenue-based options open up.
Prepare documents
ID, formation documents, EIN letter, bank statements, and any contracts or invoices. See the document checklist.
If You Have No Revenue Yet
Without revenue, lenders lean almost entirely on your personal credit, your plan, and any collateral or down payment. Read startup funding with no revenue for realistic options, and consider free help from a Small Business Development Center to prepare your plan.
Have a few months of deposits?
Revenue-based programs may already be open to you. One 60-second form, soft check only.
Frequently Asked Questions
Can I get a business loan with a new LLC?
Yes, but options depend on time in business and revenue. Brand-new LLCs usually rely on SBA microloans, CDFIs, equipment financing, or business credit cards, and lenders weigh the owner's personal credit heavily.
How long does an LLC need to be open to get a loan?
It varies by program: some startup lenders consider brand-new businesses, revenue-based programs often want 3 to 6 months of deposits, and banks and SBA 7(a) lenders usually prefer 2 years or more.
Can I get a line of credit for a new LLC?
Some online lenders offer lines to businesses with a few months of revenue. Before that, a business credit card is often the most realistic revolving option.
Does an LLC need its own credit to get a loan?
Not at first. Lenders rely on the owner's personal credit for new LLCs. Building business credit over time can reduce that reliance.
Will I have to personally guarantee a loan for my LLC?
Usually yes. Most lenders require a personal guarantee from the owners of a new LLC, even though the LLC structure protects you in other ways.