Business loans for an LLC: How to qualify and where to get one

What is an LLC business loan?

An LLC business loan is any business loan made to a limited liability company (LLC), including term loans, lines of credit, Small Business Administration (SBA) loans, equipment financing, and business credit cards. The LLC is the borrower, and the LLC structure separates business debt from your personal assets in most cases. 

Lenders may still ask LLC members for a personal guarantee.  Among employer businesses with debt, 59% of business owners gave a personal guarantee, according to the Federal Reserve’s 2026 SCBS Report on Employer Firms. 

If you just formed an LLC, you might expect the entity itself to open doors to loans and financing. But it won’t change the standards for approval. Lenders still look at factors such as revenue, credit, time in business, and industry to decide whether — and how much — to lend to your LLC. The LLC may be required to submit formation documents with the application.

Approval rates vary. Of the 60% of businesses that applied for financing in 2025, only 42% reported they received all the funding they sought, according to the 2026 SCBS report. 

Can an LLC get a business loan?

Yes, an LLC can get a business loan if it qualifies. Factors such as revenue, time in business, credit (business and personal credit), and the owner’s personal credit. The LLC adds formation documents to the application.

Nav is not a lender or a credit bureau. Credit information is provided by third-party sources.

Is it easy to get a loan for an LLC?

Whether it’s easy or hard to get a loan for an LLC depends more on qualifications of the business than on the fact that the business is an LLC. A new business will find it harder to qualify since banks often look for an operating history of at least two years. 

The key issue here is whether the borrower meets the lender’s qualifications, not whether the business is formed as an LLC. 

How much can an LLC borrow?

How much an LLC can borrow depends on the type of financing and the strength of the business, not the entity type. For revenue-based financing, lines of credit, and short-term loans, revenue is a major factor in the amount. Typical multiples lenders use are 50% to 100% of average monthly revenue for the last three months.

SBA 7(a) loans work differently because each program has its own limit:

• 7(a) Standard: $5 million
• 7(a) Small loan: $350,000
• SBA Express: $500,000
• 7(a) Working Capital Pilot lines of credit: $5 million

How LLC status affects a loan application

Forming an LLC may change a few things when it comes to applying for a business loan. 

Lending options: Because some lenders don’t lend to sole proprietorships, you may have more options if you operate as an LLC. SBA loans are available to LLCs, corporations, partnerships and sole proprietors, but some other lenders may not lend to sole props. 

EIN: Most single-member LLCs need an employer identification number (EIN), but you may want to get one even if it’s not required. Lenders often request an EIN on a credit application and some require it. Providing an EIN can help your payment history match correctly to your business credit report. 

Business bank account: When it comes to financing, lenders often require business bank statements to verify revenue. If you have formed an LLC, you’ll need a business bank account. It’s especially risky to use a personal bank account for an LLC as mixing business and personal finances may jeopardize the legal protection the LLC offers. 

Business credit file: Your LLC can establish its own credit report. A strong business credit profile may help your business qualify for more types of financing, and better terms. Lenders may review business credit scores in addition to personal credit. 

Nav’s guide can show you how to build credit for an LLC. 

Business loans that work well for LLCs

Each type of financing may be available to an LLC. Which one fits depends on your use of funds, credit, industry, and how long you’ve been in business. 

Revenue-based financing is a category of products sized and repaid based on your sales. Merchant cash advances are one example. They aren’t loans but advances on future sales, repaid daily or weekly from your card sales. Many MCA’s state a factor rate instead of an interest rate. A factor rate of 1.3 means you repay 1.3 times the advance. These factor rates can translate to an effective APR of 30% to 60% or more. 

To compare offers from multiple lenders, visit Nav’s business loan marketplace. 

LLC loan requirements

Lenders typically ask an LLC for documents that prove the business exists and who owns it, in addition to the standard operating agreement. Expect to provide:

• Articles of organization or certificate of formation
• The operating agreement, which lenders may review to confirm who may sign loan agreements
• Your EIN, which you can get from the IRS for free
• A business bank account in the LLC’s name
• Member information and ownership percentages
• Bank statements, tax returns, and financial statements

Credit and revenue requirements vary by lender. 

Banks: Traditional lenders like banks often check the owners’ personal credit and review revenue through bank statements and business tax returns. They generally prefer at least two years in business, though requirements vary by bank and product. 

SBA lenders: The SBA doesn’t set a minimum credit score, revenue, or time in business requirement for most loans. However, lenders must review the owners’ and guarantors’ personal credit reports for anyone with 20% or more ownership and confirm the business can repay from cash flow. 

Online lenders: Online lenders often weigh revenue more heavily than credit and may ask for less documentation. 

Business loans for a new LLC

Yes, a new LLC can get funding. With little or no revenue, though, the business will likely need to qualify based on personal credit and other factors such as a strong business plan with an experienced management team.

A startup doesn’t yet have income, assets, or business credit to qualify, so lenders will often rely heavily on the owner’s personal credit.

Realistic options for an LLC startup loan include:

• Personal-credit-based business credit cards and loans
• SBA microloans through nonprofit intermediaries
• Equipment financing secured by the equipment
• Vendor credit and supplier terms
• Crowdfunding

Banks generally prefer one to two years in business, though the SBA data shows that approximately 15% of SBA 7(a) loans in fiscal year 2025 went to businesses under two years old. If you apply for a 7(a) loan as a startup, expect to invest at least 10% of the total project cost yourself if you’ve operated for one year or less. Sweat equity — time you put into the business — doesn’t count toward that investment. 

There are several types of crowdfunding, including rewards-based crowdfunding where you offer an early version of the product or other rewards to early backers, equity-based crowdfunding where you raise money from investors on an SEC-registered platform, and debt-based crowdfunding where you borrow money that must be repaid. Kiva is a good example, offering 0%, no-fee loans up to $15,000 in the U.S.

No revenue yet? Getting a startup loan with no money is challenging, even for an LLC. One exception is a loan to a business headed by someone with extensive experience in their field and a solid business plan. Examples might include a veterinarian wanting to open her own practice, or a plumber going out on his own after several years of working for someone else. 

What about EIN-only loans? An EIN isn’t a standalone factor in business financing decisions. A true EIN-only business loan with no personal credit check for a startup is rare. 

LLC loans with bad credit

An LLC alone doesn’t usually shield your application from personal credit checks. Options for an LLC with bad credit include:

• Secured loan products, such as Bank of America’s cash secured line of credit, which currently requires a $1,000 refundable deposit and as little as six months in business 
• Equipment financing, where the equipment serves as collateral
• Revenue-based financing priced on sales
• Invoice factoring, where your customer’s credit is key
• Business credit cards, a few of which don’t require good personal credit

Cost is the tradeoff. Easy-to-qualify loans generally carry higher interest rates than bank loans. 

Building business credit for your LLC may help you qualify for more options in the future, and you can build business credit while you work on your personal credit. Open accounts with suppliers that report to business credit bureaus, or other tradelines that report, such as Nav Prime, then pay on time to establish business credit. 

What about no-credit-check offers? While some financing doesn’t involve a personal credit check, many do. That’s true even with some lenders that don’t require high credit scores. Be careful about companies promising a loan if you have bad credit. These may be fraudulent offers designed to get your personal information or to charge you upfront fees before you get a loan.

Do you need an LLC to get a business loan?

The short answer is no: you don’t need an LLC to get a business loan. Some lenders will only make loans to formal business entities such as LLCs and corporations, but other types of loans, such as SBA loans, don’t include that restriction. You’ll likely find you have more options if you’ve formed a business entity than if you operate as a sole proprietorship. 

How to apply for a business loan as an LLC

1. Confirm who can sign. Check that your operating agreement authorizes the LLC to borrow, and specifies who can sign for a loan. 
2. Gather your documents. If you’re applying for a traditional bank loan, collect the LLC’s formation documents, bank statements and financial statements. 
3. Check your credit. Review your personal and business credit before you apply. Check multiple credit bureaus, as you don’t know which one lenders will check. 
4. Choose the type of financing you want to apply for. Think carefully about how you’ll use the funds to pick the type of financing that works best. 
5. Find lenders. Some lenders offer preapproval without a hard credit check, or you can use Nav’s business loan marketplace to find lenders based on your business profile.
6. Compare offers. Review rates, fees, and total cost. If a lender doesn’t list an Annual Percentage Rate (APR), use a business loan calculator to get an estimated APR. 
7. Review the offer before you sign. Read the loan documents carefully, including whether a personal guarantee is required.

Members can also lend to the LLC themselves with a written agreement. See Nav’s guide to lending money to your own LLC.

The bottom line

An LLC can help your business appear more professional and separate your business and personal finances. When you’re borrowing for your business, operating as an LLC can open doors to financing that may not be available to sole proprietorships. 

Ultimately, though, the business must meet the lender’s qualifications, which may include revenue, credit, time in business, and your industry. Even with an LLC, your business loan application may include a personal credit check and you may need to provide a personal guarantee. 

Compare financing options in Nav’s business loan marketplace, and use Nav Prime to check, manage, and monitor your business credit. 

Frequently asked questions