How to Qualify for a Business Loan: Compare Lender Requirements
There is no single set of business loan qualifications in the U.S. Banks and SBA lenders can each set different requirements, while a matching platform may publish only floors for submitting an application. This guide compares sourced lender requirements with States Funding’s application-entry floors, shows where you need to ask the lender directly, and ends with a self-check to run before you apply.
By States Funding Team · Published
Why the answer depends on who you ask
The SBA puts it plainly: lenders and loan programs have unique eligibility requirements. In general, the SBA says, eligibility is based on what a business does to receive its income, the character of its ownership and where the business operates, and businesses normally must meet SBA size standards, be able to repay and have a sound business purpose.
That means the most useful question is not “Do I qualify?” but “Do I qualify with this type of lender, for this product?” It also means a decline from one lender does not tell you how another will respond. For context, in the Federal Reserve Banks’ 2025 Small Business Credit Survey of employer firms, 42% of applicants received the full amount they sought, 36% received some or most, and 22% received none.
The requirements map
The table keeps bank and SBA lender requirements distinct from States Funding’s published application-entry floors on five factors. Where an official source or States Funding’s own published floors say something, it is stated. Where no source we rely on covers it, the cell tells you what to ask, because guessing at a lender’s rules can waste an application.
| Factor | Bank | SBA 7(a) lender | States Funding platform floor (not a lender) |
|---|---|---|---|
| Time in business | Ask the bank what operating history it wants to see for the product you need. | For 7(a), the SBA says the business must be an operating business. | About 6 months in business is a typical floor to apply. |
| Revenue and ability to repay | Ask which figures it reviews (tax returns, statements, projections) and for what period. | For 7(a), the business must be creditworthy and demonstrate a reasonable ability to repay. | $10K or more in monthly revenue is a typical floor to apply. |
| Credit | Ask whether it checks personal credit, business credit or both, and when. | Creditworthiness is on the SBA’s 7(a) list. Ask the SBA lender how it assesses it. | A 500+ FICO score is a typical floor for small business loan and revenue-based financing products. |
| Collateral | Ask whether the loan needs collateral and what it would cover. | Ask the SBA lender whether collateral is part of the deal and what it would cover. | Ask each lender whose offer you review whether it takes collateral or files a UCC financing statement. |
| Paperwork | Ask for the full document list before you start. | The SBA says the application contents vary with the size of the loan and the lender’s processing method. | Connect a bank account through Plaid or upload the last four months of bank statements. Lenders may ask for more. |
The last column shows the typical floors States Funding publishes for applying through its platform, which is not a lender. They are floors, not approval criteria. Meeting them does not mean you will get an offer. The independent lenders decide.
Reading each column
Banks
We do not have a sourced rule set for banks, so treat a bank conversation as an interview. Before you fill anything in, ask: Which product are you suggesting for my purpose? What history, revenue and credit do you look for? Will you want collateral or a personal guarantee? What documents do you need, and roughly how long does your review take? Write the answers down so you can compare them later.
SBA lenders
For 7(a) loans, the SBA lists seven eligibility requirements. According to the SBA, a business must be an operating business, operate for profit, be located in the U.S., be small under SBA size requirements, not be a type of ineligible business, not be able to obtain the desired credit on reasonable terms from non-federal, non-state and non-local government sources, and be creditworthy and demonstrate a reasonable ability to repay.
You do not apply to the SBA itself. The SBA says 7(a) borrowers apply through a local lender and always work directly with the lender, not with the SBA. The SBA’s other programs come through different channels: 504 loans are available only through Certified Development Companies (CDCs), and microloans, which go up to $50,000 according to the SBA, are provided by intermediary lenders. Our SBA loan requirements guide goes through each 7(a) item in detail.
Online lending platforms and revenue-based lenders
These vary from company to company. States Funding publishes only application floors for its platform: about 6 months in business, $10K or more in monthly revenue and, for its small business loan and revenue-based financing products, a 500+ FICO score as a typical floor. Again, those are floors to apply. Each lender reviewing your file sets its own requirements, and it may ask for documents beyond your bank statements.
If you are looking at a revenue-based product, ask how the payment is calculated from your revenue and what happens in a slow month. Our business cash advance guide covers the questions to ask about any product where repayment follows sales.
Self-check before you apply
Run through these before you submit anything. None of them guarantees an outcome. They help you pick the right lender type and show up prepared.
Can I say in one sentence what the money is for and how it helps the business earn or save?
Have I sized the request to the purpose, with a short list of what it will cover?
How many months has the business been operating, and can I show it with bank statements?
What is my average monthly revenue over the last several months, and what was my slowest month?
What do I already owe each month, and are there UCC filings on my business I should know about?
Have I looked at my own credit report recently, so nothing in it surprises me?
If the payment came out in my slowest month, could the business still cover payroll and rent?
Based on the map above, which column fits my situation best, and which questions do I still need to ask?
For the existing debt question, our UCC filing guide shows how to search filings on your business. If your business is very young, the startup business loans guide is a better starting point than this map.
If you do not fit yet
- Too new: keep clean records of every month of sales, and look at SBA microloans, which the SBA says help small businesses start up and expand, through intermediary lenders.
- Revenue below the floor: track monthly revenue and come back when several months clear it.
- Credit concerns: ask each lender how it weighs credit for the product you want before you apply.
- Declined somewhere: ask that lender which factor drove the decision, then check whether a different lender type would look at that factor differently.
How States Funding fits
States Funding is not a lender. It operates a platform that matches U.S. small and medium businesses with funding offers from independent third-party lenders, who originate and service the financing and decide approval, rates and terms. Offers through its network cover business lines of credit, small business term loans, revenue-based financing, invoice financing and non-dilutive capital. States Funding does not list SBA loans as one of its products.
Applying and comparing offers through States Funding uses a soft credit pull only, with no impact to your credit score. Only the final acceptance step requires a brief credit unlock for the lender, and lenders may run their own checks before funding. States Funding does not guarantee that an application will result in an offer, that an offer will be accepted or that funding will close in any timeframe. Offers are non-binding until you e-sign a funding agreement directly with the lender, and the actual lender written terms govern. Read how States Funding works, or if the self-check looks good, start your application.
Sources
This guide is general information for U.S. business owners, not financial, legal or tax advice. States Funding is not a lender. Loans, advances and other financing products are originated and serviced by independent partner lenders, and States Funding does not guarantee that any application will result in an offer. Any examples are illustrative. The actual lender written terms govern any offer you receive.