Best Small Business Loans in California in 2026
61% of California-owned businesses applied for financing in 2024, but fewer than half were fully approved, according to the Federal Reserve.
Who are the best lenders for business loans in California right now?
We’re highlighting these five lenders as the best small business lenders in California because they offer affordable interest rates, generous loan terms and, in some cases, additional business training and support.
| Lender | Best for | Starting rate | Amount | Term | |
|---|---|---|---|---|---|
|
Fast funding | 13.70% (with2) | Not specified | 12 to 24 years |
Best California business loan lenders
Best for: Fast funding – Bluevine
- Starting rate (with2)
- 13.70%
this is a disclaimer
Test
Test
Test
- Receive funds in as little as 24 hours, or faster with a Bluevine checking account
- Only pay interest on what you borrow
- No maintenance fees or prepayment penalties
- Requires a personal guarantee
- May require weekly loan payments
- Same-day funding could incur a fee
While the financing provided by other lenders on this list may be suitable for a variety of needs, funding can take a few weeks — or even a few months — to receive. If you need fast funds to pay an emergency bill or take advantage of a limited-time opportunity, Bluevine could be a better choice.
This online lender offers business lines of credit up to Not specified. You can borrow money as needed up to a predetermined limit, only paying interest on the funds you withdraw. Draws from your line of credit can be transferred instantly to a Bluevine checking account. If your business banks elsewhere, you can pay a $15 fee to receive your funds within a few hours. Otherwise, draws will be deposited within one to three business days.
Read our full Bluevine review.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
- Minimum credit score: 625
- Minimum time in business:
- Minimum annual revenue:
Learn more about how we chose our picks.
Types of small business loans available in California
If you need an infusion of working capital to reach your business goals, there are multiple types of small business loans to consider.
A term loan provides a lump sum of funds that is repaid in fixed installments over a set period of time. Term loans often come with a fixed rate, meaning that the size of your loan payment will remain the same throughout the loan term.
Short-term business loans generally have loan terms from three months to two years, and they may require daily or weekly loan payments, which can increase the cost of borrowing. By comparison, long-term business loans typically offer terms from five to 25 years, and payments are usually due on a monthly basis.
Unlike a term loan, a business line of credit offers flexible funds you can borrow from as needed up to a preset limit. Lines of credit often function much like a credit card, meaning that once you pay down your balance, you can borrow against it again. This makes business lines of credit ideal for companies that need ongoing access to funding.
SBA loans are guaranteed by the U.S. Small Business Administration (SBA), which reduces risk for participating lenders. Because of this, SBA loans are generally more affordable than other types of financing, offering capped interest rates and lengthy repayment terms.
There are multiple SBA loan programs, but the most popular option is the SBA 7(a) loan program, which can provide up to for a wide range of business purposes.
Some business lenders offer microloans, which tend to provide loan amounts up to . Microloans are often targeted at startups, low-income borrowers and entrepreneurs in underserved communities, though anyone is welcome to apply. Despite offering smaller loan amounts, microloans often come with lower rates and fewer fees than traditional business loans.
If you need funds to cover an essential equipment purchase or upgrade, equipment financing is another option. Equipment loans are a type of asset-based financing, so the equipment often serves as collateral to secure the loan.
Equipment loans are a specific type of term loan. But unlike most term loans, which can be used to cover a variety of expenses, the amount you can borrow may be directly tied to the value of the equipment being purchased.
How to qualify for a business loan in California
California has a lower approval rate for business loans than the nation as a whole according to the Federal Reserve, but you can increase your likelihood of getting approved for a loan by improving your finances and having all of your documents ready to go.
Each lender sets its own business loan requirements, which you’ll need to meet to qualify for financing. While exact requirements vary, here’s what you may need to get a small business loan in California.
Common requirements
First and foremost, lenders will weigh the following factors to assess your ability to potentially repay a loan:
Credit score
Lenders will likely consider both your personal and business credit scores to qualify you for financing. In general, higher credit scores increase your odds of approval. Borrowers with strong credit are also more likely to receive favorable rates and loan terms.
While traditional banks and credit unions may require a personal FICO Score of 670 or higher, alternative lenders may be willing to work with borrowers with scores as low as 500. However, bad credit business loans tend to have high interest rates, so this can be an expensive way to borrow.
Time in business
Lenders will also consider the amount of time your business has been in operation. Traditional lenders often require businesses to operate for a minimum of two years before they can qualify for financing, but online lenders may be more flexible.
Still, even lenders advertising startup business loans tend to require at least three to six months of business history.
Annual revenue
Lenders will look at your business revenue to determine if your business has enough cash flow to cover your loan payments. Annual revenue requirements vary widely depending on the lender and the loan type, so your business may need to generate anywhere between $30,000 and $250,000 to qualify. However, nonprofit lenders may set more flexible criteria.
Documents to provide
To apply for a small business loan, you’ll need to provide business documents to prove that you meet the criteria listed above. For example, documents like bank statements and tax returns are often required to demonstrate your business revenue.
Much like the eligibility requirements you’ll need to meet, the exact documents you’ll need to provide depends on the lender, but you can generally expect to present the following:
- Government-issued IDs for anyone that owns 20% or more of the business
- Proof of legal residency, such as a utility bill with your name and address
- Business and personal tax returns for the past three years
- Financial statements, including:
- Copies of your Articles of Incorporation, Bylaws or Operating Agreement
- Copies of your business licenses and permits
- Copies of your business plan
- Information on collateral, such as a valuation of real estate or equipment
If you’re applying through a state-specific program, you may need to provide additional documentation, such as proof that your business is located in California or planning to relocate there.
And individual lenders may set additional requirements. For example, while Working Solutions is willing to lend to brand-new companies, it requires a recent paystub from business owners to ensure that they have a secondary source of income. You can learn more about loan requirements online or by contacting lenders directly.
While California’s SB 1235 requires commercial lenders to disclose information about the total cost of financing, there are carve-outs for certain loans. Before signing a loan agreement, make sure you understand all fees you’re being charged and the total cost of borrowing.
State and local small business loan programs in California
California offers multiple small business loan programs to encourage entrepreneurship and job growth. California business loan programs include:
-
iBank’s Small Business Loan Guarantee Program
Also known as the California Infrastructure and Economic Development Bank, iBank offers loan guarantees designed to help California business owners overcome capital access barriers. Though iBank doesn’t lend to businesses directly, it reduces risk for its network of participating lenders, which may make it easier for California businesses to get loans. -
iBank’s Jump Start Microloan Program
iBank also works with participating lenders to offer microloans up to $10,000 for entrepreneurs in underserved communities, such as women, people of color, veterans and previously incarcerated individuals. -
GoGreen Financing
Provided by the California Hub for Energy Efficiency Financing (CHEEF), GoGreen Financing partners with individual lenders to provide loans that can be used for a variety of equipment and facility upgrades — assuming the upgrades make your business more energy efficient. -
Success, Capital Access, and Leadership for Entrepreneurs (SCALE)
The SCALE program is provided by the California Office of the Small Business Advocate (CalOSBA). It aims to support California-based businesses by providing the training and resources they need to receive financing.
To find potential funding opportunities for your business, you can get started with the California Small Business Loan Match tool, which is provided by iBank as an extension of the Loan Guarantee Program.
Why compare business loans with LendingTree?
LendingTree takes the hard work out of shopping around for a loan.
One application, multiple lenders
Fill out one form and watch lenders from the country’s largest networks compete for your business. It only takes an average of two minutes to tell us who you are and how much money you need. Plus, the process is free, simple and secure.
Only soft credit checks to prequalify
We use soft credit checks to look for potential matches for your business within our lender network, so there is no impact to your credit score.
Transparent comparisons, vetted lenders
Depending on your revenue and business needs, you can compare quotes on your own or you may qualify for LendingTree’s concierge service, which gives you a single point of contact to help you find the best deal.
Get your money
Pick a lender and sign your loan agreement. You could receive your money in as little as 24 hours.
Alternatives to traditional business loans
If a traditional business loan isn’t an option for your business, you could wait to reapply for financing at a later date — or you could consider one of these alternatives.
- Crowdfunding: Crowdfunding involves using an online platform to raise funds for your business. You can ask friends and family to contribute, but any platform users are welcome to invest in your cause. Just keep in mind that you might need to offer something in exchange, such as products, discounts or equity.
- Venture capital: With venture capital financing, you may be able to receive money from individual investors in exchange for ownership in your business. Often provided by angel investors, venture capital funding is best suited for early-stage companies with high growth potential.
- Small business grants: Small business grants provide funds you aren’t required to repay. For example, the California Dream Fund is a grant program that provides microgrants up to $10,000 for eligible businesses. However, the application process for state, federal and private grants can be time consuming and competitive.
- Business credit cards: Business credit cards are often used to pay for everyday expenses. They might help you cover costs while you wait for long-term financing, but it’s important to avoid overborrowing. Business credit cards tend to have higher interest rates than business loans, so it’s a good idea to pay your card off in full every month to avoid interest charges.
Our methodology: How we chose the best business loans in California
We reviewed more than 20 lenders to determine the best California business loans. To make our list, lenders had to meet the following criteria:
- Offered in California: We only considered loan products that are available to residents of California.
- iBank guarantee: We prioritized lenders that participate in iBank’s California Small Business Loan Guarantee Program, which aims to help California businesses overcome capital access barriers.
- Eligibility criteria: To feature options for businesses at different stages of life, we included lenders with a range of credit score, time in business and annual revenue requirements.
- Rates and terms: We favored lenders with competitive fixed rates, fewer fees and greater options for repayment terms.
- Repayment experience: We considered each lender’s reputation and business practices, prioritizing lenders that offer reliable customer service and report to all major credit bureaus,