Small Business Loan Lenders — Compared Honestly
SBA loans run 10–13% APR. Online term loans average 57.9% APR. Factor-rate MCAs convert to 60–150%+ APR. We show all three numbers — because most review sites only show the first one.
The Counter-Intuitive Truth About Small Business Loan Rates
The cheapest stated rate is rarely the cheapest loan. A factor rate of 1.40 on a 6-month MCA converts to roughly 80% APR-equivalent. A factor rate of 1.30 on a 9-month MCA is roughly 66% APR. The math is simple — but most "best of" lists never apply it, because MCA lenders pay the highest affiliate commissions ($300–$1,500 per funded deal vs $25–$200 for term loans).
Realistic first-year cost on a $100,000 loan: $9,000 at an SBA Preferred Lender vs $80,000+ on a factor-rate MCA. The 8x spread is why this site exists. See our factor rate glossary entry and APR conversion guide.
Top-Rated Lenders
Ranked by editorial score. All rates are verified effective APR, not promotional starting rates.
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What Small Business Loans Actually Cost in 2026
Sourced from SBA.gov, Bankrate's Feb 2025 OnDeck review, and lender disclosure pages. Not marketing rates.
| Product | Effective APR | Loan Size | Time to Fund |
|---|---|---|---|
| SBA 7(a) — PLP lender | 10–12% | $25K–$5M | 30–90 days |
| Bluevine LOC | 15–25% | $5K–$250K | 24–72 hrs |
| Fundbox LOC | 18–35% | $1K–$150K | 24 hrs |
| OnDeck term loan (avg) | 57.9% avg | $5K–$400K | 24–72 hrs |
| MCA (factor 1.35–1.50) | 66–134%+ | $5K–$500K | 24–72 hrs |
OnDeck 57.9% avg APR per Bankrate Feb 2025 review. MCA APR-equivalent calculated using the factor-rate conversion formula. All figures are approximate and change frequently.