Get a $250,000 business loan and calculate the cost | finder.com (2024)

Where can I get a $250,000 business loan?

Find a $250,000 business loan from most types of providers. Community and regional banks can be a good choice for established small businesses.

Most offer this amount of financing, often with some of the lowest rates available. And community and regional banks are often more willing to work with small businesses than large national banks.

SBA lenders offer a low-cost alternative to bank loans, thanks to backing from the government. It’s a good option if your business has been around for a few years but struggles to qualify. But smaller SBA lenders like Regions Bank might be more willing to offer this amount than SBA lending giants like Live Oak Bank, which tend to finance projects in the millions.

Businesses that can’t qualify for an SBA loan or don’t have time to spend on an application want to consider online lenders. While the average online loan is usually much lower than $250,000, many lenders like OnDeck offer loans of this size. But since online lenders tend to offer higher rates than banks and SBA lenders, save this choice for last.

How to apply for a $250,000 business loan

The application process for a $250,000 business loan might be more involved than an application for smaller amounts of funding. While the application varies depending on the type of financing and the lender, you’ll usually follow these steps:

1. Decide on the type of financing your business needs. An equipment loan is the way to go if you need to buy an excavator or new office furniture. But a line of credit is more useful if you regularly need working capital.
2. Compare different types of lenders that offer the type of financing you need. If you have time, schedule an appointment with a local bank and contact an SBA loan provider. Or, for a quick comparison, use an online marketplace like Lendio to review all your options.
3. Collect the documents you need to complete the application. For a $250,000 loan, you typically need business and personal tax returns and bank and financial statements at a minimum.
4. Complete the application by following the lender’s instructions. Applying for an SBA loan involves completing multiple forms — though you can hire a service like SmartBiz to cut down on time and effort.
5. Get your collateral appraised if your lender requires it. This mainly applies to equipment loans and financing to stock up on inventory.
6. Review and sign your loan offer, paying attention to the rates, terms and payment due dates.

A $250,000 loan often takes a few days to a few weeks to process. Lenders prefer to be thorough when it comes to loans of this size — even online providers.

How much does a $250,000 loan cost?

The cost of your $250,000 loan depends on the rates, fees and loan terms your business receives. And, it also comes down to the current business loan rates for the type of loan you choose.

For example, a $250,000 loan with a 5% APR and a 10-year term would cost your business about $2,652 monthly and almost $68,197 in interest. Use our calculator to see how much a $250,000 business loan might cost at different rates and terms.

Which SBA programs offer $250,000 loans?

Almost all SBA programs offer $250,000 business loans — with the exception of microloans, which don’t go above $50,000.

• SBA 7(a) loans offer government-backed financing for almost any purpose, including working capital, buying equipment or real estate and refinancing debt.
• SBA Express loans offer a more streamlined version of SBA 7(a) loans to speed up the process. But these come with a low 50% SBA guarantee — meaning your business must provide collateral worth up to $125,000 to back the loan.
• SBA CDC/504 loans can help you finance a real estate or equipment purchase. While these loans tend to run larger than $250,000, it’s possible to find financing in this amount.
• SBA Community Advantage loans come with more relaxed credit and revenue requirements for businesses that operate in an underserved area — and cap out at $350,000.
• SBA CAPLines offer $250,000 lines of credit for expenses like working capital, filling a government contract, completing a construction project or preparing for a seasonal spike in sales.

Your business might also qualify for a $250,000 SBA disaster loan. But the amount you can borrow often depends on the financial damage your business experienced during a crisis.

Bottom line

If you’re eligible for a $250,000 business loan, chances are your business can qualify for SBA or bank financing. But if you can’t qualify or simply don’t have the time to spend on an intensive application, online lenders can be a good alternative.

Compare our picks for the best business loans before you apply.

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