The launch of a small business is something to celebrate—but it can also feel like a daunting undertaking, even for the most seasoned entrepreneur. One way to ease the uncertainty and set your business up for long-term success is acquiring sufficient funding.
With that in mind, let’s explore a few popular funding options so you can determine which might suit your business best in 2025.
(By the way, our article on the fundamentals of small business funding covers many of the basics about this, so be sure to check that out if you haven’t already!)
1. Current SBA loan offers
The Small Business Administration’s (SBA) 7(a) loan is one of the most popular funding options for small businesses in the US. There are several types of SBA 7(a) loans, but the most common are the:
- Standard 7(a) – Maximum loan amount of $5 million. Credit decisions made by the SBA
- 7(a) Small Loan – Maximum loan amount of $500,000. Credit decisions are made by the SBA
- SBA Express – Maximum loan amount of $500,000. This loan has a faster review process, with credit decisions made by the lender.
SBA.gov lists the current interest rates for variable and fixed-rate loans.
SBA 7(a) variable rate loan interest rates (as of January 1, 2025)
| SBA loan size | Maximum interest rate |
|---|---|
| $50,000 or less | 14% |
| $50,001 to $250,000 | 13.5% |
| More than $250,001 to $350,000 | 12% |
| More than $350,000 | 10.5% |
SBA 7(a) fixed rate loan interest rates (as of January 1, 2023)
| SBA loan size | Maximum interest rate |
|---|---|
| $50,000 or less | 15.5% |
| $50,001 to $250,000 | 14.5% |
| More than $250,001 to $350,000 | 13.5% |
| More than $350,000 | 13.5% |
2. Grants for different industries
Grants are a popular funding option because they don’t have to be paid back! As Investopedia explains, “A small-business grant is an award, usually financial, given by one entity (typically a company, foundation, or government) to a company to facilitate a goal or incentivize performance.”
Grants do, however, come with strings. Obtaining a grant typically involves going through a three-stage process—a (sometimes time-consuming) pre-award phase; the award issuance; and a post-award phase (which may feature stringent follow-up requirements, such as reports or audits, to ensure compliance with terms).
Grant types include the following:
- Government grants – Given at the local, state, or federal level and designed for highly-specific purposes. Check out Grants.gov for information about federal grants!
- Corporate grants – Given by businesses in support of the awardee’s organizational goals.
- Foundation grants – Given by private foundations who want to support like-minded businesses.
- Nonprofit grants – Given by nonprofits to small businesses offering community-enriching goods or services.
- Individual grants – Given by philanthropists based on their personal desires to support a cause.
3. Resources for women-owned business, minority-owned business, veteran-owned businesses, and business owned by people with disabilities
Included within the above types of grants, one can find a wide range of grants designed to assist specific small business owner groups, such as women, people of color, military veterans, and persons with disabilities. Below are just a handful of the opportunities available.
- Women’s Business Enterprise National Council: The WBENC offers a selection of grants and other financial assistance to women-owned businesses in need, such as the Collegiate Women of Color Grant.
- Minority Business Development Agency: The “only federal agency solely dedicated to the growth and global competitiveness of minority business enterprises.”
- SCORE: SCORE offers insights and mentorship to entrepreneurs of color on how to acquire small business grants.
- Resources for veterans: Resources include the VA Small and Veteran Business Programs, the VA Office of Small and Disadvantaged Business Utilization, and the SBA Veterans Business Development program. Private resources include the Second Service Foundation and Warrior Rising.
- State resources for people with disabilities: Grants.gov lists hundreds of federal grant opportunities, including for businesses owned by persons with disabilities.
4. VC funding groups and resources
Interested in gaining funding via a venture capital (VC) organization, or just want to learn more about how VC works? Below are a handful of popular options out there to explore.
- 500 Global invests in early-stage startups—or, as they put it, “We invest in the world’s potential!”
- Accel Partners invests in early-stage/growth-stage tech companies.
- Angel Capital Association is a trade association for angel investors.
- AngelList connects startups with venture capitalists and angel investors.
- CBInsights offers insights into VC industry trends.
- Kauffman Fellows provides training and support to early-stage companies.
- National Venture Capital Association is VC trade association that’s “Empowering the next generation to fuel the economy of tomorrow.”
- PitchBook offers insights into VC industry trends.
- Sequoia Capital invests in early-stage/growth-stage tech startups and helps “the daring build legendary companies.”
- VentureSource offers insights into the world of VC, angel investing, and startup funding.
There are resources out there for every small business!
Funding a small business doesn’t have to be a hassle. In fact, with the right resources, it’s a relatively straightforward process. The trick is deciding which options you want to pursue based on your business goals.
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