If you are an immigrant, you may worry about getting a business loan because of your immigration status, credit history or how long you have lived in the US. This guide helps you understand your options and steps to get money for your business. We explain the types of loans available, what lenders look for and other ways to find funding. You don’t have to do this alone — there are paths for many different situations.
- Immigrants can get business loans, even without perfect credit or citizenship, but the right option depends on your status and documents.
- Microlenders, CDFIs and some online lenders offer flexible funding when banks or SBA loans aren’t available.
- The key to approval is showing your business plan, income and identity clearly — even if you don’t have US credit.
- Immigrant business owners can access term loans, SBA loans, microloans, equipment financing, lines of credit and even personal or community-based loans.
Business loan availability by immigrant status
Lenders evaluate immigrant borrowers using many of the same criteria as US-born entrepreneurs. However, immigration status, credit history length and documentation can impact approval timelines and terms.
| US Citizen or Naturalized Citizen | Yes | Standard documentation, full access to SBA and banks |
| Lawful Permanent Resident (Green Card) | Yes | Access to all major lending channels |
| Visa Holder (e.g., E‑2, H‑1B, L‑1) | Sometimes | Lenders may require cosigner or proof of visa duration |
| DACA Recipient | Limited | May access CDFIs or microlenders, not all banks |
| Undocumented or Non-status | Rare | Most traditional options closed; community orgs may help |
Immigrants with stable legal presence and clear business documentation generally have strong access to funding. For others, alternatives like CDFIs and microlenders offer workable paths.
Where to get a business loan as an immigrant
As an immigrant business owner, you can get money to start or grow your business from many types of lenders. Each lender has its own rules, how fast it decides and different ways it gives loans. This means you can choose the one that fits your needs best.
| Bank / Online Lender | $5,000–$500,000+ | Days to weeks | 7% to 99%+ | Credit score, collateral, business plan | Fast purchases, flexible needs |
| SBA‑Backed Loan | $30,000–$5 million | Several weeks to months | Base rate + up to 6.5% | SBA forms, legal status, credit history, full plan | Large expansions, real estate, long-term strategy |
| Micro‑Lender | $500–$50,000 | 1–3 weeks | 8% to 25% | Light documentation, basic plan | Startups, early-stage businesses |
| CDFI (Community Lender) | Varies by program | 2–4 weeks | Competitive, varies | Community ties, flexible on status or credit | Underserved borrowers, new arrivals |
| Peer-to-Peer / Alt Lender | $1,000–$100,000 | Days to weeks | 6% to 40% | Varies widely, less rigid than banks | Nontraditional borrowers, mixed credit profiles |
Loan types and when they make sense for immigrant entrepreneurs
Different types of loans work better for different business needs. Knowing which loan fits your situation can help you get money faster and pay it back more easily. Below are common loan types and why they might be good for you as an immigrant entrepreneur.
| Term Loan | Large purchases, expansion, equipment | Fixed repayment schedule. Favorable terms for well-established businesses. | Lendzi, National Funding, Fundera, Best Money, Lendio |
| Business Line of Credit (LOC) | Ongoing cash flow, inventory | Flexible access to capital as needed. Requires solid cash flow. | Lendzi, Lendio, Clear, Bluevine, Wells Fargo |
| SBA Loans (7a, Microloan, Community Advantage) | Real estate, long-term growth, working capital | Low rates and long terms. Requires legal residency and thorough documentation. | Lendio, Fundera, Advance Funds Network, SmartBiz, Bank of America |
| Microloans | Startups, new arrivals, early-stage businesses | Smaller amounts, lenient approval. Ideal for those with no US credit. | Accion Opportunity Fund, Kiva, LiftFund, DreamSpring, Justine Petersen |
| Merchant Cash Advance (MCA) | Fast funds for card-heavy businesses | Based on sales volume. High cost, but little documentation needed. | Credibly, Square Loans, PayPal Working Capital, National Funding, Lendio, BusinessLoans.com |
| Equipment Financing | Machinery, vehicles, tools | Secured by equipment. Faster and easier to qualify. | Lendio, Lendzi, National Funding, Balboa Capital, Crest Capital |
| Invoice Financing /Invoice Factoring | Delayed customer payments | Immediate capital without credit requirements. Paid back as invoices clear. | FundThrough, Clear, Fundbox, Bluevine, altLINE |
| Personal Loan Used for Business | Solo operators with strong personal credit | Fast option, but personally guaranteed. Use only when business options are limited. | Lendzi, Best Money, Lendio, Upstart, LendingClub, |
| CDFI Loans | Immigrant-owned or underserved small businesses | Community-based lenders. Often more flexible with legal and credit status. | Accion Opportunity Fund, LiftFund, Camino Financial, Advance Funds Network |
How to apply for a business loan as an immigrant
The steps to get a business loan aren’t much different for immigrant business owners compared to US-born business owners. Follow these simple steps to make the process easy and improve your chances of getting money for your business:
- Check if you can apply. Know your immigration status and find out which lenders give loans to people like you. US citizens and permanent residents have many options. If you have a visa or no legal status, look for special lenders like microlenders or community groups.
- Decide what you need. Think about how much money you need, what you will use it for and when you need the money. This helps you choose the right kind of loan.
- Look at your credit. See if you have a US credit score. If you don’t, get ready to show other proof like bank statements or payment history. Some lenders also accept international credit reports or ITIN numbers.
- Gather your papers. Get together your ID (passport, visa or green card), business registration papers, bank statements or tax returns, your business plan and proof of where you live. If you have a visa, be ready to show how long it lasts and your work permission.
- Compare lenders and prequalify. Look at different lenders. Many let you check if you qualify without hurting your credit. Compare interest rates, fees and what papers they need before you apply.
- Apply for the loan. Fill out the application online or in person. Make sure all your information is correct to avoid delays.
- Read and accept the loan terms. If you get approved, carefully read the loan details — how and when to pay back, any fees and if you need to offer collateral or a personal guarantee. Only accept if you understand all the costs and rules.
Expert insight: First-hand experience with loan applications
“Banks want to see consistent monthly revenue, but many immigrant-owned businesses experience seasonal fluctuations that American lenders don’t understand or accommodate. When I started in 1994, I had to demonstrate that our repair business wasn’t just “fixing old shoes” but was actually solving supply chain problems for major brands. Immigrant entrepreneurs need to reframe their business model in terms that American lenders recognize. Instead of saying “I run a restaurant,” position it as “I operate a food service supply chain business serving the local community market.”
The key breakthrough for us came when we started working with manufacturers who needed quality correction services. These B2B (business-to-business) relationships provided steady, predictable revenue streams that banks could easily evaluate. Immigrant entrepreneurs should focus on securing one anchor client or contract that represents 30–40% of projected revenue — this single relationship can carry your entire loan application. Industry-specific lenders often work better than traditional banks because they understand niche business models. When we expanded into returns processing, equipment financing companies that specialized in logistics and warehousing were far more receptive than general business lenders who couldn’t grasp why brands would outsource their returns.”
What criteria lenders look at
- Credit score. Lenders often want 680+. However, if you have a low or no credit history, some lenders use alternative methods for eligibility.
- Time in business. Steady revenue and at least one year in operation, or a detailed startup plan.
- Legal and immigration status. Permanent residents or citizens open more doors. Non‑citizens can access SBA and micro‑lenders.
- Collateral or owner equity. Helps with lower rates, but can slow approvals.
Hot tip: Keep financials crisp and transparent. Clear profit and loss statements often speak louder than credit history.
What documents you need to qualify
What you’re asked for when you submit your application may vary by lender, but here’s a clickable checklist of what you should expect to provide with most lenders:
If your credit history is limited, emphasize cash flow. Lenders may prioritize business deposits over personal credit.
How to know what your business really needs
Before you choose a loan, take a moment to think carefully about what your business truly needs. This will help you avoid borrowing too much, or too little, and choose the right type of loan.
Ask yourself these questions:
- What am I using the money for?
Are you buying equipment? Paying rent? Hiring staff? Launching a product? Be specific. This helps you choose a loan made for that purpose. - How is my credit? If your credit score is below 670 or if you’re still trying to build a credit history, you’ll want to look for lenders that cater to borrowers with low or no credit history or lenders that don’t do a credit check at all.
- How much money do I really need?
Don’t guess. Make a simple list of costs. For example:- $3,000 for a delivery van
- $2,000 for new inventory
- $1,000 for marketing
Total = $6,000.
That’s your target loan amount. Borrowing more than you need can cost extra in interest and fees.
- How quickly do I need the money?
If you need money fast (within a few days), you may need to look at options like online lenders or microloans. If you have time (a few weeks or months), you can apply for loans with better rates, like SBA loans or from a bank. - How much can I afford to pay back each month?
Look at your sales and profits. After you pay your business bills, how much is left over? Can you safely use part of that to make loan payments each month? Be honest and realistic — never borrow more than your business can repay.
Hot tip: If you’re not sure, talk to a business mentor or local small business support center. Many offer free help for immigrants and new entrepreneurs.
How much a business loan costs: Calculator
Here’s an easy-to-use calculator to see how much a business loan will cost you each month before you apply. Enter the loan amount, APR and term you expect to calculate the monthly payment and total financing cost.
$
per month
Based on your loan terms
| Principal | $ |
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| Interest | $ |
| Total Cost | $ |
Need business financing?
Compare business lending products for startups, immigrant business owners, established businesses and more.
What to ask when choosing a lender
Here are some questions to ask each lender before agreeing to a loan:
- What documentation do you require — pay stubs, tax returns, immigration papers?
- What collateral or personal guarantees are needed?
- What fees are charged up front and throughout the loan?
- Can the repayment schedule be modified in case of a downturn?
It’s also a good idea to request a loan amortization schedule. That breakdown tells you exactly how much gets paid toward the principal versus interest month by month.
Common mistakes to avoid when applying for or accepting a business loan
Awareness of typical pitfalls helps protect your business and credit profile. Avoid these errors to maintain financial health and strengthen lender relationships.
- Not understanding the full cost. APR, fees and repayment frequency all affect the real cost of borrowing. Look beyond the interest rate.
- Taking on too much debt too soon. A large loan can put stress on your cash flow if your business isn’t yet stable or profitable.
- Failing to read the fine print. Balloon payments, prepayment penalties or variable rates can cause trouble later. Read the full agreement.
- Mixing personal and business finances. Using personal loans or credit cards can work in the short term, but this complicates taxes and liability. Keep accounts separate when possible.
- Applying to the wrong lender. Applying for a bank loan when you lack the credit score or time in business can waste time and harm your credit. Focus on lenders aligned with your needs.
- Overlooking community resources. Many immigrants skip CDFIs, local nonprofit lenders or immigrant-focused grant programs — resources that are often more welcoming and tailored to their needs
Alternatives to business loans for immigrants
Not every business needs debt to grow. If you’re just starting out or find it difficult to qualify for traditional loans, consider these alternatives:
- Business grants. Some nonprofits, foundations and local governments offer small business grants specifically for immigrant entrepreneurs or underserved communities. These do not need to be repaid and can help fund early-stage ideas or community-serving ventures.
- Community Development Financial Institutions (CDFIs). CDFIs often provide small-dollar loans with less rigid credit and documentation requirements. Many also offer mentorship, training and multilingual support.
- Crowdfunding. Platforms like Kickstarter or Indiegogo can help raise money through community support, especially for product launches or mission-driven ideas. You’ll need a strong pitch and marketing plan.
- Peer-to-Peer lending. These online P2P platforms match borrowers with individual investors. Requirements vary but can be more flexible than banks.
- Friends and family financing. If structured properly with written terms, informal loans from your network can jumpstart your business without involving credit checks or collateral.
Bottom Line
Getting money for your business is important, but it can be confusing and take time. Try to think about what your business really needs, how much money you can pay back and how fast you need the loan. Sometimes fast loans cost more. Other loans may be cheaper but take longer to get.
It’s okay to take your time and ask questions. Build your credit and keep good records to make it easier. Remember, many people and programs want to help immigrants get the funding they need.
Frequently Asked Questions
Does the type of loan matter for immigrants?
Yes and no. The best loan depends more on your business stage, needs and paperwork readiness than on immigration status alone. However, certain loan types are more accessible to immigrants based on legal status and documentation availability.
Can I get a business loan without a Social Security number (SSN)?
Yes, some lenders accept an ITIN (Individual Taxpayer Identification Number) instead. This is common with microlenders, CDFIs and some online lenders.
Are undocumented immigrants eligible for business loans?
In most cases, no. Traditional banks and SBA lenders require legal residency. Some local community groups or nonprofit lenders may offer limited funding options.
Do I need a co-signer if I’m on a visa?
Possibly. Some lenders require a US citizen or permanent resident co-signer if your visa is temporary or near expiration. In this case, you’ll need to look for lenders that accept cosigners.
What credit score is needed to qualify?
Many lenders prefer scores above 680, but alternatives like microlenders or factoring companies may overlook poor or thin credit histories.
Can a non-citizen apply for an SBA loan?
Yes, if they have legal residency or a qualifying visa. SBA rules allow loans to lawful permanent residents and some visa holders.
Are there any quick tips for managing your loan or building credit?
- Open a business credit file with Dun & Bradstreet, Equifax Small Business and Experian Business.
- Pay vendors and utilities on time to build a positive payment history.
- Avoid maxing out credit lines — even if available.
- Set aside 10% of the loan value for early repayment or unexpected costs. That buffer helps avoid refinancing down the line.
