20 Business Loan Types Americans Will Lean On in 2026

The credit choices facing American business owners are wider than ever. Yet the room for error is shrinking. Interest rates remain higher than the ultra-low levels of the past decade. Banks are cautious. At the same time, online lenders, payment platforms, and specialist financiers keep launching new products.

In that environment, knowing the main business loan types is no longer a nice-to-have. It is part of basic financial literacy. The owners who understand how each product behaves in a real-world downturn, and not just on a glossy rate sheet, will be the ones who retain control of their margins and their growth plans.

As small and mid-sized firms look toward 2026, most will not rely on a single source of credit. Instead, they will combine several types of small business loans, using each one for a specific job. This guide walks through 20 of the loan options Americans are likely to lean on, and sets out how to approach them in a deliberate, strategic way.

Why Business Loan Types Matter So Much in 2026

Small businesses sit at the center of the U.S. economy. They employ tens of millions of people, drive innovation, and anchor local communities. Their appetite for credit does not disappear when conditions tighten. It simply shifts toward lenders and products that can still say “yes.”

In recent years, traditional banks have reported both rising demand for business credit and tighter standards. That mix often means more rejections, slower approvals, and a sharper divide between borrowers with strong files and those with weaker scores or thinner histories. Meanwhile, alternative lenders and fintech platforms use real-time cash-flow data to underwrite loans that many banks would decline.

For owners, this creates both opportunity and risk. There are many ways to finance growth, smooth cash flow, or fund real estate. Some business loan types offer stability and low cost, but take time and paperwork. Others fund quickly, but carry double-digit costs or complex terms.

By 2026, the businesses that thrive will usually be those that:

• Match the loan to the purpose.

• Look beyond the headline rate to total cost and risk.

• Diversify their sources of finance instead of leaning on a single line.

The Shifting U.S. Small Business Lending Landscape

The broad contours of the market are familiar. Banks and credit unions still provide the bulk of formal small business lending. They remain the main channel for SBA-backed loans and conventional term loans. However, technology has changed how those institutions operate. Many now rely on online applications, automated scoring tools, and centralized underwriting.

Alongside them, non-bank lenders have grown rapidly. Online platforms extend term loans, lines of credit, and merchant cash advances to firms that may not fit bank models. Some work primarily with payment processors and e-commerce platforms. Others plug into accounting systems and bank feeds to assess cash flow on a daily basis.

Heading into 2026, several trends stand out:

• Data-driven underwriting. Lenders are looking less at a single credit score and more at ongoing revenue patterns, expense flows, and sector-specific risks.

• Segmented products. Rather than one generic “business loan,” providers offer specialized products for equipment, real estate, subscription revenue, exports, and more.

• Rate differentiation. Borrowers with strong credit, collateral, and consistent cash flow can still secure relatively attractive pricing. Higher-risk customers are steered toward shorter-term, higher-cost financing.

Against that backdrop, here are the 20 business loan types most likely to shape American borrowing in 2026.

20 Business Loan Types Americans Will Lean On in 2026

1. Long-Term Loans from Banks and Online Lenders

Term loans remain the backbone of business finance. A lender advances a lump sum. The business repays it over a fixed period, usually with monthly payments that blend principal and interest.

These loans work well for:

• Buying another business.

• Funding a large project, such as a facility upgrade.

• Investing in long-life assets that will generate returns over several years.

In 2026, expect term loans to stay competitive for stronger borrowers. Banks will continue to favor firms with solid financial statements, collateral, and a clear business plan. Online lenders will fill gaps, often with higher rates but faster decisions. For American business owners, this remains one of the most important business loan types, especially when they can lock in fixed rates for longer terms.

2. SBA 7(a) Loans

SBA 7(a) loans are partially guaranteed by the U.S. Small Business Administration. That guarantee reduces risk for lenders and opens the door for firms that may not qualify for a conventional bank loan.

Key features often include:

• Flexible uses, from working capital to refinancing and real estate.

• Longer repayment terms than many commercial loans.

• Competitive rates for creditworthy borrowers.

Because SBA loans still flow through banks and approved lenders, they are not fast money. They require documentation and patience. Yet as bank standards remain tight, the 7(a) program is likely to be one of the small business loans in 2026 that many Americans turn to when they need scale and structure, not just speed.

3. SBA 504 Commercial Real Estate Loans

The SBA 504 program targets fixed assets, especially owner-occupied commercial real estate. A typical structure combines:

• A bank or credit union providing senior debt.

• A Certified Development Company (CDC) providing a subordinated SBA-backed tranche.

• A borrower’s down payment can be lower than in a conventional mortgage.

This structure can allow longer terms and more manageable monthly payments. For manufacturers, professional practices, and growing firms that want to own their property instead of leasing, 504 loans remain a key option among business loan types tailored to real estate.

4. SBA Microloans

Not every business needs hundreds of thousands of dollars. Many very small or early-stage firms need five figures, not seven. SBA microloans are designed with those needs in mind.

They are delivered through nonprofit intermediaries and often come with technical assistance. That support can be as valuable as the capital itself. In 2026, microloans will continue to serve entrepreneurs who have limited credit history, modest collateral, or language and cultural barriers that make mainstream banking harder to navigate.

5. Microloans from CDFIs and Nonprofit Lenders

Beyond the SBA program, a network of Community Development Financial Institutions and local nonprofits provides small loans to businesses in underserved areas.

These CDFIs:

• Focus on community impact as well as financial return.

• Can be more flexible on credit scores and collateral.

• Often pair lending with coaching and networking.

For many entrepreneurs—especially those in rural communities or low-income neighborhoods—these small balances are the first rung on the credit ladder. Among the types of small business loans in 2026, this category plays a quiet but vital role.

6. Business Lines of Credit

A business line of credit behaves more like a credit card than a one-time loan. The lender approves a limit. The business draws funds as needed and pays interest only on the drawn amount. As the balance is repaid, the available credit resets.

Lines of credit shine when:

• Cash flow swings with seasons or project timing.

• Inventory purchases need to be staged.

• Owners want a cushion for unexpected costs.

By 2026, many owners will treat a line of credit as their primary buffer against volatility. It is one of the most flexible business loan types, but it can also become a crutch. The key is to avoid maxing it out for long-term uses that belong in term loans.

7. Short-Term Working Capital Loans

Short-term working capital loans cover needs that sit between revolving credit and long-term debt. Typical terms range from several months to a couple of years.

These loans may:

• Support a marketing push.

• Fund a product launch.

• Bridge a timing gap between paying suppliers and collecting from customers.

In 2026, banks and online lenders will keep offering this category, often with streamlined underwriting. The trade-off is usually higher pricing than a classic term loan, in exchange for speed and flexibility. Owners should model cash flows carefully to ensure the loan truly matches the project horizon.

8. Equipment Financing and Leasing

Equipment loans and leases are secured by the machinery, vehicles, or technology they fund. Because the asset itself serves as collateral, lenders often accept more risk than they would on an unsecured loan.

Common users include:

• Construction and logistics firms.

• Manufacturers and fabricators.

• Healthcare practices and labs.

By 2026, equipment financing will continue to evolve with technology cycles. Businesses adopting automation, robotics, or advanced software may rely on this business loan type to spread the cost over the useful life of the asset, preserving cash for operations.

9. Commercial Real Estate Loans

Conventional commercial real estate loans sit alongside SBA 504 in the property finance toolkit. These loans help businesses:

• Buy owner-occupied premises.

• Refinance existing mortgages.

• Develop or renovate income-producing properties.

Loan structures vary, but many pair medium-term fixed rates with an amortization schedule that extends beyond the initial rate period. In 2026, with many businesses rethinking how they use space, commercial mortgages will be central to expansion, consolidation, and relocation decisions.

10. Invoice Factoring

Invoice factoring converts outstanding invoices into immediate cash. A business sells receivables to a factor at a discount. The factor advances most of the invoice value and collects payment from the customer.

Factoring can:

• Smooth cash flow for B2B companies with slow-paying clients.

• Reduce credit risk, since the factor is involved in collection.

But it has trade-offs. Costs add up, especially when customers take longer than expected to pay. Some clients may dislike dealing with a third party. As a result, owners should treat factoring as one of several business loan types, best used selectively and with clear eyes about the long-term cost.

11. Invoice Financing (Accounts Receivable Financing)

Invoice financing, also called accounts receivable financing, sits between factoring and a traditional line of credit. Here, the business keeps control of collections but pledges receivables as collateral. The lender advances a percentage of the outstanding invoices and is repaid as customers pay.

This structure allows:

• Ongoing access to cash as new invoices are issued.

• More privacy, because customers still pay the business directly.

In 2026, invoice financing will appeal to firms that want the cash-flow benefits of factoring without handing over customer relationships. It will likely remain a key option among types of small business loans for wholesalers, agencies, and other B2B operators.

12. Merchant Cash Advances

Merchant cash advances (MCAs) provide a lump sum repaid through a share of daily card sales or fixed daily or weekly debits from a bank account. They fund quickly and rely heavily on revenue history rather than collateral.

However, they are often among the most expensive business loan types. Effective annual costs can run very high. The daily or weekly pulls can strain cash flow during slow periods.

Despite those drawbacks, MCAs will remain part of the 2026 landscape, especially for retailers, restaurants, and service businesses that lack other options. Owners should approach them with caution, compare offers carefully, and consider them a last resort rather than a go-to solution.

13. Business Credit Cards and Charge Cards

Business credit cards and charge cards play a dual role: they finance short-term expenses and simplify expense tracking. Many offer rewards, travel benefits, and integration with accounting software.

In practice, they are best used when:

• Balances are paid in full each month, or

• Short-term borrowing is carefully managed and tracked.

By 2026, card issuers may tighten limits for some sectors while competing aggressively for top-tier customers. As part of a broader mix of business loan types, cards can be powerful tools. But they should not carry long-term project costs, which belong in term loans or other structured products.

14. Asset-Based Lending (ABL)

Asset-based lending involves loans or revolving facilities secured by assets such as receivables, inventory, equipment, or, in some cases, real estate. Lenders focus less on reported profits and more on the quality and value of the collateral.

ABL can help:

• Asset-rich but cash-flow-tight firms unlock working capital.

• Growing companies fund larger orders or inventory builds.

In 2026, ABL is likely to be especially important in sectors facing margin pressure yet holding valuable stock or receivables. It remains one of the business loan types that sits between traditional bank credit and more expensive alternatives.

15. Revenue-Based Financing

Revenue-based financing advances capital in exchange for a share of future revenue until a pre-agreed total is repaid. Payments fluctuate with sales: higher in strong months, lower when revenue dips.

This model can appeal to:

• Subscription and software businesses.

• Seasonal firms with volatile income.

The flexibility has a price. The total amount repaid is usually higher than under many conventional loans. Still, as investors and lenders look for exposure to recurring-revenue businesses, revenue-based financing will be a visible part of small business loans in 2026, especially in the tech and digital economy.

16. Venture Debt for High-Growth Startups

Venture debt is designed for startups that have raised equity from venture capital firms. It provides additional non-dilutive capital on top of those rounds.

Founders use venture debt to:

• Extend runway between equity raises.

• Fund specific growth projects with clearer paybacks.

• Retain more ownership while scaling.

In 2026, venture debt will continue to track the broader venture market. When equity rounds are harder to close, founders may prize this business loan type as a way to avoid down rounds or unfavorable valuations. Lenders will scrutinize growth metrics and backing investors closely.

17. Franchise Financing

Franchise financing covers the costs of buying into an established brand’s system. That might include:

• Initial franchise fees.

• Build-out and fit-out of premises.

• Equipment, signage, and working capital.

Banks, specialty lenders, and sometimes the franchisors themselves offer this category. Lenders often view well-known franchises as lower risk than independent startups, thanks to proven models and brand support. As more Americans consider franchising as a path into business ownership, this will remain an important slice of business loan types.

18. Personal Loans Used for Business

Some entrepreneurs tap personal loans or personal lines of credit to fund early-stage business needs. Approval may be easier because the lender underwrites the individual rather than the business.

Yet the risks are significant:

• Personal assets can be exposed.

• Missed payments damage personal credit directly.

• Mixing personal and business debt blurs financial boundaries.

In 2026, personal borrowing will still be part of the financing story, particularly for side-hustles and micro-enterprises. Owners should treat it as a stepping stone and aim to shift toward dedicated types of small business loans as soon as the business can qualify.

19. B2B Buy Now, Pay Later, and Trade Credit

Buy now, pay later models are spreading from consumer markets into B2B transactions. Platforms allow business buyers to spread payments over several months while suppliers receive funds upfront. In effect, this expands traditional trade credit, but with third-party finance layered in.

For buyers, this business loan type can smooth working capital and align payments with revenue. For sellers, it can support higher-ticket sales and faster cash collection.

By 2026, expect more wholesalers, ecommerce marketplaces, and software platforms to integrate B2B buy now, pay later options. Owners should review the fine print, as costs may sit with either side of the transaction depending on the model.

20. Green and Sustainability-Linked Business Loans

Sustainability-linked loans tie pricing or other terms to environmental or broader ESG metrics. Borrowers that meet agreed targets—such as cutting emissions or improving energy efficiency—may receive interest rate reductions or other benefits.

As regulators, investors, and customers push for more sustainable operations, this business loan type is moving from large corporates toward mid-market and smaller firms. In sectors like real estate, manufacturing, and logistics, owners may increasingly see offers that reward quantifiable ESG improvements.

By 2026, these loans are likely to be more common in portfolios, especially for businesses planning energy-efficient upgrades or green building projects.

How to Choose the Right Business Loan Types in 2026

With so many options, it is easy to feel overwhelmed. A simple decision framework helps cut through the noise.

1. Clarify the purpose.

• Is the need long-term (like a building) or short-term (like covering a brief gap)?
• Will the loan fund an asset, a project, or general working capital?

1. Match the term to the benefit.

• Long-life assets generally belong in longer-term loans.
• Short-term needs usually call for lines of credit or short-term facilities.

1. Assess total cost, not just the rate.

• Include fees, prepayment penalties, and, for revenue-based or MCA products, the full repayment amount.
• Model different scenarios for sales and cash flow.

1. Consider flexibility.

• Can you draw and repay as needed, or is it a one-time lump sum?
• How easy is it to refinance or restructure if conditions change?

1. Weigh relationship value.

• Long-term ties with a bank or CDFI can pay off in tough times.
• A mix of relationship lenders and transactional lenders can balance stability and innovation.

By taking these steps, owners can build a tailored mix of business loan types instead of defaulting to whatever product appears at the top of a search result.

Risks, Regulations, and What Could Change by 2026

The menu of small business loans in 2026 will not be shaped by markets alone. Policy and regulation also matter.

States are tightening disclosure rules for some high-cost products. Regulators are paying closer attention to merchant cash advances and certain online lending models. More transparent pricing should help owners compare offers, but it may also push some providers to adjust or withdraw products.

Cybersecurity and data privacy will stay high on the agenda. As more lenders connect directly to bank accounts, payment systems, ecommerce platforms, and accounting tools, a breach or outage can have real consequences. Owners will need to think not only about loan terms but also about the data they share to obtain those terms.

In short, the list of business loan types will evolve. Some will become more mainstream. Others may shrink under regulatory pressure. Building flexibility into your overall capital structure—keeping some room on lines, staggering maturities, and maintaining more than one funding relationship—will help you adapt.

Conclusion – Getting Ready for the Next Credit Cycle

By 2026, the American small business owner will have access to a broad toolkit: SBA loans, term loans, lines of credit, equipment finance, invoice-based products, revenue-linked advances, venture debt, franchise funding, B2B buy now, pay later, and sustainability-linked loans, among others.

The challenge is not a lack of options. It is choosing wisely. That means:

• Understanding which business loan types fit your model and risk profile.

• Treating debt as a strategic resource rather than an emergency lever.

• Regularly reviewing your mix of facilities as your business grows and the economy shifts.

A careful, informed approach can turn types of small business loans from a source of anxiety into a competitive advantage. The businesses that prepare now—by mapping their needs, strengthening financial reporting, and cultivating lender relationships—will be better positioned to seize opportunities as the next credit cycle unfolds.