Securing Low-Interest Business Loans in 2025

Securing low-interest financing is crucial for small businesses looking to grow while keeping costs manageable. Whether you need funds for working capital, equipment purchases, or expansion, finding the best loan with favorable terms can make a significant difference. In 2025, several loan options stand out for offering competitive interest rates, flexible repayment terms, and accessible qualification requirements.

1. Understanding Low-Interest Loan Options

SBA 7(a) Loans

The SBA 7(a) loan remains one of the most popular and affordable financing options for small businesses. These government-backed loans offer flexibility and competitive interest rates.

• Maximum loan amount: $5 million
• Interest rates: Variable or fixed, based on the prime rate
• Repayment terms: Up to 10 years for working capital, up to 25 years for real estate
• Down payment: Typically 10%–20%
• Collateral: Required for loans over $25,000

SBA 504 Loans

Designed for businesses investing in major assets like real estate and equipment, the SBA 504 loan features fixed interest rates and long repayment terms.

• Maximum loan amount: $5.5 million per project
• Interest rates: Fixed and generally lower than SBA 7(a) loans
• Repayment terms: 10, 20, or 25 years
• Down payment: 10%–20%
• Use case: Commercial real estate, large equipment purchases

Business Lines of Credit

A business line of credit provides flexible access to funds with interest only on the amount used, making it a cost-effective option for ongoing expenses.

• Credit limit: Up to $500,000
• Interest rates: 5%–15% APR
• Repayment terms: Revolving credit
• Collateral: May or may not be required

Term Loans from Banks and Online Lenders

Traditional bank loans and online lenders offer fixed-term financing with predictable payments and competitive rates for qualified borrowers.

• Loan amount: Varies by lender, typically up to $500,000
• Interest rates: 6%–15% APR
• Repayment terms: 1–10 years
• Collateral: May be required

Equipment Financing

If you need new equipment, this financing option allows you to spread out the cost over time while using the equipment as collateral.

• Loan amount: Based on equipment value
• Interest rates: 6%–20%
• Repayment terms: 3–7 years
• Collateral: The equipment being financed

2. Comparing the Best Low-Interest Loans

Loan TypePrimary PurposeLoan AmountInterest RatesRepayment TermsCollateralSBA 7(a) LoanGeneral business useUp to $5 millionVariable or fixedUp to 25 yearsRequired for loans over $25,000SBA 504 LoanReal estate, equipmentUp to $5.5 millionFixed, lower than 7(a)10–25 yearsThe financed asset serves as collateralBusiness Line of CreditFlexible working capitalUp to $500,0005%–15% APRRevolving creditMay or may not be requiredTerm LoanExpansion, debt refinancingVaries by lender6%–15% APR1–10 yearsMay be requiredEquipment FinancingEquipment purchaseBased on equipment value6%–20%3–7 yearsEquipment as collateral

3. Choosing the Right Low-Interest Loan

• When to Choose an SBA 7(a) Loan: You need flexible financing options, working capital, inventory funding, or refinancing debt.
• When to Choose an SBA 504 Loan: You’re purchasing commercial real estate or large equipment and prefer fixed rates and long repayment terms.
• When to Choose a Business Line of Credit: You need quick access to working capital and prefer a revolving credit option.
• When to Choose a Term Loan: You need structured financing for a specific business goal and prefer fixed payments and terms.
• When to Choose Equipment Financing: You need new machinery, vehicles, or technology and want to spread costs over time.

The best low-interest loan for your small business in 2025 depends on your specific financial needs, creditworthiness, and business goals. Whether you choose an SBA-backed loan, a line of credit, or equipment financing, securing favorable terms can help keep costs manageable while fueling growth.

If you're ready to explore your financing options, LightBox Lending connects you with trusted lenders offering low-interest business loans tailored to your needs.

Apply Now to find the best low-interest loan for your business!