Can I get a business loan after bankruptcy?

Yes — discharged Chapter 7 or 13 bankruptcies are typically approvable for MCAs after 12–24 months, alternative term loans after 24+ months, and SBA loans after 7+ years post-discharge. Open or active bankruptcies are a hard decline at virtually every lender.

Discharged vs. active is the first distinction

Bankruptcy on the credit report is one of the most-asked-about disqualifiers. The reality is more nuanced than 'declined' or 'approved.'

Approvability by product

By product:

MCA — most lenders approve discharged BKs after 12–24 months with strong deposits ($20k+/month) and clean operating history since discharge
Alternative line of credit — typically 24+ months post-discharge with 600+ FICO rebuild
Alternative term loan — 24–36+ months post-discharge with strong financials
Equipment financing — depends heavily on credit rebuild; 24+ months and 600+ FICO is the typical floor
SBA 7(a) — 7+ years post-discharge is the conventional requirement; some lenders may consider less with strong recovery story
Bank term loan — 7+ years and strong financials

The post-discharge rebuild matters more than the BK

Two structural notes: open or active bankruptcies are a hard decline almost everywhere, and a Chapter 7 discharge is generally treated more favorably than a Chapter 13 still in repayment. The credit rebuild post-discharge matters more than the BK itself — a 540 FICO with no post-BK derogatories beats a 620 FICO with new collections.

If this fits your situation, apply with ClearValue Lending — your file routes to one matched lender.

Worked example — 18 months post-Chapter 7

A small contractor with a Chapter 7 discharged 18 months ago, current FICO 580, $22,000/month in business deposits, and no new derogatories post-discharge applies for a $40,000 MCA. Likely outcome: approvable at a 1.42–1.48 factor over 6–9 months. Twelve months later, same operator with FICO lifted to 640 and 30 months post-discharge — non-bank line of credit becomes a realistic option at materially better economics.

Don't apply during an active filing

Active or open bankruptcies are a hard decline at virtually every alternative lender. Wait for discharge, then start the rebuild — applying mid-filing burns inquiries and can complicate the case.

Sources

Chapter 7 bankruptcy discharge eliminates most unsecured debts and is governed by 11 U.S.C. § 727 — after discharge, the business owner's personal liability for discharged debts is extinguished, but the bankruptcy remains on the personal credit report for 10 years. — U.S. Courts Bankruptcy Basics
SBA SOP 50 10 requires lenders to evaluate any prior bankruptcies as part of character-and-credit underwriting; the conventional bar for 7(a) is a fully-discharged bankruptcy with demonstrated post-discharge creditworthiness — most lenders apply a 3–7 year minimum without explicit guidance. — SBA SOP 50 10
The Federal Reserve Small Business Credit Survey 2024 reports that businesses with recent credit events (including bankruptcy) are significantly more likely to apply at online lenders and MCAs than at banks — confirming the alternative-product-first triage strategy. — Fed SBC Survey 2024

Key takeaways

Discharged Chapter 7 or 13 bankruptcies are typically approvable for MCAs after 12–24 months.
SBA loans conventionally require 7+ years post-discharge; bank term loans similar.
The credit rebuild post-discharge matters more than the BK itself — clean history beats raw score.
Open or active bankruptcies are a near-universal hard decline.
Educational ranges only — actual approvability depends on lender, file, and current market.
Related: Business Loans for Bad Credit — Complete Guide | FICO under 600 working capital options