How do I get a $1 million business loan?
$1 million requires SBA 7(a), SBA CDC/504, or a conventional bank commercial loan. Qualification floors are 720+ personal FICO, 3+ years in business, $2M+ annual revenue, a 1.35×+ DSCR, 3 years of tax returns, and real property collateral. Non-bank options rarely exceed $500K; $1M financing is a bank relationship business.
What $1 Million Funds
$1 million is major capital — commercial real estate purchase or major renovation, a multi-location expansion, a significant business acquisition, a full manufacturing equipment line, a franchise system-wide rollout, or 2–3 years of payroll for a growing 20-person operation. At this level, lenders treat the deal as a commercial transaction — expect a formal credit memo, underwriting committee, and 90–120 day close for SBA or bank products.
What Lenders Look For at $1 Million
- 720+ personal FICO (credit at this level is a binary qualifier, not just a pricing lever)
- 3+ years in business with audited or CPA-reviewed financial statements
- $2,000,000+ annual revenue — lenders typically want 2–2.5× annual revenue coverage
- DSCR of 1.35×+ — most banks won't approve under 1.25×, and competitive pricing starts at 1.35×
- Real property collateral strongly preferred; business assets alone rarely cover $1M
- 3 years of business and personal tax returns, year-to-date financials, accounts receivable/payable aging
- Personal financial statement and net worth verification (net worth typically ≥ loan amount for SBA)
- Environmental assessment for real estate-backed deals
Which Products Fit $1 Million
- SBA 7(a) loan (maximum $5M; prime + 2.25%–2.75% at this size; 10-year working capital / 25-year real estate)
- SBA CDC/504 (real estate or major equipment — 40% bank / 50% CDC fixed rate / 10% equity; 20–25 year terms)
- Conventional commercial real estate loan (CRE, LTV up to 75–80%, 5–7 year balloon or 20–25 year amortization)
- Conventional commercial term loan (non-CRE; 5–7 year term, 720+ FICO, 3+ years seasoning)
- USDA B&I (rural; 80% guarantee, up to 30-year real estate terms)
Worked example — $1M SBA 7(a) repayment
SBA 7(a): $1,000,000 at prime + 2.25% (≈9.75% APR, 2025) over 25 years (real estate) = $8,973/month, total cost ≈$2,691,900. Or over 10 years (working capital) = $13,004/month, total ≈$1,560,480. Guarantee fee on $1M at 3.75% ≈ $28,125 (typically financed in). SBA 504: $1M deal — bank funds $400K at market rate + CDC funds $500K at fixed ≈6.2% over 20 years ($3,616/month on CDC portion). 504 is cheaper on fixed-asset deals but requires 10% equity injection ($100K cash).
Non-bank lenders rarely fund $1M
Most non-bank/online lenders cap at $500,000. Products marketed as '$1M business loans' at high factor rates are uncommon and extremely expensive — effective APRs can exceed 40%. At $1M, the cost differential between SBA (≈9–11% APR) and non-bank (40%+ APR) is hundreds of thousands of dollars over the loan term. This is a bank/SBA deal. Build the relationship and prepare the documentation.
Sources
- SBA 7(a) maximum loan amount is $5 million; for loans exceeding $350,000, lenders must use standard 7(a) processing (not Express or PLP), which typically adds 45–90 days to closing. — SBA — 7(a) Loan Program
- SBA CDC/504 program funds fixed assets; the CDC portion is funded via SBA-guaranteed debentures and carries a fixed rate set at debenture pricing (historically 80–100 bps above 10-year Treasury). — SBA — 504 Loan Program
- Federal Reserve SBC Survey 2024: Only 14% of firms seeking $500K–$1M received full funding at large banks; community banks and credit unions approved a higher share for established borrowers. — Federal Reserve SBC Survey 2024
- FRED data: Prime rate was 7.50% in Q1 2025. SBA 7(a) pricing for loans >$250K is prime + 2.25%–2.75%, placing all-in rates at approximately 9.75%–10.25%. — FRED — Prime Rate
Key takeaways
- $1 million is a bank/SBA deal — non-bank lenders rarely go this high, and those that do charge rates that add $400K+ in cost vs. SBA.
- 720+ FICO, $2M+ annual revenue, 3 years of tax returns, and real property collateral are the hard gates. Address these well before applying.
- SBA CDC/504 is the lowest-rate path for fixed assets — plan 10% equity injection ($100K) and a 90–120 day close.
- DSCR of 1.35×+ is needed for competitive pricing — document your net operating income from tax returns, not projections.
- Apply at Find my match — ClearValue Lending routes qualified borrowers to SBA-aligned lender partners.
Related
Related guides