Guaranteed Approval: Startup Business Loans with Bad Credit in New York City

Top 10 Well Known New York City-Based Banks & Loan Operators for Guaranteed Startup Loans with Bad Credit

Here are some potential funding options (some offer same day!) in New York City in 2025 for startup companies with bad credit looking to secure a guaranteed loan:

1. Accion East – Nonprofit lender that offers loans up to $100K to startups that may not qualify through traditional lenders. They offer credit-building services.
2. Excelsior Growth Fund – NY state-run fund that provides loans between $100K – $5M to tech and science startups at below-market interest rates.
3. Kiva NYC – Crowdfunded microloans up to $15K with 0% interest. Requires endorsing trustees for bad credit applicants.
4. CAN Capital – Offers merchant cash advances from $5K to $150K. An industry veteran since 1998.
5. Fora Financial – Cash advances ranging from $5K-$500K. Focus on restaurants & retail businesses.
6. Kapitus – Approves advances up to $500K in as fast as one business day. Targets many industries.
7. Pearl Capital – Specializes in advances for businesses with revenue over $30K per month.
8. Advance Business Capital – Approves advances up to $500K with fixed daily payments.
9. Quantum Capital Funding – Provides startup funding from $5K-$150K even for high-risk industries. Bad credit clients must inquire.
10. Quickfee – Merchant cash advances from $5K up to $1M. Same-day funding available. They say they can approve startup loan advances even with poor personal credit if the business is strong, requiring 3+ months in business.

In addition to startup loans necessitated by cashflow shortages and possible high interest pain, if you have inventory or product shortages, many of these NYC banks will offer startup equipment financing even with bad credit.

5 Lenders Offering Startup Equipment Financing Loans – Inquire for Bad Credit – in Nyc and Greater New York State Region in 2025

• Accion East (Nonprofit lender)
  • 80 Maiden Ln Suite 903, New York, NY 10038
  • (212) 387-0377
  • Offers financing for startups with bad credit histories.
• New York Business Development Corp
  • 50 Beaver St, Albany, NY 12207
  • (212) 312-3600
  • Offers equipment financing for startups. Credit requirements not clear.
• Cross River Bank
  • 885 Teaneck Road, Teaneck, NJ 07666
  • (201) 820-5291
  • Online bank that offers startup business loans. May work with bad credit borrowers.
• Spring Bank (Community bank)
  • 395 Main St, Ridgewood, NJ 07450
  • (718) 782-6200
  • Local NYC bank providing business loans and equipment financing. Credit requirements not specified.
• Lower East Side People’s Federal Credit Union
  • 37 Ave B #1, New York, NY 10009
  • (212) 529-8197
  • Credit union offering startup business loans. Unclear if they work with bad credit.

Staten Island, New York City Banks Offering Small Business Startup Loans or Merchant Cash Advance Programs for Startup Owners:

There are 5 boroughs in NYC totaling more than 2.5 million people! Here are a list of the local banks in each Staten Island, New York City area to help startup business owners attain unsecured loans in 2025 even with bad credit.

5 National Banks in Staten Island, New York and the Types of Small Business Loans They Offer:

• TD Bank –
  1205 Forest Ave, Staten Island, NY 10302
  TD Bank offers SBA 7(a) and 504 loans to entrepreneurs looking to buy commercial real estate, property and land, finance working capital, or purchase machinery and inventory.
• Wells Fargo –
  2791 Richmond Ave, Staten Island, NY 10314
  Wells Fargo offers secured and unsecured business term loans and business lines of credit. Their small business loans typically range from $10,000 to $100,000.
• Chase Bank –
  1226 Forest Ave, Staten Island, NY 10302
  Chase Bank provides SBA Express loans up to $350,000 for general business purposes including working capital, business expansion, equipment purchases, etc. Fast turnaround time.
• Citizens Bank –
  1085 Forest Ave, Staten Island, NY 10310
  Citizens Bank offers business lines of credit, SBA 7(a) term loans, equipment financing, and commercial mortgages. Loan amounts range from $10,000 to $5 million.
• Capital One Bank –
  2795 Richmond Ave, Staten Island, NY 10314
  Capital One has a variety of business loan and line of credit options including loans for startups, operating expenses, equipment, and real estate. Key focus areas are healthcare, retail, and professional services.

5 Regional Banks in Staten Island, New York and the Types of Bad Credit Guaranteed Small Business Loans They Offer:

Manhattan, New York City Banks Offering Small Business Startup Loans or Merchant Cash Advance Programs for Startup Owners:

Manhattan is the largest borough – let’s see what small biz startup loans are guaranteed and available despite bad credit;

5 Regional Banks in Manhattan, New York and the Types of Small Business Loans They Offer:

The main loan types offered are SBA loans, commercial real estate loans, equipment financing, lines of credit and standard term loans – with loan amounts ranging from a few million up to $100 million for the larger regional bank players.

5 merchant cash advance operators in Manhattan, New York City and the types of guaranteed small business loans they offer despite bad credit:

 

These alternative NYC lenders provide fast cash advances for small businesses even with poor or no credit. They can be easier to qualify for than traditional bank loans.

5 Merchant Cash Advance Operators in the Bronx, New York City and the Types of Guaranteed Small Business Loans They Offer Despite Bad Credit:

Here are 5 merchant cash advance companies in the Bronx, NYC that offer guaranteed small business funding despite bad credit:

Should your Startup Company Seek a Guaranteed Loan in New York City even with Bad Credit?

Whether your NYC startup should seek a guaranteed loan if you have bad credit involves carefully weighing some unique pros and cons:

Pros of poor credit startup biz loans if you’re based in the Big Apple:

• NYC has many alternative lenders and programs that work with bad credit borrowers. More options than other places.
• Funding can help you quickly scale up operations to serve the large NYC market right away.
• NYC’s entrepreneurial resources like SBS and workforce talent can help you drive revenues to repay debt.
• Strong consumer demand and opportunities like holiday markets in NYC provide fast income.
• Repaying a NYC lender can help build local relationships for future funding needs.

Cons of getting startup loan with bad credit in NYC:

• NYC’s highly competitive business environment makes rapid revenue growth uncertain.
• High NYC operating costs add challenges when repaying short-term high interest debt.
• With high NYC rent and labor costs, the collateral assets you risk may be quite valuable.
• Abundant NYC fundraising opportunities later may provide better terms than current bad credit financing.
• If the business fails, the high cost of living in NYC makes personal debt obligations tougher.

Here are 7 Things You NEED To Know in 2025 (and Sources) Related to Bad Credit Startup Loans in New York City:

1. The average credit score in NYC is 680 (Experian, 2022: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/average-credit-scores-by-age-and-location/)
2. 27% of NYC residents have subprime credit scores below 620 (TransUnion, 2020: https://www.tuscore.com/insights/cities-with-the-highest-subprime-credit-population)
3. New Yorkers have an average personal loan debt of $7,245, higher than the national average (Federal Reserve Bank of New York: https://www.newyorkfed.org/microeconomics/hhdc)
4. NYC average interest rates on personal loans for bad credit: 25-35% for online lenders, 15-20% at credit unions (NerdWallet, 2022: https://www.nerdwallet.com/blog/loans/personal-loans/personal-loans-new-york/)
5. In NYC, Black and Hispanic residents are more likely to be credit invisible (26% Black, 21% Hispanic vs 9% White) (NYC Department of Consumer Affairs, 2021: https://www1.nyc.gov/assets/dca/downloads/pdf/partners/Research-UnseenLendingSlideDeck.pdf)
6. New Yorkers with low incomes are more likely to rely on alternative financial services like payday loans (Edmiston, 2011: https://www.newyorkfed.org/medialibrary/media/research/epr/11v17n3/1117edmi.pdf)
7. NYC caps payday loan APR at 16% but illegal online lenders charge up to 500% (NY Policy Perspective, 2020: https://nycpp.org/wp-content/uploads/2020/01/NYCPP_CaseforRateCap.pdf)

Does the New York City Government Have Public Loan Options Available for Startups with Bad Credit?

Here are some New York City government options for startup owners with bad credit looking for guaranteed loans:

1. NYC Small Business Services Loan Guarantee Program – Can guarantee up to 40% of a qualifying loan up to $500,000 made by a lender for startups based in NYC. However if you have bad credit you are fresh out of luck – the NYCCA requires good personal credit.
2. NYC Economic Development Corporation – Provides some loan guarantees for businesses that cannot get full private financing. Also administers some direct lending programs.
3. SBS NYC Capital Access – Can guarantee up to 40% of eligible loans up to $500,000 to help secure financing. Open to startups and existing small businesses.
4. SBS Contract Financing Loan Fund – Can finance up to 95% of an approved NYC contract up to $500,000 through participating lenders.
5. Brooklyn Alliance Capital – Partners with Kiva to offer crowdfunded microloans up to $15,000 to Brooklyn entrepreneurs with credit challenges.
6. NYC Restore NYC Loan Program – Provides loans and grants up to $100k to very small NYC businesses impacted by COVID-19. Uses alternative underwriting.
7. SBS Emergency Loan Fund – Provided loans up to $75k to small NYC businesses impacted by COVID-19. Limited initial funding.
8. SBS LMI Storefront Loan Program – Below market rate financing up to $150k for building improvements to qualified low/mod income storefronts.