Whats the biggest business loan that can be loaned?

Question

Over a million dollars? And would you have to have a really successful job and be making atleast $100,000 a year, to take out such a huge loan? Also does education matter, when taking out loans? If I had a bachelors degree, would it affect my likeliness in getting a loan?

Answer 1

I don't know what the lending limits are perse for the varying situations, but I will say that obtaining a million dollar loan is going to be next to impossible for a "new small" business.

Typically, you have to be in business for two years and have a proven profitability program. You have to be able to show that you can repay the loan. You have a slightly better chance of obtaining financing if you are incorporated and are an "expert" in your line of work.

Because you will get tons of different answers to a question like this, I would recommend going to a business banker at a bank and talk to them about it. Each lender is going to have different guidelines for this type of thing.

Answer 2

It depends on the type of business and the lenders. If the business is technology, sciences, or related to defense, monies of a million or more are available for R&D (research and development) and start up. Although for your small mom and pop businesses, business loans over 150,000 would be scare if not impossible without a huge amout of collateral. And even with collateral it can be difficult, unless the business concept is ingenuis.
As for loans over a million dollars, you best bet would be venture capitalists, angels, and possibly banks. Banks will want you to have a hefty down payment and a 5 year verifiable project and loss sheet as well as all your financials for the company available.
You must have a top notch executive team leading the company with creditials and education who knows the industry your company will be in. If they have experience in the industry, that would be even better.
With a new company in the high end loan numbers, you can be sure the lenders will want a high return on their investment and/or a large piece of the company. Good Luck!