Can I get a business loan in Minnesota with bad credit?

Yes — you can qualify for a Minnesota business loan with a bad credit score of 620‑679. See your rate quickly

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The specifics

A 620‑679 FICO score is considered fair credit by the U.S. Small Business Administration (SBA) and is acceptable for SBA 7(a) loans. The SBA’s terms state that monthly payments must not exceed 8‑12 % of gross monthly revenue, and borrowing up to $5 million is possible with collateral or a personal guarantee. Average APRs for SBA 7(a) loans in July 2026 are 8‑10 %【nerdwallet.com】, with a 3‑5 % premium added for fair‑credit borrowers【sba.gov】. A lien on equipment or real estate can reduce that premium by 1‑3 %【sba.gov】. Private lenders may accept scores as low as 640 if the business shows strong cash flow; they typically offer 8‑15 % APRs and 48‑84‑month terms for equipment purchases【sba.gov】.

To get a quick look at what you might qualify for, run a quick check with the Affordability Calculator or see the overall approval data in the 2026 Loan Approval Study.

Qualification & edge cases

• If the credit score falls below 620, most SBA‑participating lenders will likely deny the application. In that situation, merchants open a line‑of‑credit with a higher APR (18‑25 % for MCAs)【sba.gov】.
• Businesses newer than one year of operation or with less than $25,000 in monthly invoices may find merchant cash advances or invoice factoring more accessible, though they carry fees of 1.5‑3.5 % per 30‑day cycle【sba.gov】.
• Certain niche markets, such as Minnesota food‑truck operators, have specialized programs that allow bad‑credit borrowers to finance used trucks with APRs of 12‑15 %【https://getfoodtruckfinancing.com/bad-credit-minnesota】.

Background & how it works

The SBA guarantees up to 85 % of a loan of $150,000 or less (and 75 % for larger loans)【sba.gov】, effectively lowering the risk for banks and widening underwriting windows for fair‑credit applicants. A “soft pull” initial credit check is used to keep your score intact【sba.gov】. Once you submit the required documentation—tax returns, financial statements, business plan, and collateral details—the lender evaluates the debt‑service coverage ratio, monthly payment ratio, and collateral value to decide. Approval times for SBA loans average 30‑45 days, while some private lenders can approve in 30 days if all paperwork is in order【sba.gov】. A well‑prepared business plan with projected cash flow can significantly improve the odds, even when credit is not prime.

Bottom line

You can still secure a business loan in Minnesota with a bad credit score of 620‑679. A quick rate preview is available; act now to find the best option for your business.

Disclosures

This content is for educational purposes only and is not financial advice. businessloanrequirements.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

• sba.gov
• nerdwallet.com
• crestmontcapital.com