16 ways small businesses are funding growth in 2026

With banks tightening lending standards for the third consecutive year, owners are tapping a wider funding toolkit-and the data shows it's working.

Three-quarters of small businesses used some form of financing in the past 12 months, according to the Intuit QuickBooks Small Business Insights January 2026 survey. Not because traditional lending got easier-banks tightened lending standards for business loans through late 2025, a pressure point documented in the 2026 QuickBooks Small Business Index Annual Report-but because the range of funding options available to small businesses expanded.

From CDFI loans to equity crowdfunding to invoice factoring, owners are reaching for options their local branch never offered. The results are clear: businesses that access financing are nearly twice as likely to be in an active growth phase as those relying solely on personal funds-54% versus 28%-according to the 2025 Intuit QuickBooks Small Business Financing Report.

Intuit QuickBooks shares 16 funding paths worth knowing in 2026:

1. Traditional bank loans

Competitive interest rates and long repayment terms make bank loans a strong fit for established businesses with solid credit histories and documentation. The trade-off is time-applications are detailed, approval windows are long, and qualification standards are high.

2. SBA 7(a) loans

The Small Business Administration's flagship loan program covers general-purpose needs up to $5 million, with government backing that reduces risk for lenders. That backing opens doors for businesses that wouldn't qualify through conventional channels.

3. SBA microloans

For newer businesses or smaller capital needs, SBA microloans reach up to $50,000. The program is especially useful for businesses operating for less than two years-a group that struggles most with traditional lending.

4. Business credit cards

Among employer firms, business credit cards are the single most common financing source, used by 58% of employers, per the 2025 Financing Report. They offer rewards, float, and quick access. The catch: 55% of small business owners carry a balance, and the share paying off their full monthly balance dropped from 58% to 45% between April 2024 and January 2026, according to the January 2026 Small Business Insights survey.

5. Business lines of credit

A line of credit works like a revolving account-a set limit you draw from and repay as needed. You only pay interest on what you borrow. It's a common tool for smoothing seasonal dips and cash crunches. Businesses dealing with late invoices are 1.5 times more likely to use lines of credit (31% versus 21% of those with timely payments), per the 2025 Intuit QuickBooks Late Payments Report.

6. Equipment financing

Equipment loans use the asset itself as collateral, which lowers the qualification bar. Instead of paying full price upfront for machinery, vehicles, or technology, businesses spread payments over time-matching the cost of the tool to the revenue it generates.

7. Invoice factoring

When cash is tied up in unpaid invoices, factoring converts those receivables into immediate funds. A third party buys your outstanding invoices at a discount and advances most of the value upfront. It's faster than a loan and sidesteps credit requirements. The trade-off: fees reduce margin.

Unpaid invoices are a genuine drag. The average small business is owed $17,500 in outstanding invoices, and 47% have at least one invoice more than 30 days overdue, according to the 2025 Intuit QuickBooks Small Business Late Payments Report.

8. Merchant cash advances

A merchant cash advance (MCA) provides a lump sum repaid through a percentage of daily card sales. Funding can arrive same-day-useful for businesses with high card volume and a short-term need. Interest costs can run steep, so MCAs work best as a bridge, not a long-term solution.

9. Angel investors

Angels are individuals who invest personal capital, typically $25,000 to $500,000, in early-stage businesses. They often bring mentorship and networks alongside funding. In exchange, investors take an equity stake-you're sharing ownership, not borrowing.

10. Venture capital

VC is for high-growth businesses pursuing significant scale. Firms invest across stages-seed through Series B and beyond-in exchange for equity and often a seat at the table. Most small businesses don't match the growth profile VCs look for. This path fits a narrow slice of the market.

11. Equity crowdfunding

Platforms like Wefunder and SeedInvest let businesses raise capital from a broad pool of investors in exchange for equity. SeedInvest has facilitated over $300 million in fundraising to date from more than 500,000 investors. It's more accessible than VC for early-stage businesses, but carries regulatory requirements and ongoing investor communications.

12. Rewards-based crowdfunding

Kickstarter, Indiegogo, and similar platforms let businesses presell products or offer perks to backers-no equity required. A strong campaign also functions as market validation before you commit to production. According to Grand View Research, the U.S. crowdfunding market generated $372.3 million of revenue in 2024 and is projected to reach $928.6 million by 2030.

13. CDFIs (Community Development Financial Institutions)

CDFIs are mission-driven lenders built to serve businesses that fall outside traditional credit standards. They offer loans, lines of credit, and technical assistance-often at more flexible terms than banks.

14. Business grants

Grants don't require repayment. Federal programs include SBIR grants (up to $1.8 million for tech-focused firms) and USDA rural energy grants. Corporate programs from American Express, Amazon, and Verizon add more options. Competition is stiff, and applications take time, but the payoff is capital with no strings attached.

Demographic-specific programs have expanded significantly. Minority-owned businesses represent 42.3% of all U.S. small business ownership, per QuickBooks' grants research, and a growing number of grant programs are designed to reach them directly.

15. Bootstrapping

Personal savings and reinvested revenue remain the most common funding source for solo owners. Among non-employer businesses, 28% rely on personal savings as their primary source, per the 2025 Financing Report. Bootstrapping keeps you in full control, but it moves slowly and carries personal financial risk. For early-stage businesses not yet ready to take on debt, it's often the lowest-risk place to start.

16. Product presales

Selling before you build generates cash without debt or dilution. It's most practical for product-based businesses: a presale campaign funds the production run, and early buyers function as both customers and validators. Combined with rewards-based crowdfunding, it can generate funding and validate demand at the same time.

Making the mix work

Choosing the right funding option matters more than the type of funding itself. The 2025 Intuit QuickBooks Small Business Financing Report found that businesses with access to financing were 74% more likely to plan near-term investments, compared to 37% of those without. This difference is reflected in cash flow (56% versus 43% reporting healthy flow) and profitability (88% versus 76%).

Owners of color are more likely to identify successful financing access as their single most important business benefit-35% compared to 21% of white owners, per the same report. That finding points to both the stakes involved and the persistent barriers many owners still face when trying to get in the door.

Start by identifying which funding options align with your business needs and timeline-then pursue the one that fits, not just the one that's familiar.

Methodology

Data in this article is drawn from the 2025 Intuit QuickBooks Small Business Financing Report, based on the July 2025 wave of the Intuit QuickBooks Small Business Insights survey (n=2,200+ U.S. small business owners/decision-makers, 0–100 employees). Additional data from the 2025 Intuit QuickBooks Small Business Late Payments Report (January 2025 survey wave, n=2,487 U.S. small businesses, 0–100 employees) and the Intuit QuickBooks Small Business Insights January 2026 survey (~5,000 small businesses across the U.S., Canada, UK, and Australia; Dynata panel plus QuickBooks customer panel). The 2026 QuickBooks Small Business Index Annual Report provided macroeconomic context. Grant data sourced from the QuickBooks small business grants guide. Crowdfunding data from the QuickBooks crowdfunding sites guide. All cited findings are statistically significant.

This story was produced by Intuit QuickBooks and reviewed and distributed by Stacker.

Copyright 2026 Stacker Media, LLC

This story was originally published April 22, 2026 at 8:30 AM.