Small business loan broker
Match local owners with lenders for equipment, working capital or SBA loans and earn a fee when the loan funds.
- $1k-5k
- Side hustle
- From home
Estimates for a small start in the US, not guarantees.
Official data
9,792 US businesses with employees in this field, -10.6% in a year
NAICS 522310 “Mortgage and nonmortgage loan brokers”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
You help small business owners find and apply for financing. You gather their documents, pick suitable lenders, submit the application and guide them to closing. You work from home by phone, email and video call, plus local meetings.
Your first three steps
- Learn the main loan types (term loans, equipment financing, lines of credit, SBA) and list the lenders you could place deals with
- Apply to a few lender or broker partner programs and ask about commission, minimum deal sizes and what they expect from brokers
- Set up an LLC, a simple website and a short pitch, then meet local accountants, bookkeepers and commercial realtors for referrals
Who pays
Usually the lender pays you a commission when a loan funds. Some brokers also charge the borrower a fee, where state rules allow.
How it makes money
A percentage of each funded loan, paid by the lender. Deals take weeks to close, so income can be uneven at first and grows as referrals build.
Skills that help
- Clear explaining of numbers and terms
- Building trust with business owners
- Following up and staying organized
- Networking with accountants and bankers
Watch out for
- Check your state's rules: some states require a broker or finance license, others do not
- Check fee disclosure and advertising rules, and never promise approval or rates
- Consider errors and omissions insurance as well as general liability
- Protect borrowers' financial documents with secure storage and file sharing
- Commission only income can be slow to start, so keep a cash buffer
Deep research report · US
Everything you need to start: small business loan broker
Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a business loan brokerage?
Startup costs are typically estimated at around $1,000 to $5,000, depending on your software, secure file sharing, insurance and any licensing fees. These are estimates, so check what your state requires.
How much can a small business loan broker earn?
Monthly revenue is typically estimated at around $1,500 to $7,500, depending on how many loans fund and the commissions or fees involved. Commission-only income can be slow to start, so treat this as an estimate.
What rules should I check before brokering business loans?
Check your state's rules, since some require a broker or finance license and others do not. Check fee disclosure and advertising rules, and never promise approval or rates. Consider errors and omissions insurance.
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