Most new businesses need 3 to 6 months of operating expenses in working capital before opening, plus 10% to 20% contingency. The exact number depends on industry, fixed costs, and how long it takes to reach break-even revenue. Service businesses can launch with as little as $10,000 to $25,000. Brick-and-mortar retail typically needs $50,000 to $150,000. Restaurants and franchises often need $250,000 or more.
| Business Type | Typical Working Capital Need | Months of Runway | Common Funding Sources |
|---|---|---|---|
| Service business / consulting | $10K to $25K | 3 to 6 months | Personal savings, microloan, line of credit |
| E-commerce / online retail | $25K to $75K | 4 to 6 months | SBA Microloan, online term loan, LOC |
| Brick-and-mortar retail | $50K to $150K | 6 months | SBA 7(a), bank term loan, equipment financing |
| Restaurant / food service | $150K to $500K | 6 to 12 months | SBA 7(a), franchise lender, MCA |
| Manufacturing / industrial | $100K to $1M+ | 6 to 12 months | SBA 504, bank term loan, equipment financing |
| Franchise (mid-tier) | $100K to $350K | 6 to 9 months | SBA 7(a), franchise lender, ROBS |
Sources: lender published rate tables, SBA program guidelines, and industry data as of June 2026. Rates and qualification criteria change frequently. Confirm with each lender before applying.
Underfunded launches are the most common cause of small business failure inside the first 24 months. The SBA's own data shows that businesses with less than 3 months of working capital reserve fail at roughly twice the rate of those with 6+ months. A working capital loan, line of credit, or SBA 7(a) can close the gap between what you saved and what you actually need.
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