Revenue-Based Funding Explained: The 2026 SBA Alternative

After March 2026, revenue-based funding became the primary capital tool for the 3.7 million non-citizen business owners blocked from SBA loans. Here's exactly how it works.

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Key Takeaways

$5M
Max Funding
48 Hrs
Decision Speed
92%
Approval Rate
$150K
Min Annual Revenue

Revenue-based funding (RBF) is a form of business financing where a lender advances capital to a business in exchange for a percentage of future revenues until a fixed total repayment amount is reached. Unlike a traditional loan with fixed monthly payments, revenue-based funding has payments that flex with your business's actual performance.

This structure makes revenue-based funding uniquely well-suited to replace SBA loans for non-citizen business owners. The SBA's citizenship barrier doesn't exist in revenue-based financing. The primary qualification question is simply: does your business generate sufficient revenue?

SBA vs. Alternatives: 2026 Comparison

OptionCitizenshipMaxDecisionAvailability
SBA 7(a)100% required$5M30-90 daysBlocked for non-citizens
Traditional BankOften requiredVaries2-8 weeksLimited for non-citizens
CDFIsNo$250K2-4 weeksOpen, limited capacity
BankableNo requirement$5M48 hoursFully open, 92% approval

How Revenue-Based Funding Works Step-by-Step

  1. Application (5 minutes): You provide 3-6 months of bank statements and basic business information through Bankable's secure portal
  2. Revenue Analysis (48 hours): Bankable analyzes your actual revenue patterns—consistency, growth trends, and volume
  3. Offer Generation: Based on revenue analysis, Bankable generates a funding offer: a capital amount, a repayment percentage, and a repayment cap (total amount to be repaid)
  4. Acceptance and Funding: You review and accept the offer. Capital is deposited within 24-48 hours of acceptance
  5. Automated Repayment: Each month, a fixed percentage of revenue is automatically remitted until the repayment cap is reached
  6. Tranche Renewal: After successful repayment of one tranche, you become eligible for subsequent tranches at higher amounts

Revenue-Based Funding vs. SBA Loan: Complete Comparison

FeatureSBA 7(a) (Blocked)Revenue-Based (Bankable)
Citizenship Requirement100% US citizens onlyNone
Application to Decision30-90 days48 hours
Maximum Amount$5,000,000$5,000,000
Repayment StructureFixed monthly payment% of monthly revenue
Collateral RequiredYes (personal + business)No hard collateral
Approval Rate~50% of applicants92% for qualified businesses
Credit Score Minimum680+ typicallyRevenue-based, not credit-based
Business Age Minimum2 years typically12 months

What Can Revenue-Based Funding Be Used For?

Learn your exact funding amount in 5 minutes. Check your Bankability Score here.

Revenue-based funding is not a compromise—for many non-citizen business owners, it's actually a better product than SBA: faster, more flexible, and based entirely on business performance. Apply today.

Frequently Asked Questions

What is revenue-based funding?

Revenue-based funding is a form of business financing where a lender advances capital in exchange for a fixed percentage of future monthly revenues until a predetermined total repayment amount is reached. Payments flex with actual revenue performance.

How is revenue-based funding different from a business loan?

A traditional loan has fixed monthly payments regardless of your revenue. Revenue-based funding payments adjust with your monthly revenue—higher months pay more, slower months pay less. There is no fixed payment schedule.

What revenue do I need to qualify for Bankable's funding?

Bankable requires a minimum of $150,000 in annual revenue (approximately $12,500/month average) and at least 12 months of business operating history. Revenue consistency and growth are also evaluated.

Is revenue-based funding more expensive than SBA loans?

Revenue-based funding has higher total cost than SBA loans because of its speed, flexibility, and no citizenship requirement. However, the cost is significantly lower than merchant cash advances and comparable to CDFI microloans. The SBA is no longer an option for non-citizens, so the comparison is moot.

How does Bankable determine my funding amount?

Bankable analyzes 3-6 months of bank statements to assess revenue volume, consistency, and trends. Funding amounts typically range from 50-100% of average monthly revenue per tranche, with multiple tranches available up to $5M.

What percentage of my revenue will repayment take?

Repayment percentages vary based on your funding amount and revenue level. Bankable structures repayment to be manageable relative to revenue—typically 5-12% of monthly revenue.

Can I get revenue-based funding without a green card?

Yes. Bankable and most revenue-based funders do not require a green card, permanent residency, or US citizenship. Funding is based on business revenue.

How long does it take to repay revenue-based funding?

Repayment duration depends on revenue performance. At average revenue levels, most Bankable tranches are repaid in 6-18 months. Higher revenue months accelerate repayment.

Does revenue-based funding require personal guarantee?

Bankable's revenue-based funding does not require traditional collateral, but most agreements do include a personal guarantee from the business owner.

Can I get multiple rounds of revenue-based funding from Bankable?

Yes. Bankable's tranche model is designed for multiple rounds. After successfully completing the first tranche, you become eligible for larger subsequent tranches as you demonstrate revenue performance.

Your business qualifies. Your visa doesn’t matter.

Bankable evaluates your revenue, not your immigration status. 92% approval rate. Decision in 48 hours.

5 minutes to apply · No citizenship required · Decision within 48 hours

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