Small Business Loans in Minnesota
Learn All About Small Business Loans in Minnesota
Minnesota is home to more than 560,000 small businesses, which make up approximately 99.5% of all enterprises in the state. From the medical technology hubs in the Twin Cities to the agricultural operations in the Red River Valley, these companies employ more than 45% of the state’s workforce.
Whether you’re launching a retail store in the Mall of America or expanding a manufacturing plant in St. Cloud, finding small business loans in Minnesota can be a key step in building your business. Here’s what you need to know about securing financing for your company.
- Key Points
- • The Emerging Entrepreneur Loan Program (ELP) provides low-interest funding to businesses owned by minorities, veterans, women, economically disadvantaged people, and people with disabilities.
- • The Automation Loan Participation Program helps manufacturers finance smart technology and machinery to increase productivity.
- • The Native American Business Loan Program offers low-interest financing specifically to businesses owned by enrolled members of Minnesota-based tribes.
- • Agricultural producers frequently utilize equipment financing to obtain the heavy machinery required for planting and harvesting seasons.
- • Seasonal tourism businesses in the Brainerd Lakes area often rely on lines of credit to manage cash flow during off-peak months.
Popular Types of Small Business Loans in Minnesota
Entrepreneurs in the North Star State can benefit from a strong financial ecosystem that supports a diverse mix of healthcare, agriculture, and manufacturing. The sections that follow outline the most common funding options available to business owners across Minnesota.
Minnesota Small Business Loan Programs
The state actively encourages economic growth through the Department of Employment and Economic Development (DEED). DEED manages the Emerging Entrepreneur Loan Program, which partners with nonprofit lenders to support underserved business owners.Other DEED programs include the Automation Loan Participation Program, which helps manufacturers finance smart technology and machinery, and the Native American Business Loan Program, which provides low-interest loans to businesses owned by enrolled members of Minnesota-based tribes.
Additionally, the State Small Business Credit Initiative (SSBCI) funds programs like the Growth Loan Fund, which provides capital to early-stage technology companies.
Term Loans
A term loan can provide a small business with an upfront lump sum of capital. The principal, along with interest (which is usually charged at a fixed rate), is then repaid over a defined period of time in regular payments. Having a fixed, predictable repayment structure can be useful as you budget into the future, and because the funds come in a lump sum, such loans can be well-suited to funding large, one-time investments. For example, a brewery in Duluth might use a term loan to expand its taproom and production capacity.
Business Lines of Credit
In contrast with a term loan, a business line of credit can give your business access to a revolving pool of funds that you can draw from when you need them, up to a limit set by the lender. Generally, you pay interest only on the money you actually withdraw, and as you repay the balance, you replenish the pool of funds and the money becomes available for withdrawal again.
Lines of credit can be helpful for businesses that have seasonal lulls or uneven cash flow. For instance, a resort owner in Bemidji could use a line of credit to cover maintenance and payroll costs during the slower shoulder seasons.
Equipment Financing
If your company needs a specific physical asset, like machinery, vehicles, or technology, you might be interested in applying for equipment financing. A sugar beet farmer outside Moorhead could use this kind of financing to buy a new harvester, while a medical device manufacturer in Rochester might use it to acquire precision prototyping tools.
Because the equipment itself serves as collateral for the lender, equipment financing loans can be easier to obtain than unsecured loans. Additionally, they may often come with more favorable terms.
Small Business Administration (SBA) Loans
Private lenders are the actual issuers of SBA loans, but this financing is partially guaranteed by the U.S. Small Business Administration. That federal backing reduces the lender’s risk, so the loan conditions may permit lower down payments and longer repayment terms. If you qualify, these Minnesota business loans are available through numerous banks and credit unions.
Here are the types of SBA loans that may be the most useful for small businesses.
• The SBA 7(a) loan is very flexible: Amounts can range from $500 to $5 million. It’s suitable for covering working capital, refinancing debt, or purchasing supplies.
• The SBA 504 loan is specifically meant for companies to use on major fixed assets, such as commercial real estate or heavy equipment. The maximum amount is between $5 million and $5.5 million.
• The SBA Microloan is meant to help with short-term needs and can be useful to companies that need startup loans. You can borrow up to $50,000 and the maximum repayment term is seven years.
Using an SBA loan calculator may help you estimate what your loan costs might be for different kinds of SBA funding.
Recommended: Small Business Financing Guide
How to Apply for a Small Business Loan in Minnesota
Applying for a Minnesota small business loan often requires preparation and attention to detail. You’ll need to give prospective lenders a clear picture of your company’s financial health and a well-developed plan for how their funds would be used.
Here’s a step-by-step breakdown of how to apply for a small business loan in Minnesota.
Define Your Loan Purpose and Amount
Before you begin contacting lenders, it may be beneficial to have a precise understanding of your business’s funding needs. You should be able to articulate exactly how much money you need and how it will generate a return. A specific proposal, such as “$50,000 to upgrade our inventory tracking software, which should improve our revenues by 5% annually” demonstrates to lenders that you’re thinking strategically.
Know Your Credit Score
When they’re reviewing your Minnesota business loan application, prospective lenders will generally pay special attention to your company’s credit profile. They’ll probably scrutinize your personal credit scores as well: Traditional banks often want to see a credit score for a business loan in the range of 680 or higher. Other lenders, like online banks, may be willing to look at slightly lower scores.
Because of your scores’ importance, it’s smart to review your credit reports before you apply so that you can find any errors and have them fixed — and be sure you fully understand your financial situation before you submit your application for a Minnesota small business loan.
Gather Your Key Documents
Handing in an application package that’s organized and complete can speed up the review process and signal to a potential lender that you’re a motivated, reliable borrower. While requirements will vary among lenders, you’re likely to be asked for some or all of the following:
• Credit report
• Income statement
• Bank statements
• Budget
• Income tax returns (both business and personal)
• Business plan
• Collateral valuation and supporting documents (which may include titles, deeds, or invoices)
Compare Lenders and Loan Offers
When you’re considering Minnesota small business loans, shopping around can help you find the financing that best suits your company’s needs, since different banks may offer very different options on lines of credit, for instance. It may also be helpful to compare options from multiple kinds of sources, including small local banks, large national institutions, and online lenders.
As you consider financing proposals, it can be helpful to use a business loan calculator to estimate the monthly payments for different options. It may also be a good idea to look closely at the Annual Percentage Rate (APR) of each loan to understand its true cost.
Submit Your Application and Await Approval
After you’ve filled out the loan application form and gathered your supporting documentation, you should be ready to submit the application package. Once that’s done, you’ll need to wait for the lender’s response. This can take as little as two days in some cases, but may require several weeks in others.
Tips for Improving Your Loan Approval Chances
Lenders usually want to see evidence of your business’s stability as well as its ability to repay the loan. Taking steps to strengthen your business’s financial profile before you apply might help you increase your chances of securing a loan. Here are a few strategies to think about trying:
• Ensure that you have a realistic business plan with detailed financial projections.
• Work to build your business and personal credit scores by paying down your current balances and making timely payments.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Minnesota business loans.
Other Funding Options for Minnesota Small Businesses
If a traditional loan doesn’t seem to be a good fit for your company right now, there are other ways you may be able to fund your business. Minnesota’s entrepreneurial ecosystem offers several alternative paths to obtain capital. One of these options could align better with your specific stage of growth or industry.
Small business grants are highly sought after because you don’t have to repay them, and Minnesota has its fair share of them available to entrepreneurs. For instance, Launch Minnesota offers innovation grants to help technology startups scale. It could also be helpful to look into national databases like Grants.gov for federal programs relevant to your industry.
Crowdfunding can be another viable route, allowing your business to raise smaller amounts of capital online from a broad base of supporters.
Additional Business Resources in Minnesota
Success in business often takes more than just capital. Often it requires careful guidance and a supportive community. Fortunately, Minnesota has a network of resources designed to help small business owners navigate challenges. The Minnesota Small Business Development Center (SBDC) is a notable resource, offering advising services at nine regional centers statewide.
As for mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, the Southern Minnesota Initiative Foundation (SMIF) provides mentoring as well as specialized lending assistance to businesses in the southern region. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Minnesota small business loan can be the deciding factor that allows your company to expand and thrive. While the process involves careful planning, it can be an important step in your company’s development. By defining your goals and utilizing state resources, you should ultimately be able to find the right financing solution for your business.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
(without impacting your credit score)†
FAQ
How do I get a small business loan in Minnesota?
To apply for a Minnesota business loan, start by defining your funding needs and checking your credit scores. Next, gather essential documents like your business plan, tax returns, and bank statements as you put together your application. Finally, compare options from various lenders to find the best terms available for your Minnesota small business loan.
Can I get a startup business loan with no money?
This can be challenging, since most lenders require an owner’s investment. However, some SBA microloans that are designed for startups have lower capital requirements. Another possibility is to look for business grants, which provide funding that doesn’t generally need to be repaid.
How hard is it to get a small business loan in Minnesota?
The degree of difficulty depends on factors such as your business’s financial health, time in operation, and credit history. Traditional bank loans can have demanding requirements, but online lenders often offer more flexible ones, making them a more accessible option for many Minnesota businesses.
What is the easiest type of business loan to get approved for?
Loans secured by collateral, such as equipment financing loans, are generally easier to obtain because the asset reduces the lender’s risk. Short-term loans and invoice financing from online lenders also typically have less stringent requirements.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is often preferred. However, some online lenders may be willing to approve applicants with scores in the low 600s. Bear in mind that higher scores can result in better approval odds and lower interest rates.
What can I use a Minnesota small business loan for?
You can use a small business loan for almost any legitimate business purpose. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt. However, the loan can’t be used for personal expenses.
Are there any small business grants available in Minnesota?
Yes, grants are available from a variety of sources. Launch Minnesota offers innovation grants, for instance. You can also search national databases like Grants.gov for federal programs relevant to your industry.
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
*Small Business Loans: Reference to “same day funding” or “funding within 24 hours” describes a general capability of many lenders you can reach through SoFi’s marketplace. Funding or funding timing is not guaranteed. Your experience with any lender will vary based on requirements of the lender and the loan you apply for. To determine the timing of funds availability, you must inquire directly with any lender. In addition, your access to any funds from a loan may be dependent on your bank’s ability to clear a transfer and make funds available.
†Credit score impact: To check the options, terms, and/or rates you may qualify for, SoFi and/or its network providers will conduct a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the provider(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Rates may not be available from all providers.
©2025 SoFi Lending Corp. All rights reserved.
SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. ((www.nmlsconsumeraccess.org)). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the providers and not by SoFi Lending Corp. Please review each provider’s Terms and Conditions for additional details.
SOSMB-Q425-069
More Small Business Financing Resources
Business loans don’t have to be complicated. Get clear answers on applications, learn what providers really look for, and understand popular loan options.
Search for small business funding in minutes.
Your time matters. So we’re making business loans as easy as possible by helping you find small business funding fast.
(without impacting your credit score)†
Small Business Loans in Michigan
Learn All About Small Business Loans in Michigan
More than 983,000 small businesses call Michigan home, and they account for 99.6% of all enterprises in the state. From the automotive supply chain in Detroit to the cherry orchards of Traverse City and tourism shops in the Upper Peninsula, these companies employ nearly 48% of the state’s workforce.
Whether you’re launching a mobility startup in Ann Arbor or expanding a manufacturing plant in Grand Rapids, finding small business loans in Michigan can be a key step toward growing your business. Here’s what you need to know about securing financing for your company.
- Key Points
- • The Michigan Economic Development Corporation (MEDC) manages the Capital Access Program, which uses a loan loss reserve to encourage lenders to fund riskier projects.
- • MEDC’s Collateral Support Program provides cash deposits to banks to cover collateral shortfalls for businesses that are otherwise creditworthy.
- • The Loan Participation Program allows the Michigan Strategic Fund (MSF) to purchase a portion of a commercial loan, reducing the lender’s exposure and improving terms for the borrower.
- • The Michigan Economic Opportunity Fund offers microbusiness loans of up to $50,000 to women, veterans, and minority entrepreneurs.
- • Agricultural producers in Michigan frequently rely on specialized lending to finance seasonal planting costs and purchase heavy machinery.
Popular Types of Small Business Loans in Michigan
Entrepreneurs in the Great Lakes State can benefit from a financial ecosystem that supports a mix of heavy industry, agriculture, and innovation. The following sections outline the most common funding options available to business owners across Michigan.
Michigan Small Business Loan Programs
The state actively fosters economic growth through the Michigan Economic Development Corporation (MEDC). The MEDC administers federal State Small Business Credit Initiative (SSBCI) funds to support several initiatives, including the Capital Access Program, which helps small businesses secure loans by creating a reserve fund with the lender, and the Loan Participation Program, which allows the Michigan Strategic Fund (MSF) to purchase a portion of a commercial loan, reducing the lender’s exposure and improving terms for the borrower. Additionally, the Collateral Support Program supplies pledged cash collateral accounts to lenders, bridging the gap for businesses that lack sufficient assets to secure a loan.
The Michigan Economic Opportunity Fund provides microbusiness loans of up to $50,000 to women, veterans, and minority entrepreneurs.
Term Loans
With a term loan, a lender provides a small business with a lump sum of capital. Then, over a specified period (the term), the borrower makes regular payments to repay the principal and interest, which is usually charged at a fixed rate. This structure can make a term loan an appealing option for financing large, one-time investments with predictable costs. For example, an auto parts manufacturer in Warren might use a term loan to retool a production line for electric vehicle components.
Business Lines of Credit
Unlike a term loan, a business line of credit can let you access a pool of funds that you can draw from whenever you need funding, up to a preset limit. Generally, you pay interest only on the money you actually withdraw, and as you repay the balance, you replenish the pool of funds so the money becomes available for you to withdraw again.
Lines of credit can be helpful for businesses that have seasonal lulls or uneven cash flow. For instance, a seasonal resort on Mackinac Island could use a line of credit to manage payroll and inventory during the off-season.
Equipment Financing
If your business requires a specific physical asset, like machinery, vehicles, or technology, you might consider applying for equipment financing. A construction firm in Lansing could use a loan like this to finance a new bulldozer, while a brewery in Kalamazoo might use one to acquire new fermentation tanks.
Because the equipment itself serves as collateral, equipment financing loans can be easier to obtain than unsecured loans. Additionally, they may come with more favorable terms.
Small Business Administration (SBA) Loans
Private lenders are the actual issuers of SBA loans, but this financing is partially guaranteed by the U.S. Small Business Administration. That federal backing reduces the lender’s risk, so the loan conditions may permit lower down payments and longer repayment terms. If you qualify, these Michigan business loans are available through numerous banks and credit unions.
Below are the types of SBA loans that may be the most useful for small businesses.
• The SBA 7(a) loan is very flexible: Amounts can range from $500 to $5 million. It’s suitable for covering working capital, refinancing debt, or purchasing supplies.
• The SBA 504 loan is specifically meant for companies to use on major fixed assets, such as commercial real estate or heavy equipment. The maximum amount is between $5 million and $5.5 million.
• The SBA Microloan is meant to help with short-term needs and can be useful to companies that need startup loans. You can borrow up to $50,000 and the maximum repayment term is seven years.
Using an SBA loan calculator may help you estimate what your loan costs might be for different kinds of SBA funding.
Recommended: Small Business Financing Guide
How to Apply for a Small Business Loan in Michigan
Applying for a Michigan small business loan takes preparation and attention to detail. You’ll need to provide prospective lenders with a clear picture of your company’s financial health and a well-developed plan for how their funds would be used.
Here’s a step-by-step breakdown of how to apply for a small business loan in Michigan.
Define Your Loan Purpose and Amount
Before you begin contacting lenders, it may be helpful to have a precise understanding of your company’s funding needs. Generally, you should be able to articulate exactly how much money is needed and how it will generate a return. A specific proposal, such as “$75,000 to automate our packaging facility, which we anticipate will raise revenues by 10%” demonstrates strategic thinking and financial planning.
Know Your Credit Score
When reviewing your Michigan business loan application, prospective lenders are likely to pay particular attention to your company’s credit profile. They’ll probably scrutinize your personal credit scores, too: Traditional banks often require a credit score for a business loan in the range of 680 or higher. Other lenders, like online banks, may be willing to look at slightly lower scores.
Because of your scores’ importance, it may be helpful to review your credit reports before you apply so that you can spot any errors and have them fixed — and be sure you fully understand your financial situation before you submit your application for a Michigan small business loan.
Gather Your Key Documents
Giving your prospective lender an application package that’s organized and complete can speed up the review process and indicate to the lender that you’re reliable and motivated. While requirements vary by lender, you should be ready to provide the following:
• Credit report
• Income statement
• Bank statements
• Budget
• Income tax returns (both business and personal)
• Business plan
• Collateral valuation and supporting documents (which may include titles, deeds, or invoices)
Compare Lenders and Loan Offers
If you’re looking at Michigan small business loans, shopping around can help you find the financing that best suits your needs. That’s because different banks may offer very different options on term loans, for instance. It may also be a good idea to compare options from multiple kinds of sources, including small local banks, large national institutions, and online lenders.
As you consider financing proposals, it can be helpful to use a business loan calculator to estimate the monthly payments for different options. It may also be a good idea to look closely at the Annual Percentage Rate (APR) of each loan to understand its true cost.
Submit Your Application and Await Approval
After you’ve filled out the loan application form and gathered your supporting documentation, you should be ready to submit the application package. Once that’s done, you’ll need to wait for the lender’s response. This can take as little as two days in some cases, but may require several weeks in others.
Tips for Improving Your Loan Approval Chances
Lenders typically want to see evidence of your business’s stability as well as its ability to repay the loan. Taking steps to strengthen your business’s financial profile before you apply might help you increase your chances of securing a loan. Here are a few strategies to think about trying:
• Ensure that you have a realistic business plan with detailed financial projections.
• Work to build your business and personal credit scores by paying down your current balances and making timely payments.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Michigan business loans.
Other Funding Options for Michigan Small Businesses
If a traditional loan doesn’t seem to be the right fit for your business, there are other ways that you may be able to fund it. Michigan’s entrepreneurial ecosystem offers several alternative paths to obtain capital. One of these options may align better with your company’s specific stage of growth or industry.
Small business grants are highly sought after because they don’t require repayment, and there are a number that you may be able to access in Michigan. For instance, the Match on Main program provides reimbursement grants to support place-based small businesses starting up or expanding in select areas, while the Michigan State Trade Expansion Program (MI-STEP) grants help companies expand into international markets. Additionally, the Michigan Department of Agriculture and Rural Development (MDARD) provides specialized grants for the agricultural sector. You can also search national databases like Grants.gov to find federal programs that may be relevant to your industry.
Crowdfunding is another funding route you may want to investigate. It allows you to raise smaller amounts of capital online from a broad base of supporters.
Additional Business Resources in Michigan
Succeeding in business often requires more than just capital. It also takes experienced guidance and a supportive community. Fortunately, Michigan has a robust network of resources designed to help small business owners navigate challenges. The Michigan Small Business Development Center (MI-SBDC) can be a helpful resource, offering no-cost advising and market research at regional offices statewide.
As for mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Michigan small business loan can be the decisive factor that allows your company to expand and thrive. While the process may seem daunting, it’s an important step in your company’s development. By defining your goals and utilizing state resources, you should ultimately be able to find the right financing solution for your company.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
(without impacting your credit score)†
FAQ
How do I get a small business loan in Michigan?
To apply for a Michigan business loan, start by defining your company’s funding needs and checking your credit scores. Next, gather essential documents like your business plan, tax returns, and bank statements to make it easy to fill out and submit your application. Finally, compare options from various lenders to find the best terms available to you for your Michigan small business loan.
Can I get a startup business loan with no money?
This can be challenging, since most lenders require an owner’s investment. However, some SBA microloans that are designed for startups have lower capital requirements. Another possibility is to look for business grants, which provide funding that doesn’t generally need to be repaid.
How hard is it to get a small business loan in Michigan?
The degree of difficulty depends on factors like your business’s financial health, time in operation, and credit history. Traditional bank loans can have strict requirements, but online lenders often offer more flexible ones, making them a more accessible option for many Michigan businesses.
What is the easiest type of business loan to get approved for?
Loans secured by collateral, such as equipment financing, are generally easier to obtain because the asset lowers the lender’s risk. Short-term loans and invoice financing from online lenders also may have less stringent requirements.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is often preferred. Some online lenders may approve applicants with scores in the low 600s. Keep in mind that higher scores can result in better approval odds and lower interest rates.
What can I use a Michigan small business loan for?
You can use a small business loan for almost any legitimate business purpose. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt. However, you can’t use the loan for personal expenses.
Are there any small business grants available in Michigan?
Yes, grants are available from a variety of sources. For example, the Match on Main program gives reimbursement grants to support place-based small businesses starting up or expanding in select areas, and the Michigan State Trade Expansion Program (MI-STEP) grants help companies expand into international markets. It’s also worth searching national databases like Grants.gov for federal programs relevant to your industry.
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
*Small Business Loans: Reference to “same day funding” or “funding within 24 hours” describes a general capability of many lenders you can reach through SoFi’s marketplace. Funding or funding timing is not guaranteed. Your experience with any lender will vary based on requirements of the lender and the loan you apply for. To determine the timing of funds availability, you must inquire directly with any lender. In addition, your access to any funds from a loan may be dependent on your bank’s ability to clear a transfer and make funds available.
†Credit score impact: To check the options, terms, and/or rates you may qualify for, SoFi and/or its network providers will conduct a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the provider(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Rates may not be available from all providers.
©2025 SoFi Lending Corp. All rights reserved.
SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. ((www.nmlsconsumeraccess.org)). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the providers and not by SoFi Lending Corp. Please review each provider’s Terms and Conditions for additional details.
SOSMB-Q425-068
More Small Business Financing Resources
Business loans don’t have to be complicated. Get clear answers on applications, learn what providers really look for, and understand popular loan options.
Search for small business funding in minutes.
Your time matters. So we’re making business loans as easy as possible by helping you find small business funding fast.
(without impacting your credit score)†
Small Business Loans in Massachusetts
Learn All About Small Business Loans in Massachusetts
Massachusetts is home to more than 756,000 small businesses, which make up 99.5% of all enterprises in the state. From the biotechnology hubs in Cambridge to the fishing fleets of Gloucester and the tourism centers on Cape Cod, these companies employ nearly 45% of the state’s workforce.
Whether you’re launching a startup in the Berkshires or expanding a manufacturing plant in Worcester, finding small business loans in Massachusetts is a key step in developing your business. Here’s what you need to know about securing financing for your company.
- Key Points
- • Among other products, MassDevelopment offers specialized equipment loans to help manufacturers and industrial businesses scale operations.
- • The Massachusetts Clean Energy Center (MassCEC) provides grants and other programs to startups in the cleantech sector.
- • The State Trade Expansion Program (STEP) grant program can help Massachusetts businesses expand into international markets.
- • Seasonal businesses, like hotels and restaurants on the Massachusetts coast, may benefit from lines of credit, which can help them cover revenue lulls.
- • The Massachusetts Small Business Development Center (MSBDC) offers no-cost, confidential advising to businesses throughout the state.
Popular Types of Small Business Loans in Massachusetts
Entrepreneurs in the Bay State benefit from a sophisticated financial ecosystem that includes both state-sponsored equity programs and traditional lending. The following sections outline the most common funding options available to business owners across Massachusetts.
Massachusetts Small Business Loan Programs
The state actively fosters economic growth through its quasi-public agency. Massachusetts Development Finance Agency (MassDevelopment), which has grown to be the state’s primary small business funding group. The agency provides working capital loans, equipment financing, and microloans, among a wide variety of products.
Term Loans
If you obtain a term loan, after approving you, the lender will provide you with an upfront lump sum of capital. Over a specified period of time (the term), you’ll need to make regular payments to repay the loan principal and interest, which is usually charged at a fixed rate. This structure can make a term loan an appealing option for financing large, one-time investments with predictable costs. For example, a software company in Boston might use a term loan to build out a new office space.
Business Lines of Credit
Unlike a term loan, a business line of credit can give your company access to a revolving pool of funds that you can draw from as you need money, up to a predetermined limit. You pay interest only on the money you withdraw, and as you repay the balance, you replenish the pool of funds and can withdraw more again.
This kind of funding can be helpful for businesses that may have fluctuating needs and income. For example, a seasonal resort on Cape Cod could use a line of credit to manage payroll and inventory costs during the off-peak winter months.
Equipment Financing
If your business is in need of a specific physical asset, like machinery, vehicles, or technology, you may want to apply for equipment financing. A commercial fishing operation in New Bedford, for instance, could use an equipment financing loan to finance a new vessel, while a precision manufacturer in Lowell might use one to acquire CNC machines.
Since the equipment itself serves as collateral for the lender, equipment financing loans may be easier to obtain than unsecured loans. What’s more, they often come with more favorable terms, too.
SBA Loans
SBA loans are provided by private lenders, but they’re partially guaranteed by the U.S. Small Business Administration. This federal backing lowers risk for the lender, and as a result, the loan conditions may permit lower down payments and longer repayment terms than other types of loan. If you qualify, these Massachusetts business loans are available through many approved banks and credit unions.
Here are some types of SBA loans commonly used by small businesses.
• The SBA 7(a) loan is very flexible: Amounts can range from $500 to $5 million. It’s suitable for covering working capital, refinancing debt, or purchasing supplies.
• The SBA 504 loan is specifically meant for companies to use on major fixed assets, such as commercial real estate or heavy equipment. The maximum amount is between $5 million and $5.5 million.
• The SBA Microloan is meant to help with short-term needs and can be useful to companies that need startup loans. You can borrow up to $50,000 and the maximum repayment term is seven years.
An SBA loan calculator can help you estimate what your loan costs might be for different kinds of SBA funding.
Recommended: Small Business Financing Guide
How to Apply for a Small Business Loan in Massachusetts
When your company is applying for Massachusetts small business loans, prospective lenders generally want you to provide them with an in-depth, easy-to-understand rundown of your business’s robust financials and a defined plan for how you’d spend the funds you receive.
Here’s a step-by-step breakdown of how to apply for a small business loan in Massachusetts.
Define Your Loan Purpose and Amount
Before reaching out to lenders, it’s wise to have a precise understanding of your company’s funding needs. You should be able to articulate exactly how much money is needed and how it will generate a return. A specific proposal, such as “$50,000 to upgrade our laboratory filtration systems improving data integrity, operating safety, and operational costs,” demonstrates strategic thinking and financial discipline.
Know Your Credit Score
When reviewing your Massachusetts business loan application, prospective lenders will usually pay particular attention to your company’s credit profile. They’ll probably scrutinize your personal credit scores, too: Many traditional banks require a credit score for a business loan in the range of 680 or higher. Other lenders, like online banks, may be willing to look at slightly lower scores.
Because of the importance of credit scores, it may be a good idea to review your credit reports before you apply so that you can spot any errors and have them fixed. Having this information will also let you be sure you fully understand your financial situation before you submit your application for a Massachusetts small business loan.
Gather Your Key Documents
Sending a prospective lender an application package that’s organized and complete can speed up the review process and demonstrate that you’re reliable and motivated. Requirements vary by lender, but you should usually be prepared to provide the following:
• Credit report
• Income statement
• Bank statements
• Budget
• Income tax returns (both business and personal)
• Business plan
• Collateral valuation and supporting documents (which may include titles, deeds, or invoices)
Compare Lenders and Loan Offers
When you’re looking at Massachusetts small business loans, shopping around can help you find the financing that best suits your needs, since different banks may offer very different options on equipment loans, for instance. It’s also smart to compare options from multiple kinds of sources, including small local banks, large national institutions, and online lenders.
As you review financing proposals, it may be helpful to use a business loan calculator to estimate the monthly payments for different options. It’s also a good idea to look closely at the Annual Percentage Rate (APR) of each loan to understand its true cost.
Submit Your Application and Await Approval
Once you’ve filled out the loan application form and gathered your supporting documentation, you should be ready to submit the application package. After that’s done, you’ll need to wait for the lender’s response. This can take as little as two days in some cases, but may require several weeks in others.
Tips for Improving Your Loan Approval Chances
You might be able to increase your odds of securing a small business loan by taking steps to strengthen your business’s financial profile before you apply. Lenders typically want to see evidence of your company’s stability as well as its ability to repay the loan. Presenting a financially strong profile may help you secure the loan.
Here are a few steps to consider trying:
• Be sure that you’ve got a realistic business plan with detailed financial projections.
• Work to strengthen your business and your personal credit scores by paying down your current balances and making timely payments.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Massachusetts business loans.
Other Funding Options for Massachusetts Small Businesses
If a traditional loan doesn’t seem to be the right fit, there are other ways you may be able to fund your business. Massachusetts’s entrepreneurial ecosystem offers several alternative paths for obtaining capital. One of these options may align better with your company’s specific stage of growth or industry.
Small business grants are a highly sought-after option because they don’t require repayment, and there are a number of grant programs in Massachusetts. For instance, the Massachusetts Technology Collaborative (MassTech) focuses on connecting businesses to federal grants, but also provides some specialized grants that may be relevant to technology companies involved in research and development, among others. The Massachusetts Clean Energy Center (MassCEC) offers a variety of grants and other programs to startups in the cleantech sector, while the State Trade Expansion Program (STEP) grant helps businesses expand into international markets. You may also be able to find grants by searching national databases like Grants.gov for federal programs relevant to your industry.
Crowdfunding is another potentially viable route, helping you raise smaller amounts of capital online from a broad base of supporters.
Additional Business Resources in Massachusetts
To succeed in business, you often need more than just capital, you need expert guidance and a supportive community. Fortunately, Massachusetts has a robust network of resources designed to help small business owners navigate challenges. The Massachusetts Small Business Development Center (MSBDC) is a significant resource that provides no-cost, confidential advising at regional offices throughout the state.
In terms of mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, the Center for Women & Enterprise (CWE) offers specialized training and counseling for women-owned businesses. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Massachusetts small business loan can be the decisive factor that allows your company to expand and prosper. While the process can seem daunting, determination and focus can help you get through it. By defining your goals and utilizing state resources, you should ultimately be able to find the right financing solution for your business.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
(without impacting your credit score)†
FAQ
How do I get a small business loan in Massachusetts?
When you’re applying for a Massachusetts business loan, start by defining your funding needs and checking your credit scores. Next, gather essential documents like your business plan, tax returns, and bank statements to help you complete your loan application. Finally, compare options from various lenders to find the best terms you can get for your Massachusetts small business loan.
Can I get a startup business loan with no money?
This can be challenging, since most lenders require an owner’s investment. However, some SBA microloans designed for startups have lower capital requirements. Another possibility is to look for business grants, which provide funding that doesn’t need to be repaid.
How hard is it to get a small business loan in Massachusetts?
The degree of difficulty depends on factors such as your business’s financial health, time in operation, and credit history. Traditional bank loans often have strict requirements, but online lenders may be more flexible in their requirements, making them a more accessible option for many Massachusetts businesses.
What is the easiest type of business loan to get approved for?
Loans secured by collateral, such as equipment loans, are generally easier to obtain because the asset lowers the lender’s risk. Short-term loans and invoice financing from online lenders also typically have less stringent requirements.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is often preferred. However, some online lenders may be willing to approve applicants with scores in the low 600s. Bear in mind that higher scores can result in better approval odds and lower interest rates.
What can I use a Massachusetts small business loan for?
You can use a small business loan for almost any legitimate business purpose. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt. However, you cannot use the loan for personal expenses.
Are there any small business grants available in Massachusetts?
Yes, grants are available from a variety of sources. The Massachusetts Clean Energy Center, for instance, offers grants to cleantech companies. You can also search national databases like Grants.gov for federal programs relevant to your industry.
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
*Small Business Loans: Reference to “same day funding” or “funding within 24 hours” describes a general capability of many lenders you can reach through SoFi’s marketplace. Funding or funding timing is not guaranteed. Your experience with any lender will vary based on requirements of the lender and the loan you apply for. To determine the timing of funds availability, you must inquire directly with any lender. In addition, your access to any funds from a loan may be dependent on your bank’s ability to clear a transfer and make funds available.
†Credit score impact: To check the options, terms, and/or rates you may qualify for, SoFi and/or its network providers will conduct a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the provider(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Rates may not be available from all providers.
©2025 SoFi Lending Corp. All rights reserved.
SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. ((www.nmlsconsumeraccess.org)). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the providers and not by SoFi Lending Corp. Please review each provider’s Terms and Conditions for additional details.
SOSMB-Q425-067
More Small Business Financing Resources
Business loans don’t have to be complicated. Get clear answers on applications, learn what providers really look for, and understand popular loan options.
Search for small business funding in minutes.
Your time matters. So we’re making business loans as easy as possible by helping you find small business funding fast.
(without impacting your credit score)†
Small Business Loans in Maryland
Learn All About Small Business Loans in Maryland
Maryland is home to more than 696,700 small businesses, which account for 99.6% of all enterprises in the state. From the biotechnology firms along the I-270 corridor to the maritime industries of the Chesapeake Bay, these companies employ close to half of the state’s workforce.
Whether you’re launching a cybersecurity startup in Columbia or expanding a crab processing facility on the Eastern Shore, finding small business loans in Maryland can be a key step in developing your business. Here’s what you need to know about securing financing for your company.
- Key Points
- • The Maryland Small Business Development Financing Authority (MSBDFA) offers contract financing and surety bonds specifically for socially and economically disadvantaged entrepreneurs.
- • The Maryland Technology Development Corporation (TEDCO) provides both seed funding and grants for technology startups.
- • Video Lottery Terminal (VLT) funds use proceeds from the state’s casinos to provide funding for small businesses.
- • The Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) offers loans and grants to new and existing businesses.
- • Equipment financing can help Maryland companies access loans with more advantageous terms since the equipment itself can serve as collateral.
Popular Types of Small Business Loans in Maryland
Entrepreneurs in the Old Line State can benefit from a sophisticated financial ecosystem that blends state-sponsored equity programs with traditional lending. The following sections outline the most common funding options available to business owners across Maryland.
Maryland Small Business Loan Programs
The state actively fosters economic growth through the state’s Department of Commerce and specialized managers like the Meridian Management Group. The Maryland Small Business Development Financing Authority (MSBDFA) is a cornerstone program, offering direct loans and loan guarantees to businesses that may not meet standard bank credit criteria. Additionally, you can apply for a small business loan from the state’s Video Lottery Terminal (VLT) Fund through one of the fund managers.
Term Loans
With a term loan, a lender provides a small business with an upfront lump sum of capital. Over a specified period (the term), the borrower then makes regular payments to repay the principal and interest, which is usually charged at a fixed rate. This structure can make a term loan an appealing option for financing large, one-time investments with predictable costs. For example, a logistics company near Baltimore might use a term loan to upgrade its warehouse infrastructure.
Business Lines of Credit
In contrast to a term loan, a business line of credit can let you access a pool of funds that you can draw from when you need funding, up to a preset limit. Typically, you’ll pay interest only on the money you actually withdraw, and as you repay the balance, you’ll replenish the pool of funds so the money becomes available for you to withdraw again.
Lines of credit can be helpful for businesses subject to revenue lulls or uneven cash flow. For example, a seasonal tourism business in Ocean City might use a line of credit to manage payroll and inventory during the quieter winter months.
Equipment Financing
If your business is in need of a specific physical asset, like machinery, vehicles, or technology, you might consider applying for equipment financing. For instance, a poultry farmer in Salisbury could use an equipment financing loan to finance new processing equipment, while a construction firm in Frederick might use one to acquire a new excavator.
Since the equipment itself acts as collateral for the lender, equipment financing loans can be easier to obtain than unsecured loans. Additionally, they may often come with more favorable terms.
SBA Loans
Private lenders are the actual issuers of SBA loans, but this financing is partially guaranteed by the U.S. Small Business Administration. That federal backing reduces the lender’s risk, so the loan conditions may permit lower down payments and longer repayment terms. If you qualify, these Maryland business loans are available through numerous banks and credit unions.
Below are the types of SBA loans that may be the most useful for small businesses.
• The SBA 7(a) loan is very flexible: Amounts can range from $500 to $5 million. It’s suitable for covering working capital, refinancing debt, or purchasing supplies.
• The SBA 504 loan is specifically meant for companies to use on major fixed assets, such as commercial real estate or heavy equipment. The maximum amount is between $5 million and $5.5 million.
• The SBA Microloan is meant to help with short-term needs and can be useful to companies that need startup loans. You can borrow up to $50,000 and the maximum repayment term is seven years.
Using an SBA loan calculator may help you estimate what your loan costs might be for different kinds of SBA funding.
Recommended: Small Business Financing Guide
How to Apply for a Small Business Loan in Maryland
Applying for a Maryland small business loan takes preparation and attention to detail. You’ll need to provide prospective lenders with a clear picture of your company’s financial health and a well-developed plan for how their funds would be used.
Here’s a step-by-step breakdown of how to apply for a small business loan in Maryland.
Define Your Loan Purpose and Amount
Before you begin contacting lenders, you will want to have a precise understanding of your funding needs. You should be able to articulate exactly how much money your business needs, why, and how the funds will generate a return. A specific proposal, such as “$50,000 to expand our lab’s testing capacity by 30%,” demonstrates to lenders that you’re thinking strategically and exercising financial discipline.
Know Your Credit Score
When reviewing your Maryland business loan application, prospective lenders will usually pay particular attention to your company’s credit profile. They’ll probably scrutinize your personal credit scores, too: Traditional banks often require a credit score for a business loan in the range of 680 or higher. Other lenders, like online banks, may be willing to look at slightly lower scores.
Because of your scores’ importance, it may be beneficial to review your credit reports before you apply so that you can find any errors and have them fixed. Having this information will also let you be sure you fully understand your financial situation before you submit your application for a Maryland small business loan.
Gather Your Key Documents
Sending in an application package that’s organized and complete can speed up the review process and show a potential lender that you’re reliable and motivated. Requirements vary by lender, but you should usually expect to provide the following:
• Credit report
• Income statement
• Bank statements
• Budget
• Income tax returns (both business and personal)
• Business plan
• Collateral valuation and supporting documents (which may include titles, deeds, or invoices)
Compare Lenders and Loan Offers
When you’re considering Maryland small business loans, shopping around can help you find the financing that best suits your needs, since different banks may offer very different options on term loans, for instance. It’s also smart to compare options from multiple kinds of sources, including small local banks, large national institutions, and online lenders.
As you review financing proposals, it may be helpful to use a business loan calculator to estimate the monthly payments for different options. It’s also a good idea to look closely at the Annual Percentage Rate (APR) of each loan to understand its true cost.
Submit Your Application and Await Approval
Once you’ve filled out the loan application form and gathered your supporting documentation, you should be ready to submit the application package. After that’s done, you’ll need to wait for the lender’s response. This can take as little as two days in some cases, but may require several weeks in others.
Tips for Improving Your Loan Approval Chances
You might be able to increase your odds of securing a loan by taking steps to strengthen your business’s financial profile before you apply. Lenders typically want to see evidence of your company’s stability as well as its ability to repay the loan. Presenting a financially strong profile may help you in the approval process.
Here are some steps to consider trying:
• Be sure that you’ve got a realistic business plan with detailed financial projections.
• Work to strengthen your business and personal credit scores by paying down your current balances and making timely payments.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Maryland business loans.
Other Funding Options for Maryland Small Businesses
If a traditional loan doesn’t seem like a good fit, there are other ways you may be able to fund your business. Maryland’s entrepreneurial ecosystem provides several alternative paths to obtain capital. One of these options may align better with your company’s specific stage of growth or industry.
Small business grants are a highly sought-after funding option because you don’t have to repay them, and you may be able to access one in Maryland. For instance, the Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) provides grants (as well as loans) to new and existing businesses. And TEDCO (Maryland Technology Development Corporation), which provides seed funding for technology startups, also offers some grants. Additionally, you can search national databases like Grants.gov for federal programs relevant to your industry.
Crowdfunding is another potentially viable route, allowing your company to raise smaller amounts of capital from a broad base of supporters online.
Additional Business Resources in Maryland
Success in business typically requires more than just capital. It also takes expert guidance and a supportive community. Fortunately, Maryland has a robust network of resources designed to help small business owners navigate challenges. The Maryland Small Business Development Center (SBDC) can be a helpful resource, offering no- and low-cost advising at locations across the state.
As for mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, the Governor’s Office of Small, Minority & Women Business Affairs provides specialized training and procurement assistance, as well as networking opportunities. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Maryland small business loan can be the deciding factor that lets your company expand and prosper. The process may seem daunting, but it’s not impossible for a focused entrepreneur. By defining your goals and utilizing state resources, you should ultimately be able find the right financing solution for your business.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
(without impacting your credit score)†
FAQ
How do I get a small business loan in Maryland?
To apply for a Maryland business loan, start by defining your funding needs and checking your credit scores. Next, gather essential documents like your business plan, tax returns, and bank statements, to help you prepare and submit your application. Finally, compare options from various lenders to find the best terms for your Maryland small business loan.
Can I get a startup business loan with no money?
This can be challenging, since most lenders require an owner’s investment. However, some SBA microloans designed for startups have lower capital requirements. Another possibility is to look for business grants, which provide funding that doesn’t need to be repaid.
How hard is it to get a small business loan in Maryland?
The degree of difficulty involved depends on factors like your business’s financial health, time in operation, and credit history. Traditional bank loans can have strict qualifications. Online lenders may offer more flexible requirements, making them a more accessible option for many Maryland businesses.
What is the easiest type of business loan to get approved for?
Loans secured by collateral, such as equipment financing loans, are usually easier to obtain because the asset lowers the lender’s risk. Short-term loans and invoice financing from online lenders also typically have less stringent requirements.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is often preferred. However, some online lenders may be willing to approve applicants with scores in the low 600s. Bear in mind that higher scores can result in better approval odds and lower interest rates.
What can I use a Maryland small business loan for?
You can use a small business loan for almost any legitimate business purpose. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt. However, using small business loans for personal expenses is prohibited.
Are there any small business grants available in Maryland?
Yes, grants are available from a variety of sources in Maryland. For instance, the Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO) provides grants, as does TEDCO (Maryland Technology Development Corporation). You can also search national databases like Grants.gov for federal programs relevant to your industry.
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
*Small Business Loans: Reference to “same day funding” or “funding within 24 hours” describes a general capability of many lenders you can reach through SoFi’s marketplace. Funding or funding timing is not guaranteed. Your experience with any lender will vary based on requirements of the lender and the loan you apply for. To determine the timing of funds availability, you must inquire directly with any lender. In addition, your access to any funds from a loan may be dependent on your bank’s ability to clear a transfer and make funds available.
†Credit score impact: To check the options, terms, and/or rates you may qualify for, SoFi and/or its network providers will conduct a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the provider(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Rates may not be available from all providers.
©2025 SoFi Lending Corp. All rights reserved.
SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. ((www.nmlsconsumeraccess.org)). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the providers and not by SoFi Lending Corp. Please review each provider’s Terms and Conditions for additional details.
SOSMB-Q425-066
More Small Business Financing Resources
Business loans don’t have to be complicated. Get clear answers on applications, learn what providers really look for, and understand popular loan options.
Search for small business funding in minutes.
Your time matters. So we’re making business loans as easy as possible by helping you find small business funding fast.
(without impacting your credit score)†
Small Business Loans in Maine
Learn All About Small Business Loans in Maine
Maine is home to more than 160,000 small businesses, which account for 99.2% of all enterprises in the state. From the working waterfronts of the coast to the forestry and agricultural hubs inland, these companies employ more than 54% of the state’s workforce.
Whether you’re launching a sustainable aquaculture venture or expanding a seasonal tourism business, finding small business loans in Maine can be a key step toward helping your business thrive. Here’s what you need to know about securing financing for your company.
- Key Points
- • Coastal Enterprises, Inc. (CEI) serves as a Community Development Financial Institution (CDFI), providing capital, advice, and other services to small businesses.
- • The Maine Technology Institute (MTI) provides grants and loans specifically for innovation-driven companies in sectors like marine technology and advanced forestry.
- • Seasonal tourism businesses often rely on lines of credit to bridge cash flow gaps during the slower winter months.
- • Maine’s Agricultural Marketing Loan Fund (AMLF) offers low-interest financing to help farmers, aquaculture entrepreneurs, and food processors improve or expand their operations.
- • The Harold Alfond Institute for Business Innovation at Thomas College offers advice and assistance for startups.
Popular Types of Small Business Loans in Maine
Entrepreneurs in the Pine Tree State benefit from a robust network of state-backed programs and private lending options designed to support its unique mix of heritage industries and modern innovation. The following sections outline the most common funding options available to business owners across Maine.
Maine Small Business Loan Programs
The state actively fosters economic growth through the Finance Authority of Maine (FAME). FAME manages the Grow Maine program, which utilizes federal State Small Business Credit Initiative (SSBCI) funds to offer loan guarantees and direct lending.
Additionally, Coastal Enterprises, Inc. (CEI) offers specialized lending products, including the “Wicked Fast” microloan for smaller capital needs (up to $15,000 for startups or $30,000 for existing businesses) that don’t involve as complicated an application process as many loans.
And Maine’s Agricultural Marketing Loan Fund (AMLF) offers low-interest financing intended to help farmers, aquaculture entrepreneurs, and food processors improve or expand their operations.
Term Loans
A term loan can provide a small business with an upfront lump sum. The borrower then repays the principal, along with interest (which is usually charged at a fixed rate), in regular payments over a defined period of time. A predictable repayment structure can be useful as you prepare monthly budgets, and because the funds come in a lump sum, these loans can be well-suited to funding large, one-time investments. For example, a craft brewery in Portland might use a term loan to expand its canning line.
Business Lines of Credit
In contrast to a term loan, a business line of credit can give you access to a revolving pool of funds that you can draw from as you need, up to a preset limit determined by the lender. Generally, you pay interest only on the money you actually withdraw, and as you repay the balance, you replenish the pool of funds and the money becomes available for you to withdraw again.
Lines of credit can be helpful for businesses that have seasonal lulls or uneven cash flow. For example, a seasonal lobster shack in Bar Harbor could use a line of credit to purchase inventory and cover payroll before the summer tourist rush begins.
Equipment Financing
If your business needs a specific physical asset, like machinery, vehicles, or technology, you could consider applying for equipment financing. For instance, if you’re a commercial fisherman in Rockland, you could use an equipment financing loan to pay for a new boat, while if you run a logging company in Aroostook County, you might use one to acquire a skidder.
Since the equipment itself serves as collateral for the lender, equipment financing loans may be easier to obtain than unsecured loans. What’s more, they often come with more favorable terms, too.
SBA Loans
Although SBA loans are issued by approved private lenders, they’re partially guaranteed by the U.S. Small Business Administration. This backing reduces risk for the lender, so the loan conditions may permit lower down payments and longer repayment terms. If you qualify, these Maine business loans are available through many approved banks and credit unions.
Below are the types of SBA loans that may be the most useful for small businesses.
• The SBA 7(a) loan is very flexible: Amounts can range from $500 to $5 million. It’s suitable for covering working capital, refinancing debt, or purchasing supplies.
• The SBA 504 loan is specifically meant for companies to use on major fixed assets, such as commercial real estate or heavy equipment. The maximum amount is between $5 million and $5.5 million.
• The SBA Microloan is meant to help with short-term needs and can be useful to companies that need startup loans. You can borrow up to $50,000 and the maximum repayment term is seven years.
An SBA loan calculator can help you estimate what your loan costs might be for different kinds of SBA funding.
Recommended: Small Business Financing Guide
How to Apply for a Small Business Loan in Maine
When you’re applying for Maine small business loans, prospective lenders generally want you to present them with an in-depth, easy-to-understand rundown of your company’s financials and a defined plan for how you’d spend the funds you receive.
Here’s a step-by-step breakdown of how to apply for a small business loan in Maine.
Define Your Loan Purpose and Amount
Before contacting prospective lenders, it’s smart to have a precise understanding of your funding needs. You’ll want to be able to articulate exactly how much money your business needs, why, and how it will generate a return. A specific proposal, such as “$50,000 to upgrade our blueberry processing equipment, which should reduce pre-market spoilage by 15%” shows that you’re thinking strategically and with financial foresight.
Know Your Credit Score
Your credit profile is likely to be one of the first factors that a lender will review when considering extending a loan. Your personal credit scores will probably be scrutinized, with traditional banks often requiring a credit score for a business loan to be in the range of 680 or higher. Other lenders, like online banks, may be willing to look at slightly lower scores.
Because of this, it’s a good idea to review your reports before you apply in order to find any errors and have them corrected — and to be sure you understand your financial situation before you submit an application for a Maine small business loan.
Gather Your Key Documents
Handing in an application package that’s organized and complete can speed up the review process and signal to a potential lender that you’re a motivated, reliable borrower. While requirements will vary among lenders, you’re likely to be asked for some or all of the following:
• Credit report
• Income statement
• Bank statements
• Budget
• Income tax returns (both business and personal)
• Business plan
• Collateral valuation and supporting documents (which may include titles, deeds, or invoices)
Compare Lenders and Loan Offers
Shopping around for your Maine small business loans can go a long way toward helping you find the financing that best fits your business’s needs, since different lenders may offer very different options on term loans, for instance. It may also be helpful to compare options from multiple kinds of sources, including local community banks, large national institutions, and online lenders.
As you evaluate financing proposals, consider using a business loan calculator to help you estimate the monthly payments for different options. It’s also a good idea to look closely at the Annual Percentage Rate (APR) of each loan to understand its true cost.
Submit Your Application and Await Approval
Once you’ve filled out the application form and organized your supporting documentation, you’re ready to submit the application package. After your lender has it, you’ll need to wait for its response. This can take as little as two days in some cases, but may take several weeks in others.
Tips for Improving Your Loan Approval Chances
Lenders typically want to see evidence of your business’s stability as well as its ability to repay the loan. Taking steps to strengthen your business’s financial profile before you apply might help you increase your chances of securing a loan. Here are some steps to consider trying:
• Be sure that you’ve got a realistic business plan with detailed financial projections.
• Work to build your business and personal credit scores by paying down your current balances and making timely payments.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Maine business loans.
Other Funding Options for Maine Small Businesses
If a traditional loan isn’t the best fit for your business right now, there may be other ways to fund it. Maine’s entrepreneurial ecosystem offers several alternative pathways to capital. One of these options may align better with your company’s specific stage of growth or industry.
Small business grants are often a highly sought-after option because they don’t require repayment. Maine’s Office of Business Development lists small business grants and initiatives, while the Maine Technology Institute (MTI) offers grants and loans to help innovative companies scale. You can also search national databases like Grants.gov for federal programs relevant to your industry.
Crowdfunding can be another viable route, allowing your business to raise smaller amounts of capital from a broad base of supporters online.
Additional Business Resources in Maine
Success in business generally requires more than just capital; it takes expert guidance and a supportive community. Fortunately, Maine has a robust network of resources designed to help small business owners navigate challenges. The Maine Small Business Development Center (Maine SBDC) is a prime resource, offering no-cost advising at locations across the state. And the Harold Alfond Institute for Business Innovation at Thomas College provides advice and assistance for startups.
For mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, the Maine Center for Entrepreneurs offers accelerator programs like “Top Gun” that let young businesses access mentors. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Maine small business loan can be the decisive factor that allows your company to expand and thrive. By defining your goals and utilizing state resources, you should ultimately be able to find the right financing solution for your small business.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
(without impacting your credit score)†
FAQ
How do I get a small business loan in Maine?
To apply for a Maine business loan, start by defining your funding needs and checking your credit scores. Gather essential documents like your business plan, tax returns, and bank statements as you prepare and submit your loan application. Finally, compare options from various lenders to find the best terms possible for your Maine small business loan.
Can I get a startup business loan with no money?
This can be challenging, since most lenders require an owner’s investment. However, some SBA microloans that are designed for startups have lower capital requirements. Another option is to research business grants, which provide funding that doesn’t have to be repaid.
How hard is it to get a small business loan in Maine?
The difficulty depends on your business’s financial health, time in operation, and credit history. Traditional bank loans can be competitive and strict. Online lenders often offer more flexible requirements, making them a more accessible option for many Maine businesses.
What is the easiest type of business loan to get approved for?
Loans secured by collateral, such as equipment financing, are generally easier to obtain because the asset lowers the lender’s risk. Short-term loans and invoice financing from online lenders may also have less stringent requirements.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is often preferred. Some online lenders may approve applicants with scores in the low 600s. Keep in mind that higher scores can result in better approval odds and lower interest rates.
What can I use a Maine small business loan for?
You can use a small business loan for almost any legitimate business purpose. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt. You can’t use the loan for personal expenses, however.
Are there any small business grants available in Maine?
Yes, grants are available from a variety of sources. The Maine Office of Business Development lists state-level opportunities for small businesses. It could also be beneficial to search national databases like Grants.gov for federal programs relevant to your industry.
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