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By Keith Wagstaff |
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Comments Off on If You’re Going Dry This Month, Make Your Savings Count
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Most people think of “Dry January” as a health move, but if you’re one of the many Americans joining the no-alcohol challenge, don’t forget another big motivator: the cost savings.
Forgoing two $8 pints of beer twice a week would save you $138 this month. Skipping six $15 glasses of wine a week (if you go out twice a weekend, for example) would put $390 back in your pocket. Even if you only drink occasionally, or mostly at home, you might save a good $50. (This Alcohol Spending Calculator from the National Institutes of Health can help you do the math.)
The savings can multiply if skipping alcohol this month changes your habits longer-term. And according to a new review by researchers at Brown University, observing Dry January — even if you don’t ditch drinking completely — tends to help people cut back for good. (Some say it’s actually more sustainable not to swear it off entirely.)
“Most participants continue to drink less alcohol,” Megan Strowger, the lead author of the review, wrote last month. “Participating in Dry January allows people to pause, reflect and rethink their relationship with alcohol, including how it affects their social life, mental health and physical health.”
So what?
Whether or not you go completely dry, if you’re part of this year’s Dry January movement, make your savings count. Don’t just let the money melt back into your day-to-day budget or spend it on another vice. Earmark it to support a tangible financial goal — like bolstering your emergency savings, paying off debt, or investing for your retirement.
And in the meantime, here are some stats to keep you motivated:
• If you put $300 a month straight into a high-yield savings account earning a 3% APY, you’d have over $11,000 after three years.
• Drinking is less and less common. The U.S. drinking rate has fallen for three straight years, reaching a record low of 54% of adults in 2025 from 67% in 2022, according to Gallup.
• Forty-five percent of drinkers surveyed by Lending Tree in 2024 said they regretted overspending on alcohol, while 17% said buying it contributed to debt. And research suggests that heavy drinkers are more likely to make impulsive purchases while under the influence.
Learn All About Small Business Loans in Connecticut
Connecticut is home to more than 381,000 small businesses, which make up 99.4% of all enterprises in the state. From the insurance giants in Hartford to the bioscience hubs along the coast, these companies employ nearly half of the state’s workforce.
Whether you’re launching a tech startup or expanding a manufacturing plant for your family’s company, finding small business loans in Connecticut can be key to helping you reach your business goals. Here’s what you need to know about securing financing for your company.
Key Points
• The Connecticut Small Business Boost Fund offers low-interest financing to underserved businesses.
• Connecticut Innovations provides specialized venture debt and equity funding for high-growth tech companies.
• The Department of Economic and Community Development (DECD) oversees the Small Business Express Program, which provides revolving loan funds as well as job creation incentives.
• Nonprofit lenders like the Hartford Economic Development Corporation (HEDCO) serve entrepreneurs who may not qualify for bank loans.
• Manufacturing businesses may use equipment financing to acquire precision machinery and modernize their operations.
Popular Types of Small Business Loans in Connecticut
Entrepreneurs in the Constitution State have access to a robust network of public and private financing options designed to foster innovation and encourage business development and growth. In the following sections, we’ll consider the most common funding possibilities available to business owners across Connecticut.
Connecticut Small Business Loan Programs
The state actively supports economic development through several specialized agencies.
• The Connecticut Small Business Boost Fund (CSBBF) provides flexible, low-interest loans to help small businesses and nonprofits recover and grow, particularly those in underserved communities.
• The Community Economic Development Fund (CEDF) provides term loans, real estate loans, and lines of credit for businesses that may have low credit ratings or other issues that make it difficult for them to get loans.
• Specialty loans for entrepreneurs are provided by the Community Investment Corporation (CIC), available in Connecticut, Rhode Island, and parts of Massachusetts.
• Connecticut Innovations provides both venture debt and equity funding opportunities for tech startups.
Term Loans
Common among the types of small business loans, a term loan can provide your company with a lump sum of capital that you then repay over a specific period of time in regular, usually fixed payments. This structure can make it a potentially appropriate choice for financing large, one-time investments with predictable costs.
For example, an aerospace supplier in Middletown might use a term loan to expand its production facility.
Unlike a term loan, which provides funding upfront, a business line of credit allows access to a revolving pool of funds that borrowers can draw from as needed up to a set limit. If you can obtain one, you pay interest only on the money you actually withdraw, and as you repay the balance, those funds become available again.
Businesses may use lines of credit as a resource if their revenue and/or needs fluctuate. For example, a seasonal restaurant in Mystic could use a line of credit to manage inventory costs during the busy summer tourist season.
Equipment Financing
In equipment financing, the loan is specifically designed to be used for the purchase of physical assets, such as machinery, vehicles, or technology. Because the equipment itself serves as collateral, these loans often come with more accessible approval standards, since they may often represent less risk for the lender.
A construction firm in Stamford might use an equipment financing loan to pay for a new crane, while a biotech lab in New Haven might apply for one in order to acquire specialized research instruments.
SBA Loans
SBA loans are issued by private lenders but are partially guaranteed by the U.S. Small Business Administration. This federal backing reduces the lender’s risk, which can lead to lower down payments and longer repayment terms. If you qualify, these Connecticut business loans are widely available through approved banks and credit unions.
Here are some of the types of SBA loans that may be the most useful for small businesses.
• The SBA 7(a) loan is highly versatile and can range from $500 to $5 million. It’s suitable for working capital, refinancing debt, or purchasing supplies.
• The SBA 504 loan is specifically intended for major fixed assets, such as purchasing commercial real estate or heavy equipment that promotes business growth and job creation. The maximum is between $5 million and $5.5 million.
• The SBA Microloan is meant to cover 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 can help you estimate what your loan costs might be for different kinds of SBA funding.
How to Apply for a Small Business Loan in Connecticut
When you’re applying for a Connecticut small business loan, you may want to present potential lenders with a clear picture of your company’s financial health and a well-thought-out plan for how their funds will be used. By organizing your documents in advance, you can supply your potential lender with a clear, coherent application that may stand out from the pack. Here’s how to apply for a small business loan.
Define Your Loan Purpose and Amount
Before you start contacting lenders, you should have a precise understanding of your funding needs. That means that you should be able to articulate exactly how much money your company needs and for what — and how it will generate a return. A specific proposal, such as “$50,000 to upgrade our laboratory equipment,” demonstrates your strategic thinking and financial discipline.
Know Your Credit Score
Your credit profile is generally one of the first things a lender will review when you apply for small business funding. Personal credit scores are critical, with traditional banks often looking for a credit score for a business loan of 680 or higher. It may be prudent to check your reports beforehand to identify any errors and have them corrected, as well as know where you stand before submitting an application.
Gather Your Key Documents
Providing your potential lender with an organized, complete application package may often expedite the review process and suggests that you’re reliable, efficient, and competent.
Requirements vary by lender, but you’re likely to be asked 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
Shopping around is key to finding the financing that best fits your needs. Different kinds of lenders may offer very different conditions, so compare options from multiple sources, including local community banks, large national institutions, and online lenders.
As you evaluate proposals, consider using a business loan calculator to help you estimate the monthly payments for your 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
Once you’ve filled out the application form and organized all of the supporting documentation, you’re ready to submit the application package. After it’s in the lender’s hand, you’ll have to wait for the response. This can take as little as two days in some cases, but may take several weeks in others.
Grow Your Business the Right Way. Explore small business funding options in one place with no impact to your credit score.*
You may be able to improve your odds of securing a loan by taking steps to strengthen your business’s financial foundation before you apply. Lenders tend to look for evidence of your company’s stability and its ability to repay any loan it chooses to extend. Presenting a financially responsible, low-risk profile may help with your application process.
• Make sure your business plan is realistic and includes detailed financial projections.
• Work to strengthen your personal and business credit scores by making payments on time and paying down your current balances.
• Consider getting business counseling or coaching about putting together your application. Professional coaches may have experience with a variety of institutions and what they want to see in an application.
Other Funding Options for Connecticut Small Businesses
A traditional loan may not be the right fit for your company. Fortunately, there are other ways to fund your business. Connecticut’s entrepreneurial landscape provides several alternative paths for funding. One of these options might align better with your specific stage of growth or your industry.
Small business grants are a highly sought-after option, in part because they don’t require repayment. Here are just a few possibilities:
• The Black Business Alliance (BBA) offers grants as well as business coaching and technical assistance to eligible for-profit businesses in Connecticut.
• The Hartford Economic Development Corporation (HEDCO) and the Spanish American Merchants Association (SAMA) offer grants and technical assistance to eligible for-profit small businesses.
• The Women’s Business Development Council (WBDC) offers grants to qualified women-owned businesses.
Additionally, searching national databases like Grants.gov may help you find federal programs relevant to your industry.
Crowdfunding, which can enable you to raise smaller amounts of capital from a broad base of online supporters, might be another viable option.
Additional Business Resources in Connecticut
Success in business often requires more than just capital. It also takes guidance and community. Fortunately, Connecticut has a robust network of resources designed to help small business owners navigate challenges. The Connecticut Small Business Development Center (CTSBDC) may be a useful resource, since it offers no-cost advising at locations across the state. Additionally, the Community Economic Development Fund (CEDF) offers educational workshops and specialized lending products.
If you’re looking for mentorship, local SCORE chapters can 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 Connecticut small business loan can be the decisive factor in allowing your company to expand. While the process involves careful planning to be successful, it’s an achievable step for any focused entrepreneur. By defining your goals and making the most of your state’s resources, you may 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.
With one simple search, see if you qualify and explore quotes for your business.
How do I get a small business loan in Connecticut?
Start by defining your funding needs and checking your credit scores. Gather essential documents such as your business plan, tax returns, and bank statements so you’ll be prepared for your application. Finally, compare options from various lenders to find the best terms for your Connecticut small business loan — and then make your choice and apply.
Can I get a startup business loan with no money?
This can be challenging, since many lenders require an owner’s investment. However, some SBA microloans are designed for startups with lower capital requirements. Another option is to research business grants, which provide funding that does not need to be repaid.
How hard is it to get a small business loan in Connecticut?
The degree of difficulty depends on such factors as your business’s financial health, its time in operation, and your credit history. Traditional bank loans can be competitive and have strict requirements, while online lenders often offer more flexible requirements, potentially making them a more accessible option for companies in search of Connecticut small business loans.
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 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. Some online lenders may approve applicants with scores in the low 600s. Higher scores may lead to better approval odds and lower interest rates.
What can I use a Connecticut small business loan for?
You can use a small business loan for almost any legitimate business purpose. Common uses for Connecticut small business loans can include purchasing inventory, buying equipment, funding marketing campaigns, and refinancing debt.
Are there any small business grants available in Connecticut?
Yes, grants are available from a variety of sources. The Connecticut Department of Economic and Community Development can be a helpful resource for finding state-level opportunities. You can also search national databases like Grants.gov for federal programs relevant to your industry.
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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.
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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.
*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.
Business loans don’t have to be complicated. Get clear answers on applications, learn what providers really look for, and understand popular loan options.
Get a 1% match on crypto buys, and start the new year strong.
SoFi Plus members get an exclusive 1% match on crypto buys
with their SoFi Crypto accounts, paid out in stablecoin.
Offer ends 3/30/26.1
Get SoFi Plus
Complimentary Plus Members with Eligible Direct Deposit or Qualifying Deposits or a $10/mo subscription are eligible for this promotion. Funds must be net-new and originate from the members’ SoFi Checking and Savings account to execute crypto buys by 3/30/26.
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There’s crypto— and then there’s crypto with SoFi.
Make trades instantly.
Transfer funds from your SoFi Checking and Savings to your SoFi Crypto account the moment you’re ready to trade.
Get a 1% match on crypto buys—for a limited time.
Want to kick-start your crypto for the new year? Get a 1% match on your buys through 3/30/26.1
Own crypto—and bank, borrow, invest—all in one app.
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How to start earning your 1% match.
Join SoFi Plus.
Subscribe to 20+ perks adding up to over $1,000 in annual value2 with qualifying activities—for just $10/month.3Subscribe to SoFi Plus now.
Instantly fund from your SoFi Checking and Savings account to buy crypto. As long as you’re a SoFi Plus member with an active SoFi Crypto account, you’re eligible for a 1% match on crypto buys through 3/30/26.
{/* get more from your money */}
Get more from your money with SoFi Plus.
Get SoFi Plus
Complimentary Plus Members with Eligible Direct Deposit or Qualifying Deposits or a $10/mo subscription are eligible for this promotion. Funds must be net-new and originate from the members’ SoFi Checking and Savings account to execute crypto buys by 3/30/26.
Schedule unlimited 1:1 sessions with financial planners via SoFi Wealth.6
Get a 10% boost on SoFi Credit Card rewards—that’s up to 3.3% cash back rewards.5
Get 3% cash back rewards points on SoFi Travel bookings (excluding airfare) with any card.7
Get SoFi Plus
Complimentary Plus Members with Eligible Direct Deposit or Qualifying Deposits or a $10/mo subscription are eligible for this promotion. Funds must be net-new and originate from the members’ SoFi Checking and Savings account to execute crypto buys by 3/30/26.
{/* FAQs */}
FAQs
What are the specific promotion phases?
The 1% Crypto Match Promotion runs from January 15, 2026 through December 31, 2026 and is divided into two phases.
Offer Phase (Buying Window): Jan 15, 2026 (9:00 a.m. ET) – March 30, 2026 (11:59 p.m. ET).
Holding Phase (Holding Window): March 31, 2026 (12:00 a.m. ET) – December 31, 2026 (11:59 p.m. ET).
How do I qualify for this promotion?
To be eligible for this Promotion, you must be a SoFi Plus member AND participate in BOTH the Offer Phase and Holding Phase to receive the 1% match bonus.
What is an eligible crypto buy?
An eligible crypto buy is a successful SoFi Crypto purchase transaction, funded directly from your Sofi Checking and Savings, to buy Supported Digital Assets.
How will I receive my 1% Match bonus?
SoFi Plus members can earn a 1% Match on “Net Funded Crypto Buys” made through SoFi Bank, N.A., capped at a total buy volume of $250,000.
Eligible crypto buys must be funded directly from your SoFi Checking & Savings. Incoming crypto transfers do not qualify.
The 1% Match is based on the total USD value of eligible crypto buys made during the Offer Phase, MINUS the notional value of any cash or digital asset withdrawals from your SoFi Crypto accountant any time before Dec 31, 2026.
Selling digital assets does not reduce your match amount provided the proceeds remain in your SoFi Crypto account or are used to buy other digital assets.
When will I be paid my 1% Match bonus?
The 1% Match payout will be paid in a one-time bonus, in stablecoin, credited to the member’s SoFi Crypto account. 1% Match bonus payments will begin at the conclusion of the promotion period on or around January 2027.
Is there a penalty for withdrawing funds and/or assets?
Yes, funds and/or digital assets must remain in your SoFi Crypto account through 12/31/26 to be eligible for the 1% match bonus. If you withdraw funds and/or digital assets before 12/31/26 you will be subject to a reduced or forfeiture of your eligible 1% crypto match.
Examples
Scenario 1 – Standard Buy and Hold
A SoFi Plus Member executes $1,000 worth of crypto buys during Offer Phase and holds the digital assets on platform through Dec 31, 2026.
1% Match: $10 in stablecoin.
Scenario 2 – Cash/Digital Asset Withdrawal
A SoFi Plus Member executes $1,000 worth of crypto buys during Offer Phase and withdraws $500 (cash or digital asset withdrawal) before Dec 31, 2026. 1% Match: $5 in stablecoin – 1% of the remaining $500 net funded amount
Scenario 3 – Trading/Rebalancing Portfolio
A SoFi Plus Member executes a $1,000 BTC crypto buy. Later, sells $500 of BTC to buy ETH. No withdrawals made and holds digital assets on platform through Dec 31, 2026.
1% Match: $10 in stablecoin – 1% Match based on original net funding for crypto buys
Scenario 4 – Market Value Changes
A SoFi Plus Member executes $1,000 worth of crypto buys. Market drops portfolio value to $800. No withdrawals made and digital assets held on platform through Dec 31 2026.
1% Match: $10 in stablecoin – Market performance does not affect 1% match payout.
See more FAQs
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Get a 1% match on crypto buys— exclusively with SoFi Plus.
Earn a 1% match on crypto through 3/30/26.
Get SoFi Plus
Complimentary Plus Members with Eligible Direct Deposit or Qualifying Deposits or a $10/mo subscription are eligible for this promotion. Funds must be net-new and originate from the members’ SoFi Checking and Savings account to execute crypto buys by 3/30/26.
By Erik Carlson |
Uncategorized |
Comments Off on STEM Student Loans | SoFi
STEM STUDENT LOANS
Graduate loans to keep your STEM studies moving forward.
View your rate
Checking your rate will not affect your credit score.✝︎
Federal graduate loan programs have changed. SoFi’s got you covered—with competitive rates and flexible repayment options. May nothing stop you from innovating with your grad STEM degree.
View your rate
Checking your rate will not affect your credit score.✝︎
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Your STEM student loan comes with benefits.
Our graduate student loans are designed to give you peace of mind so you can focus on your studies.
All online. All easy.
Finish our online application in minutes—and adding a cosigner is just as easy.
Competitive rates.
A lower interest rate could now translate to a smaller debt burden after graduation.
No fees required.
That means no origination fees, no late fees, and no insufficient funds fees. Period.
Exclusive SoFi member benefits.
Including exclusive rate discounts1, access to financial planning resources2, and more.
View your rate
Checking your rate will not affect your credit score.†
Rates on graduate school loans for STEM students.
Choose from a fixed or variable graduate student loan.
SoFi’s STEM graduate student loans are tailored to fit your needs.
Get up to 100% of your school-certified costs covered.
That’s how long it takes to get a rate quote.
Earn a 3.0 GPA or higher and get a cash bonus up to $250.3
We offer a six-month grace period to find a job before repayment begins.
View your rate
Checking your rate will not affect your credit score.†
Our STEM student loan application process is fast, simple, and smart.
Screen images simulated.
Apply online in just minutes.
Get your rate fast and find out if you’re pre-qualified before you even finish your application. Easily add a cosigner in just a few clicks.
Select your rate and repayment option.
Choose from fixed or variable rates. Then, pick from four repayment options.
Sign and accept your loan.
Upload screenshots of your info, sign your paperwork electronically, and boom—it’s done. We’ll handle it from here.
View your rate
Checking your rate will not affect your credit score.†
Engineer repayments to fit into your life.
Our repayment options allow you to choose what will work with your budget and lifestyle.
Deferred
Start paying principal and interest payments six months after you leave school.
No payments while in school
Highest overall cost option
Interest only
Pay only interest payments while you’re in school.
Moderate payment while in school
Reduces overall cost
Partial
Pay a $25 fixed monthly payment while you’re in school.
Lowest payment option while in school
Reduces some of the overall cost
Immediate
Start paying principal and interest payments right away.
Highest payment option while in school
Lowest overall cost option
View repayment examples
STEM graduate student loan FAQs
Who is eligible for SoFi STEM graduate loans? SoFi’s private loans can be used for borrowers pursuing science, technology, engineering, and mathematics degrees.
What expenses can a SoFi STEM graduate loan cover?
SoFi’s private student loans can be used for up to 100% coverage of school-certified expenses. This includes tuition, fees, technology, housing, and more.
Can I use a SoFi STEM loan for a master’s or PhD program?
Yes, SoFi’s private student loans can be used for these programs.
What are the borrowing limits for SoFi STEM graduate loans?
SoFi’s loans can be used for up to 100% coverage of school-certified expenses.
Do I need a cosigner to qualify for a SoFi STEM loan?
No, you do not need a cosigner to qualify for a SoFi STEM loan. However, cosigners could help you get a lower rate and/or increase your chances of approval. With SoFi’s online application process, you and your cosigner can see what rates and terms you pre-qualify for before submitting your full loan application—and it won’t impact your credit score.
When do repayment and interest begin on SoFi STEM graduate loans?
This will depend on the loan terms that are selected. If you choose the deferred repayment option, full principal and interest payments can be deferred as long as the student remains enrolled at an eligible school at least half-time. STEM borrowers have a 6-month grace period.
Colorado is home to more than 730,000 small businesses, which account for 99.5% of all enterprises in the state. From the booming tech hubs along the Front Range to the outdoor recreation industries in the high country, these companies employ nearly half of the state’s workforce.
Whether you’re launching a startup in Denver or expanding a family-owned business in Grand Junction, finding small business loans in Colorado is a key step. Here’s what you need to know about securing financing for your company.
Key Points
• The Colorado Startup Loan Fund provides capital to mission-based lenders to support entrepreneurs who may not qualify for traditional bank financing.
• The Cash Collateral Support (CCS) program offers support for businesses with collateral shortfalls.
• Business lines of credit may be useful for outdoor recreation and seasonal tourism businesses that need to bridge cash flow gaps during shoulder seasons.
• Advanced Industry Accelerator Grants are a potential funding source for Colorado companies innovating in areas such as aerospace, bioscience, and technology.
• Having a strong credit score and a thoughtful, realistic business plan may help you get your funding application approved.
Popular Types of Small Business Loans in Colorado
Entrepreneurs in the Centennial State have access to a diverse array of financing types tailored to Colorado’s unique mix of urban innovation and rural resilience. The following sections outline the most common funding options available to business owners across Colorado.
Colorado Small Business Loan Programs
Colorado’s Office of Economic Development and International Trade (OEDIT) works with other agencies to actively support economic growth through a wide variety of specialized lending initiatives. A few of the most notable include:
• The Colorado Startup Loan Fund provides capital to nonprofit lenders, allowing them to offer smaller startup loans with flexible terms to newer businesses.
• The Cash Collateral Support (CCS) program, managed by the Colorado Housing and Finance Authority (CHFA), helps small businesses secure loans by providing cash deposits to lenders when the borrower lacks sufficient collateral.
• The Colorado Credit Reserve similarly assists businesses that might have difficulty accessing conventional loans by establishing loan loss reserve accounts with lenders to provide them with additional security.
• The Venture Capital Authority helps startups, especially those in expanding industries and/or underserved communities, get venture capital funding.Though it’s an investment, not a loan, this capital can be invaluable for young companies.
Term Loans
A term loan provides a lump sum of capital that is repaid over a specific period in regular, often fixed payments. This structure makes these small business loans an excellent choice for financing large, one-time investments where costs are predictable.
For example, a craft brewery in Fort Collins might use a term loan to purchase new fermentation tanks and expand its taproom.
Business Lines of Credit
Unlike a term loan, a business line of credit gives you access to a revolving pool of funds that you can draw from as you need. Typically, you pay interest only on the money you actually use, and as you repay the balance, your credit becomes available again.
A ski shop in Vail might use a line of credit to stock up if it finds it needs winter gear before the busy tourist season begins.
Equipment Financing
Equipment financing refers to a loan designed specifically to help you purchase physical assets, such as machinery, vehicles, or technology. Because the equipment itself serves as collateral, these loans often come with more accommodating approval standards.
A tech company in Boulder could use an equipment loan to finance specialized servers, while a construction firm in Colorado Springs might use one to acquire a new loader.
Small Business Administration (SBA) Loans
SBA loans are issued by private lenders but are partially guaranteed by the U.S. Small Business Administration. This federal backing can help reduce your lender’s risk, which can lead to lower down payment requirements and longer repayment terms. These Colorado business loans are widely available through approved banks and credit unions.
The most common types of SBA loans are the SBA 7(a) and 504 loans. The 7(a) program is highly versatile, suitable for financing your company’s working capital, refinancing debt, or purchasing supplies. The 504 loan is used for major fixed assets, such as purchasing commercial real estate or heavy equipment that promotes business growth and job creation. As a smaller loan, microloans (which are available up to $50,000) may be especially useful for new business owners who don’t yet need large amounts of capital.
Using an SBA loan calculator can help you estimate what your monthly payments would be for an SBA loan, as well as what you’d pay in interest over the lifespan of the loan.
How to Apply for a Small Business Loan in Colorado
When you apply for Colorado small business loans, potential lenders will want a clear picture of your company’s financial health and a well-thought-out plan for how those funds will be used. By organizing your documents in advance, you can present a professional application that stands out during the underwriting process. Read on to find out more about how to apply for a small business loan, step by step.
Define Your Loan Purpose and Amount
Before contacting lenders, you’ll want to have a precise understanding of your 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 roasting equipment” — demonstrates strategic thinking and financial discipline to your potential lenders.
Know Your Credit Score
Your credit profile is one of the first things a lender will typically review. Traditional banks often want to see a personal credit score for a business loan of 680 or higher, though online lenders may be willing to look at lower scores. It’s smart to check your reports before submitting a loan application to identify any errors and understand where you stand.
Gather Your Key Documents
Providing your lender with a complete application package can speed up the review process and signal reliability. This typically includes not only the application, but also supporting documents. While requirements vary by lender, you should generally be prepared to show 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
Different lenders will likely make different offers, so shopping around can go a long way toward helping you find the financing that best fits your needs. It can be a good idea to compare offers from multiple sources, including local community banks, large national institutions, and online lenders.
As you’re evaluating proposals, a business loan calculator can help you estimate what your payments will be. You can also look closely at the Annual Percentage Rate (APR) to better understand the true cost of the loan.
Submit Your Application and Await Approval
Once you’ve filled out your application and gathered any necessary documents, you’re ready to submit your application. Timeframes for your answer can vary by lender, but you’ll usually hear fairly quickly from many lenders, but you may have to wait a little longer to hear about an SBA loan.
Grow Your Business the Right Way. Explore small business funding options in one place with no impact to your credit score.*
Lenders are generally looking for evidence of your company’s stability and ability to repay. Presenting a strong, low-risk profile may help to win their confidence. Here are a few steps you can take:
• Ensure that your business plan is realistic and includes detailed financial projections.
• Work on improving your personal and business credit scores by paying down existing balances and making all payments on time.
• If you have it available, offering collateral can also strengthen your application for certain Colorado business loans.
Other Funding Options for Colorado Small Businesses
If a traditional loan isn’t the right fit, there are other ways you may be able to fund your business. Colorado’s entrepreneurial ecosystem offers several alternative paths for acquiring capital. Depending on your situation, one of these options may align better with your specific stage of growth or industry.
Crowdfunding is another viable route, allowing you to raise smaller amounts of capital from a broad base of supporters online.
Additional Business Resources in Colorado
Success in business often requires guidance and community as well as capital. Fortunately, Colorado has a robust network of resources designed to help small business owners navigate challenges.
The Colorado Small Business Development Center (SBDC) can be a useful resource for business owners, offering no-cost confidential advising at 14 locations across the state.
For mentorship, local SCORE (Service Corps of Retired Executives) chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, the Minority Business Office of Colorado provides specialized assistance to minority, women, and veteran-owned enterprises. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Colorado small business loan can be the decisive factor that allows your company to expand. While the process involves careful planning, it is generally an achievable step for most focused entrepreneurs. By defining your goals, preparing your application carefully, and utilizing state resources, you should 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.
With one simple search, see if you qualify and explore quotes for your business.
Start by defining your funding needs and checking your credit scores. Gather essential documents like your business plan, tax returns, and bank statements. Finally, compare offers from various lenders to find the best terms among your potential Colorado small business loans.
Can I get a startup business loan with no money?
This may be challenging, as most lenders require an owner’s investment. However, some SBA microloans are designed for startups with lower capital requirements. Another option is to research business grants, which provide funding that does not need to be repaid. Applying for your financing through a small business loan marketplace may help by narrowing down your search to lenders willing to work with startups.
How hard is it to get a small business loan in Colorado?
The difficulty depends on factors such as your business’s financial health, time in operation, and credit history. Traditional bank loans can be competitive and have strict requirements. Online lenders often have more flexible requirements, making them more accessible options for many Colorado 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 having the asset as security 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. Some online lenders may approve applicants with scores in the low 600s. Higher scores generally lead to better approval odds and lower interest rates.
What can I use a Colorado 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.
Are there any small business grants available in Colorado?
Yes, grants are available from federal, state, and private sources. The Colorado Office of Economic Development and International Trade (OEDIT) can be an excellent resource for finding state-level opportunities like the Advanced Industries Accelerator Grant. You can also search national databases like Grants.gov for federal programs relevant to your industry.
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