Small Business Loans in Virginia
Learn All About Virginia Small Business Loans
Virginia regularly ranks as one of the top states for business in the U.S., thanks to strong workforce development programs, education, and infrastructure. Its corporate income tax is just 6%, compared to the national median of 6.5%, and there are more than 795,000 small businesses employing 1.6 million Virginians.
Looking for small business loans in Virginia to grow your own company? Here’s everything you need to know.
Key Points
- • Small business loans in Virginia include term loans, lines of credit, equipment financing, and SBA loans, catering to diverse financial needs.
- • Application process involves defining loan purpose, checking credit score, gathering documents, comparing lenders, and submitting application.
- • Essential documents for loan application: credit report, income statements, business budget, tax returns, business plan, and collateral details.
- • Enhance loan approval chances by improving credit scores, preparing a strategic business plan, showing steady cash flow, and applying with local institutions.
- • Virginia offers additional resources like VSBDC for tax-exempt bond financing, business training, and grant listings, plus VSBFA for direct and bank loan programs.
Popular Types of Small Business Loans in Virginia
Explore state-specific business loans in Virginia as well as options available nationwide.
Virginia Small Business Loan Programs
The Virginia Small Business Financing Authority (VSBFA) is a state agency that helps businesses with development and financing.
There are four direct loan programs available:
• Economic Development Loan Fund
• Microloan Program
• Fee Based Microloan Program
• Child Care Financing Program
The agency also supports two bank loan programs:
• Cash Collateral Program
• Loan Guaranty Program
Term Loans
A term business loan in Virginia provides your company with a one-time infusion of cash, which can be used for things like working capital, debt consolidation, and more. The balance is repaid over time, usually with fixed payments that make it easy to budget.
Use a business loan calculator to explore how monthly payments are impacted by the loan amount and other financing terms. While you may need to be in business for a minimum amount of time in order to qualify for a larger loan, there are also options for startup business loans.
Business Lines of Credit
A business line of credit gives you access to ongoing financing up to a certain limit. You can draw on your credit line to cover operating expenses or unexpected emergencies. As you repay your balance (with interest), your available credit replenishes. Like a credit card, you’ll have a minimum payment required each month.
You may need to secure your credit line in order to get approved or qualify for better terms. Eligible collateral includes things like real estate, cash, and inventory.
Equipment Financing
Equipment financing helps you cover the cost of buying business-related equipment and machinery, plus other assets like vehicles, office furniture, and software. In many cases, the loan is secured by the asset you’re purchasing, which can help keep terms affordable.
You may be able to finance up to 100% of the cost of equipment so you don’t have to worry about a down payment. Once your business pays off the entire loan amount, you’ll own the equipment in full.
SBA Loans
Small Business Administration loans are provided by lenders, but are federally guaranteed, making them an accessible option as a Virginia business loan. Depending on the loan type and eligibility, you can borrow between $500 and $5.5 million.
7(a) loans are designed for working capital, real estate, debt refinancing, and more. 504 loans from the SBA can be used for major fixed assets that will help with business growth and job creation. Finally, microloans offer smaller loan amounts of up to $50,000 (though the average loan is $13,000).
How to Apply for a Small Business Loan in Virginia
Preparing to apply for a small business loan in advance can streamline the process.
Define Your Loan Purpose and Amount
Before you apply for a Virginia small business loan, have a clear understanding of how you plan to use the money and what amount you need. Overborrowing can cause you to spend on non-priorities while paying more than you need to in principal and interest.
Know Your Credit Score
Your credit score is an important part of the business loan application. Lenders will review your personal and business credit scores, so both should be in good standing to qualify for the best loan terms.
Personal credit scores range from 300 to 850 and many lenders use 680 as the minimum requirements. Business scores start at 1 and go up to 100, with 70 considered a good score. You can still apply even if your scores are lower. Some lenders specialize in bad credit loans, but will likely charge more in interest and limit your borrowing amount.
Gather Your Key Documents
You’ll need to submit supporting documentation in addition to your business loan application. Lenders may request the following information about your business and personal finances:
• Credit report
• Income and bank statements
• Business budget
• Personal and business income tax returns
• Collateral details (including valuation and supporting documents)
Recommended: Small Business Financing Guide
Compare Lenders and Loan Offers
Instead of applying with just one lender, consider getting business loan quotes from multiple lenders operating in Virginia. That way you can compare financing structures, interest rates, and payment terms to find the best option.
Don’t assume you’ll receive the same loan offer from every financial institution out there. Give yourself choices so you don’t pay more than necessary.
Submit Your Application and Await Approval
After you fill out paperwork and submit your financial documents (whether online or in person), it’s time to wait for a financing decision. The type of loan you apply for impacts the timeline.
SBA loans, for instance, can take between 30 and 90 days for approval. Banks can take several weeks, while online lenders may approve an application within days.
Tips for Improving Your Loan Approval Chances
The U.S. Chamber of Commerce recommends the following strategies to improve your chances of getting approved for a business loan.
• Work to improve your personal and business credit scores
• Make a strategic business plan
• Get your financial documents in order
• Show steady cash flow
• Ask for a lower funding amount
• Apply with local financial institutions
Other Funding Options for Virginia Small Business
Virginia’s Small Business Development Council offers several resources on other financing options to consider. Community Business Partnership (CBP) is active in some Virginia counties and offers SBA microloans and a CBP Enterprise Loan program for operating expenses.
The SBDC also rounds up several organizations that small business grant resources, including:
• Grants.gov
• SAM.gov
• OpenGrants
• GrantWatch
Additional Business Resources in Virginia
There are many resources available for businesses to grow and expand in Virginia.
Eligible manufacturing businesses and 501(c)(3) non-profits can apply for tax-exempt bond financing through the VSBDC as well as local economic development authorities.
In addition to financing programs, the Virginia SBDC offers business training programs in the following areas:
• Cybersecurity Awareness Program
• International Business Development Program
• Innovation Commercialization Assistance Program (ICAP)
• Craft Beverage Assistance Program (CBA)
• Veterans Assistance
The Takeaway
Ready to take your Virginia small business to the next level? Compare different lenders and loan types by submitting just one form at the SoFi marketplace.
Look for business loans in Virginia now.
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 Virginia?
Preparation is key to getting a small business loan in Virginia. You’ll need a clear plan and budget for how to use the funds, plus a variety of financial documentation for both your business and personal situation.
Can I get a startup business loan in Virginia with no money?
It depends on the lender. Some lenders require a minimum time in business, while others specialize in startup loans.
How hard is it to get a small business loan in Virginia?
It depends on your business and personal finances. Lenders look at credit scores, revenue, and other factors that demonstrate how likely you’re able to repay the loan. Using collateral as security can help improve your odds of getting approved for a small business loan in Virginia.
What is the easiest type of business loan to get approved for?
Any type of financing secured by an asset is usually easier to get approved for compared to unsecured loans. Eligible assets often include things like inventory, invoices, cash, and equipment.
What credit score do I need for a small business loan?
Minimum credit score requirements for small business loans vary by lender. You may need a 680 or higher for your personal credit score and a 70 for your business credit score.
What can I use a small business loan for?
A small business loan can be used for many purposes, including working capital, expansions, real estate, inventory, and debt consolidation. But some loan types, like equipment financing, are designed for certain purchases with restrictions.
Are there any small business grants available in Virginia?
Yes, as stated above, the Virginia Small Business Development Council provides a number of resources where you can search for small business grants available in the state and nationwide.
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.
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.
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.
SOSMB-Q425-005
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)†
Entry-Level Hiring Is Drying Up: How Grads Can Survive It
This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.
The U.S. job market isn’t particularly inspiring right now, but it can feel especially discouraging for recent graduates.
Simply put, employers just aren’t looking for entry-level applicants like they used to be. Take your pick of evidence:
• The unemployment rate for college graduates ages 20 to 24 was 9.3% in August, the highest it’s been since 2021 (and excluding the pandemic period, the highest since 2014.)
• Entry-level job openings were down 35% between January 2023 and June of this year, according to labor research firm Revelio Labs.
• Only 30% of 2025 college graduates had secured full-time employment in their fields, down from 41% in 2024, according to a summer survey by Cengage, an online learning firm. Another 33% were unemployed and seeking work, up from 20% in 2024. And 26% were working in jobs unrelated to their degrees.
• Last year entry-level hiring in the technology sector fell to just 50% of pre-pandemic levels, according to venture capital firm SignalFire.
What is driving this squeeze, and how can graduates adapt?
It’s not just artificial intelligence, though that’s a biggie. Employers are increasingly likely to use AI rather than people. But also, when they look for people who can use AI in their work, it’s not necessarily in entry-level jobs. In fact, since 2023, the number of job openings in roles with high AI exposure (meaning a lot can be performed by AI) has fallen much more at the entry level than at higher levels, the Revelio study shows.
“For grads, the lesson is clear, learning to use AI tools isn’t optional,” Revelio Chief Economist Lisa Simon wrote when she released the research in August. “And for employers, the economics are compelling: overlooking AI at the entry level results in missed opportunities and underutilized talent.”
The job market is also tightening overall. The opaque economy has put a lid on hiring, and when budgets tighten and uncertainty is high, entry-level openings can be the first to go. And then there is a widening skills gap. Graduates often report they don’t have the job-specific skills they need for today’s workplace.
So what?
The runway for young people entering the workforce is changing quickly. If you’re a recent graduate or still in college, don’t count on a traditional path to your first job.
Some strategies to consider:
Learn AI. AI applications are everywhere. And AI isn’t going away. Even if having AI skills ends up becoming less relevant to your career choice, you’ll probably benefit from it in other areas of your life.
Pursue AI-resistant jobs. Roles that combine physical work, real-time problem solving, and situational specificity tend to be the least vulnerable to being replaced with AI.
• Resume Now, a resume building website, came up with this ranking of the 12 top AI-resistant entry-level jobs. (They also pay a median salary of at least $50,000 and are in fields expected to grow at least 5% faster than average through 2034.) Top on the list? Dental hygienist. Others include medical sonographer, electrician, and HVAC mechanic.
• The World Economic Forum predicts that over the next five years, the most growth will come from what it calls “frontline job roles” — gigs with hands-on or interpersonal requirements like farmworkers, delivery drivers, construction workers, and salespeople. Roles in teaching, nursing, and health care are also expected to grow significantly.
Consider a double major. Young people worried about finding a job are increasingly opting for two fields of study, which some research has linked to a lower likelihood of layoffs or pay cuts. In the 2023-2024 school year, 12% of graduates left school with more than one degree, compared to 6% ten years earlier, according to a Hechinger Report analysis of federal data.
Related Reading
Most Recent Graduates Can’t Find a Full-Time Job From Their Degree (Newsweek)
Young People Can’t Find Jobs. What Should They Do? (BBC)
AI and Your Job: Ranking the Careers Most and Least Impacted (SoFi)
*Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligiblity. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS \#696891 (www.nmlsconsumeraccess.org).
SoFi SmartStart Loan: Eligible only for 7, 10, 15, and 20 year loan terms and fixed rate. Not available to borrowers in the Medical Residency ReFi program. Must meet creditworthiness requirements. Learn more at sofi.com/eligibility. During the interest-only period, your minimum monthly payments only pay accrued interest and do not reduce the loan principal balance on the SmartStart loan. After the interest-only period, your minimum monthly payments will increase for the remainder of the loan term to pay principal and interest on a conventional amortization schedule. You are only eligible to take a SoFi SmartStart loan one time as a primary borrower.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM20251121SW
Read more
Extra Credit: 5-Question Quiz of the Week
Test your knowledge of topics covered in the past week’s newsletters. Can you get a perfect score?
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM20251024EC
Read moreDM – ISL Graduate Mini Peak
Enjoy a 0.25% discount1 on your grad school loan rate.
Get a graduate student loan with flexible options to fit your budget- with a rate discount to help it go even further.
View your rate
Apply by 1/30/26
Checking your rate will not affect your credit score.2
Graduate Loans that check all the boxes.
Pay for grad school with confidence with experts, scholarships, educational material, and student loans from SoFi.
All online. All easy.
It’s easy to complete our simple online application. Plus get access to live customer support 7 days a week.
No fees required
That means no late fees and no insufficient funds fees on any private loans for grad school.
Repay your way
Choose from flexible rate and term options to best fit your financial picture.
Exclusive member benefits*
You’ll get access to exclusive benefits like SoFi Member Rewards and much more.
Read more
Small Business Loans in California
Learn All About California Small Business Loans
California is famously a place where big ideas start small, from Silicon Valley startups to outdoor apparel in Ventura to the future global fastfood chain with humble beginnings in San Bernardino.
Turning ideas like these into reality requires one important ingredient: capital. Many entrepreneurs look to small business loans to get them off their feet and help them grow their business. Here’s a look at what small business owners in California need to not to navigate the lending landscape and find the funding that fits their needs.
Key Points
- • California offers loan guarantee programs that could help with up to $5 million to support small businesses.
- • CalCAP for Small Business aids with strong plans but underwriting challenges, providing guarantees.
- • Microloans, up to $50,000, are accessible with less stringent requirements.
- • Equipment financing allows spreading payments over time, improving cash flow.
- • SBA loans feature lower interest rates and longer repayment terms, benefiting small businesses.
Popular Types of Small Business Loans in California
If you’re a small business in California, here are some of the programs to consider.
California Small Business Loan Programs
The State of California offers several lending programs to small businesses in-state.
The California Small Business Loan Guarantee Program is offered through iBank, which doesn’t issue the loans directly, but rather works with Financial Development Corporations and lenders to offer loan guarantees. The program can pay lenders up to 80% of a small business’s outstanding loan should the borrower default on their loan. The maximum guarantee amount is $5 million.
Similarly, CalCAP for Small Business (CalCAP SB), helps incentivize financial institutions to lend to California small businesses who present strong business plans, but may otherwise have underwriting challenges. Loans of up to $5 million are available under the program.
Various non-profit institutions may also offer loans to California businesses. For example, the Accion Opportunity Fund offers loans of $5,000 to $350,000 as well as one-on-one business advice.
Recommended: Small Business Financing Guide
Term Loans
Generally speaking, small business loans are a type of term loan. These loans offer a lump sum that you pay back at regular monthly intervals with a fixed interest. Some loans are “secured” and may require that you put up collateral, a valuable asset used to back the loan, while others may be “unsecured” and require no collateral.
Small business and startup loans may be used to start or expand a business, make large purchases of real estate or equipment, manage daily operations, or consolidate debt.
Business Lines of Credit
A business line of credit is a form of revolving credit that allows you to borrow money up to a fixed credit limit. The money you borrow is subject to interest payments, and once you pay it back, the money is available to borrow again.
Equipment Financing
Equipment financing is a type of loan designed to help you purchase business equipment, such as machinery, vehicles, or new technology. The equipment purchased often serves as collateral for the loan itself.
Financial equipment costs can be useful for a small business because it offers manageable monthly payments rather than requiring owners to cover the full upfront cost. Spreading payments out can help smooth cash flow, preserving capital for other operational needs.
SBA Loans
SBA loans are small business loans that are partially guaranteed by the U.S. Small Business Administration (SBA). The SBA does not offer loans itself. Rather, it partners with traditional lenders, such as banks and credit unions, who provide the loans. SBA guarantees make it easier for lenders to offer loans, as they cover a portion of the remaining loan balance if the borrower can no longer pay. What’s more, SBA loans typically carry lower interest rates than conventional business loans. They may also offer longer repayment terms.
Entrepreneurs can use SBA loans for a variety of purposes, including providing working capital, buying equipment, and purchasing real estate.
There are several types of SBA loans. The most common is the 7(a) loan suitable for most small business purposes. The 504 loan is designed to help business owners purchase real estate or equipment. Disaster loans help small businesses recover in declared disaster areas, and Express loans help businesses that need a quick infusion of cash.
Recommended: SBA Loan Calculator
How to Apply for a Small Business Loan in California
The following steps can help you get organized and increase your chances of qualifying when you apply for a business loan in California.
Define Your Loan Purpose and Amount
Lenders need a clear understanding of why you’re seeking a loan. Get specific about exactly how much you’ll need and what you intend to use the funds for. It is helpful to support your financial request with quotes or estimates from vendors or real estate brokers, for instance.
Know Your Credit Score
Different lenders will have varying credit score requirements for small business loans. For instance, some may require a score of 680 or higher, while others may be willing to work with borrowers with lower scores. Knowing your score helps you understand which lenders are likely to work with you.
Also, keep in mind that lenders will offer their best terms and interest rates to borrowers with higher scores. If you have a relatively low score you may consider improving your credit before you submit an application.
Gather Your Key Documents
Lenders will also want to see business and financial documentation. Be sure you have a detailed business plan, tax returns, and personal and business financial statements. Having these organized and at the ready can help streamline the loan application process.
Compare Lenders and Loan Offers
Shopping around can help you save a significant amount of money. Compare offers from multiple lenders, paying close attention to interest rates, fees, and other costs. Evaluate loan terms carefully to help you pick the loan that best matches your needs and financial situation.
A business loan calculator can help you estimate monthly payments and overall cost of your loan to help you make informed decisions.
Submit Your Application and Await Approval
You can usually submit loan applications directly through banks or online lenders. If your loan is approved, review the loan agreement carefully. Double check the amount of the loan, interest rate, repayment schedule, and other terms before signing.
Tips for Improving Your Loan Approval Chances
There are several concrete steps you can take to improve your chances of qualifying for a loan.
Both your personal and business credit score will play a key role as lenders determine your creditworthiness. Be sure to pay your bills on time and pay down previous debts to help you maintain a healthy credit score.
A thorough business plan is also essential. Be sure yours includes a company overview, market analysis, details on competitors, marketing and sales strategies and a clear explanation of what you plan to do with the loan and how that will help generate revenue.
Other Funding Options for California Small Business
Small businesses may also look into applying for state and local business grants. Grants present a significant advantage to entrepreneurs because, unlike loans, they do not need to be repaid. You can find grant opportunities through the California Grants Portal, which is managed by the California State Library.
Additional Business Resources in California
Sometimes businesses need more than financial support. The SBA, for example, offers SCORE, a business mentoring program dedicated to helping entrepreneurs plan, launch, and grow their small business.
The Takeaway
Access to the right financing can make all the difference for small business owners. Understanding the types of loans available, eligibility requirements, and other resources available to you can help you make strategic choices that set you up for success.
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 California?
First, prepare a strong business plan, research federal and state loan options and compare terms and interest rates. Apply for the loan that suits your needs, and review the loan agreement carefully before signing.
Can I get a startup business loan in California with no money?
It is possible to get a startup business loan with no money, but it may be difficult. You may wish to look into programs, such as CalCAP SB, that incentivize lenders to make loans to businesses with little money but strong business plans.
How hard is it to get a small business loan in California?
The ease with which you’ll qualify for a business loan will depend on a variety of factors, including your business plan, your credit score, and your financial standing.
What is the easiest type of business loan to get approved for?
Small businesses may be most likely to get approval for a microloan, which typically offer loan amounts up to $50,000.
What credit score do I need for a small business loan?
The minimum credit score required for an SBA loan and other term loans is typically 680. You may be able to find lenders who work with borrowers with lower scores.
What can I use a small business loan for?
Small business loans may be used for a variety of purposes, such as purchasing real estate and equipment, providing working capital, and consolidating debt.
Are there any small business grants available in California?
There are many small business grants available in California. You can search for opportunities using the California Grants Portal managed by the California State Library.
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.
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.
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.
SOSMB-Q425-003
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)†
Stay up to date on the latest business news and stock market happenings.