Small Business Loans in Nebraska
Learn All About Small Business Loans in Nebraska
More than 193,000 small businesses call Nebraska home, and together they account for 99.1% of all enterprises in the state. From the agricultural plains to the “Silicon Prairie” tech hubs in Lincoln and Omaha, these companies employ close to half of the state’s workforce.
Whether you’re launching a startup in the Cornhusker State or expanding a multigenerational farm, finding small business loans in Nebraska is a key step in building your company. Here’s what you need to know about securing financing for your business.
- Key Points
- • The Nebraska Growth Loan Fund allows the state to purchase a portion of a small business’s bank loan to reduce lender risk.
- • The U.S. Department of Agriculture’s Farm Service Agency (USDA FSA) Loans for Beginning Farmers and Ranchers Loan Program provides low-interest loans to help new agricultural entrepreneurs acquire land and assets.
- • The Center for Rural Affairs (CFRA) offers microloans and technical training to small businesses in rural communities.
- • Invest Nebraska provides equity investments, loans, and mentorship to high-growth companies.
- • Nebraska Innovation Fund Prototype Grants offer matching financial assistance to businesses developing new products.
Popular Types of Small Business Loans in Nebraska
Entrepreneurs in Nebraska benefit from a financial landscape that blends strong agricultural support with growing resources for technology and innovation. The sections that follow outline the most common funding options available to business owners across the state.
Nebraska Small Business Loan Programs
The state actively encourages economic growth through the Nebraska Department of Economic Development (DED). The department manages the State Small Business Credit Initiative (SSBCI), which includes the Nebraska Growth Loan Fund to help businesses secure financing by participating in their loans alongside private banks. Additionally, the Nebraska Enterprise Fund serves as a Community Development Financial Institution (CDFI), offering flexible loans and training to startups and underserved businesses that may not qualify for traditional bank credit.
There are also more specifically targeted opportunities. For example, if you have a small business in a rural community, the Center for Rural Affairs (CFRA) offers microloans and technical training. The U.S. Department of Agriculture’s Farm Service Agency (USDA FSA) provides low-interest loans for new farmers and ranchers to help them acquire land and other assets. And Invest Nebraska provides equity investments, loans, and mentorship to high-growth companies.
Term Loans
A term loan can provide a small business with a lump sum of capital upfront. The principal, along with interest (which is usually charged at a fixed rate), is then repaid in regular payments over a defined period of time.
Having a fixed, predictable repayment structure can be useful as you budget into the future, and because the funds come in a lump sum, these loans can be well-suited to funding large, one-time investments. For example, a beef processing plant in Grand Island might use a term loan to expand its packaging facility.
Business Lines of Credit
In contrast to 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 limit set by the lender. 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 have seasonal or fluctuating needs and income. For instance, a corn farmer near Kearney might use a line of credit to manage fuel and seed costs before the harvest revenue arrives.
Equipment Financing
If you need to purchase a specific physical asset for your company, like machinery, vehicles, or technology, then you might want to apply for equipment financing. A cattle rancher in the Sandhills could use an equipment financing loan to finance a new livestock trailer, while a manufacturing firm in Fremont might use one to acquire a CNC machine.
The equipment serves as collateral for lenders, so equipment financing loans may be easier to obtain and often come with more favorable conditions than unsecured loans.
Small Business Administration (SBA) Loans
Small businesses actually obtain SBA loans from private lenders, but these lending staples are partially guaranteed by the U.S. Small Business Administration. This backing lowers risk for the lender, which means that the loan conditions may allow lower down payments and longer repayment terms. If you qualify, these Nebraska 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.
Using 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 Nebraska
Applying for a Nebraska small business loan demands preparation and attention to detail. You’ll want to present your potential lenders with a clear picture of your company’s financial health and a well-thought-out plan for how you would use their funds.
Here’s a step-by-step breakdown of how to apply for a small business loan in Nebraska.
Define Your Loan Purpose and Amount
Even before you get in touch with lenders, it’s a good idea to have a precise understanding of your business’s funding needs. You should be able to articulate exactly how much money you require and how it will generate a return. A specific proposal, such as “$50,000 to upgrade our irrigation pivots, which should improve harvest yields by 15%” demonstrates your strategic financial planning.
Know Your Credit Score
When they review your Nebraska business loan application, prospective lenders will generally pay particular attention to your credit profile. They’ll likely scrutinize your personal credit scores: Traditional banks frequently require a credit score for a business loan in the range of 680 or higher. Other lenders, like online banks, may be willing to consider slightly lower scores.
Because of your scores’ importance, it’s practical to review your credit reports before you apply so that you can spot any inaccuracies and have them corrected. It can also help you be sure you fully understand your financial situation before you submit your application for a Nebraska small business loan.
Gather Your Key Documents
Making sure that your application package is organized and complete can speed up the review process as well as signal to your potential lender that you’re reliable and motivated. While requirements vary by lender, you should generally be ready to produce 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 Nebraska small business loans, it’s smart to shop around to find the funding that best suits you, since different banks can offer very different options. It’s also a good idea to compare offers from multiple kinds of sources, including small local banks, large national institutions, and online lenders.
As you evaluate financing proposals, it can be helpful to use a business loan calculator to estimate the monthly payments for different options. You may also want 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 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
You may be able to boost your odds of securing a loan by taking steps to strengthen your business’s financial profile before you apply. Presenting a financially strong, low-risk profile can be a good way to win a lender’s confidence.
Here are some strategies to consider trying:
• Ensure that you have a realistic business plan that includes detailed financial projections.
• Work to strengthen your personal and business credit scores by paying down your current balances and making timely payments on outstanding balances.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Nebraska business loans.
Other Funding Options for Nebraska Small Businesses
If you find that a traditional loan isn’t the right fit for your business, there may be other ways to fund your business. Nebraska’s entrepreneurial ecosystem offers several alternative pathways to acquire capital. One or more of these options may align better with your business’s specific stage of growth or industry.
Small business grants are a sought-after option because you don’t have to repay them. The Nebraska Department of Economic Development offers grants like the Academic Research and Development Grant, a matching grant that supports the commercialization of new technologies. And Nebraska Innovation Fund Prototype Grants also offer matching financial assistance to businesses developing new products. Additionally, it may be helpful to search national databases like Grants.gov for federal programs relevant to your 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 Nebraska
To succeed in business, you generally need more than just capital. You’ll probably also need expert guidance and a strong, supportive business community. Fortunately, Nebraska has a robust network of resources designed to help small business owners navigate challenges. The Nebraska Business Development Center (NBDC) is a valuable resource in this area, offering no-cost one-on-one advising at centers across the state.
When it comes to mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, CFRA provides specialized training and networking for rural business owners. Getting involved with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Nebraska small business loan can be the deciding factor that allows your company to expand and grow. 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 Nebraska?
If you want to apply for a Nebraska 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 make it easier to complete and submit your application. Finally, compare offers from various lenders to find the best terms available to you for your Nebraska small business loan.
Can I get a startup business loan with no money?
Obtaining a startup business loan with no money can be tricky, since most lenders require an owner’s investment. However, some SBA microloans are designed for startups and may be easier to get. Another option: You might want to research business grants, which provide funding that doesn’t need to be repaid.
How hard is it to get a small business loan in Nebraska?
The degree of difficulty you experience in getting a Nebraska business loan depends on factors like your business’s financial health, time in operation, and credit history. Traditional bank loans can have strict requirements. Online lenders are often more flexible, making them a more accessible option for many Nebraska 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 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 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 Nebraska small business loan for?
You can use a small business loan for almost any legitimate business purpose (but not for personal expenses). Typical uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt.
Are there any small business grants available in Nebraska?
Yes, grants are available from a number of sources. The Nebraska Department of Economic Development (DED) is an excellent resource for finding state-level opportunities like the Academic Research and Development Grant. You can also try searching national databases like Grants.gov for federal programs relating 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-Q425-073
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 Mississippi
Learn All About Small Business Loans in Mississippi
Almost 295,000 small businesses call Mississippi home and together they make up 99.3% of all enterprises in the state. From the agricultural heartland of the Delta to the manufacturing hubs in the Golden Triangle, these companies employ nearly half of the state’s workforce.
Whether you’re launching a catfish farm in Belzoni or expanding a logistics firm in Southaven, finding a Mississippi business loan is a key step in any company’s development. Here’s what you need to know about securing financing for your business.
- Key Points
- • The Mississippi Small Business Loan Guaranty Program helps small businesses secure financing by guaranteeing a portion of the loan with participating lenders.
- • The Minority Business Micro Loan Program offers direct financing up to $35,000 to businesses owned by socially and economically disadvantaged entrepreneurs.
- • InvestMS provides venture capital and equity investment matching for MIssissippi-based startups.
- • The Capital Access Contract Loan Program assists businesses that have been awarded public contracts but lack the upfront capital to begin work.
- • Agricultural producers frequently rely on equipment financing to acquire tractors and processing machinery essential for the state’s agribusiness sector.
Popular Types of Small Business Loans in Mississippi
Entrepreneurs in the Magnolia State benefit from a supportive network of state-sponsored initiatives and private lending options. The sections that follow outline the most common funding options available to business owners across Mississippi.
Mississippi Small Business Loan Programs
The state actively fosters economic growth through the Mississippi Development Authority (MDA). The MDA manages programs like the Small Business Loan Guaranty Program, which encourages lenders to fund small businesses by mitigating their risk and the Capital Access Contract Loan Program, which provides loans to businesses that have been awarded public contracts but lack capital to begin that work.
Additionally, the Minority Business Micro Loan Program provides essential capital to minority- and women-owned businesses that may face barriers to traditional credit.
Term Loans
A term loan can provide a small business with an upfront lump sum. The principal, along with interest (which is usually charged at a fixed rate), is then repaid in regular payments over a defined period of time. Having a fixed, predictable repayment structure can be useful as you budget, and because the funds come in a lump sum, such loans can be well-suited to funding large, one-time investments. For example, a restaurant in Jackson might use a term loan to renovate its kitchen.
Business Lines of Credit
Unlike a term loan, a business line of credit lets your business 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 to withdraw again.
Lines of credit can be helpful for businesses that have fluctuating lulls or uneven cash flow. For instance, a seasonal tourism business in Biloxi could use a line of credit to manage inventory costs during the slow season.
Equipment Financing
If your business needs a specific physical asset, like machinery, vehicles, or technology, you might want to apply for equipment financing. A forestry company in the Pine Belt could use this kind of loan to finance a new skidder, while a construction firm in Tupelo might use equipment financing to acquire a new excavator.
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.
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 allow lower down payments and longer repayment terms. If you qualify, these Mississippi business loans are available through many 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 Mississippi
Applying for a Mississippi small business loan 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 Mississippi.
Define Your Loan Purpose and Amount
Before you contact lenders, it’s a good idea to have a precise understanding of your company’s funding needs. You should be able to explain exactly how much money is needed and how it will generate a return.A specific proposal, such as “$50,000 to upgrade our irrigation systems, which we anticipate will increase yearly yield by 10%, “demonstrates strategic thinking and financial discipline.
Know Your Credit Score
When reviewing your Miississippi 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’s smart to review your credit reports before you apply so that you can spot any errors and have them fixed. Additionally, your review can let you be sure you fully understand your financial situation before you submit your application for a Mississippi 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 show that you’re reliable and motivated. While requirements vary by lender, you should usually 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
When you’re considering Mississippi 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’s also smart to compare offers from multiple kinds of sources, including small local banks, large national institutions, and online lenders.
As you consider financing proposals, you might want 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
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 can require several weeks in others.
Tips for Improving Your Loan Approval Chances
Lenders typically want to see evidence of your business’s ability to repay the loan and its stability. 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 strategies to try:
• Make sure you have a realistic business plan with detailed financial projections.
• Work on building 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 Mississippi business loans.
Other Funding Options for Mississippi Small Businesses
If a traditional loan isn’t the right fit for your business needs, there may be other ways to fund your business. Mississippi’s entrepreneurial ecosystem provides several possible alternative paths to funding. 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 you don’t have to pay them back. The Mississippi Development Authority can connect small businesses with grant opportunities when they are available, and the Mississippi Seed Fund offers a Proof of Concept grant for early-stage enterprises, as well as other programs. National databases like Grants.gov for federal programs relevant to your industry.
There may also be venture capital opportunities. InvestMS provides venture capital and equity investment matching for MIssissippi-based startups. And Innovate Mississippi supports tech startups by connecting them with an angel investment network and seed fund.
Crowdfunding can be another viable route, allowing you to raise smaller amounts of capital online from a broad base of supporters.
Additional Business Resources in Mississippi
Success in business can often require more than just capital: It also takes expert guidance and a strong business community. Fortunately, Mississippi has a network of resources designed to help small business owners navigate challenges. The Mississippi Small Business Development Center (MS-SBDC) is a significant resource, offering no-cost, confidential advising at locations across the state.
As for mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, Hope Credit Union acts as a Community Development Financial Institution (CDFI), co-sponsoring free mentorship programs for entrepreneurs. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a Mississippi small business loan can be the decisive factor that allows your company to expand. While the process involves careful planning, a committed entrepreneur can generally achieve it. By defining your goals and utilizing the resources available to you, you should be able to find a financing solution that will work for your company right 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 Mississippi?
To apply for a Mississippi business loan, start by defining your funding needs and checking your credit scores. Then gather essential documents like your business plan, tax returns, and bank statements so you’ll be ready to prepare and submit your loan application. Finally, compare offers from various lenders to find the best terms available for your Mississippi small business loan.
Can I get a startup business loan with no money?
This can be challenging to do because 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 Mississippi?
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 demanding requirements, but online lenders may be more flexible, making them a more accessible option for many Mississippi 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 lowers the lender’s risk. Short-term loans and invoice financing from online lenders also tend to have less stringent requirements.
What credit score do I need for a small business loan?
Requirements often 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 Mississippi small business loan for?
You can use a small business loan for almost any legitimate business purpose (but not for personal expenses). Common uses can include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt.
Are there any small business grants available in Mississippi?
Yes, grants are available from a variety of sources. The Mississippi Development Authority can be a resource for finding opportunities. 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.
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.
©2025 SoFi Lending Corp. All rights reserved.
SOSMB-Q425-070
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 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.
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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.
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