Small Business Loans in Delaware
Learn All About Small Business Loans in Delaware
Delaware is home to more than 111,000 small businesses, which employ 214,539 employees . This makes up 50.6% of all state employees. Known globally as a corporate capital, the “First State” offers a sophisticated legal environment and a supportive ecosystem for entrepreneurs of all sizes.
Whether you are scaling a fintech startup in Wilmington or running a seasonal shop in Rehoboth Beach, learning about small business loans in Delaware is a critical step. Here is what you need to know about securing financing for your company.
- Key Points
- • The Delaware Strategic Fund provides low-interest loans and grants to businesses that create permanent, quality jobs within the state.
- • The EDGE Grant program offers competitive matching funds specifically for STEM-based companies and entrepreneurs.
- • Nonprofit lenders like True Access Capital serve as a vital resource for underserved business owners who may not qualify for traditional bank financing.
- • State Small Business Credit Initiative (SSBCI) programs help local lenders offer capital to riskier borrowers through loan participation and capital access models.
- • Agriculture and chemical manufacturing sectors frequently rely on equipment financing to maintain operations and upgrade technology.
Popular Types of Small Business Loans in Delaware
Delaware entrepreneurs benefit from a financial landscape that blends state-sponsored support with a robust private banking sector.
The following sections outline the most common funding options available to business owners across the state.
Delaware Small Business Loan Programs
The state actively fosters economic growth through the Delaware Division of Small Business. The Delaware Strategic Fund is a state tool that offers customized financial assistance to businesses looking to relocate, expand, or retain jobs in the state.
Additionally, the State Small Business Credit Initiative (SSBCI) supports programs like the Delaware Capital Access Program, which creates a reserve fund to protect lenders against losses, encouraging them to lend to smaller, higher-risk enterprises.
Term Loans
A term loan provides a lump sum of capital that is repaid over a specific period with regular, fixed payments. This structure can be ideal for Delaware small business loans used for investments financing with predictable costs For example, a restaurant in Newark might use a term loan to renovate its kitchen, while a logistics firm in Dover could use it to expand its warehouse capacity.
Recommended: Business Loan Calculator
Business Lines of Credit
Unlike a term loan, a business line of credit is designed to provide access to a revolving pool of funds that you can draw from as needed. You only pay interest on the money you actually use, and as you repay the balance, your credit becomes available again. A seasonal retail business in Dewey Beach could use a line of credit to manage inventory costs during the off-season.
Equipment Financing
Equipment financing is a loan specifically designed to purchase physical assets, such as machinery, vehicles, or technology. Because the equipment itself serves as collateral, these loans often come with more accessible approval standards. A poultry farm in Sussex County could use this to finance new processing machinery, while a construction company in Middletown might use it to acquire a new excavator.
SBA Loans
Small Business Administration (SBA) loans are issued by private lenders but are partially guaranteed by the SBA. This federal backing can reduce the lender’s risk, which may lead to lower down payments and longer repayment terms. These Delaware business loans are widely available through approved banks and credit unions.
The most common types are the SBA 7(a) and 504 loans. The 7(a) program is highly versatile, suitable for working capital, refinancing debt, or purchasing supplies. The 504 loan is specifically for major fixed assets, such as purchasing commercial real estate or heavy equipment that promotes business growth and job creation.
How to Apply for a Small Business Loan in Delaware
Applying for a Delaware small business loan requires preparation and attention to detail. Lenders want to see a clear picture of your financial health and a well-thought-out plan for how their funds will be used. By organizing your documents in advance, you can present a professional application that stands out during the underwriting process, even if you are trying to get a startup loan.
Define Your Loan Purpose and Amount
Before contacting lenders, it may be important to have a precise understanding of your 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 equipment,” demonstrates strategic thinking and financial discipline.
Know Your Credit Score
Your credit profile is one of the first things a lender should review. Credit scores are critical, with traditional banks often looking for scores of 680 or higher if it’s a personal credit score. It may be important to check your reports beforehand to identify any errors and understand where you stand before submitting an application.
Gather Your Key Documents
A complete application package can expedite the review process and could signal reliability. While requirements vary by lender, you should generally be prepared to provide a detailed business plan. You will also need personal and business tax returns for the last two to three years, along with recent bank statements.
Compare Lenders and Loan Offers
When figuring out how to apply for a small business loan, it can be important to shop around to find the option that best fits your needs. Compare options from multiple sources, including local community banks, large national institutions, and online lenders. When evaluating proposals, look closely at the Annual Percentage Rate (APR) to understand the true cost of the potential loan.
Recommended: Small Business Financing Guide
Tips for Improving Your Loan Approval Chances
You could improve your odds of securing a loan by taking steps to strengthen your business’s financial foundation before you apply. Lenders are looking for evidence of stability and the ability to repay. Presenting a strong, low-risk profile can be helpful in the underwriting process.
Start by ensuring your business plan is realistic and includes detailed financial projections. Work on improving your credit scores by paying down existing balances and making all payments on time. If available, offering collateral can also strengthen your application for certain Delaware business loans.
Other Funding Options for Delaware Small Businesses
If a traditional loan isn’t the right fit, there are other ways to fund your business. Delaware’s entrepreneurial ecosystem offers several alternative paths for capital. These options may align better with your specific stage of growth or industry.
Small business grants are a highly sought-after option because they do not require repayment. The EDGE Grant program awards matching funds to STEM and entrepreneur-class businesses to help them scale. Crowdfunding can be another route as it allows businesses to raise smaller amounts of capital from a broad base of supporters online.
Additional Business Resources in Delaware
Success in business often requires more than just capital; it requires guidance and community. Delaware has a robust network of resources designed to help small business owners navigate challenges. The Delaware Small Business Development Center (SBDC) can be a good resource, offering no-cost advising at locations across the state.
For mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, True Access Capital offers training and technical assistance alongside its lending products. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing a small business loan in Delaware can be the decisive factor that helps your company expand. While the process involves careful planning, it can be a desirable step for any focused entrepreneur. By defining your goals and utilizing state resources, you may find the right financing solution.
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 Delaware?
Start by defining your funding needs and checking your credit scores. Gather essential documents like your business plan, tax returns, and bank statements. Finally, compare options from various lenders to help find the most favorable terms for your Delaware small business loan.
Can I get a startup business loan with no money?
It is challenging, as most lenders like to see a couple of years of business revenue. However, some SBA microloans are designed for startups with lower capital requirements. Another option is to research business grants, which provide funding that does not need to be repaid.
How hard is it to get a small business loan in Delaware?
The difficulty depends on your business’s financial health, time in operation, and credit history. Traditional bank loans can be competitive and strict. Online lenders often offer more flexible requirements, making them a more accessible option.
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 Delaware small business loans and SBA loans, a personal credit score of 680 or higher is often preferred. Some online lenders may approve applicants with scores in the low 600s. Higher scores generally lead to better approval odds and lower interest rates.
What can I use a Delaware small business loan for?
You may use a small business loan for almost any legitimate business purpose. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt. Personal expenses are prohibited.
Are there any small business grants available in Delaware?
Yes, grants are available from federal, state, and private sources. The Delaware Division of Small Business manages the EDGE Grant program, which is a major state-level opportunity. You can also search national databases like Grants.gov for federal programs relevant to your industry.
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SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. ((www.nmlsconsumeraccess.org)). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the providers and not by SoFi Lending Corp. Please review each provider’s Terms and Conditions for additional details.
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A Guide to Alternative Investments
Alternative Investments 101
SoFi’s Alt Investment Guide for Beginners
Alternative investments — which fall outside the realm of conventional assets like stocks and bonds — were once considered too high risk for ordinary investors. Now alternative strategies are becoming more accessible through mutual funds and ETFs, and may even be available in some employer-sponsored retirement plans starting in 2026.
Thanks to their low correlation with traditional asset classes, alternatives may offer investors certain benefits. Alts can increase portfolio diversification, which may help offset some risk factors and improve risk-adjusted returns.
Alts include a range of assets including commodities, art, and collectibles, as well as alternative strategies such as investing in derivatives, real estate, private equity, and more.
Because alts tend to be very complex, fairly illiquid, and high risk, these investments do require careful management. To that end, this guide provides a comprehensive overview of some of the most common alternative investment choices.
Alternative Investments: An Overview
The term “alternative” refers to investments that are alternatives to conventional strategies — not necessarily substitutes for them. To invest wisely in alts, it’s important to consider the potential risks and benefits of these assets. Alts tend to be complex, lightly regulated, and less transparent than other asset classes.
In addition, investors should bear in mind that alts can differ widely from one another in terms of their structure, fees, liquidity, tax treatment, and more.
Ways to Invest in Real Estate Funds
Real estate is a common type of alternative investment because real estate values tend not to correlate with stock market performance, and thus they may provide a potential buffer against volatility. You can invest in various types of properties directly, or buy shares of publicly traded Real Estate Investment Trusts (REITs), as well as mutual funds and ETFs that provide access to this asset class.
Exploring Commodity Funds
Commodities are raw materials (e.g., precious metals, oil and gas, agricultural products) that are used in manufacturing or for consumption. Owing to the relatively steady demand for most commodities, these can be a hedge against inflation. That said, demand for different commodities can fluctuate — and commodities can be vulnerable to environmental and political risks.
Investors can access commodities via commodity stocks, mutual funds, and ETFs.
The World of Foreign Currency Funds
Foreign currency investing, often referred to as forex, is one of the largest and most liquid global markets. Forex trading offers the potential for diversification and tends to cost less than other types of alts. That noted, trading currencies directly can be quite volatile, and investors may prefer the relative stability of mutual funds or ETFs that provide exposure to foreign currencies.
Overview of Private Equity and Venture Capital Funds
Private equity provides investors with an opportunity to own a stake in smaller and early-stage companies that need capital to regain their footing, make a pivot, or (in the case of venture capital) get off to a strong start. As such, the risks of many PE and VC projects tend to be high — although there is also the potential for substantial profits when companies succeed.
High investment minimums have made it difficult for retailers to access these investments, but that has been changing as more private equity funds are designed with retail investors in mind.
Understanding Private Credit
Private credit is a form of lending from non-bank financial institutions. Sometimes called direct lending or private debt, private credit allows smaller companies to seek financing via channels outside of traditional bank loans.
Private credit can be a boon to businesses by supplying much-needed capital. And, as a type of alternative investment, it can create opportunities for investors who pool funds in order to issue loans — which in turn generate income for investors through interest payments. Private credit may utilize a range of strategies, each with its own risk and reward factors, so it’s important to understand the structures involved.
New Vehicles for Alternative Investments
Today, alternative investment options are rapidly evolving to provide lower-cost, more liquid choices for retail investors through mutual funds, ETFs, and other vehicles (including some retirement accounts), many of them offered by well-established asset managers.
As always, investors need to do their due diligence to understand the potential pros and cons of these investments.
SoFi Plus Crypto 1% Match
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Get more from your money
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Complimentary Plus Members with Eligible Direct Deposit or Qualifying Deposits or a $10/mo subscription are eligible for this promotion. Funds must be net-new and originate from the members’ SoFi Checking and Savings account to execute crypto buys by 3/30/26.
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Complimentary Plus Members with Eligible Direct Deposit or Qualifying Deposits or a $10/mo subscription are eligible for this promotion. Funds must be net-new and originate from the members’ SoFi Checking and Savings account to execute crypto buys by 3/30/26.
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FAQs
What are the specific promotion phases?
The 1% Crypto Match Promotion runs from January 15, 2026 through December 31, 2026 and is divided into two phases.
- Offer Phase (Buying Window): Jan 15, 2026 (9:00 a.m. ET) – March 30, 2026 (11:59 p.m. ET).
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How do I qualify for this promotion?
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How will I receive my 1% Match bonus?
SoFi Plus members can earn a 1% Match on “Net Funded Crypto Buys” made through SoFi Bank, N.A., capped at a total buy volume of $250,000.
- Eligible crypto buys must be funded directly from your SoFi Checking & Savings. Incoming crypto transfers do not qualify.
- The 1% Match is based on the total USD value of eligible crypto buys made during the Offer Phase, MINUS the notional value of any cash or digital asset withdrawals from your SoFi Crypto accountant any time before Dec 31, 2026.
Selling digital assets does not reduce your match amount provided the proceeds remain in your SoFi Crypto account or are used to buy other digital assets.
When will I be paid my 1% Match bonus?
The 1% Match payout will be paid in a one-time bonus, in stablecoin, credited to the member’s SoFi Crypto account. 1% Match bonus payments will begin at the conclusion of the promotion period on or around January 2027.
Is there a penalty for withdrawing funds and/or assets?
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Examples
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A SoFi Plus Member executes a $1,000 BTC crypto buy. Later, sells $500 of BTC to buy ETH. No withdrawals made and holds digital assets on platform through Dec 31, 2026.
1% Match: $10 in stablecoin – 1% Match based on original net funding for crypto buys
Scenario 4 – Market Value Changes
A SoFi Plus Member executes $1,000 worth of crypto buys. Market drops portfolio value to $800. No withdrawals made and digital assets held on platform through Dec 31 2026.
1% Match: $10 in stablecoin – Market performance does not affect 1% match payout.
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Get a 1% match on crypto buys—
exclusively with SoFi Plus.
Earn a 1% match on crypto through 3/30/26.
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name: ‘onClose’,
value: ‘onClose’,
actionUrl: ‘/crypto/trade?orderOperation=BUY/’
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}}
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Start trading
Complimentary Plus Members with Eligible Direct Deposit or Qualifying Deposits or a $10/mo subscription are eligible for this promotion. Funds must be net-new and originate
from the members’ SoFi Checking and Savings account to execute crypto buys by 3/30/26.
Small Business Loans in Kansas
Learn All About Small Business Loans in Kansas
Kansas is home to more than 273,000 small businesses, which account for approximately 99.1% of all enterprises in the state. From the aviation manufacturing plants in Wichita to the vast agricultural operations on the western plains, these companies employ nearly half of the state’s workforce.
Whether you’re launching a new ag-tech venture or expanding a logistics company in Kansas City, finding small business loans in Kansas can be a key step in your business’s development. Here’s what you need to know about securing financing for your company.
- Key Points
- • The GrowKS Loan Fund uses federal funds to provide matching loans to startups and underserved businesses in both urban and rural areas.
- • Aviation and aerospace manufacturers in Kansas may rely on equipment financing to acquire precision machinery.
- • Agricultural producers can utilize lines of credit to manage operational costs during seasonal planting and harvesting cycles.
- • Kansas’s Job Creation Fund program grants funding to companies that create jobs or engage in other forms of business development.
- • The Small Business Administration (SBA) backs a wide variety of lending products designed to meet the needs of companies of different sizes and at different moments in their development.
Popular Types of Small Business Loans in Kansas
Entrepreneurs in the Sunflower State can benefit from a supportive network of public and private lending options designed to fuel growth. The following sections outline the most common funding options available to business owners across Kansas.
Kansas Small Business Loan Programs
The state actively fosters economic development through NetWork Kansas, a statewide collective of nonprofit organizations and lenders. It administers the GrowKS Loan Fund, which matches private capital to help companies secure funding to launch or expand, with an emphasis on underserved communities.
Term Loans
With a term loan, a lender provides a small business with an upfront lump sum of capital. Over a specified period (the term), the borrower then makes regular payments to repay the principal and interest, which is usually charged at a fixed rate. This structure can make a term loan an appealing option for financing large, one-time investments with predictable costs. For example, a logistics firm in Overland Park might use a term loan to expand its distribution center.
Business Lines of Credit
In contrast with a term loan, a business line of credit can provide you with access to a revolving pool of funds that you can draw from as you need, up to a predetermined limit. 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 example, a wheat farmer in Salina could use a line of credit to cover fuel and labor costs before the harvest checks arrive.
Equipment Financing
If your business needs a specific physical asset, like machinery, vehicles, or technology, you might want to apply for equipment financing. An aerospace supplier in Wichita could use equipment financing to finance a new CNC machine, while a construction company in Topeka might use it to acquire a new loader.
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 Kansas 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. The 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 Kansas
When your company is applying for Kansas small business loans, prospective lenders generally want you to provide them with an in-depth, easy-to-understand rundown of your company’s financials and a defined plan for how you’d spend the funds you receive.
Here’s a step-by-step breakdown of how to apply for a small business loan in Kansas.
Define Your Loan Purpose and Amount
Before you start contacting lenders, it may be beneficial to have a precise understanding of your funding needs. You should be able to articulate exactly how much money your business needs, what it will be used for, and how it will generate a return. A specific proposal, such as “$50,000 to upgrade our grain storage facilities, which we anticipate will reduce spoilage by 5%,” demonstrates to lenders that you’re thinking strategically and being financially prudent.
Know Your Credit Score
When reviewing your Kansas business loan application, prospective lenders will generally pay particular attention to your company’s credit profile. They’ll probably analyze your personal credit scores, too: Traditional banks often require a credit score for a business loan in the range of 680 or higher. Other lenders, like online banks, may be willing to look at slightly lower scores.
Because of your scores’ importance, it may be beneficial to review your credit reports before you apply so that you can find any errors and have them fixed — and be sure you fully understand your financial situation before you submit your application for a Kansas 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 looking at Kansas small business loans, shopping around can help you find the financing that best suits your needs, since different banks can offer very different options on term loans, for instance. It may also be 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 may 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 application form and gathered your supporting documentation, you’ll probably 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 take several weeks or even months in others.
Tips for Improving Your Loan Approval Chances
You might be able to boost your odds of securing a loan by taking steps to strengthen your company’s financial profile before you apply for it. Lenders usually want to see evidence of your business’s stability as well as its ability to repay the loan. Presenting a financially strong, low-risk profile could help you win a lender’s confidence.
Here are a few steps to consider:
• Ensure that your business plan is realistic and includes detailed financial projections.
• Pay down credit balances and make all your payments on time to work toward strengthening your business and personal credit scores.
• If you have available collateral, consider offering it as security to potentially bolster your application’s chance for approval with certain Kansas business loans.
Other Funding Options for Kansas Small Businesses
If a traditional loan isn’t the right fit for your needs, there may be other ways to fund your business. Kansas’s entrepreneurial ecosystem offers several alternative paths for acquiring capital. One of these options may align better with your company’s stage of growth or industry.
Small business grants are a highly sought-after option because they don’t require repayment. The Kansas Department of Commerce offers a number of grants, including the Job Creation Fund, which awards funds to companies that create jobs or engage in other forms of business development. It can also be helpful to search national databases like Grants.gov to find federal programs relevant to your industry.
Crowdfunding can be another viable route, potentially allowing you to raise smaller amounts of capital online from a broad base of supporters.
Additional Business Resources in Kansas
Succeeding in business often takes more than just funding; it requires expert guidance and a supportive community. Kansas has a broad network of resources designed to help small business owners navigate challenges. The Kansas Small Business Development Center (Kansas SBDC) is a notable resource, offering no-cost advising at regional centers across the state.
For mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, NetWork Kansas creates eCommunities that can provide local loan funds and specialized training.
Engaging with your local Chamber of Commerce may also help you find valuable networking opportunities.
The Takeaway
Securing a Kansas small business loan can be the decisive factor that allows your company to expand and thrive. While the process involves careful planning, it can be an important step in the entrepreneurial journey. By defining your goals and utilizing state resources, you may 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 Kansas?
To apply for Kansas business loans, 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 have ready as you fill out and submit your application. Finally, compare offers from various lenders to find the best terms for your business needs.
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 often have lower capital requirements. Another option can be to research business grants, which provide funding that doesn’t have to be repaid.
How hard is it to get a small business loan in Kansas?
The degree of difficulty will depend on your business’s financial health, time in operation, and credit history. Traditional bank loans can be hard to qualify for. Online lenders often offer more flexible requirements, making them a more accessible option for many Kansas 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 may also have less stringent requirements.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is often preferred. However, some online lenders may approve applicants with scores in the low 600s. Bear in mind that higher scores can also often result in better approval odds and lower interest rates.
What can I use a Kansas small business loan for?
You can use Kansas business loans for almost any legitimate business purpose. Common uses include purchasing inventory, buying equipment, funding marketing campaigns, or refinancing debt. However, you can’t use these loans for personal expenses.
Are there any small business grants available in Kansas?
Yes, grants are available from a variety of sources. The Kansas Department of Commerce is a useful resource for finding state-level opportunities like the Job Creation Fund. 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.
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Small Business Loans in Iowa
Learn All About Small Business Loans in Iowa
The Hawkeye State is the home of almost 290,000 small businesses, which make up approximately 99.3% of all enterprises in the state. From the agricultural strongholds in the west to the insurance and manufacturing hubs in Des Moines and Cedar Rapids, small businesses are the backbone of the state’s economy.
Whether you’re launching an ag-tech startup or expanding a main-street retail shop, finding the right small business loans in Iowa is a key step. Here’s what you should know about securing the right financing for your company.
- Key Points
- • The Small Business Collateral Support Program helps businesses with insufficient assets secure commercial loans.
- • The Targeted Small Business (TSB) program provides certified businesses owned by women, minorities, people with disabilities, and veterans with service-related disabilities with access to specialized loans and procurement opportunities.
- • Manufacturing 4.0 Loan Participation helps industrial firms invest in automation and smart technology to remain competitive.
- • The Linked Investments for Tomorrow (LIFT) program allows the State Treasurer to lower interest rates on small business loans by purchasing certificates of deposit from lenders.
- • Innovation funds like the Proof of Commercial Relevance (POCR) offer financial assistance to certain tech startups to help them validate their market viability.
Popular Types of Small Business Loans in Iowa
Entrepreneurs in Iowa are fortunate to have access to a robust financial ecosystem designed to support the state’s diverse blend of agriculture, industry, and technology. Let’s look at the most common funding options available to business owners across Iowa.
Iowa Small Business Loan Programs
Iowa actively fosters economic growth through the Iowa Economic Development Authority (IEDA). The IEDA manages the State Small Business Credit Initiative (SSBCI), which includes programs like the Manufacturing 4.0 Loan Participation Program to help factories upgrade their technology. There are also innovation funds, like the Proof of Commercial Relevance (POCR) Fund, which offers low-interest funding to certain tech startups to help them validate their market viability. And the Targeted Small Business (TSB) program connects historically underserved entrepreneurs — including women, minorities, people with disabilities, and veterans with service-related disabilities — with low-interest loans of up to $50,000 and access to procurement opportunities.
Additionally, the LInked Investments for Tomorrow (LIFT) program permits the State Treasurer to reduce interest rates on small business loans by purchasing certificates of deposit from lenders, while the Small Business Collateral Support Program aids small businesses in securing commercial loans when they have insufficient assets.
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 bioscience firm in Ames might use a term loan to build a new research lab.
Business Lines of Credit
Unlike a term loan, a business line of credit can let you access a revolving pool of funds that you can draw from when you need funding, up to a predetermined limit. Typically, you’ll pay interest only on the money you actually withdraw, and as you repay the balance, you’ll replenish the pool of funds so the money becomes available for you to withdraw again.
Lines of credit can be helpful for businesses that have seasonal lulls or uneven cash flow. For instance, a seasonal corn producer could use a line of credit to manage operational costs during the planting season, before harvest revenue comes in.
Equipment Financing
If you need to purchase a specific physical asset for your business, like machinery, vehicles, or technology, you might want to apply for equipment financing. For instance, a logistics company in Council Bluffs could use an equipment financing loan to finance a new fleet of trucks, while a farmer in Sioux City might use one to acquire a new combine.
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 reduces the lender’s risk so the loan may offer lower down payments and longer repayment terms than other types of loan. If you qualify, these Iowa 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. The 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 Iowa
Applying for an Iowa small business loan requires 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-thought-out 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 Iowa.
Define Your Loan Purpose and Amount
Before you start getting in touch with lenders, you’ll want to have a precise understanding of your company’s funding needs. You should be able to articulate to prospective lenders exactly how much money your company will need, what it will be used for, and how it will generate a return. Being able to make a specific proposal, such as “$50,000 to automate our packaging line, which we project will save us $25,000 yearly” demonstrates strategic thinking and practical financial planning.
Know Your Credit Score
Prospective lenders will likely pay particular attention to your credit profile when reviewing your Iowa business loan application. They’ll probably scrutinize your personal credit scores: 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 find any errors and have them fixed — and be sure you fully understand your financial situation before you submit your application for an Iowa small business loan.
Gather Your Key Documents
Presenting an application package that’s organized and complete can speed up the review process and demonstrate to a potential lender that you’re reliable and motivated. While requirements vary by lender, you should generally 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 in the market for an Iowa small business loan, shopping around can help you find the financing that’s best suited to your business’s needs. Different banks, for instance, may offer very different options on term loans. It can also be smart to compare options from multiple kinds of sources, including local credit unions, large national institutions, and online lenders.
As you evaluate financing proposals, you might want to use a business loan calculator to help you estimate the monthly payments for different options. It’s also a good idea to look closely at the Annual Percentage Rate (APR) of each loan to understand its true cost.
Submit Your Application and Await Approval
Once you’ve filled out the application form and organized your supporting documents, you’re ready to submit your application package. After your lender has it in hand, all you have to do is wait for a response. This can take as little as two days in some cases, but may take several weeks in others.
Tips for Improving Your Loan Approval Chances
You might be able to increase your chances of securing a loan by taking steps to strengthen your business’s financial profile before you apply. Lenders typically want to see evidence of your business’s stability as well as its ability to repay the loan. Presenting a financially strong profile may help with the underwriting process.
Here are some steps to think about trying:
• Be sure that you’ve got a realistic business plan with detailed financial projections.
• Work to strengthen your business and personal credit scores by paying down your current balances and making timely payments.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Iowa business loans.
Other Funding Options for Iowa Small Businesses
If a traditional loan isn’t the right fit for your small business, there are other ways to fund it. Iowa’s entrepreneurial ecosystem offers several alternative paths to capital. One or more of these options may align better with your specific stage of growth or industry.
Small business grants are often highly sought-after options because you don’t have to repay them and there are a number specific to Iowa. Manufacturing 4.0 Technology Investment helps industrial firms invest in automation and smart technology to remain competitive. And the Main Street Iowa Open 4 Business Program awards grants to business development-related proposals. You can also try searching national databases like Grants.gov to find federal programs that may be relevant to your industry.
Crowdfunding may be another viable route, helping you to raise smaller amounts of capital from a broad base of supporters online.
Additional Business Resources in Iowa
Success in business often takes more than just capital; it also requires experienced guidance and a supportive community. Fortunately, Iowa has a robust network of resources designed to help small business owners navigate challenges. Most notably, the Iowa Small Business Development Center (SBDC) provides no-cost, confidential advising at 15 regional centers across the state.
For mentorship, local SCORE chapters connect entrepreneurs with experienced business leaders who volunteer their time. Additionally, the Iowa Center for Economic Success offers specialized education and micro-lending services. Getting engaged with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing an Iowa small business loan can be the decisive factor that allows your company to expand and flourish. While the process involves careful planning, finding funding is achievable for a focused entrepreneur. By defining your goals and utilizing the available 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 Iowa?
To apply for an Iowa business loan, start by clearly defining your funding needs and checking your credit scores. Then gather essential documents like your business plan, tax returns, and bank statements so that you can assemble and submit your application. Finally, compare options from various lenders to find the best terms available to you.
Can I get a startup business loan with no money?
This can be challenging, as most lenders require an owner’s investment. However, some SBA microloans that are designed for startups have lower capital requirements. Another option is to research business grants, which provide funding that doesn’t need to be repaid.
How hard is it to get a small business loan in Iowa?
The degree of difficulty depends on your business’s financial health, time in operation, and credit history. Traditional bank loans can have strict qualifications. Online lenders often offer more flexible requirements, making them a more accessible option for many Iowa 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 typically have less stringent requirements.
What credit score do I need for a small business loan?
Requirements vary, but for traditional bank and SBA loans, a personal credit score of 680 or higher is often preferred. Some online lenders may approve applicants with scores in the low 600s. Bear in mind that higher scores can result in better approval odds and lower interest rates.
What can I use an Iowa 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 Iowa?
Yes, grants are available in Iowa. For example, Manufacturing 4.0 Technology Investment helps industrial firms invest in smart technology and automation, while the Main Street Iowa Open 4 Business Program awards grants to business development-related proposals. You can also search national databases like Grants.gov for federal programs relevant to your industry.
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
*Small Business Loans: Reference to “same day funding” or “funding within 24 hours” describes a general capability of many lenders you can reach through SoFi’s marketplace. Funding or funding timing is not guaranteed. Your experience with any lender will vary based on requirements of the lender and the loan you apply for. To determine the timing of funds availability, you must inquire directly with any lender. In addition, your access to any funds from a loan may be dependent on your bank’s ability to clear a transfer and make funds available.
†Credit score impact: To check the options, terms, and/or rates you may qualify for, SoFi and/or its network providers will conduct a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the provider(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Rates may not be available from all providers.
©2025 SoFi Lending Corp. All rights reserved.
SoFi receives compensation in the event you obtain a loan, financial product, or service through SoFi’s marketplace. This webpage is owned and operated by SoFi Lending Corp., licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. ((www.nmlsconsumeraccess.org)). This page is NOT operated by SoFi Bank. Loans, financial products, and services may not be available in all states. All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown through SoFi’s marketplace are from providers and are estimates based upon the limited information you provided and are for informational purposes only. All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. The actual loan terms you receive, including APR, will depend on the provider you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the providers and not by SoFi Lending Corp. Please review each provider’s Terms and Conditions for additional details.
SOSMB-Q425-061
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)†
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