Small Business Loans
Learn All About Florida Small Business Loans
Florida has become an economic magnet, with more than 3 million small businesses calling the Sunshine State home. There’s no personal income tax in Florida, and the state’s economy is the fourteenth largest in the world, both of which contribute to its reputation as a business-friendly location.
Whether you’re starting a business or expanding one, finding small business loans in Florida can help you thrive. Here’s what you need to know about getting financing for your company.
Key Points
- • The primary small business loans in Florida include term loans, business lines of credit, equipment financing, and SBA loans.
- • Application process involves defining loan purpose, checking credit scores, and gathering financial documents.
- • Tips for loan approval: improve credit scores, request strategic funding, and create a detailed business plan.
- • Additional funding options: state programs, credit unions, and SBA loans for diverse business needs.
- • State-specific programs support rural, minority, and Hispanic-owned businesses with various loan funds.
Popular Types of Small Business Loans in Florida
Discover business loans in Florida and those that are available regardless of location.
Florida Small Business Loan Programs
The Florida Department of Commerce operates a Small Business Innovation program that includes a number of loans for both new and established businesses. Available loans include:
• Rebuild Florida Business Loan Fund
• Florida Small Business Emergency Bridge Loan
• Rural Community Development Revolving Loan Program
• State Small Business Credit Initiative
• Microfinance Guarantee Program
• Black Business Loan Program
• Prospera (for Hispanic-owned businesses and entrepreneurs)
• Urban League of Broward County
Term Loans
In addition to state financing opportunities, Florida business owners can also explore term loans from banks, credit unions, and online loan marketplaces.
A term loan is structured like a personal loan. The business receives a lump sum and the principal plus interest is repaid to the lender as a fixed payment. A business loan calculator can help you estimate monthly payments based on loan amount, interest rate, and term.
Some lenders require that eligible businesses have a minimum time in business, while others offer startup business loans.
Business Lines of Credit
An alternative to a Florida small business loan is a business line of credit. Instead of receiving one infusion of cash, your business can continually draw on a line of credit to borrow funds as needed. It’s similar to having a business credit card, but you can write checks and deposit cash directly into your business account.
Having access to a line of credit can help smooth out cash flow issues or cover financial emergencies. Depending on your lender, you may have to secure your line of credit with assets like real estate, cash, equipment, or inventory.
Equipment Financing
If you need cash specifically to purchase equipment for your business, consider equipment financing. The loan is secured by the asset you purchase, which can make your payments more affordable. Plus, you could qualify to finance up to 100% of the purchase price in order to preserve your business’s cash.
Another advantage of equipment financing is that your Florida business doesn’t need to use heavy machinery in order to qualify. Other eligible purchases include office furniture, vehicles, and computers.
SBA Loans
Small Business Administration loans are guaranteed by the federal government but executed by private lenders. There are three primary types of SBA loans:
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• 7(a) loans: Florida business owners can use this type of financing to pay for real estate, working capital, debt refinancing, machinery and equipment, furniture, ownership changes, and more. An SBA loan calculator gives you a sense of total costs and monthly payments.
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• 504 loans: 504 loans finance projects that foster business growth and job creation. The funds can be used for major fixed assets.
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• Microloans: An SBA microloan provides up to $50,000 in funding for small businesses.
How to Apply for a Small Business Loan in Florida
Learning how to apply for a small business loan in Florida could improve your approval odds.
Define Your Loan Purpose and Amount
It’s helpful to know how you’re going to use the funds so you can estimate your ideal loan amount. Many business owners apply for financing to be used towards upfront costs, expansion, cash flow, or large purchases like property, equipment, and inventory.
Recommended: Small Business Financing Guide
Know Your Credit Score
Lenders typically look at your personal credit score for your business loan application, as well as your business credit score. Banks usually require a minimum personal score of 680 or above, while online lenders may have more flexible requirements.
Business credit scores range from 1 to 100, with 70 considered the threshold for a “good” score. Having a below-average score doesn’t necessarily mean you can’t get approved for a Florida business loan, but you may have to pay a higher interest rate and secure the loan with collateral.
Gather Your Key Documents
In addition to filling out the lender’s application, you’ll also need to submit supporting documentation. Here are common documents that may be requested when you apply for any type of business loan:
• Credit report
• Income statement
• Bank statements
• Budget
• Income tax returns (both business and personal)
• Business plan
• Collateral valuation and supporting documents (such as titles, deeds, or invoices)
Compare Lenders and Loan Offers
Lenders evaluate business loan applications differently, so it’s worth checking with a few different options to compare your offers. You might qualify for different financing structures and even different loan terms (including interest rates) with various lenders.
Submit Your Application and Await Approval
Once your application is complete and you’ve gathered the required documentation, you’re ready to submit your package to the lender. From there, you’ll need to wait to find out whether you’ve been approved. Online lenders tend to offer quick decisions, while banks and other SBA lenders have a longer wait time.
Tips for Improving Your Loan Approval Chances
Maximize your approval odds for a small business loan in Florida with the following best practices:
• Improve your business and personal credit scores
• Request a strategic amount of funding, not more than you need
• Create an in-depth business plan
Other Funding Options for Florida Small Business
FloridaCommerce recommends a number of additional resources for Florida small business owners, including:
• Miami Bayside Foundation’s loan programs
• Florida A&M University Federal Credit Union
• Florida First Capital Finance Corporate
• Minority Business Development Agency (U.S. Department of Commerce)
• The National Minority Supplier Development Center
Explore these organizations for additional Florida business loans and help in growing your company.
Additional Business Resources in Florida
Florida’s Small Business Development Center network helps businesses at all stages. Search to find one of nine regional offices closest to you. All locations offer three core service areas:
• Training: Access hundreds of live trainings each year, covering topics from business basics to management skills.
• Consulting: You can work with a no-cost business consultant to help you grow your business in areas like strategic planning, financial analysis, marketing, capital access, government contracting, and more.
• Research: Get research your business may not otherwise be able to afford. Then you can make better informed decisions with customized reports related to your industry and geography.
Recommended: Small Business Grants: Where to Find Funding
The Takeaway
Fueling your company with a Florida business loan can help you launch and expand more quickly than simply bootstrapping each step of the way. Explore SoFi’s small business loans to compare loan offers from multiple lenders.
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 Florida?
You can get a small business loan in Florida by applying with local financial institutions and online lenders, or by searching opportunities from the Florida Department of Commerce’s Small Business Innovation program.
Can I get a startup business loan in Florida with no money?
Getting a startup business loan can be tricky because many lenders like to see a minimum time in business and revenue. Applying through a small business loan marketplace can save you time by narrowing down lenders that are comfortable working with startups.
How hard is it to get a small business loan in Florida?
Florida has a business-friendly environment, but just as in any other state, you’ll need to submit a strong business loan application to get approved. Expect to have lenders evaluate your credit scores and financial documentation for both your personal and business backgrounds.
What is the easiest type of business loan to get approved for?
It’s usually easier to get approved with secured business financing than unsecured. That’s because the lender can repossess the collateral if the loan goes into default.
What credit score do I need for a small business loan?
The typical minimum for a small business loan is a 680 for personal credit and a 70 for business credit.
What can I use a small business loan for?
Small business loans can be used for working capital, debt consolidation, inventory purchases, real estate, equipment, and more.
Are there any small business grants available in Florida?
Yes, you can research several online grant aggregators to search for online small business grants by locations, including those available in Florida.
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