Small Business Loans
Learn All About Small Business Loans in Idaho
Idaho is home to more than 207,000 small businesses, which account for 99.2% of all enterprises in the state. From the technology corridor in the Treasure Valley to the agricultural heartland in the east, these companies employ more than half of the state’s workforce.
Whether you’re planning to launch a software startup in Boise or expanding your family farm in Twin Falls, finding small business loans in Idaho is a key step. Here’s what you need to know about securing financing for your company.
- Key Points
- • The Idaho Collateral Support Program helps businesses secure financing by pledging cash deposits to cover collateral shortfalls.
- • Nonprofit lender MoFi provides essential capital to entrepreneurs who may not qualify for traditional bank loans.
- • The Idaho State Trade Expansion Program (STEP) offers financial assistance to businesses looking to enter or expand into international markets.
- • Agricultural producers may use equipment financing to maintain the heavy machinery required for farming operations.
- • Seasonal tourism businesses in areas like Sun Valley can rely on lines of credit to stabilize cash flow during shoulder seasons.
Popular Types of Small Business Loans in Idaho
Entrepreneurs in the Gem State have access to a wide variety of financing structures tailored to its mix of rural and urban economies. The sections below outline the most common funding options available to business owners across Idaho.
Idaho Small Business Loan Programs
The state works to encourage economic development through a number of targeted financial tools. For example, the Idaho Prime Loan program, which is a cooperative effort of the Idaho State Treasurer, the Small Business Administration (SBA), and local banks, provides prime-rate loans of up to $750,000 to small businesses that need capital. And the Idaho Housing and Finance Association (IHFA) administers the Collateral Support Program, which reduces risk for lenders by providing cash collateral for qualified borrowers.
Additionally, the nonprofit lender MoFi serves as a key Community Development Financial Institution (CDFI), providing loans and business consulting to underserved entrepreneurs throughout Idaho and nearby states.
Term Loans
A term loan can provide a small business with a lump sum of capital upfront. The principal, along with interest usually charged at a fixed rate, is then repaid over a specific period of time (the term) in regular payments. The lump sum makes such loans helpful for funding large one-time investments, and having a fixed, predictable repayment structure is useful as you budget into the future. A tech firm in Meridian might use a term loan to upgrade its server infrastructure, repaying the investment in regular intervals over a series of years.
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 seasonal or otherwise fluctuating needs and income — and aren’t always sure of how much they’ll need or when. A ski rental shop in Ketchum, for example, could use a line of credit to purchase winter inventory before the first snow falls and its season swings into full gear.
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 potato farmer near Idaho Falls might use an equipment financing loan to pay for a new harvester, for instance, while a construction company in Coeur d’Alene might use one to acquire a new loader.
Because the equipment itself serves as collateral for the lender, these loans may be easier to obtain and often come with more favorable conditions than unsecured loans.
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 federal backing reduces risk for the lender and the loan conditions may permit lower down payments and longer repayment terms. If you qualify, these Idaho 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. 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.
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 Idaho
Applying for Idaho small business loans requires you to provide an in-depth, easy-to-understand look at your company’s financial well-being and a defined plan for how you’ll spend the funds you receive.
Here’s a step-by-step breakdown of how to apply for a small business loan in Idaho.
Define Your Loan Purpose and Amount
Before you begin contacting lenders, it’s a good idea to have a precise understanding of your funding needs and goals. You should be able to articulate exactly how much money your business requires and how it will generate a return.
A specific proposal, such as “$50,000 to expand our irrigation systems and improve yield by 15%,” can demonstrate to lenders that you’re thinking practically and strategically.
Know Your Credit Score
Your credit profile will likely be one of the first factors that a lender will review when considering extending a loan. Your personal credit scores will probably be scrutinized, and traditional banks often require a credit score for a business loan to be in the range of 680 or higher. Other lenders, like online banks, may be willing to look at slightly lower scores.
Because of this, it may be smart to review your reports before you apply in order to find any errors and have them corrected — and to be sure you understand your financial situation before you submit an application for an Idaho 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 prepared 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
Shopping around can go a long way toward helping you find the financing that best fits your business’s needs, since 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 local community banks, large national institutions, and online lenders.
As you evaluate proposals, consider using a business loan calculator to help you estimate the monthly payments for your different options. It’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 the application package. After your lender has it, you’ll need to wait for its 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 boost your chances of securing a loan by taking steps to strengthen your business’s financial profile before you apply. Lenders typically look for evidence of the company’s stability and its ability to repay its debts. Presenting a financially strong, low-risk profile can be a good way to build a lender’s confidence.
Here are some steps to try:
• Be sure you’ve got 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.
• If you have collateral available, consider offering it as security to potentially bolster your application’s chance for approval with certain Idaho business loans.
Other Funding Options for Idaho Small Businesses
If a traditional loan isn’t the right fit for your business, there may be other ways to fund your business. Idaho’s entrepreneurial ecosystem offers several alternative paths for capital. One of these options could align better with your company’s specific stage of growth or industry.
Small business grants are often highly sought-after options because you don’t need to repay them. Here are a few examples:
• The Idaho Department of Commerce manages the State Trade Expansion Program (STEP) to help small businesses succeed in international markets.
• The Idaho Regional Travel and Convention Grant Program provides grants to nonprofit organizations that support the state’s travel and tourism industries.
• The Idaho Tax Reimbursement Incentive can provide tax credits to companies that are expanding in Idaho or relocating there and creating jobs.
Crowdfunding can be another viable route to raise capital, helping you acquire smaller amounts from a broad base of supporters online.
Additional Business Resources in Idaho
In addition to capital, success in business often requires guidance and a supportive community. Idaho boasts a healthy network of resources designed to help small business owners navigate challenges. The Idaho Small Business Development Center (SBDC) is a premier 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. Engaging with your local Chamber of Commerce can also provide valuable networking opportunities.
The Takeaway
Securing an Idaho small business loan can be the decisive factor that allows your company to expand. While the process requires forethought and careful planning, it’s something that a focused entrepreneur can master. By defining your goals and utilizing the resources available in Idaho, you should be able to find the right financing solution for your small business.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
(without impacting your credit score)†
FAQ
How do I get a small business loan in Idaho?
To obtain a small business loan in Idaho, start by defining your funding needs and checking your credit scores. Gather essential documents like your business plan, tax returns, and bank statements to help as you prepare and submit your application. Finally, compare options from various lenders to find the best terms for your Idaho small business loan.
Can I get a startup business loan with no money?
Obtaining a startup business loan with no money can be challenging, since most lenders require an owner’s investment. However, some SBA microloans are designed for startups and may be easier to qualify for. 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 Idaho?
The degree of difficulty depends on factors that include your business’s financial health, time in operation, and credit history. Traditional bank loans may have strict requirements, but online lenders are often more flexible, making them a more accessible option for many Idaho 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 tend to 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 an Idaho 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. Using the loan for personal expenses is prohibited.
Are there any small business grants available in Idaho?
Yes, grants are available from a variety of sources. The Idaho Department of Commerce can be a resource for finding state-level opportunities like the STEP grant. 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-Q425-058
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)†