Restoring America’s small businesses to pre-pandemic strength will play a significant role in America’s economic recovery from the COVID-19 pandemic. According to the National Federation of Independent Businesses, small businesses accounted for more than 65 percent of net new job creation between 2007 and 2017 — representing 99.9 percent of all employer firms and employed approximately half of private-sector employers pre-pandemic.
That’s why Growth Capital is laser-focused on helping existing small businesses manage the pandemic’s economic impact as well as helping entrepreneurs who see opportunity and dream of launching a small business.
Overview of Small Business Loan Resources
Given the range of small business financing options, including online business lenders, finding the right financing fit can seem an overwhelming task. Our team taps federal and local resources to find financing options that work best for any given small business owner’s situation.
For example, the team works closely with the Small Business Administration, which guarantees small business loans.
Growth Capital offers three kinds of loan programs for small businesses. Each small business loan program was designed to meet specific small business needs, from launching a small business to funding growth and capital expenses.
Small business loan programs for existing businesses
The SBA developed the SBA 504 small business loan program to meet the fixed asset financing needs of small businesses in industries including manufacturing, industrial, service, retail, medical, wholesale, and distribution. Loan sizes range from $50,000 to $5.5 million and can be used to acquire land and buildings, new construction costs, remodeling and renovation, machinery, and equipment.
Like the SBA 504 loan program, the Ohio Regional 166 small business loan program loan offers financing for fixed assets such as acquiring land and buildings, funding construction and buying machinery and equipment. This small business loan program primarily targets manufacturing, distribution, wholesale, and commerce businsmall businessesesses and offers up to $500,000 in financing.
Small business loan programs for new businesses
One common challenge to launching a new small business is finding the capital. Some business owners resort to tapping personal resources including savings and higher-interest credit cards.
For those business owners, a Community Advantage small business loan program is likely a better option. The loan amount is capped at $250,00 and can be used to purchase owner-occupied new, existing commercial buildings and to expand or improve facilities as well as buying machinery, equipment, fixtures, and leasehold improvements.
Another benefit: A Community Advantage Loan can be used to refinance current, more expensive debt.
Additional small business loan programs
Additionally, small businesses can explore other resources including:
- The National Federation of Independent Businesses advocates for small businesses and provides a variety of small business tools.
- The U.S. Chamber of Commerce shares a wide variety of resources and lobbies on behalf of businesses.
Small business owner FAQs
At Growth Capital, our team of experts can help answer questions you might have about finding the right small business loan for your needs, and how to navigate the loan application process. Below are a few of the most frequently asked questions we run into:
Q: How do I know if my business is considered a small business?
A: The SBA has size standards that determine if a given business qualifies for SBA funding.
Q: Any advice on preparing to work with Growth Capital to obtain financing?
A: We want to get to know you, so come prepared to talk to us about your dreams for your business, your goals and your circumstances.
Q: Apart from paying my loan, are there other commitments I’m required to meet?
A: Yes, some loans require your business to guarantee your business will create a certain number of jobs.
Small business support through the ups and downs
We know the pandemic creates unprecedented challenges for business owners. Finding the right financing should not be one of those challenges. We have a deep understanding of different financing options and will take time to find the right option to meet your business’ individual needs. We want to do all that we can to support you and your business through these challenges, and beyond. To contact our team, give us a call at (216) 592-2332 or fill out our online contact form. We look forward to learning about your business, and how we can help,