Get a Loan
To get a loan for a business, small business owners must show potential lenders any or all of these,
- A strong business plan.
- Ability to make money.
- Ability to pay back money.
- A financial history that meets their requirements.
- Expertise and experience in your business.
These are the “Five C’s of Credit.” They include character, capacity, capital, collateral and conditions.
Loans for Small Businesses
Loans from banks and credit unions are the most well-known type of loans. In addition to those, other organizations lend money to small businesses. Try this tool to match businesses with lenders.
Linked Deposit Loan Program
One solution to help small business owners is the Linked Deposit Loan Program. Started in 1983, it encourages banks and credit unions to offer better interest rates to owners of OMWBE certified businesses. Business owners work with their bank to agree to loan terms and enroll in the program.
Loans for Microenterprises
Many microenterprise development organizations and economic development districts have loan programs. These programs can offer loans to the smallest of small businesses that don’t qualify for commercial loans.
- Benton Franklin Council of Governments
- Center for Business Development
- SNAP Financial Access
- Tri County Economic Development District
- Mid-Columbia Economic Development District
- Business Impact NW
- JumpStart Fund
- Enterprise for Equity
- Rainier Valley Community Development Fund
- Viva Farms
- NW Access Funds
Alternative Funding/ Alternative Lending/ Other Types of Loans for Small Businesses
As business credit has tightened in the banking sector, small business owners have found it more difficult to obtain loans from traditional lenders. This has spurred the rise of non-bank lenders, also known as alternative lenders. Below are some resources to help you understand more about alternative funding.