Small Business Loans in Ohio

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    Funding Your Small Business Through Small Business Loans Ohio 83

    Ohio bricks

    Although the state took a hard hit during the pandemic, it didn’t stop the 171,000 businesses from opening in 2020. Now, the Buckeye State is home to more than 850,000 thriving small businesses. 

    Despite Ohio’s flourishing small business landscape, business owners may still need a capital boost. In order for their companies to move forward, they must invest in specific business opportunities to grow and expand. The good news is the state ranked no. 3 for the best access to funding in the nation.

    This is then where Ohio Business Loans come in. 

    Whether in Columbus, Cleveland, or Cincinnati, Ohio, you’ll definitely find the best business loan fit for your business need. 

    Medical Business Loans in Ohio

    The Buckeye State has made it its mission to embrace innovation and improve care for all, which is why they’re working twice as hard to achieve breakthroughs in the medical field. If you’re a medical practitioner in Ohio, now would be the best time to start your private practice. By securing financing, you’ll be able to invest in state-of-the-art medical equipment to improve the quality of care you provide your patients.  Not only that, but you’ll be able to cover your startup costs, including renovations, rent, utilities, etc. 

    Restaurant Business Loans in the Buckeye State

    Restaurants in Ohio experienced huge losses when the pandemic hit the country. If you own a small restaurant in the state, you might have experienced the losses yourself. Restaurant business loans can help you recoup the losses you incurred in the months you couldn’t operate because of the restrictions. Moreover, you can use the loan’s proceeds to rebuild your business. With the extra capital, you’ll be able to pay rent, replace outdated restaurant equipment, restock your fridge, and cover the cash flow gaps. 

    Retail Business Loans in Ohio

    Ohio's economy thrives partly because of its massive network of retail businesses. The Buckeye state has approximately 139,000 retail companies that employ more than 1.9 million workers. Moreover, the industry generated a gross domestic product (GDP) of 130.7 billion, according to the National Retail Federation (NRF).

    That said, you need to figure out a way for your retail business to stay a few steps ahead of your competitor. Through Ohio small business loans, you can get the cash flow boost you need to keep up with the trends and meet your customer’s needs.

    restaurant settings

    Best Small Business Financing Programs in Ohio

    Ohio Regional 166 Loan Program

    Ohio businesses need extra capital for buying fixed assets, including commercial real estate, equipment, machinery, or even building acquisition. With it, the business owners can get between $25,000 to $500,000 with a repayment period of 20 years for real estate acquisition and ten years for equipment purchase. 

    On top of that, the Ohio Regional 166 Loan Program also offers low (and fixed) interest rates (currently offering 2/3 of the current prime rate) and low down payments. 

    The small business must operate for-profit to qualify for the Ohio Regional 166 Loan program. In other words, their business must have the primary goal of operating for financial gains. The company must also meet a job creation requirement: one new job for every $50,000 166 funding. 

    This loan caters to companies in the wholesale, distribution, commerce, wholesale, and from time to time, service industries. 

    SBA 7(a) Loan Programs

    SBA loans are made by the Small Business Administration, and these loans offer affordable financing to Ohio small business owners. Although the participating lenders extend the credit to you, the SBA can control the interest rates the lenders offer. 

    The SBA 7(a) loan is the most coveted loan program the SBA offers – and for a good reason. With the program, businesses can get up to $5 million in funding, which they can put towards any business need. It could be working capital, equipment purchase, payroll, real estate acquisition, business acquisition, etc. 

    The repayment period can be up to 25 years, depending on the purpose of the loan, loan amount, and business qualifications. 

    SBA 504 Loan Programs

    The SBA 504 loan program is another small business funding offered by the Small Business Administration. But unlike the SBA 7(a) program that provides flexibility, the SBA 504 loans are solely dedicated to funding business investments. This includes real estate acquisition or equipment purchase. You can also use it to refinance debts as long as the loan’s proceeds were used towards any of the two eligible uses mentioned. It’s worth noting that the SBA 504 Loan proceeds cannot be used as additional working capital.

    Eligible businesses can get up to $5.5 million in funding, which they can put towards construction, renovations, equipment replacement or purchase, office fixture, and other long-term fixed assets. Like SBA 7(a) loans, the repayment period for the loan can extend up to 25 years, depending on how the business uses the loan’s proceeds.

    One particular downside of these SBA backed loans is that it’s typically one of the most challenging loans to qualify for. To be eligible, businesses must have a stellar credit background and strong business revenue, and they must be operating for at least two years before submitting their application. SBA loan applications are also notorious for being lengthy. If you need quick access to additional capital, SBA loans might not be the best choice right now.

    Community Advantage Loan

    Small businesses in Ohio struggling to secure a traditional bank loan can apply for the community advantage loan to access additional credit to grow their business. Once approved, companies can get up to $250,000 in funding and use it to acquire real estate, consolidate debts, boost working capital, cover day-to-day expenses, hire new employees, pay for business utilities, and more.

    Businesses like manufacturing, distribution, wholesale, commerce, and service-based industries can apply for the loan as long as they can prove that they have solid financials.

    Tall buildings and wide roads

    Tall buildings and wide roads

    How to Get a Small Business Loan for Ohio Based Businesses

    When you’re ready to apply for Ohio small business loans, you’ll first want to evaluate your business qualifications. You’ll generally want to apply with a stellar credit score, long business history, and solid financials to increase your chances of approval. 

    However, the eligibility criteria and requirements may vary depending on the lender you work with. For instance, banks offer the most affordable small business loans but usually reserve their approvals for the most creditworthy customers. On the other hand, alternative or online lenders may work with less creditworthy customers. The only downside is that they usually charge higher fees for convenience. 

    When applying for a business loan, be prepared to submit documentation. Traditional lenders may require a laundry list of documents, while alternative lenders may only require primary documents like IDs, business leases, bank statements, balance sheets, and tax returns. 

    The best way to know how to go about your Ohio small business loan applications is to ask the lender directly. The experts in SMB compass can help walk you through the entire process and advise you on which small business financing suits you best based on your business's current needs.   

    Small Business Resources for Ohio Small Businesses

    Applying for a small business loan can be overwhelming. Fortunately, small business owners can go directly to banks and lenders or work with organizations that offer assistance and small business resources.

    The Ohio Development Services Agency

    The OSDA offers resources for Ohio based small businesses, including assisting in applying for federal contracts. They also help underserved enterprises to grow their companies.

    Small Business Development Centers

    You can SBDCs across the state, and they can help you create financial projections for SBA loan applications. They also provide additional resources like workshops and training to get your business off the ground.

    Ready to apply for a Business Loan?