The Best Business Loan And Financing Resources For Florida Small Businesses
Does finding capital for your small business seem like an insurmountable task? While it may seem impossible on the surface, the secret is that there are lots of lenders willing to finance your business. The key is knowing where to look.
If you’re a small business owner in Florida, you’re in luck. There are many options to consider when it’s time to apply for small business financing. Whether you’re new to the game and need money for startup costs or you’re an established small business looking to expand, we’ve got you covered.
In this guide, we’ll explore the financing options available to you. We’ll cover national lenders that offer easy online applications and take a look at local banks and credit unions. We’ll explore small business grants which give you free (yes, free!) money for your business. Finally, we’ll take a look at the options available to startups. Ready to get your financing? Let’s go!
Table of Contents
- Online Business Lenders For Florida Businesses
- Banks, Credit Unions, & Nonprofit Lenders In Florida
- Small Business Grants In Florida
- Loans & Financial Resources For Startups In Florida
- What To Consider When Choosing A Lender
- Final Thoughts
Online Business Lenders For Florida Businesses
The internet has made our lives more convenient than ever. From online banking to communicating with family and friends to watching our favorite funny cat videos on YouTube, the internet has changed the way we interact with the world.
For small business owners, the internet has also opened up new opportunities in lending. Just a few decades ago, getting a business loan meant heading to your local bank, presenting your pitch, and waiting for that phone call approving your loan … or, more likely, turning you down. Today, you can apply for loans, lines of credit, credit cards, and other financial products from the comfort of your home or office.
Not only is the application process easier, but now, small business owners that wouldn’t qualify for bank loans have options as well. No matter your industry, time in business, annual revenue, or personal credit score, there’s an online lender that can help you get the financing you need.
Want to shop options without filling out a million applications? Give Lendio a try. Lendio isn’t a direct lender. Instead, it’s a loan aggregator, connecting you with more than 75 financing partners with just one application.
Through Lendio, you can apply for all types of small business financing. If you need a large amount of capital to fund your expansion, apply for a low-interest, long-term Small Business Administration loan. Looking for a flexible form of financing? See if you qualify for a line of credit or business credit card. Need new equipment for your business? Try equipment financing.
Some of the financial products offered through Lendio’s network include:
- Small Business Administration Loans: $50,000 to $5 million with terms up to 25 years
- Lines Of Credit: $1,000 to $500,000 with terms up to 2 years
- Equipment Financing: $5,000 to $5 million with terms up to 5 years
- Term Loans: $5,000 to $2 million with terms up to 5 years
- Short Term Loans: $2,500 to $500,000 with terms up to 3 years
- Merchant Cash Advances: $5,000 to $200,000 with terms up to 2 years
- Commercial Mortgages: $250,000 to $5 million with terms up to 25 years
Borrower requirements, rates, and terms vary based on the type of loan you select, the lender you work with, your borrowing amount, and your creditworthiness. Applying with Lendio to receive offers does not affect your credit score. However, if you move forward with a lender’s offer, a hard credit pull may be required.
Have you tried to receive a bank loan, but your application was rejected? You’re certainly not alone. Most small business owners find that receiving a low-cost, long-term loan from a bank is difficult. This is because banks take a hard look at risk. Banks and credit unions want to work with low-risk borrowers — established businesses with solid business and personal credit profiles and high annual revenues.
For many new and growing businesses, meeting these requirements is impossible. But this doesn’t mean that you’re stuck with only high-interest, short-term loan options. You can receive affordable financing with great terms by applying for a Small Business Administration loan.
These loans are backed by the SBA, so banks, credit unions, and nonprofit lenders feel more comfortable loaning to small businesses – even those with less-than-perfect credit or low revenues. The SBA takes on some of the risk for lenders, while small business owners get to enjoy flexible, affordable loan options.
You can apply for an SBA loan through your bank or credit union. Or you can do what many busy entrepreneurs do and apply through SmartBiz.
With SmartBiz, you can pre-qualify for an SBA loan in just minutes with no effect on your credit score. You may be eligible to receive funding as quickly as 7 days after completing your application — much faster than the weeks it may take through your bank.
SmartBiz offers two types of SBA loans. Working capital and debt refinancing loans are available in amounts of $30,000 to $350,000. These funds can be used for a variety of purposes including:
- Refinancing Debt
- Equipment Or Inventory Purchases
- Hiring Employees
- Business Expansions
- Marketing Costs
To qualify for a working capital and debt refinancing loan, you must meet the following requirements:
- At least 2 years in business
- Personal credit score of 640 or above
- Sufficient cash flow to support loan payments
- No outstanding tax liens
- No bankruptcies or forecloses within the last 3 years
- No previous defaults on government-backed loans
Working capital and debt refinancing loans have interest rates between 8.25% and 9.25% with repayment terms of 10 years.
You can also apply for an SBA 7(a) commercial real estate loan. These loans start at $500,000 and can go up to $5 million; they can be used to purchase commercial real estate or refinance your existing property loan. Funds can’t be used to purchase investment properties or to fund the construction of a new commercial building.
To qualify for an SBA 7(a) commercial real estate loan, you must meet the following borrower requirements:
- The property must be at least 51% owner-occupied
- At least 3 years in business
- Personal credit score of 675 or above
- Sufficient cash flow to support loan payments
- Property purchase price must be higher than $500,000
- No outstanding tax liens
- No previous defaults on government-backed loans
SBA 7(a) commercial real estate loans have interest rates of 7% to 8.25% with repayment terms of 25 years.
If you don’t want to apply for an SBA loan or need funding quickly, SmartBiz has also partnered with banks to offer competitive term loans. These loans are available in amounts from $30,000 to $350,000 with terms of 2 to 5 years. Fixed interest rates range from 6.99% to 26.9%.
If you don’t qualify for an SBA loan or you need money fast, you could get the capital you need with an alternative online lender like OnDeck. OnDeck offers two financial products for small businesses: term loans and lines of credit.
With an OnDeck term loan, you could qualify to receive up to $500,000. OnDeck offers short-term loan options with terms of 3 to 12 months. These loans are best for purchasing inventory, paying marketing expenses, or seasonal hiring or inventory needs. Short-term loan options have a simple interest rate starting at 9%.
Long-term loan options are also available with terms of 15 to 36 months. These loans are best for larger projects including purchasing equipment or business expansion. Annual interest rates for long-term loans start at 9.99%.
For both loan options, fixed daily or weekly payments are automatically deducted from your business bank account. To qualify for OnDeck loans, you must:
- Have a time in business of at least 12 months
- Have at least $100,000 in annual revenue
- Have a personal credit score of 500 or above
If you want a more flexible financing option, you can apply for a line of credit up to $100,000. You can use your line of credit whenever you need it, including when you have unexpected expenses or gaps in cash flow.
The APR for an OnDeck line of credit starts at 13.99%. Fixed weekly payments are automatically taken from your business bank account. There are no draw fees, but a monthly maintenance fee of $20 is required. This fee is waived for 6 months if you draw at least $5,000 within 5 days of opening your account.
To qualify for an OnDeck line of credit, you must meet the following requirements:
- Time in business of at least 1 year
- At least $100,000 in annual revenue
- A personal credit score of 600 or above
If a flexible line of credit seems like the best option for your business, consider giving Fundbox a shot. Fundbox is unique in that the performance of your business — not your personal or business credit score — is the most important qualifying factor.
With Fundbox, you can receive a line of credit up to $100,000. Your line of credit can be used for nearly any business purpose, from buying inventory and supplies to covering payroll or an unexpected emergency. You can make multiple draws from your line of credit, and funds can be transferred to your account as quickly as the next business day.
Fundbox fees start at 4.66% of the draw amount. You can choose from 12- or 24-week terms, and repayments are automatically deducted from your business bank account each week. If you repay your balance early, remaining fees are waived. No fees are charged if you don’t use your line of credit.
To qualify for a Fundbox line of credit, you must have:
- A business checking account
- At least $50,000 in annual revenue
- A U.S.-based business
- At least 3 months of transactions in a business bank account OR at least 2 months of activity in supported accounting software
A soft credit inquiry is performed during the application process, so your credit will not be affected just by applying. After you’re approved and draw funds for the first time, a hard credit inquiry will be performed.
BlueVine is another lender that offers flexible lines of credit. However, this lender also offers an additional option for qualified borrowers: invoice factoring.
With a BlueVine line of credit, you could qualify to receive up to $250,000. Rates start at 4.8%, and you only pay for the used portion of funds. Your line of credit can be used for any business purpose. Weekly repayments are automatically taken from your business bank account.
To qualify for a line of credit, you must have the following:
- A personal credit score of 600 or above
- A time in business of at least 6 months
- At least $100,000 in annual revenue
If you have unpaid invoices, you may qualify for BlueVine’s invoice factoring service. Factoring lines of up to $5 million are available for qualified borrowers. Rates start at just 0.25% per week.
With invoice factoring, you’ll submit an application to BlueVine. Once approved, you can automatically sync your invoices from a supported accounting software. You can also upload your invoices to the BlueVine dashboard.
Once your invoices are received, BlueVine pays you 85% to 90% of the invoice amount up front. Once the invoice has been paid, you’ll receive the remaining funds, less fees charged by BlueVine.
To qualify for BlueVine’s invoice factoring, you need:
- A B2B business
- A personal credit score of 530 or above
- A time in business of at least 3 months
- At least $100,000 in annual revenue
Amex Business Loans
If you’re an American Express business cardholder, you may qualify for an AmEx business loan. The great thing about these loans is that no credit check is required since American Express already has your information on file.
With an Amex business loan, you can receive $3,500 to $50,000 for any business purpose. The only restrictions are that funds can’t be used to pay for personal expenses or to repay debts to American Express. Repayment terms of 12, 24, or 36 months are available. Fixed interest rates are 6.98% to 19.97%.
To qualify, you must meet the following requirements:
- Be at least 18 years old
- Be a U.S. citizen or permanent resident
- Have an American Express Business Card and be in good standing
If you’re a new business, meeting the time in business or annual revenue requirements of business loans may be difficult. However, if you have at least a fair credit score, you have a financing option: using a personal loan for business expenses.
With a personal loan, your personal information, including your credit score and annual income, are used to determine if you qualify. Since this isn’t a business loan, annual revenue, business credit score, and time in business requirements won’t be a consideration for approval.
Upstart offers a personal loan option that may work for you. When you apply for a personal loan, you may qualify to receive $1,000 to $50,000. Rates with Upstart begin at just 8.09% for the most creditworthy borrowers. Maximum APRs are 35.99%. Payments are made monthly over a period of 3 to 5 years.
Unlike other lenders, Upstart looks at more than just your credit score. While this is still a factor in qualifying for a personal loan, your credit history, education, and job history are also considered for approval.
To qualify for an Upstart loan, you must have:
- A credit score of at least 620
- A solid debt-to-income ratio
- No bankruptcies or public records
- No delinquent accounts
- No public records
- Less than 6 credit inquiries over the last 6 months
- At least $12,000 in annual income
Banks, Credit Unions, & Nonprofit Lenders In Florida
If you want loan options with extremely competitive rates and terms, consider applying for financing through a bank, credit union, or nonprofit lender. We’ve compiled some of the top options in the state of Florida that offer everything from traditional business loans to commercial mortgages and SBA loans.
Florida First Capital Finance Corporation
Florida First Capital Finance Corporation has been licensed by the SBA since 1984. Since that time, this nonprofit Certified Development Company has helped small businesses through the SBA 504 loan program.
Funds through the 504 program can be used to purchase commercial real estate, machinery, or equipment. Funds may also be used to refinance qualifying debt. Through the 504 loan program, Florida First Capital Finance Corporation provides up to 40% of loan funds. A traditional commercial lender provides up to 50% of loan funds. The remaining project balance is paid by the borrower as a down payment.
To qualify for a 504 loan, you must meet the following criteria:
- Own a small business that meets the size standards set by the SBA
- Be a U.S. citizen or registered alien
- Operate a for-profit business
- The net worth of the business must be $15 million or less
- Average net income of the business must be $5 million or less
- Business can’t be engaged in rental real estate investment
Suncoast Credit Union
Suncoast Credit Union is the largest credit union in the state of Florida. Branches are located in and around the Tampa area, and online services are available to members.
Through Suncoast Credit Union, you can apply for multiple financial products for your small business. In addition to business checking and savings accounts, payroll services, and employee benefits, Suncoast Credit Union also offers:
- Business Lines Of Credit
- Commercial Real Estate Loans
- Vehicle & Equipment Loans
- SBA Loans
- Business Credit Cards
Rates, terms, and borrowing amounts vary by product selected and your creditworthiness.
To become a member of Suncoast Credit Union and be eligible to apply for business financing, you must have an immediate family member that has joined, live in a qualifying county in Florida, or be a Florida College alumnus.
Chase Bank is one of the largest banks in Florida, with over 300 branches located across the state. Chase offers a variety of financial products targeted at small business owners. Not only does the lender offer business checking and savings accounts, payroll services, and merchant services accounts, small business owners can also apply to receive:
- Business Lines Of Credit: Up to $500,000
- Commercial Lines Of Credit: At least $500,000
- Commercial Real Estate Loans: Conventional or SBA loans starting at $50,000
- Small Business Loans: Starting at $5,000 with terms up to 84 months
- SBA Loans: 7(a), Express, and 504 loans
- Equipment Financing
- Business Credit Cards
Rates, terms, and maximum borrowing limits are based on the product selected and the creditworthiness of the borrower.
Small Business Grants In Florida
With most small business financing, you get the capital your business needs and repay your borrowing amount, interest, and fees over time. With grants, you receive capital without having to pay back the funds. Sounds like a dream, doesn’t it?
Unfortunately, the one drawback is that grants are very difficult to receive. Competition is high for small business grants. Many grants also have very specific requirements and may be awarded only to businesses owned by a minority or businesses in a specific industry. If you don’t meet all requirements, you won’t be eligible to receive a grant.
However, this doesn’t mean that you shouldn’t apply. There are several small business grants available to business owners in the state of Florida that you may qualify to receive.
Enterprise Florida Inc.
Enterprise Florida Inc. (EFI) offers training, development, and financing opportunities to small businesses, minority-owned businesses, and entrepreneurs.
There are multiple funding opportunities available through EFI. This includes:
- State Small Business Credit Initiative: This program reduces the risk taken by lenders by purchasing up to 50% of loan funds, making it easier for small businesses to qualify for affordable loans.
- Microfinance Guarantee Program: This program provides a guarantee on loans, similar to the SSBCI program. This helps lenders feel more secure in lending money to small businesses.
- Florida Opportunity Fund: EFI is a sponsor of the Florida Opportunity Fund, which offers funding to businesses through programs including the Fund of Funds Program, the Clean Energy Investment Program, and Florida’s Venture Capital Program.
EFI has also partnered with other organizations to provide additional resources and funding opportunities to small businesses.
WomensNet Amber Grant
Women-owned businesses in Florida and across the nation can apply for a small business grant through WomensNet’s Amber Grant Program. Each month, a $1,000 small business grant is awarded to a woman-owned business. At the end of the year, all 12 monthly winners will be entered to win a grant of $10,000.
One of the best things about this grant is that the application process is simple. There are no lengthy applications to fill out and no extensive documentation to submit. Instead, all women business owners can apply by answering a few short questions about their business. There is a $15 application fee to enter. Deadlines for applications are the last day of each month.
Palm Beach County Job Growth Incentive Grant
Businesses that are relocating or establishing a business in Palm Beach County, Florida, may qualify for the Job Growth Incentive Grant Program. This award is given through the Economic Development Office and is available to startups and established businesses that will create jobs in Palm Beach County.
Interested businesses can contact the Palm Beach County Department of Housing and Economic Sustainability or the Business Development Board of Palm Beach County to learn more about applying for this grant.
VISIT FLORIDA Targeted Marketing Assistance Program Grant
If your business is in the tourism industry, you may qualify for VISIT FLORIDA’s Targeted Marketing Assistance Program Grant. Through this program, marketing costs up to $5,000 are matched with a grant.
To qualify, a business must be an approved TMAP business and a partner with VISIT FLORIDA. Applications must include a marketing project overview, a marketing strategy and media plan, anticipated results, and a marketing budget.
All independently owned and operated businesses with gross revenues of $1.25 million or less that are in the tourism industry may apply to become a TMAP business. Some nonprofit organizations may also qualify.
Loans & Financial Resources For Startups In Florida
Even established businesses may encounter challenges when applying for business financing. So, it should come as no surprise that startup businesses — businesses that haven’t yet established a credit profile or aren’t bringing in revenue — may have a more difficult time getting needed funding and resources.
Luckily, though, there are resources available to new businesses and startups. In the state of Florida, there are a few good options to consider.
SCORE has 300 chapters throughout the nation, with chapters located in the state of Florida. Through SCORE, you can tune in to live and recorded webinars and take courses on small business topics. You also have access to e-guides, articles, blogs, and online workshops.
One of the most beneficial features of SCORE is that you can be matched with an expert business mentor. You can get advice at no charge with your mentor either face-to-face or online.
Small Business Development Center
The Small Business Development Center (SBDC) offers multiple resources to business owners in Florida. The SBDC has online and offline resources, including videos, in-person workshops, and low-cost training.
The SBDC also offers consulting at no cost. New business owners can work with a Capital Access Specialist to find, prepare, and receive business financing.
There are several locations throughout the state of Florida in cities including Cape Coral, Daytona Beach, Jacksonville, Boca Raton, Miami, and Pensacola.
The Florida Virtual Entrepreneur Center
A good online resource for business owners in Florida is the Florida Virtual Entrepreneur Center. Through this website, you can find business resources by city. This includes links to your local Chamber of Commerce, Economic Development Councils, forums, and more.
If you want to take advantage of offline resources, the website has a list of events taking place all over the state. These events are centered on topics such as business and personal credit, SBA loans, business planning, and cybersecurity for small businesses.
Find An Investor
If you need capital for your startup, where do you turn? One option is to find an investor. While you can certainly find these investors on your own — think a friend, family member, or colleague — you can also hop online and give crowdfunding a shot.
With crowdfunding, you’ll use an online platform to pitch your business to potential investors. In exchange for their investment, you can offer up a reward (such as a new product for free or a reduced cost) or equity in your business.
One of the best things about crowdfunding is that there are no credit score, time in business, or revenue requirements, which is ideal for businesses that are just getting started. However, you do have to perfect your pitch, share your campaign online, and work harder to bring in investors that are willing to back your company.
What To Consider When Choosing A Lender
Now that you’re aware of the loan options available to you, the next step is to choose your lender. Unfortunately, this is when having so many choices has its drawbacks. If you don’t know where to begin when it comes to selecting a lender, ask yourself the following questions:
How Will I Use The Money?
You want to select a lender that offers financial products that best fit your needs. Let’s say you need working capital for your business. A loan used to purchase commercial property won’t be a good fit, so you could scratch this lender off the list. Plan how you intend to use your funds, then choose lenders that don’t have restrictions that would prevent you from effectively using your capital.
How Much Money Do I Need?
Knowing how much money you need is a critical step before you even start filling out an application. This not only helps you plan and budget for your own business, but most lenders want to know how much you need to borrow. Having a number in mind can also help you decide which lenders work best for your specific needs. If you need $250,000, a line of credit that maxes out at $100,000 just won’t work for your business.
Do I Meet The Lender’s Requirements?
Save yourself the trouble of unnecessary rejections by understanding the borrower requirements of every lender that interests you. If a lender requires a time in business of 2 years and you’re just opening your doors, you won’t qualify. If you need a personal credit score of 700 but yours is just 620, it’s time to search for another lender. Start your search by checking your free credit score online, then make sure you meet all borrower requirements before applying. Also, keep in mind that meeting the minimum requirements is not a guarantee of a loan offer.
Do I Want A Lump Sum Or Flexible Financing?
If you have a specific financial need in mind — purchasing new equipment or buying a commercial property, for instance — work with lenders that offer lump-sum loans. If you’d rather have a more flexible financing option — making payroll or covering revenue gaps — find a lender that offers a flexible form of financing such as a line of credit or business credit card.
Can I Afford It?
Sure, you may want a million dollars to build your business, but can your business afford it? Consider your outstanding debts and obligations, your current and project revenues, and shop around your options. Understand the fees and terms of your loan to determine if it’s something you can handle … or if it could drag your business deep into debt. Learn more about calculating the affordability of your small business loan.
In the state of Florida, there are plenty of lenders and small business resources at your disposal. The only thing you have to do is find the right resources for your business and leverage them to successfully start and build your business.