The Best Business Loan & Financing Resources For New York Small Businesses

Home to the most populous city in the nation and a flourishing economy, the state of New York is a land of opportunity. Within the borders of New York, you can find Wall Street – the leading financial center of the world. Silicon Alley and Tech Valley have transformed NYC into a leading technology capital. New York’s economy is also boosted by the tourism, entertainment, and export industries.

But don’t let the big industries and technology fool you. This state is also a great place for small businesses. It’s no wonder New York’s state song is called “I love New York.”

While there are many opportunities to own and operate your own business, you may find that your path to entrepreneurship is more challenging without access to capital and small business resources. That’s where this guide comes in handy.

In this post, we’re going to look at some of the resources available to businesses in New York. No matter where you are in your journey — from planning your startup to expanding your established business — we’ve compiled a list of lenders and resources to help you meet your business goals. From online lenders and local banks to startup resources, we’ll cover it all. Ready to get your startup off the ground or take your business to the next level? Keep reading!

Online Business Lenders For New York Businesses

Too busy to head to your local bank to apply for a small business loan? Does a low credit score, lack of business credit, or a short time in business disqualify you from traditional loan options? If any of these scenarios sound familiar, consider turning to an online business lender to get the capital you need.

Online lending doesn’t require in-person visits. You can fill out your application, submit documentation, sign contracts, and receive money in your bank account without ever leaving your office. Many online lenders often have more flexible requirements than banks and credit unions, so you may qualify for financing even if you have credit challenges or operate a new business.

If online lending sounds like something that would work for your business, start your search with these lenders — all of which provide services to New Yorkers.

Fundera

Shopping around for financing options can be time-consuming, but Fundera simplifies the process. Through Fundera, you can receive and compare multiple business financing options with just one application. To date, Fundera has helped over 10,000 small businesses throughout the nation acquire over $1 billion in funding.

When you fill out Fundera’s online application, you’ll be matched with a specialist that will help you every step of the way — from answering your financial questions to helping you select the right lender for your business needs. Filling out an application is free, there is no obligation to accept an offer, and your credit score won’t be affected.

Fundera offers many financial products for small businesses in New York, including:

• Small Business Administration Loans: Up to $5 million with rates starting at 7.75%
• Term Loans: Up to $500,000 with rates starting at 7%
• Startup Loans: Up to $150,000 with rates starting at 7.9%
• Lines Of Credit: Up to $1 million with rates starting at 7%
• Equipment Financing: Up to 100% of equipment value with rates starting at 8%
• Invoice Financing: Up to 100% of receivables with factor fees starting at 8%
• Short-Term Loans: Up to $250,000 with rates starting at 10%
• Personal Loans For Business: Up to $35,000 with rates starting at 5.99%
• Merchant Cash Advances: Up to $250,000 with factor fees starting at 1.14

Time in business, annual revenue, and credit score requirements vary by product and lender. Your financial specialist can help you choose the best offer based on the needs of your business.

SmartBiz

If you want a long-term loan with competitive rates, you can’t go wrong with a Small Business Administration (SBA) loan. These loans offer interest rates that are competitive with banks and offer terms up to 25 years for qualified small business owners. These loans are preferred by many businesses because they are easier to receive than traditional bank loans.

You can apply for an SBA loan through a local bank or financial institution, or you can save time by using SmartBiz. SmartBiz has simplified the SBA lending process and has connected small businesses with over $1 billion in financing.

SmartBiz offers several SBA loan options to best fit the needs of your business. If you need funds to purchase equipment or inventory, launch a marketing campaign, cover operating expenses, hire employees, or refinance existing debt, you can apply for a working capital and debt refinancing loan.

With this loan, you can qualify for $30,000 to $350,000 to be repaid over a term of up to 10 years. Interest rates are 8.25% to 9.25% for these loans. To qualify, you must:

• Have a time in business of at least 2 years
• Be a U.S. citizen or permanent resident
• Have the cash flow to make loan payments
• Have a personal credit score of 640 or above
• Have no bankruptcies or foreclosures within the last 3 years
• Have no outstanding tax liens
• Have no prior defaults on government-backed loans

If your goal is to purchase commercial real estate or expand your business, you can apply for an SBA 7(a) commercial real estate loan. Loans are available in amounts from $500,000 to $5 million with repayment terms up to 25 years. Interest rates are 7% to 8.25%.

Proceeds from this loan can be used to purchase commercial real estate or refinance your existing commercial mortgage. You can’t use loan funds to purchase investment properties or fund new construction costs.

To qualify for this loan, you must meet these requirements:

• Time in business of at least 3 years
• Property must be at least 51% owner-occupied
• U.S. citizen or permanent resident
• Personal credit score of 675 or above
• Cash flow to make loan payments
• Property purchase price must exceed $500,000
• No bankruptcies or foreclosures within the last 3 years
• No outstanding tax liens
• No past defaults on government-backed loans

SmartBiz also has bank partners if you aren’t ready to apply for an SBA loan. You may qualify for up to $200,000 with repayment terms up to 5 years. Interest rates for bank term loans through SmartBiz are 6.99% to 26.99%. To receive a bank term loan, you must have:

• Time in business of at least 2 years
• Personal credit score of 640 or above
• Sufficient cash flow to make loan payments
• No outstanding tax liens
• No bankruptcies or foreclosures within the last 3 years

Breakout Capital

No two businesses are alike, so there is no one-size-fits-all financial solution. With Breakout Capital, you can have your choice of multiple financial products that provide the working capital you need for your business.

Breakout Capital offers business loans that work like lines of credit. You may qualify for up to $250,000 with repayment terms up to 24 months. Rates start at 1.25% per month. You can choose from a daily, weekly, or monthly repayment schedule to best fit the needs of your business.

To qualify for a Breakout Capital business loan, you must have:

• Time in business of at least 1 year
• Personal credit score of 600 or above
• Monthly revenue of at least $10,000

If you have unpaid invoices affecting your cash flow, consider applying for Breakout Capital’s Factor Advantage. You can receive up to $500,000 with rates starting at 1.25% per month and repayment terms up to 24 months.

To qualify for this invoice factoring service, you simply need to have eligible unpaid invoices. There are no time in business, annual revenue, or personal credit score requirements to receive capital through Factor Advantage.

If neither of these options sounds right for you, Breakout Capital can help you find the right financial solution for your business. Breakout Capital can help you secure funding through:

• SBA 7(a) Loans
• Lines Of Credit
• Equipment Leasing
• Franchise Loans
• Debt Restructuring
• Asset-Based Loans
• Merchant Cash Advances

P2Binvestor

P2Binvestor specializes in asset-backed lines of credit and term loans. These financial products are ideal for established businesses seeking large amounts of capital up to $10 million. P2Bi allows you to use your accounts receivables and/or inventory to determine the amount you qualify to receive.

P2Binvestor charges a one-time origination fee of 1.5% of your maximum credit line, an annual renewal fee of 1.5% of your maximum credit line, and a daily discount cost. Average rates range from 8% to 20% of the borrowed amount.

According to P2Bi, ideal qualifications include:

• Time in business of at least 1 year
• At least 10 employees
• At least $2 million in revenue
• At least 10% annual revenue growth

Businesses must also be B2B businesses and can’t be in an ineligible industry including:

• Real Estate
• Construction
• Cannabis
• Medical Insurance Billing

Kabbage

If a flexible financing option is best for your business, you can’t go wrong with a line of credit. While some lenders look at your personal credit profile or your accounts receivables to qualify you for a line of credit, Kabbage uses your business performance to determine if you’re approved.

Kabbage provides lines of credit up to $250,000 to eligible businesses. You’ll be able to repay your loan over a period of 6, 12, or 18 months. Kabbage charges fees between 1.5% to 10% of the principal loan amount and are based on the performance of your business.

You can make multiple draws from your account up to and including your credit limit. If you don’t use your funds, you won’t have to pay any fees to the lender. Your funds can be transferred to your business bank account, or you can use the Kabbage Card, which creates a new loan using the same rates and terms as traditional draws.

To receive a line of credit through Kabbage, you must have:

• Time in business of at least 1 year
• Annual revenue of at least $50,000 OR monthly revenue of at least $4,200 over the last 3 months

LendingPoint

One of the biggest challenges of operating a new business is qualifying for business financing. After all, most lenders have time in business, annual revenue, and other requirements you just can’t meet. If you don’t qualify for a small business loan, consider using your own income and personal credit score to qualify for a personal loan.

You can use a personal loan to fund your startup and business expenses. Because the loan is in your name — not the name of your business — there are no annual revenue, time in business, or business credit score requirements. One lender that offers personal loans is LendingPoint.

LendingPoint specializes in loans for fair credit borrowers. You may qualify for up to $25,000 and receive your funds in as little as one business day. Repayment terms up to 48 months are available, and payments are made twice per month. Rates are 15.49% to 30%.

To qualify for a LendingPoint personal loan, you must meet basic requirements such as being 18 years old and having a U.S. ID and social security number. You must also have:

• Verifiable personal bank account
• Personal credit score of at least 585
• Annual income of at least $20,000

Banks, Credit Unions, & Nonprofit Lenders In New York

Online lenders aren’t your only option for scoring the extra capital you need for your business. Throughout the state, New Yorkers have their pick of banks, credit unions, and nonprofit lenders that offer everything from business checking accounts to business credit cards, SBA loans, and lines of credit. If you don’t already have a relationship with a financial institution, consider working with one of these lenders.

KeyBank

KeyBank was founded in Albany, New York, in 1825. Today, the bank is headquartered in Cleveland, Ohio, and has over 1,100 branches across 15 states, including the state of New York. KeyBank branches are located in cities including New York City, New Rochelle, White Plains, and Binghamton.

Through KeyBank, you can apply for business financing options such as:

• Business Term Loans
• Lines Of Credit
• Commercial Mortgages
• Equipment Financing & Leasing
• Business Credit Cards
• SBA Loans

KeyBank is one of the top SBA 7(a) lenders in the United States. SBA loan options available through KeyBank include:

• SBA 7(a) Loans: Up to $5 million
• SBA 504 Loans: Up to $12 million
• SBA Express Loans: Up to $350,000
• SBA International Trade Loans: Up to $5 million
• SBA Export Express: Up to $500,000
• 7(a) Small Loans: Up to $350,000

You can contact the bank by phone or email to learn more about its business financing and services. You can apply for your chosen financial product by visiting your local KeyBank branch.

Bethpage Federal Credit Union

If you’d rather be a member of a credit union than a customer at a bank, consider joining Bethpage Federal Credit Union, one of the largest credit unions in New York. This financial institution over 30 branches across the state in cities such as New York City, Farmingdale, and Long Beach.

Bethpage Federal Credit Union provides multiple financial services to small business owners. Get the capital you need with:

• Term Loans
• Business Lines Of Credit
• Commercial Real Estate Loans
• Business Vehicle Loans
• Business Credit Cards

To apply for business financing, you must be a member of Bethpage Federal Credit Union. Becoming a member is simple. All you have to do to qualify is open a savings account with a minimum $5 deposit. Once you’ve become a member, you can visit your local branch to apply for business financing.

Excelsior Growth Fund

Excelsior Growth Fund (EGF) is a nonprofit organization that promotes economic development and job creation in New York, as well as the states of New Jersey and Pennsylvania.

Through EGF, New Yorkers have multiple financing options, including:

• SBA Microloans: Up to $50,000
• EGF SmartLoans: Up to $100,000
• EGF ImpactLoans: $100,000 to $500,000
• Contract Financing Loan Fund: Up to $500,000
• Global NY Fund: Up to $500,000

Loans through Excelsior can be used for a variety of business purposes, including expanding your business, upgrading or purchasing equipment, using as working capital, or refinancing high-interest debt.

To qualify for an EGF loan, you must have break-even or positive cash flow and a history of paying your business obligations. You may be automatically approved for the EGF SmartLoan if you meet the following requirements:

• Time in business of at least 2 years
• At least 2 employees
• Operating at break-even or positive cash flow
• At least $120,000 in annual revenue
• Personal credit score of 640 or above

Small Business Grants In New York

Another way to obtain capital for your small business is by applying for a grant. A grant differs from other types of financing because it doesn’t need to be repaid. While free money sounds great, in reality, qualifying for a small business grant is extremely difficult. Most grants are only open to specific businesses or industries. If you do qualify for a grant, expect to face a lot of stiff competition.

If you’re interested in getting a grant to start or grow your business, check out these options available to New Yorkers.

New York State Department Of Labor Training Grants

Small businesses in New York could receive grant funds for training and workforce development. Programs include Worker Skill Upgrading Training and On-the-Job Training for current employees, as well as Unemployed Worker Skills Training for training unemployed individuals in specific occupational skills.

Any for-profit or nonprofit business and training entity located in the state of New York is eligible to apply. Eligible businesses may receive up to $50,000 per program. While business owners can apply for more than one program, the overall cap is $100,000 per organization. A per-employee cap also applies.

You can learn more about these grant programs by visiting the Department of Labor website.

NYC Love Your Local Grant

If your business is located in New York City, you may qualify for the NYC Love Your Local program. Your business must be nominated to be eligible. You or a representative may nominate your own business.

Once nominated, you can fill out the grant application. Not only will you have a chance to receive expert business advice, but you could qualify for a grant of up to $90,000. Funds can be used for training, operational improvements, hiring, tech updates, financial management changes, and physical enhancements to your business.

To qualify, you must meet these requirements:

• Operate a for-profit small business
• Time in business of at least 3 years
• Have all current licenses and permits
• Owe no federal, state, or city taxes or be delinquent in payments to resolve liens or judgments
• Must provide documentation showing at least 5% increase in operating costs within the last 10 years

Online, at-home, and pop-up businesses are not eligible to apply. Franchise owners may be eligible if the franchise is approved by the SBA.

Fashion Manufacturing Initiative

If your business is in the fashion industry and is located in New York City, you could qualify for grants through the Fashion Manufacturing Initiative.

Through FMI, eligible businesses can receive up to $300,000 to use to expand their business. Grantees are required to match grants 33% or 2-to-1. Funds can be used to purchase machinery and equipment, invest in technology or software, pay for training, hire a consulting service, cover relocation costs, or to make capital improvements for business expansion.

To qualify, your business must:

• Be located in one of NYC’s boroughs
• Have a time in business of at least 2 years
• Be a factory or production facility within the apparel or accessories industry
• Have support and business from fashion designers and brands
• Have the staff required to accomplish goals stated in the application

In addition to receiving grant funds, winners can also receive additional resources, including free participation in the City Source New York trade show and skills-based training.

Regional Council Capital Fund Program

Through the Regional Council Capital Fund program, small businesses may qualify for grants that are used for economic development initiatives. Grant proceeds should be used for projects designed to reduce or eliminate unemployment or increase business activity in a specific community or region.

More specifically, grant funds can be used for purposes including the acquisition of land, buildings, or machinery, demolition, new construction, or remodeling. To apply, you must submit a Consolidated Funding Application to Empire State Development and the Regional Economic Development Council.

Loans & Resources For Startups In New York

Startup businesses may not qualify for all of the financing opportunities and resources available to more established businesses. Fortunately, the state of New York has plenty of programs to help startup businesses within the state grow and thrive. Give your startup business the best chance of success by looking into these great resources.

START-UP NY

START-UP NY provides tax incentives and other benefits to new and expanding businesses in the state of New York. Through this program, businesses can operate tax-free for 10 years when located on or near an eligible college or university campus. Businesses participating in the START-UP NY program partner with an eligible college or university to not only receive tax incentives but to also have access to research labs, industry experts, and other resources.

New businesses or businesses that are looking to relocate or expand within the state of New York are eligible. Some industries are ineligible to participate in this program. This includes retail and wholesale businesses, restaurants, and medical or dental practices.

To apply, all eligible businesses must choose a school to partner with and work directly with the school to start the application process.

New York Small Business Development Center

For over 30 years, the New York Small Business Development Center (NYSBDC) has provided resources to startup and small business owners throughout the state of New York.

Through this resource, you can receive free business counseling for starting or growing your business. There are multiple programs available that focus on specific business needs, such as expanding into the global marketplace and specialized services for women, minorities, and veterans.

NYSBDC also hosts workshops, conferences, training sessions, and events throughout the state covering business topics such as empowering women-owned businesses, small business startups, marketing, and accounting.

This organization also has a host of resources available online, including small business guides written on topics including creating a business plan, cybersecurity, and disaster recovery.

You can go online to the NYSBDC website to learn more, or you can visit your local center. Centers are located throughout the state in cities including Binghamton and Utica.

SCORE

Need a mentor to help you with your questions about opening and operating your own business? Instead of hiring someone to take on the task, you can talk with a business mentor for no cost through SCORE. Online or face-to-face business counseling is available to small business owners in New York.

That isn’t all that SCORE offers, though. In addition to free mentoring, you can take advantage of free and low-cost workshops, and access online resources through the SCORE online library.

SCORE offices are located in cities throughout New York, including Syracuse, Staten Island, New York City, and Schenectady.

What To Consider When Choosing A Lender

Have a list of lenders? Grab your list and get ready to narrow your choices down to just one. Whether you’re torn between two lenders or you have a long list and don’t know where to get started, consider these factors to make the best decision for your business:

Borrower Requirements

To work with a lender, you must meet all borrower requirements. This includes but is not limited to:

• Personal Credit Score & History
• Business Credit Score & History
• Time In Business
• Annual Revenue
• Eligible Industry
• Solid Debt-To-Income Ratio
• Operates In Your State

If you don’t meet all requirements, your financing request will be denied. If you don’t meet all of one lender’s requirements, move on to another option.

Rates & Terms

If you want a low-interest loan option, shopping lenders that offer short-term loans is just a waste of time. Make sure that the lender you select offers the rates and terms that are most affordable for your business.

Type Of Financing

What type of financing would work best for your business? If you want a flexible form of credit that’s available when you need it, apply with lenders that offer lines of credit. If you want to expand your business or purchase commercial property, choose lenders that offer low-interest SBA loans. If the lender doesn’t offer the financial solutions you need, mark them off your list.

Borrowing Amount

How much do you plan to borrow? You need to ensure that the lender you have selected offers borrowing amounts that fit the needs of your business. Remember, though, even if the lender offers the amount you need, you still need to meet all borrower requirements to qualify for that amount.

Final Thoughts

Owning and operating your own business is tough, but having the right resources at your fingertips can make the journey so much easier. In the state of New York, there are plenty of resources and business financing options accessible to your small business. The key is doing your research, understanding the needs of your business, and making decisions that are best for the long-term success of your business.