With the recent news that the government’s key COVID-19 relief program for small businesses has run out of cash, MSEs need alternative options to keep their business running.
According to the Small Business Administration, the Paycheck Protection Program’s fund has been exhausted on May 6, 2021. And it is uncertain if the lawmakers will approve another round of funding.
As of writing, more than 400,000 U.S. businesses have permanently closed due to the virus. To help save many other companies devastated by the pandemic, here are the best small business loans from traditional and alternative licensed money lenders you can tap:
BlueVine – Best for larger loans
Founded in 2013, BlueVine has delivered more than $9 billion in funds to more than 200,000 small business owners. They offer business lines of credit up to $250,000 and invoice factoring with credit lines up to $5 million.
- Loan types: invoice factoring, lines of credit
- Interest rates: from 0.25% per week
- Maximum loan amount: $5 million
- Eligibility: Brand new business not accepted; may require collateral
Funding Circle – Best for P2P lending
Since 2010, Funding Circle has helped businesses in over 700 industries access capital loans. The platform has helped nearly 100,000 small businesses with over $15—billion in funding.
- Loan types: term loans
- Interest rates: from 4.99%
- Maximum loan amount: $500,000
- Eligibility: Startups are not accepted
FundBox– Best for low credit score
Fundbox has helped nearly 300,000 small businesses since 2013. They have one of the lowest minimum credit score requirements and also welcome newly-opened businesses.
- Loan types: term loans, line of credit
- Interest rates: 4.8%
- Maximum loan amount: $150,000
- Eligibility: You can apply after just two months in business
OnDeck – Best for repeat borrowers
OnDeck has delivered $13 billion to businesses globally. Returning OnDeck customers who take out another loan waive all remaining interest on their current loan, unlike most online lenders.
- Loan types: term loans, line of credit
- Interest rates: from 2.5%
- Maximum loan amount: $500,000
- Eligibility: Businesses must be one year in operation and must have $100,000 in annual revenue
Accion – Best for startups
Accion has a proven track record of supporting business owners for 25 years now. More than just loans, they also provide educational resources, coaching, and access to support networks.
- Loan types: term loans
- Interest rates: 5.99%
- Maximum loan amount: $100,000
- Eligibility: Businesses must be operating for only one year
How to Choose the Best Business Loan?
Knowing your chances of being approved can save you time. Before applying for a loan, you should thoroughly check if you are eligible for your desired loan package.
Take note that there is no one-size-fits-all loan that is perfect for every business. That’s why it is recommended that business owners must shop around for options and select the best loan that suits their needs.
Loan Advisor is among the loan comparison platforms that can help you connect with top licensed moneylenders and guarantee to provide you with a customized loan plan suitable to your business needs.
