Obtaining a loan for your small business can increase your chances of success, but it might be more difficult to find small business loans in Florida. The majority of Sunshine State businesses suffered during the economic downturn, especially those in the building, tourism, and real estate sectors.
Fortunately, though, the state’s economy is on the upswing. Florida’s economy expanded in the third quarter of 2018 at an annual rate of 3. 8%, up from 2. As per a 2019 profile from the Small Business Administration (SBA) Office of Advocacy, 2% of the population in 2017 Today, there are 2. Five million small businesses operate in Florida, and collectively, they employ more than twenty-four hundred thousand workers.
If you’re one of these 2. 5 million small businesses, using an online lender to secure funding might be the simplest route, but there are still some excellent local financing options available. Here are six of the best Florida small business loans:
Small business loans in Florida can help local businesses purchase equipment, commercial real estate, inventory and more.
| Lender | Best for… | Max. loan amount | Term length | Min. interest rate | Time in business |
|---|---|---|---|---|---|
| Commercial auto loans | Up to 100% of loan-to-purchase price | 36 to 72 months | 6.74% | Not disclosed | |
| Interest-free loans | $50,000 | 12 months | Interest-free | Must be established before Aug. 29, 2023 | |
| Working capital | $2,500,000 | 36 to 120 months | Based on the current Prime Rate | Not disclosed | |
| Minorities | $500,000 | 5 to 120 months | 9.90% | Not disclosed | |
| Flexible funding | $250,000 | 36 to 84 months | Not disclosed | 18 months | |
| Rural businesses | Not disclosed | Varies | 2.00% | Not disclosed | |
| Online lending | $500,000 | 4 to 24 months | 1.11 factor rate | 6 months | |
| SBA loan | $15,000,000 | Up to 300 months | Rates vary, subject to SBA maximums | 36 months | |
| Nationwide banking | $15,000,000 | Up to 300 months | Varies by product | Startup to 24 months |
State-wide loan options for Florida small businesses
For businesses located in Florida, the following lenders and associations offer small business loans.
Florida Credit Union: Best for commercial auto loans
| 1 | 2 |
|---|---|
| Loan amounts | Up to 100% of loan-to-purchase price |
| Starting interest rate | 6.74% |
| Term length | 36 to 72 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
Transparency regarding eligibility requirements: There are just 12 physical branches in Florida.
Local business owners can obtain financing for commercial trucks and cars from the Florida Credit Union (FCU). You can get affordable rates and a flexible repayment schedule with an FCU loan that is tailored to your company’s needs. Additionally, FCU provides an SBA 504 loan, which can assist with long-term expenses or growth projects like buying commercial real estate.
Florida Small Business Emergency Bridge Loan Program: Best for interest-free loans
| 1 | 2 |
|---|---|
| Loan amounts | Up to $50,000 |
| Starting interest rate | Interest-free |
| Term length | 12 months |
| Minimum credit score | 600 |
| Minimum time in business | Must be established before Aug. 29, 2023 |
Limited to companies with 100 workers or less. To be eligible, a business must have been damaged by a natural disaster. Short repayment period
Businesses in certain Florida counties that meet the requirements can apply for interest-free emergency business loans through the Florida Small Business Emergency Bridge Loan. These bridge loans are intended to bridge the financial gaps that occur between a significant event and the time when a business is able to obtain long-term recovery resources. Your business must have 100 or fewer employees to qualify.
Rebuild Florida Business Loan Fund: Best for working capital
| 1 | 2 |
|---|---|
| Loan amounts | $25,000 to $2,500,000 |
| Starting interest rate | Based on the current Prime Rate |
| Term length | 36 to 120 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
Only available to businesses primarily operating in Florida, requiring a 2010% down payment.
In order to support both new and established Florida businesses in bolstering their resilience initiatives, the Rebuild Florida Business Loan Fund provides accessible funding. This fund can be used for a variety of business expenses, including inventory, equipment, commercial real estate, business expansions, and seasonal financing. It functions similarly to a working capital loan. Business owners must secure the loan with collateral.
Local small business loans in Florida
Some local Florida business loans may be available to you, based on your business’s location and other requirements.
LiftFund: Best for minorities
| 1 | 2 |
|---|---|
| Loan amounts | $500 to $500,000 |
| Starting interest rate | 9.90% |
| Term length | 5 to 120 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
Not accessible in all states; unclear eligibility requirements
A nonprofit organization called LiftFund offers up to $500,000 to small businesses in Miami, Jacksonville, Tampa, Orlando, and throughout Florida. It prioritizes minority and women-owned enterprises. Expenses include working capital, real estate, equipment, inventory, and more. Additionally, LiftFund is a great choice for a microloan or a startup business loan.
Small Business Loan Fund: Best for flexible funding
| 1 | 2 |
|---|---|
| Loan amounts | $10,000 to $250,000 |
| Starting interest rate | Not disclosed |
| Term length | 36 to 84 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | 18 months |
Broward, Palm Beach, and Dade counties are given priority. The processing period from application to closing may take up to 60 days.
The Small Business Loan Fund (SBLF) is a Community Development Financial Institution (CDFI) and nonprofit lender focused on helping low-income, minority and women entrepreneurs access the tools, resources and financing they need to grow and expand their businesses.Once you submit an application, a dedicated loan coordinator will guide you through the process to ensure you’re on the right track.
Rural Community Development Revolving Loan Program: Best for rural businesses
| 1 | 2 |
|---|---|
| Loan amounts | Not disclosed |
| Starting interest rate | 2.00% |
| Term length | Varies |
| Minimum credit score | Not disclosed |
| Minimum time in business | Not disclosed |
Spending restrictions Only available to businesses in rural areas Loan amounts are not listed
Created in 1996, the Rural Community Development Revolving Loan (RCDRL) Program provides local governments financial assistance to boost and diversify the economy of rural Florida communities. Counties with populations of 75,000 or less (or a contiguous county of 125,000 or less) are eligible to apply.Loan funds can go toward equipment purchases, land acquisition, building improvements and construction and more. However, you can’t use the loan to cover payroll or grant administration.
Nationwide small business loans for Florida
These small business loans for Florida companies provide competitive rates and a variety of business products if you’re looking for a lender with a nationwide presence.
National Funding: Best for online lending
| 1 | 2 |
|---|---|
| Loan amounts | $5,000 to $500,000 |
| Starting interest rate | 1.11 factor rate |
| Term length | 4 to 24 months |
| Minimum credit score | 600 |
| Minimum time in business | 6 months |
Only two loan products are available, making it difficult to compare other lenders due to the high annual revenue requirement factor rate.
An alternative business lender called National Funding provides low-credit borrowers with fast business loans up to $500,000. Your company needs to have been operating for at least six months and making at least $250,000 in sales annually in order to be eligible. After approval, funds may arrive in your company’s bank account in as little as 24 hours. With National Funding, you can also obtain financing up to 100% of the cost of new or used equipment, as well as a low interest rate through its Guaranteed Lowest Payment Program.
Live Oak Bank: Best for SBA loans
| 1 | 2 |
|---|---|
| Loan amounts | Up to $15,000,000 |
| Starting interest rate | Rates vary, subject to SBA maximums |
| Term length | Up to 300 months |
| Minimum credit score | 680 |
| Minimum time in business | 36 months |
Only accessible to well-established companies; interest rates are not disclosed; minimum annual income requirement of $250,000 to be eligible
Leading SBA Preferred Lender Live Oak Bank is committed to assisting established companies in growing to new heights. Enjoy longer repayment terms, reduced payments, and no prepayment penalties when you bank with Live Oak Bank (unless you have a commercial real estate loan) You can apply for a business line of credit, conventional loan, and USDA loan with Live Oak Bank in addition to SBA loans.
Wells Fargo: Best for nationwide banking
| 1 | 2 |
|---|---|
| Loan amounts | $10,000 to $15,000,000 |
| Starting interest rate | Varies by product |
| Term length | Up to 300 months |
| Minimum credit score | 680 for unsecured lines of credit (not disclosed for other products) |
| Minimum time in business | Startup to 24 months |
Most loans require a two-year business history to be eligible, and some products require a personal guarantee. High annual fees apply to unsecured credit lines.
With more than 1,300 branches and ATMs across Florida and a robust national footprint, Wells Fargo is a great option for a traditional bank that offers in-person assistance. Many small business solutions are available for you to utilize, such as business credit cards, SBA loans, business lines of credit, commercial real estate loans, payroll services, and more. Wells Fargo offers an unsecured line of credit with no collateral requirements for new businesses that have been in operation for less than two years and have a credit score of at least 680.
What to know about small business lending in Florida
Florida’s small businesses can get in touch with regional and national lenders to obtain the capital they require to develop and grow their enterprises. In Florida, you can apply for small business financing through a government agency, an internet lender, or a traditional bank.
Additionally, Florida offers small business grants to assist minority, women, and startup entrepreneurs in obtaining funding for their enterprises. Additionally, qualified business owners may be eligible for a state tax credit.
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Types of business loans in Florida
The U. S. Because the Small Business Administration (SBA) guarantees a percentage of SBA loans, these loans are a cost-effective financing option for companies that have trouble getting approved for conventional loans. The SBA 504/CDC loan is more frequently used for larger assets like real estate or equipment, whereas the SBA 7(a) loan is best for regular business needs.
Business term loans offer an upfront lump payment along with a set payback schedule that can be weekly or monthly. While long-term business loans can last up to ten years or more, short-term business loans have repayment terms of a few months to a year or more.
You can borrow money for ongoing business expenses with a business line of credit as often as necessary, up to your credit limit. In addition to any maintenance, withdrawal, or yearly fees, you only pay interest on the amount that was taken out.
Businesses can purchase and upgrade machinery and equipment necessary for their operations with the aid of equipment financing. Generally speaking, getting an equipment loan is simpler than getting other forms of business funding because equipment financing uses the equipment as collateral.
Other funding options for your small business in Florida
The business community and government of Florida are dedicated to supporting the expansion and success of small businesses. Here are some tax credits, grants, and coaching programs to think about. You can also learn how to use the resources that your local small business development center offers.
Small business grants in Florida
These grants are available to small businesses to assist them in improving their local communities.
- Targeted Marketing Assistance Program (TMAP): TMAP will provide funding to assist Florida’s agritourism, rural, and minority-owned businesses in enhancing their marketing Nonprofits and independently owned businesses with gross revenue below $1. 25 million are welcome to apply.
- The University of Central Florida and the University of South Florida collaborate to offer the Florida High Tech Corridor Matching Grants Research Program (MGRP), which provides funding for applied research involving academics, students, and businesses in 23 Florida counties.
- Florida Community Forestry Grants: Made possible by funding from the U S. In order to initiate or enhance local urban forestry projects, the Forest Service and the Florida Forest Service provide assistance to educational institutions, nonprofits, and local communities. For the fiscal year 2023, the State of Florida plans to allocate $750,000 in funding.
Florida small businesses tax credits
- Brownfields Redevelopment Act: By generating at least ten jobs in the community, qualifying companies with a Brownfield Site Rehabilitation Agreement may be eligible to receive a Job Bonus Tax Refund of up to $2,500.
- Programs for Rural and Urban Job Tax Credits: These tax credits are given to qualified companies that create jobs in rural or urban areas in Florida. For each eligible employee, the Rural Job Tax Credit varies from $1,000 to $1,500. For each eligible job, the Urban Job Tax Credit can be between $500 and $2,000.
- Community Contribution Tax Credit Program (CCTCP): This program incentivizes business owners in Florida to make donations for low-income housing and community development projects. Companies are eligible to receive a tax credit equal to up to ten percent (2050%) of the donation’s total value.
Coaching and mentorship for Florida businesses
Entrepreneurs in their community can benefit from local coaching and mentorship programs and network as well.
- Prospera: This nonprofit organization helps Hispanic business owners launch or grow their enterprises by offering them bilingual support. Free legal and accounting consultations, business plan creation, marketing and sales planning, branding development, and other services are available to small business owners.
- weVENTURE: Women entrepreneurs in Brevard, Indian River and St. Lucie Counties can take advantage of low-cost business classes and free one-on-one consultations through weVENTURE’s Women’s Business Center Program.
- FAU Business Mentoring Program: Provided by Florida Atlantic University, this program facilitates networking and idea sharing between students and business professionals. Participant skills include networking and interviewing, writing and oral presentation, and problem-solving experience with complicated issues.
- One of the top nonprofit networks in the country for volunteer business mentors is SCORE, which assists entrepreneurs in creating, launching, overseeing, and expanding their ventures. Locate a SCORE mentor nearby to take advantage of free workshops, webinars, training, and more.
Small business development centers in Florida
From your initial concept to a national expansion, a Small Business Development Center (SBDC) offers tailored support and technical assistance at every stage of business development. You can get assistance with introducing new technology, refining your business plan and processes, boosting marketing initiatives, raising output, and more.
Even though the SBDC doesn’t provide funding, its local branch can assist you in locating reasonably priced government loans for your small company.
Enter your business zip code and how far you will travel to find an SBDC location near you.
Florida business loan requirements
Here is a general list of requirements that you might need when applying for a business loan in Florida, though they do vary depending on the lender and type of loan.
To get the best business loan interest rate, you usually need to have a business credit score of at least 80 and a FICO score of at least 670. Increasing your scores prior to applying can help you get the best possible loan offer. Or, you can consider a business loan for bad credit.
Your company’s objectives, including marketing plans and funding arrangements, are described in a business plan. A thorough business plan can give lenders confidence that you will manage their funds sensibly.
To be eligible for small business financing, many lenders require a consistent source of income. Annual minimums can be as high as $480,000, though some lenders might accept lower startup income. To meet your short-term needs if your income prevents you from being approved for a small business loan in Florida, you might want to apply for business credit cards or microloans.
For a company to be eligible for a business loan from an online lender, it is usually necessary for them to have been operating for six months to a year. Conventional banks typically require a minimum of two years of documented experience.
Collateral and/or personal guarantee
In order to lower risk when granting a secured business loan, some lenders demand collateral. Real estate, machinery, or a cash down payment can be used as collateral. If you don’t make payments on your business loan, the lender may take possession of your collateral as compensation. A personal guarantee differs slightly because it is linked to your own assets.
How to apply for a small business loan in Florida
The general procedures for applying for a Florida small business loan are as follows.
Step 1: Decide what type of business loan you need
In terms of small business loan types, you have several choices. Make sure the small business loan you choose meets your needs because some have restrictions on how the money can be used.
Step 2: Determine your eligibility
Check if you are a good fit by reviewing the lender’s requirements on their website. Before applying, raise your credit score to increase your chances of getting a competitive rate.
Step 3: Compare small business lenders
Peer-to-peer lending, government loans, internet lenders, and traditional banks are all options for small business financing applications. Be wary of lenders who offer business loans with no credit check or that seem too good to be true. Before applying, peruse small business lender reviews to help steer clear of scams.
Step 4: Gather required documents
To save time, get your business licenses, business tax ID number, business plan, personal and business tax returns, and business financial statements together in advance. A certificate of good standing might also be necessary for certain lenders to approve your loan application.
Step 5: Submit and review offers
The majority of banks and lenders let you apply for a small business loan online, but some might need you to schedule an appointment in person. Examine each loan offer to determine which one best suits your needs.
How to compare Florida business loans
When comparing Florida small business loans, keep the following points in mind:
- Interest rates. Generally speaking, choosing a fixed business loan interest rate is preferable to future rate increases that may come as a surprise.
- Fees. Look for additional costs in the loan agreement, such as origination, late, and prepayment penalties. To make sure the total cost is justified, add these to the loan amount.
- Terms. Some small business loans require daily or weekly repayments. Make sure your business budget can handle the repayment schedule.
- Funding speed. Small business loans from online lenders are usually approved and funded in a matter of days. In contrast, it may take weeks or months for traditional banks or SBA loans to review the details of your application. If you can wait, an SBA or traditional bank loan will probably offer you better terms and rates.
How we chose the best small business loans in Florida
To find the best business loans in Florida, we examined the top national and local lenders. To make our list, lenders must meet the following criteria:
- Minimum period of operation: Startups and businesses with six to thirty-six months of operation can choose from a variety of options.
- Minimum credit score: 680 or lower is required for personal credit scores.
- Rates and terms: We give preference to lenders offering a variety of loan amounts, competitive interest rates, no hidden costs, flexible terms for repayment, and APR reductions.
- Repayment history: We take into account the standing and general business operations of each lender. We prefer lenders who provide additional support to their clients, such as complimentary business coaching, and who report to all major credit bureaus.
For a small business loan in Florida, you usually need to have a solid financial standing and a good to excellent credit score. Most lenders also require that your company be open for business for a minimum of six months. Although there are financing options available for businesses and borrowers with poor credit, these loans typically have more rigid terms and higher interest rates. GoFundMe for business or a personal loan for business are two other funding options to think about if you are having trouble getting approved for small business financing.
Depending on your company type, funding requirements, and eligibility requirements, you can find the best small business loan. If you need access to revolving funds, think about a business line of credit. For low-cost projects or periods when your income is seasonal, think about a short-term business loan. Purchasing an established company or franchise could be facilitated by a business acquisition loan. Additionally, inventory financing helps secure loans by using inventory as collateral if you need assistance buying supplies.
Check your local or state government and business community sites for up-to-date opportunities for Florida small business owners. For example, check out Open My Florida Business for tips and guidance on how to start a business in Florida. For other opportunities in Florida, visit USA.gov and the U.S. Economic Development Administration.
FAQ
Is it hard to get a business loan in Florida?
How difficult is it to obtain a business loan in Florida? To be eligible for a small business loan in Florida, you usually need to have a good to excellent credit score and solid financial standing. Most lenders also require that your company be open for business for a minimum of six months.
How much of a business loan can I get to start a business?
The only amount that lenders will loan you is a portion of your annual income. This could be anywhere between 10% and 30% of your yearly income. How long you’ve been in business. Many lenders require a minimum of six months to two years of business experience.
What credit score is needed for a business loan?
Term loan: Lenders offering SBA loans require credit scores between 620 and 680. Banks and credit unions typically require a score of 670 or above. However, online lenders may only require a score of 500.
Read More :
https://www.lendingtree.com/business/small-business-loans-florida/
https://www.fundingcircle.com/us/resources/guide-to-securing-a-business-loan-in-florida/