Small business owners from both sides of the District of Columbia flock to the city because of its warm welcome. With so many resources in Maryland and Virginia for small businesses, you’re set for success right from the start.
How a Small Business Loan Can Help Your DC Business
There are a number of lenders offering small business loans in the DC area. These loans can be used as working capital to purchase items for your business, invest in commercial real estate, hire staff, or pay for marketing. The money you borrow can be a wise investment in the future success of your business.
Types of small business loans to choose from
Small business loans come in many shapes and sizes, and there are a variety of lenders that cater to all types of businesses, from startups to existing businesses. You are sure to find something that suits your needs here.
We’ll start with the loan options that tend to have the lowest interest rates: loans offered by banks, credit unions, and online lenders. To qualify for these types of loans, you will need good to excellent credit. Here are some lenders in the DC area:
Another great option with low interest rates is a loan guaranteed by the US Small Business Administration. The SBA offers a variety of loan programs, including microloans, the 7(a) program, and 504 loans. These lenders offer SBA loans:
Commercial real estate loans
If you are specifically looking for financing to purchase commercial real estate, there are loans available for that purpose. The property you buy serves as collateral for the loan, which can help you get lower interest rates. Here are the options to explore:
Business credit cards
While not loans per se, having a business credit card or two can ensure you have the flexibility to buy what you need for your business. Additionally, paying your business credit card on time each month can help you build business credit. Here are some options:
What it takes to get approved for a small business loan
Eligibility varies by lender and type of loan. Before completing the loan application, review the eligibility criteria and only apply for the loans you think you qualify for.
In addition to having a certain credit rating and having spent time in business, a lender may require you to provide business assets as collateral for the loan. This reduces the lender’s risk: if you are unable to repay the loan, the lender can seize your property to cover your debt.
How to choose the right loan for your small business in Washington, DC
The loan you choose will depend on your specific needs and qualifications. Aim for the loan with the lowest interest rate you qualify for and only borrow what you need. If you borrow too much, you may find it difficult to repay.
Small Business Grant Options for DC
You have another option when it comes to finding the cash your business needs. Nonprofits, businesses, and local governments also offer small business grants that you don’t have to repay. Everyone has their own criteria to qualify and the competition can be fierce. Explore these small business grants to get started.
Additional Resources for DC Small Businesses
In addition to small business loans and grant opportunities like the ones we’ve covered, there are also plenty of free business resources in Washington, DC. These organizations provide assistance and advice on business development, technical assistance, mentoring, workshops, events and networking.
If you’re thinking of starting a business in Washington, DC, come on; the water is hot. It’s a supportive environment for entrepreneurs and offers a host of financial resources and programs that can help you start a business or take yours to the next level.
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