Small business owners in Concord, Merrimack, and Manchester, as well as any other city in New Hampshire, are what feed the state’s economy.
But even with such an important role, these small businesses sometimes need a little help when it comes to business finances. Fortunately, there are several resources for small business loans available in New Hampshire.
How a Small Business Loan Can Help Your New Hampshire Business
If you’ve never taken out a business loan, you might not know what you can use one for. A small business loan can be used for a number of expenses for your business. If you need working capital to invest in marketing, inventory, or payroll, a loan is a great tool. If you want to buy another business or invest in real estate, there are loans for that, too.
Even if you’re having a temporary cash crunch, taking out financing can ensure you get over the hump until money is flowing again.
Types of Small Business Loans to Choose From
When it comes to small business loans, there are many different options and many different lenders. Which you choose depends on what your financing needs are and what you qualify for. Here’s a sampling of the loan programs available to you in New Hampshire.
Bank Loans
For those businesses that have excellent credit, bank loans are a great fit because they offer low interest rates to those who qualify. Start your search with the bank you already have a relationship with, but don’t limit yourself to that one. Here are other banks that offer great loans.
SBA Loans
The U.S. Small Business Administration also offers low-interest loans with long repayment periods. Its loan programs include the 7(a), 504, and microloan programs. The New Hampshire district office for the SBA is in Concord, though businesses throughout the state can qualify for SBA loans. Visit SBA.gov to find lenders in your area, or explore these:
- Union Bank
- Triangle Credit Union
- SmartBiz
Commercial Real Estate Loans
Entrepreneurs looking to buy high-dollar commercial property have a specific category of financing available to them in New Hampshire. These loans use the property you’re buying as collateral for the loan, which can keep interest rates low.
Merchant Cash Advance
Startups in New Hampshire may not qualify for the options above. Banks and the SBA often want a higher credit score and two or more years in business. If you don’t have those qualifications, you may still qualify for a merchant cash advance. This isn’t a loan but rather an advance on future credit card sales.
- RapidFinance
- Credibly
What it Takes to Get Approved for a Small Business Loan
I gave you a taste of what it takes to qualify for a loan through the SBA or banks. They tend to have the highest criteria when it comes to getting approved for a loan. In addition to needing a certain credit score and time in business, you may also need to provide your business plan and financial documents like tax returns and profit and loss statements.
Other options like merchant cash advances, business credit cards, and invoice financing may have less strict requirements to qualify.
How to Choose the Right Loan for Your New Hampshire Small Business
Start by determining how much you want to borrow, then see which programs fit that amount. Some banks don’t loan less than $10,000, so if you just need a little financing, you might look for a microloan.
Next, find out what you qualify for, based on the criteria the lender has. This will eliminate some options from your list.
Look for the loan program with the lowest interest rate and most favorable terms you qualify for.
Small Business Grant Options for New Hampshire
You may also be able to get financial assistance in the form of a small business grant. This money, unlike with loans, doesn’t have to be repaid. In New Hampshire (and the U.S. in general), you can find grants offered by nonprofit organizations, corporations, and governments like those listed below:
Additional Resources for New Hampshire Small Businesses
Let’s round out this article with a few small business resources and assistance programs that can provide you with free training and workshops, mentoring, advice, and networking.
With so many loan programs for borrowers in New Hampshire, you’re spoiled for choice! Narrowing it down to the right loan for your business needs is something you should take seriously. You want a loan from a lender who will be there for you for the duration of your business relationship, and who will work with you to help you find the right loan for your needs.
This article was originally written on March 16, 2022 and updated on March 21, 2022.
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