Up in the Pacific Northwest, big things in the world of small business are happening. From the bespoke brewing company to the eclectic jewelry maker, these business owners sometimes need a hand in growing their business. Many have turned to small business loans.
How a Small Business Loan Can Help Your Oregon Business
You need working capital to pay your expenses (and yourself) and invest in your future. A small business loan can cover those expenses and more.
If your business doesn’t have steady cash flow, a loan can bridge the gap. It can afford you the chance to take advantage of opportunities to stand out in the marketplace, maybe by acquiring another business or purchasing real estate.
At the end of the day, having capital gives you options.
Types of Small Business Loans to Choose From
Small business loans in Oregon come in all shapes and sizes, and no matter if you have poor credit or excellent, there’s an option for you.
Bank Loans
Financial institutions like banks and credit unions offer some of the most competitive rates on loans in Oregon. You’ll need to have good to excellent credit to qualify. Here are a few options for you in Oregon.
SBA Loans
The U.S. Small Business Administration also offers low-interest loans with long repayment periods. Criteria may not be quite as stringent to qualify, though you still need to be in business for two or more years to qualify for SBA loan programs. To learn more, visit SBA.gov.
Here are SBA lenders in Oregon:
Real Estate Loans
Some lenders specialize in commercial real estate loans, so if you’re looking to buy commercial property, a large loan with long repayment terms could be what you need. Start researching these lenders.
Short-Term Loans
If you don’t have the credit scores required to qualify for any of the above loans, you still have options in Oregon. Some lenders offer short-term loans that need to be repaid within a few months. Note that these tend to have higher interest rates.
- Breakout Capital
- Kapitus
- Lendspark
What it Takes to Get Approved for a Small Business Loan
Every loan and lender has different requirements for approving borrowers. Some, like banks and SBA lenders, focus more on your personal and business credit scores and time in business, while others, like short-term loans, look at your annual revenues.
Some loans, particularly those for amounts over $250,000, may require collateral. If you’re purchasing real estate or equipment, that asset can serve as your collateral. Other loans require a personal guarantee, meaning if your business can’t pay off the loan, you will be held personally responsible for doing so.
How to Choose the Right Loan for Your Oregon Small Business
Entrepreneurs have to make their own decisions about which is the best loan program for them. Generally speaking, the lower the interest rates and longer the repayment period, the better the loan.
But if you can’t qualify for a bank loan and need money quickly, knowing you could repay it in six months, a short-term loan could be the right fit.
Weigh the cost of financing against how you’ll use the funds to determine which is the best path forward.
Small Business Grant Options for Oregon
But wait! There’s more! Loans aren’t your only option for finding capital for your Oregon business. Government agencies, nonprofit organizations, and corporations also offer grant programs to startups and established businesses.
Mercy Corps’ Individual Development Account
Ready to start a business? You could receive a grant of up to $6,000 with Mercy Corps’ Individual Development Accounts. You’ll be required to save at least $50 a month for six to 24 months, and then you can qualify for a $6,000 grant to add to your pot to start your business.
Nav’s Small Business Grant
Every quarter, Nav gives one business $10,000 to grow, and runners-up receive $5,000 with its Small Business Grant. If you missed the current window, not to worry. There are four grant application periods per year.
Amber Grant
Each month, one female-run business receives $10,000 from the Amber Grant, and every year there is also a $25,000 winner. That could be you!
Additional Resources for Oregon Small Businesses
In addition to grants and loans, Oregon has several free business resources throughout the state that can provide technical assistance, mentoring, financial assistance, and workshops. Get help creating your business plan, bounce ideas off of someone established in your industry, or make new business contacts.
Oregon’s economy needs established and new businesses like yours. But know that you don’t have to go it alone. There are plenty of resources to help you on your path to success, from those providing financial aid to others that can help you plan for the future.
This article was originally written on February 11, 2022.
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