Small business owners on both sides of the District of Columbia flock to the city because of the warm welcome. With so many small business resources in Maryland and Virginia, you’ll be set for success the first time.
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 to suit every type of business, from startups to existing businesses. You’re sure to find something to suit your needs here.
We’ll start with the borrowing options that tend to have the lowest interest rates: loans offered by banks, credit unions, and online lenders. To qualify for this type of loan, you need good to excellent credit. Here are a few lenders in the DC area:
Another great option with low interest rates is a loan secured 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 Loan
If you are specifically looking for financing for the purchase of commercial real estate, there are loans for this. The property you buy serves as collateral for the loan, which can help you secure lower interest rates. Here are options to explore:
business credit cards
While not loans per se, a business credit card or two can ensure you are able to purchase what you need for your business. Paying your business credit card monthly on time can also help you build your business credit. Here are some options:
What it takes to get a small business loan
Eligibility varies by lender and type of loan. Before completing the loan application, review the criteria to qualify and only apply for loans that you qualify for.
In addition to a specific credit rating and time in business, a lender may require you to post business assets as collateral for the loan. This lowers the lender’s risk: if you are unable to pay the loan, the lender can seize your assets to pay off your debt.
How to choose the right loan for your Washington, DC small business
Which loan you choose depends on your specific needs and qualifications. Aim for the lowest interest rate loan you qualify for and borrow only what you need. If you borrow too much, you may have trouble paying it back.
Small Business Scholarship Options for DC
You have another option when it comes to finding the money your business needs. Nonprofits, businesses, and local governments also offer small business grants that you don’t have to pay back. Each has its own set of criteria to qualify for and the competition can be fierce. Explore these small business grants to get started.
Additional resources for small businesses in DC
In addition to the small business loans and grant opportunities we’ve covered, there are also many free business resources in Washington, DC. These organizations provide business development support and guidance, technical support, mentoring, workshops, events and networking.
If you’re thinking about starting a business in Washington, DC, come in; the water is warm. It is a supportive environment for entrepreneurs and offers a wealth of resources and financial programs that can help you start a business or take your own to the next level.
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