Banks, some credit unions and numerous private organizations offer loans for everything from the purchase of a business to equipment leasing to factoring (a loan against accounts receivables). Family and friends may also lend money to help start your business. The following loan programs are available to many small businesses, though some are available only to established businesses, not start-ups. All require the borrower to have a well researched and written business plan and collateral. To find banks and other loan resources in your area, complete a search of the Resource Wizard on this site.
Small Business Administration Loan Guarantees – The SBA does not lend money. Rather, it guarantees loans offered by participating banks. To qualify, an applicant must meet both the bank’s and the SBA’s requirements.
For information about applying for an SBA loan, talk to your bank or visit SBA Loans.
- CAPLines – Helps established businesses meet short term and cyclical working capital needs
- 7a Loan Program – The most common SBA loan; can be used for several purposes
- Microloan Program – Guarantees loans up to $50,000; restrictions apply
- 504 Loans – available only through Certified Development Companies. Provides fixed-rate, long term financing for the purchase of major fixed assets such as real estate and equipment. To find a Certified Development Company in your area, contact the Idaho SBA office or your local Small Business Development Center. CDCs are located in Hayden Lake, Boise, Twin Falls, Pocatello and Rexburg.
Lender Match, a division of the Small Business Administration, matches businesses seeking a loan with SBA-approved lenders.
GovLoans.gov – find loan programs backed by the U.S. government and other funding options
Idaho Department of Agriculture – Agricultural Development Loan Program
REDiFiT – Low Interest transportation loan program to expand Idaho’s freight shipping industry
Idaho Housing and Finance Association – Collateral Support Program – Contact your banker for information.
MoFi – formerly known as Montana and Idaho CDC, loans are offered to businesses in Montana, Idaho, Wyoming, eastern Oregon and eastern WA that can’t qualify for bank financing. Asset management services are available.
Whole Foods Local Producer Loans – Available to businesses who sell their products to Whole Foods.
Crowdfunding – A method of raising funds via the internet by securing either many small donations from a large number of people or offering a small equity share in a business to many small investors. See the above FAQ about Crowdfunding.
Angel Investors/Venture Capital – See the Venture Capital/Angel Capital FAQ below.
Loan Preparation – Before approaching a lender, be certain you have gathered all the necessary documents, including a well researched and written business plan and personal financial statements for owners. Your lender can tell you everything you need. An Idaho Small Business Development Center counselor can assist you in preparing your loan application package.
To find banks and other lending resources in your area, make a search on the Resource Wizard. To learn about loan programs that may fit your business needs, contact your banker.
