Small businesses across the country rely on borrowed capital to stimulate growth and run their businesses. The same is true of small businesses in Virginia. Keep reading to learn more about Virginia microfinance.

There are about 750,000 small businesses in Virginia, and there are an estimated 1.5 million employees in small businesses in Virginia. About half of all employed in the private sector. In other words, Virginia’s small businesses are an important part of the state’s economy.

Although there are many small business loan options for business owners, they can be more difficult to find in a local bank. In fact, the number of banks in Virginia has declined in recent years. And since 2009 there have been no charter start-up banks in Virginia.

That means Virginia businesses can’t get small business loans, they just have to look for different places.

How a Virginia small business loan can help you

Small businesses use borrowed capital for many different reasons. To name a few, it can stimulate growth, link a slowdown, or fill a short-term cash flow gap.

Granted, there are more microfinance options available today than ever before, but finding the right option for your business requires a little more caution.

Options for small business loans in Virginia

The Virginia Small Business Finance Authority (VSFF) has been providing investment and non-profit organizations in Virginia with the capital needed to grow and expand for more than 30 years.

In addition to VSBFA, there are other options to consider depending on the financial situation of your business and the type of financing you may want.

SBA loans

With the exception of their risk loan program, SBA is not a lender. SBA member banks typically provide loans to small businesses in Virginia that are part of the SBA loan guarantee program. Interest rates for SBA loans are often very low under the most appropriate terms. For low-interest loans with long repayment loans provided by the US Small Business Administration, this option should be considered if your business is eligible. Some of these loans are for economic development, especially in the affected areas, while others are for small businesses.

Traditional bank loans

The local bank has traditionally been a source of funding for small businesses for the past 100 years. If your personal credit score is over 680 and your business credit history is good, a bank loan is another good option for low interest rates and favorable terms.

Online loans

Whether you are looking for a short-term loan or a long-term loan, small business loans are available through online lenders. Moreover, the application process is simple and you can usually get an answer on your loan application within 24 hours. Depending on the lender, the loan amount can vary from $ 5,000 to $ 500,000 or more and qualification requirements are less stringent than at the bank or SBA.

Credit Trading Line

One of the most popular ways to get loan capital for most business borrowers is through business credit. It is flexible, quick to get cash upon arrival, and the business borrower only has to pay interest on the loan amount. The credit line also allows small business owners to access the credit line, return LOC, and reuse it.

Business credit cards

Business credit cards are another flexible way for businesses to get their borrowed capital and are one of the few ways to use credit to get business capital to meet business needs.

Many business credit card providers often rely on your personal credit history to approve a business credit card, which means you can be approved for multiple business credit cards if you have a good credit score.

Equipment Finance

Equipment financing is another option for many small businesses. This is a good option – not just a large construction or production tool, as many of the things a business needs can be considered a tool. For example, the pizza oven in a restaurant or the computers in the office are all considered tools.

Many businesses that are not eligible for a traditional loan or credit line may be eligible for a loan, as the equipment purchased serves as a collateral.


If your business can grow from a small loan to a large one, a micro-person may be a good option for you. Some microns are even less expensive or less interested.

How do I get a small business loan in Virginia?

Depending on the lender you choose, you may need to visit the bank or credit union that you intend to apply for, or in many cases you can apply online. If you need a device loan, many distributors offer financing when you buy – or you can apply online.

Online lenders may have very short applications that require little of your business details, business time and annual income.

How Much Can I Make in Virginia Small Business Loan?

The loan amount varies depending on the nature of the loan, the lender and your creditworthiness. For example, microns can cost from $ 50,000 (SBA threshold) to $ 5,000 or less than $ 10,000.

Some online lenders can lend up to $ 500,000 to eligible borrowers and can lend up to several million dollars to a bank or credit union in Virginia.

How to get an SBA loan in Virginia

Although SBA does not offer loans directly, any participating SBA lender will accept your loan application for SBA loans. You can also apply for an SBA loan through Nav or contact a local SBA representative in Virginia at 804-771-2400.

This article was originally written on June 21, 2021.

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