Massachusetts Small Business Loans

There are many small businesses in Massachusetts, and as the economy continues to improve, more and more of them are looking for ways to grow. 

One option for growth is a small business loan. Massachusetts has a number of lending institutions that offer these loans, so it can be tough to know where to start. This blog post will help by listing some of the best small business loans in Massachusetts. 

Keep reading to learn more!

How a loan can help your small business in Massachusetts

As a business owner in Massachusetts, you know the challenges of keeping your doors open. High costs, tight profit margins, and challenges accessing capital can make it difficult to keep your business afloat.

 However, a small business loan can provide the boost you need to reach the next level. By providing additional working capital, a loan can help you cover expenses, invest in new equipment, hire additional staff, or invest in any way that will help grow your business. Additionally, a loan can give you the financial flexibility to take advantage of new opportunities as they arise. 

Whether you're looking to expand your operations or simply maintain your current level of business, a loan can be an invaluable tool. 

Types of small business financing options in Massachusetts

There are a number of small business financing options available in Massachusetts. Here’s a quick overview.

• SBA loans 

The SBA loan program is a government-backed program that provides small businesses with access to capital. SBA loans are available through participating lenders, and they can be used for a variety of purposes, including start-up costs, working capital, and expansion. 

The SBA guarantees a portion of the loan, which reduces the risk for the lender and makes it easier for small businesses to get approved. SBA loans typically have lower interest rates and longer repayment terms than other types of business loans, making them an attractive option for small businesses. 

• Term loans

A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and a fixed or floating interest rate. Term loans are favorable because they are easier to manage and can provide lump sums of cash. Terms loans can be secured with or without collateral, and often have no spending restrictions. Terms loans should be fairly easy to qualify for and can be funded quickly, sometimes in as little as a few business days. Business owners can access business term loans from banks, credit unions, and online lenders. 

• Online business loans

Online business loans are a type of financing that allows businesses to borrow money via the internet. This can be done through a variety of online lenders, including banks, credit unions, and online lending platforms. 

Online business loans offer several advantages over traditional bank loans, including lower interest rates, longer repayment terms, and higher loan amounts. However, they also come with some risks, such as potential fraud and the possibility of losing your collateral if you default on the loan. Exploring business loans online should be done. To protect yourself and your information, take advantage of trusted platforms such as PrimeRates that allow you to receive multiple personalized loan offers.

• Commercial business loans

Commercial business loans are a type of financing provided by banks and other financial institutions to businesses for the purpose of funding various business activities. The most common use of commercial business loans is to cover the costs of expansion, such as opening new locations or developing new products. However, these loans can also be used for general working capital needs or to finance the purchase of equipment or real estate. 

Commercial business loans typically have higher interest rates than other types of loans, but they can be a useful tool for businesses that need access to capital. When applying for a commercial business loan, it is important to have a strong credit history and a good business plan.

• Business credit cards

A business credit card is a type of credit card that is specifically designed for business purposes. Business credit cards typically offer a higher credit limit than personal credit cards, and they may also offer rewards and perks that are geared towards business expenses. 

Many business credit cards also come with features such as employee cards and expense tracking tools, which can be useful for managing business finances. When choosing a business credit card, it is important to compare offers from different issuers to find the card that best suits your needs.

• Lines of credit

A line of credit is a flexible financing option for businesses. It’s essentially a loan that can be used as needed, up to the credit limit. Lines of credit typically have lower interest rates than other types of loans, making them a popular choice for small businesses. Because lines of credit are flexible, they can be used for a variety of purposes, such as funding inventory or covering unexpected expenses. Businesses typically only need to make payments on the portion of the line of credit that they use, making lines of credit a convenient and affordable financing option. 

Small business financing resources in Massachusetts

Massachusetts is home to a thriving ecosystem of small businesses. 

However, starting and growing a small business can be a challenge, and access to financing is one of the most common obstacles faced by entrepreneurs.

Luckily, there are a number of resources available to small businesses in Massachusetts seeking financing. 

The Massachusetts Growth Capital Corporation (MGCC) is a state-funded agency that provides loans and equity investments to small businesses in high-growth industries. 

The Massachusetts Development Finance Agency (MassDevelopment) is another state agency that offers financing options for small businesses, including tax-exempt bonds, loans, and loan guarantees. 

In addition, there are a number of private lenders who offer financing to small businesses in Massachusetts. SBA-backed loans are also an option for eligible small businesses.

For entrepreneurs looking for non-traditional financing options, crowdfunding platforms like Kickstarter and Indiegogo can be a good option. 

Massachusetts business owners can also take advantage of PrimeRates; a platform that allows businesses to receive personalized loan offers with no credit impact.

And finally, MBDA Business Centers located across the state offer free or low-cost business consulting services to small businesses, including help with accessing financing.

Small business grants available in Massachusetts

There are a number of small business grants available in Massachusetts. The Massachusetts Small Business Development Center Network offers a number of grants, including the Massachusetts Growth Capital Corporation Grant and the Microloan Program Grant. 

The state also offers a number of tax incentives for small businesses, including the Small Business Corporate Tax Credit and the Small Business Property Tax Exemption. Additionally, the U.S. Small Business Administration offers a number of programs and services specifically for small businesses in Massachusetts. 

These include the SBA 7(a) Loan Program, the SBA 504 Loan Program, and the SBA Disaster Assistance Loan Program. For more information on these and other grant programs, contact the Massachusetts Small Business Development Center Network.

Tips for applying for a small business loan in Massachusetts

Before you begin the process of applying for a small business loan in Massachusetts, it's important to understand the different types of loans available and the requirements you'll need to meet. The first step is to determine the best type of loan for your needs. 

Once you’ve determined which type of loan is best for your needs, you can learn more about how to qualify. Various loan types and lenders can have different minimum requirements. Requirements can include credit score, revenue, length in business, and so forth. This leads us to our next tip: check your credit score and gather your documents. By checking your credit score, you can identify ways to improve your credit score, if any. Gathering documents can be helpful because you can get an accurate figure for income. In addition, lenders may request tax returns, profit and loss statements, business licenses, and other documents. 

Our last pro tip is to do your research and compare loan offers. Borrowing money costs money. When borrowing large amounts the interest can make a significant impact. As you compare offers, make sure to pay attention to total loan costs, not just monthly payments. 

Compare rates and get funded

As a small business owner, you know that every little bit counts (in terms of what you can receive and what you have to repay)  when it comes to securing funding for your business. That's why it's important to compare rates and terms from multiple lenders before you commit to a loan. 

And there's no better place to do that than PrimeRates. We've got one of the largest networks of lenders in the country, so you're sure to find the right fit for your business. 

Plus, our user-friendly interface makes it easy to compare offers side-by-side. So why wait? Get started today and see how much you can save with PrimeRates. Checking offers at PrimeRates never affects your credit score, giving you even more power to do your shopping.

Unlock the best small business loan offers in Massachusetts. . . check offers online today!