West Virginians who are entrepreneurs sometimes struggle to get the cash they need to run their businesses during difficult times. That might be a result of a global pandemic or simply a slow period of sales.
What can you do if your business doesn’t have enough cash to pay its bills? Consider a small business loan.
How a Small Business Loan Can Help Your West Virginia Business
Did you know that small business loans can be used for just about any business-related expense? Whether you need working capital to pay your bills while you wait for clients to pay their invoices or need a larger sum to purchase commercial real estate, a small business loan has you covered.
Borrowers can also use loans to hire employees to better serve more customers. They can use it to buy equipment like company vehicles or heavy machinery. As long as the expense is for your business, you can find a loan to cover it.
Small Business Loan Options for West Virginia
There are as many types of small business loans and lenders as there are unique businesses in West Virginia! Explore loan programs like the ones below to find the best fit.
Banks and credit unions are known for offering low-interest loans…though they may be challenging for some businesses to qualify for. Typically you must be in business for at least two years and have excellent credit to be approved.
Here are a few of your options for term loans in West Virginia:
Small Business Administration Loans
The U.S. Small Business Administration also offers low-interest loans, and these may be easier to qualify for. There are several types of SBA loans, including 7(a), 504, and micro-loan programs. Use the Lender Match tool at www.SBA.gov or reach out to the West Virginia District Office to find local SBA lenders, or explore the list below:
Line of Credit
Sometimes it’s more helpful to have access to cash when you need it rather than getting it all at once. In that case, a line of credit may be a good fit. You’ll be approved for a certain amount you can borrow from. Take what you need and pay back just that amount.
Here are some lenders offering lines of credit in West Virginia:
If you aren’t able to qualify for the options above, there are short-term loans that tend to have less strict criteria for qualifying. Many online lenders offer short-term loans, including:
What it Takes to Get Approved for a Small Business Loan
Eligibility will vary, depending on the lender and type of loan. Before filling out the loan application, review the requirements to make sure you qualify. Does the bank require a certain credit score? If so, can you meet it?
You may also need to have a business that’s been in operation for at least two years. Startups may not qualify for bank or SBA loans but may qualify for short-term financing.
How to Choose the Right Loan for Your West Virginia Small Business
Small business loans aren’t cookie-cutter, so you’ll have to choose the one that best fits your business’ needs. Look for loans with the lowest interest rates you can qualify for. Also, consider how long you want to repay the loan. A longer repayment period means smaller monthly payments, but you may pay more in interest over time.
Finally, research the reputation of a lender. You want one who is quick to respond to customer service questions and is known for caring about its customers.
Small Business Grant Options for West Virginia
In addition to small business loans, West Virginia small business owners can also apply for grants that do not have to be repaid. These grants may be offered by nonprofit organizations, local, state, and federal governments, or corporations. Here are some to get started.
Additional Resources for West Virginia Small Businesses
Need to bounce ideas about your business off of someone? West Virginia has many free business resources that can provide mentorships, webinars and training, and networking opportunities:
- West Virginia Small Business Development Center (WVSBDC)
- West Virginia Economic Development Center
- WV One Stop Business Portal
- West Virginia Business Link
Small business owners in Charleston, Clarksburg, Kanawha, Fairmont, Wheeling, and every other town across West Virginia need not feel they’re alone in their endeavor. Whether you need capital to elevate your business or you’re looking for a mentor to discuss business ideas with, there are plenty of small business resources for you in the state of West Virginia.