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Across the country, small businesses depend on borrowed capital to stimulate their growth and maintain their business. The same applies to small businesses in Virginia. Keep reading to learn more about small business loans in Virginia.

With nearly 750,000 small businesses in Virginia, there are many people employed in small businesses in Virginia, or roughly 1.5 million employees. This is almost half of the people employed in a private company. In other words, Virginia small businesses are an important part of the state’s economy.

While there are many small business loan options available to business owners, they can be more difficult to obtain at a local bank. In fact, in recent years the number of banks in Virginia has declined. And, since 2009, there haven’t been any new chartered startup banks in Virginia.

This does not mean that a business in Virginia cannot find a small business loan, it may have to search in different places.

How a Small Business Loan in Virginia Can Help You

Small businesses benefit from borrowed capital for many different reasons. It can fuel growth, fill a slack season, or fill a short-term cash flow gap, to name a few.

In fact, there are more financing options for small businesses today than ever before, but in order to find the right option for your business, you will need to be a little more savvy when considering what is available.

Options for Small Business Loans in Virginia

The Virginia Small Business Finance Authority (VSBFA) has been providing Virginia businesses and nonprofits with the capital they need to grow and grow for over 30 years.

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

SBA loans

With the exception of their disaster loan program, the Small Business Administration (SBA) is not a lender. SBA member banks typically offer Virginia small business loans that are part of the SBA loan guarantee program. The interest rates for an SBA loan are often among the lowest with very favorable terms. This option for low interest loans with long repayment periods offered by the US Small Business Administration is worth considering if your business qualifies. Some of these loans are also specifically intended for economic development in disadvantaged areas, while others are available to any qualifying small business.

Traditional bank loans

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

Online loans

Whether you are looking for a short term loan or a longer term loan, small business loans are available from online lenders. Plus, the application process is straightforward, and you can often get a response to your loan application in as little as 24 hours. Depending on the lender, loan amounts can vary from $ 5,000 to $ 500,000 or more and the qualifying criteria are less stringent than those of the bank or the SBA.

A business line of credit

A business line of credit is probably one of the most popular ways to access borrowed capital for most business borrowers. It is flexible, it provides quick access to cash once it is in place, and the borrowing company only has to pay interest on the amount of credit it uses. A line of credit also allows small business owners to access the line of credit, pay off the letter of credit, and use it again.

Business credit cards

Corporate credit cards are another flexible way for businesses to access borrowed capital and are one of the few ways a start-up or start-up business can leverage credit to access working capital to meet the needs of the business. business needs.

Many business credit card providers often rely on your personal credit history to approve a business credit card, which means that if you have a good to great personal credit rating, you can get approved for business credit. a number of business credit cards.

Equipment financing

Equipment financing is another option for many small businesses. This is a good option because many of the items a business needs can be considered equipment – it’s not just large construction or manufacturing equipment. For example, the pizza oven in a restaurant or computers in an office are all considered equipment.

Since the equipment purchased serves as collateral, many businesses that may not qualify for a more traditional term loan or line of credit may qualify for an equipment loan.


If your business can take advantage of a smaller loan amount to make a big impact, a microcredit may be a good option for you. Some microcredits are even available with very little or no interest.

How To Get A Small Business Loan In Virginia?

Depending on the lender you choose, you will either need to go to the bank or credit union where you intend to apply, or in many cases, apply online. If you are looking for an equipment loan, many equipment dealers offer financing when you buy or you can apply online.

Online lenders can have very short applications that require little more than your business details, time spent in business, and annual income.

How Much Can I Get With a Small Business Loan in Virginia?

The loan amount will vary depending on the nature of the loan, the lender, and your creditworthiness. Microcredits, for example, will likely be from an amount below $ 50,000 (the SBA threshold) up to $ 5,000 or $ 10,000.

Some online lenders will go up to $ 500,000 to qualified borrowers and a bank or credit union in Virginia could lend up to several million dollars.

How to get an SBA loan in Virginia

Although the SBA does not make loans directly, any participating SBA lender will accept your loan application for one of the SBA loan offers. You can also apply for an SBA loan through Nav or speak to a local SBA representative in Virginia at 804-771-2400.

This article was originally written on June 21, 2021.

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