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In Alabama, small businesses are an integral part of the state’s economic success. The importance of these businesses is why it’s also essential to make funding easy to find and readily accessible.
Small businesses are succeeding through the support of a network of angel investors, local organizations awarding small business grants, and financial institutions providing small business loans.
Here are some Alabama small business loans, grants, and investors your business can consider when looking for financing.
On this page:
Small Business Loans in Alabama
Small business loans, especially for established companies, are often the route of least resistance for business financing. Here are a few online companies that offer small business loans in Alabama:
As low as 6.00%
$5,000 – $2 million
1 – 5 years
The above information is for the Lendio Business Term Loan.
Lendio is the largest small business loan marketplace in the U.S. with a network of over 300+ lenders. These lenders include PayPal, Bank of America, American Express, and more.
You can apply with one simple application without impacting your credit. The application process can be completed online in 15 minutes with no fee. If approved, funds can be made available in as little as 24 hours.
- Short term loan
- Business term loan
- Business line of credit
- Merchant cash advance
- Business credit card
- Equipment financing
- Commercial mortgage
- Startup loan
- SBA loans
- Accounts receivable financing
- Business acquisition loan
9.77% – 35.98%
$5,000 – $500,000
6 – 60 months
The information above is for the LendingClub Business Term Loan.
LendingClub is a peer-to-peer lender that connects investors with businesses in need of financing in Alabama. To be eligible, businesses must have at least $50,000 in annual sales, as well as been in business for 12 months or more.
You can apply online in under 5 minutes and receive multiple quotes. If you decide to pay off your loan early, there are no prepayment fees to worry about.
7.00% – 69.00%
$500 – $250,000
6, 12, or 18 months
The information above is for the Kabbage Business Line of Credit.
Kabbage is a small business lender offering a business line of credit in Alabama. The lender has a low minimum loan amount which can make it a good option for those in need of a small amount of financing.
In order to be eligible, your business needs to be at least 12 months old, with $50,000 in annual revenue.
Small Business Grants in Alabama
For a small business, winning a grant is a shot of cash with no repayment requirement. The competition is fierce, but the rewards make the application process worthwhile. Alabama small business grants may come with a few initial conditions, but unlike loans, they do not come with interest rates or challenging repayment plans. Here are a few available in Alabama:
Rural Energy for America Program Renewable Energy Grants
A national program, especially applicable to the state of Alabama where there are more than 3,400 farms and one out of every 4.6 jobs is in the agricultural sector. This program is meant to help small rural businesses and farms with the necessary funding to install or improve renewable energy systems or to make energy efficiency improvements. Energy efficiency grants range in value, between $1,500 to $250,000, and the renewable energy grants range between $2,500 to $500,000.
Womensnet Amber Grant
Women-owned businesses in Alabama account for a total of 30 percent of the companies in the state. The Womensnet’s Amber Grant awards $1,000 each month of the year to a female small business owner. The application deadline is the last day of the month. On top of the monthly award, they also enter all yearly winners into an annual $10,000 grant. There is a $15 application fee but the grant process can be done quickly and easily online.
Small Business Investors in Alabama
Deciding to open your business to outsiders is a big decision to make. It is often difficult for small business owners to give away partial control or a financial stake in their company. But the benefits of finding a venture capitalist or angel investor can have massive payoffs. Angel and venture capitalist investments not only come with cash but with industry expertise and knowledge. Alabama has many alternative investment options on the table.
The AIM Group
Focused on investing in small early-stage businesses in the Southeast of Alabama, the AIM Group is interested in many different industries. They seek to fund “tech enabled opportunities addressing a large market.” Their minimum investment is $500,000, but the average is between $750,000 to $1 million. To date, they have invested over $2.5 million in local Alabama industries, in eight chapters with their 272 members.
An Alabama angel investment group, funding entrepreneurs who have graduated from incubator, accelerator, or university programs in the state. Members (angels) ofInCrowd Capital are diverse, with experience in all industries. InCrowd is a database bringing together angel investors and entrepreneurs, as such, its members invest broadly, across a wide variety of industries.
Advantage Capital Alabama
Since their inception, Advantage Capital Alabama has invested in over 700 companies across the state, equivalent to $2.6 billion. They specifically target regions which are underserved by the more traditional lending and investment platforms, but invest broadly in diverse industries. Established and emerging companies are both eligible for conventional asset-based and cash-flow-based loans as well as subordinated and mezzanine loans.
Author: Jeff Gitlen