Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.
Starting a small business can be an exhilarating experience, particularly in a state where the business environment is poised for growth and long-term success.
In Missouri, starting a small business can be a successful endeavor, but business owners need to be aware of financing options to keep their companies afloat.
More often than not, small businesses need an infusion of capital to help cover significant costs. Companies may need funding for an expansion of a product, opening a new location, maintaining payroll and overhead expenses during slow seasons, or purchasing equipment or inventory over time.
Below is a guide to small business financing in Missouri with a focus on loans, grants, and outside investments.
Small Business Loans in Missouri
Missouri small business loans are the most common type of financing available to companies in need of capital. Most small business loans in Missouri are offered through traditional financial institutions, including banks and credit unions, although there are a handful of options available from online small business lenders as well.
Most lenders offering small business loans to companies in Missouri require at least one year in operation, accurate financial statements and accounting records, and in some cases, collateral to help offset the risk of lending. Here are a few options for small business loans in Missouri.
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 or obligation. 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. 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. 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 Missouri
Small business grants are another way for certain companies in Missouri to receive the funding they need for longer-term projects. Most grants in Missouri are available to businesses that meet a specific need, either on a local or state level, and the funds received do not need to be repaid so long as the grant specifications are met.
However, not all businesses utilize grant funding because it requires ongoing work on a particular project in most cases, and grants are highly competitive among small businesses in the state. Here are two options for small business grants available to companies in Missouri.
Missouri Building Entrepreneurial Capacity Program
Through the Missouri Building Entrepreneurial Capacity Program, small businesses operating within the state may have access to grant funding. Strategic investments are made to non-profit businesses that support entrepreneurs involved in developing and implementing new technologies.
The purpose of the grant funding is to expand the growth of innovation within the state while enhancing research and commercialization efforts in animal health, plant science, biomedical science, applied engineering, and defense sectors. Grant applications are available online, and the amount of funding available is subject to each specific small business submitting an application.
LaunchKC Grant Program
Founded in 2015, the LaunchKC Grant Program is a months-long grant award competition intended to help startup technology companies remain in Kansas City. The grants awarded by the program range in amount, but can be as high as $100,000 for qualified small businesses.
The grant program focuses on tech firms that want to help sustain and grow the economic environment of Kansas City by designing and implementing innovative products and services that have a large growth opportunity in the market. Applications for the LaunchKC program are available online.
Small Business Investors in Missouri
Another way for small businesses in Missouri to receive financing for their capital needs is through outside investment firms. Angel investors, venture capitalists, and seed-capital organizations offer a variety of funding to businesses in the state, focused mostly on high-growth potential companies.
Outside investment financing typically comes in the form of equity in the business, meaning business owners give up some financial stake in their company over the long run. However, investments from venture capitalists, seed, or angel investors may come with invaluable insight from prominent leaders in a specific field, creating an environment for exponential growth for the business.
Here are a few options for small business investors in Missouri.
Made available through the Missouri Technology Corporation, the Missouri TechLaunch program provides debt financing and equity investment in Missouri-based startup businesses that meet certain requirements.
Companies seeking investment funding through the program must have significant industry experience in the technology sector, a desire to commercialize a technology discovery, and work in animal health, plant science, biomedical science, applied engineering, or defense industries. Financing is capped at $100,000 per business applicant, and interested businesses can gather more information and apply online.
St. Louis Arch Angels
As a group of accredited investors, the St. Louis Arch Angels work to finance potential startup ventures operating in the state. The purpose of investments from St. Louis Arch Angels is to create highly profitable returns on investments in small companies that have the potential to earn a significant amount in annual revenue in developing or existing markets.
St. Louis Arch Angels evaluates all small business requests for investment based on its in-depth screening process. Small businesses may find out more about the pitch process, available financing, and the investors behind the organization online.
Headquartered in St. Louis, Nidus Partners is an investment capital firm focused on identifying and commercializing innovative technologies in the energy sector. The investment firm offers seed funding to early-stage small businesses in Missouri, as well as entrepreneurial experience across its partners and collaboration opportunities for high-growth companies.
The seed investment firm only offers financing to small businesses that have a strong likelihood of making a profitable return over a short period of time. Small businesses interested in seed capital from Nidus Partners can submit their pitch online.
Author: Melissa Horton