Access to working capital plays a vital role in the life of every small business owner. And while having cash on hand is often preferred, many entrepreneurs must seek out funding at some point in their business journey, whether it’s for start-up costs, operational expense, or growth and development goals.
Fortunately, there are many Virginia small business loans available to those who need them. But, before you apply for a loan, you may want to consider one of the many Business grants in Virginia.
Below is a collection of small business loans and grants in Virginia that may help you finance the next stage of your business plan.
On this page:
- Virginia Small Business Loans
- Virginia Small Business Grants
- Small Business Investors in Virginia
- Other Online Lenders
- Getting Your Business Ready for Financing
- What Kind of Financing Do You Need?
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Virginia Small Business Loans
There are plenty of banks and credit unions that offer small business grants in Virginia. However, here are a few banks that are known to have strong ties with small business owners and offer a variety of lending products including SBA loans.
SunTrust is one of the leading small business lenders in VA. Today, this bank offers a variety of lending options to small business owners including business term loans, SBA, loans, equipment financing, commercial mortgages, lines of credit, and SBA working capital loans. Loan terms vary by product.
- Rate & Fees: Rates and fees vary based on the lending product you choose; however, all applicants are urged to contact their local SunTrust branch to speak with a representative to gain insight into current rates.
- Eligibility: SunTrust does not disclose specifics about eligibility and interested business owners should contact their local branch or call a representative at 877.370.5108.
Bank of America
Bank of America has branches across Virginia where small business owners can apply for short-term loans, SBA loans, lines of credit, auto loans, equipment loans, and commercial real estate loans. Loan limits and terms vary by product. Short-term loans are available from $10,000 to $100,000 for 12 to 60 months.
- Rates & Fees: Rates and fees vary based on product. Short-term loans have fixed rates of 5.75% or less with a $150 origination fee. To learn more about the rates and fees as they relate to other small business financing products, contact your local Bank of America.
- Eligibility: All loan products have different eligibility requirements. To get a short-term loan through Bank of America, you must be in business for at least two years, have an annual revenue of at least $100,000, and have a FICO score of at least 670.
Wells Fargo offers unsecured business loans, lines of credit, business real estate financing, healthcare practice financing, and SBA loans. Small business loans are available from $10,000 to $100,000 with terms of one to five years.
- Rates & Fees: Wells Fargo rates and fees vary based on the loan product as well as your creditworthiness and loan value, among other factors. However, if you’re searching for a short-term business loan in Virginia, you can expect an interest rate as low as 8.00%.
- Eligibility: To be eligible for a Wells Fargo small business loan, you must be a banking customer, have excellent credit, and be able to show strong financial performance through your banking activity. For information on loan requirements as they relate to other lending options, you can contact your local Wells Fargo branch.
Virginia Small Business Grants
Grants are funds you don’t have to repay. Here are some options for small business grants in Virginia.
USDA Rural Development Virginia
Deadline: March 29
Worth between $10,000 and $500,000, this grant is available to small businesses in rural Virginia that employ 50 or fewer people and have an annual revenue of at least $1 million. Funds are only approved for specific applications including training, acquisition of land, pollution control, and feasibility studies.
Small Business Jobs Grant Fund Program
Deadline: Contact SBSD for details
This grant provides $500 – $2,000 to offset hiring costs. It’s only available to companies that have an average annual revenue of $3 million and that employ 50 or fewer people. Only the following sectors are eligible: Manufacturing, Distribution Centers, Research & Development, Information Technology Services to Business, and Inbound Call Centers
Port of Virginia Economic and Infrastructure Development Grant
Deadline: March 31
The POV grants, which offers up to $500,000 in funding, helps companies that want to open or expand a maritime-related employment center in the Commonwealth of Virginia. Grants are typically available to businesses that create at least 25 new full-time positions and are involved in maritime commerce or export/imports from the Port of Virginia.
The Virginia Economic Development Incentive Grant (VEDIG)
Deadline: Contact VEDP
VEDIG is designed to encourage employment. Eligibility requirements vary based on the company location and whether or not the company has a current presence in Virginia. Further, award amounts also vary based on several factors including the number of jobs, wage levels, ROI, and region demographics including unemployment and poverty rates.
The Virginia Investment Performance Grant (VIP)
Deadline: Contact VEDP
VIP is available to existing VA companies that make a capital investment that results in “added capacity, modernization, increased productivity, or the creation development, and utilization of advanced technology.” Award amounts vary based on numerous factors including wage levels, new jobs created, overall employment, total capital investment, etc.
Small Business Investors in Virginia
When you seek funding from investors, they may take a share of business profits – but they also share risk with you. Here are some options for small business investors in Virginia.
Village Capital is a venture capital firm that specializes in early-stage investments. The firm is dedicated to solving societal programs and therefore typically invest in companies in the health, education, and financial inclusion sectors, as well as those that specialize in resource sustainability.
Learn More: https://vilcap.com/sectors/
Tall Oaks Capital
Tall Oaks Capital is a seed and early-stage investment group that also provides strategic guidance and long-term investment support. It currently co-invests in over 45 firms and typically invests between $50,000 and $1,500,000Tall Oaks Capital most often works with companies in the healthcare and information technology sectors.
Learn More: http://www.talloakscapital.com/
Liquid Capital Group
Liquid Capital Group (LCG) specializes in venture capital funds for emerging technology companies. In particular, the group prefers to work with companies in the following sectors: Digital Rights Management, Digital Security, Data Mining and Intelligent Computing, Electronic Commerce, Personal Area Networking, Mobile Computing, and IP-based Communications.
Learn More: http://www.liquidcapitalgroup.com/index.html
Other Online Lenders
While there are benefits to working with a local lender, you don’t need to limit your funding search just because you are located in Virginia. There are online lenders that offer a variety of products for small businesses. Here are a few of our favorites.
Fundbox offers lines of credit and invoice factoring to small business owners. Typically approved borrowers can access up to $100,000. Interest rates vary based on a variety of factors including the lending product you select, your revenue, and your creditworthiness; however, loans are typically offered at rates between 16.5% and 76.5%.
To be eligible you must use a supported accounting software program. There are no minimum credit score requirements.
BlueVine provides business lines of credit up to $250,000 and invoice factoring lines of credit up to $5 million. Payment terms typically range from six to 12 months, though payments structures may vary based on the type of funding you choose. Fixed rates for the lines of credit start as low as 4.80%.
To apply for a loan or line of credit, you must have a FICO score of 600 or higher, be in business for at least six months and have at least $100,000 in revenue.
To be eligible for invoice factoring, you must have a FICO score of at least 530, be in business for at least three months, and be a B2B business. You must also be able to provide basic information about the invoices and have at least three months of banking activity.
Funding Circle is a P2P lender that offers short-term business loans of $25,000 to $500,000 for six to 60-month. Fixed interest rates typically range from 4.99% to 27.79%. There is also an origination fee between 3.49% and 7.99%.
To be eligible, you must have a FICO score of at least 620, There are no minimum annual revenue requirements, but you must be in business for at least two years and be able to show at least six months of recent bank statements.
Getting Your Business Ready for Financing
One of the best things you can do to increase the likelihood of getting a grant or being approved for other types of business financing is to be prepared.
To do so, it’s helpful to have an understanding of all requirements including deadlines and documentation requests you may be required to fulfill. In addition, many lenders and grant providers will require applicants turn in a business plan, so take the time to prepare one or review and update your existing one.
Finally, you’ll likely need to have a business bank account and be able to provide basic information about your company, including annual revenue, number of employees, and years in business.
If applying for a loan or other type of financing product, the lender will likely use your personal credit score to determine eligibility and set limits and rates. As such, it’s helpful to enter the application process with knowledge of your credit score. If it’s average or below average and you don’t need access to financing immediately, you may want to work on improving your personal credit score before applying.
What Kind of Financing Do You Need?
Before you apply for a small business loan or other types of financing, it’s important to determine what type best suits your specific needs. There are several things to consider, including the reason you need financing as well as the amount, term, and flexibility you need.
For example, if you need ongoing capital, you may want to consider a business line of credit, which allows you to draw the total amount over a period of time. This is often useful for managing momentary gaps in cash flow.
If, however, you need a fixed sum of money, you likely want to consider a term business loan. These types of loans are often bet for one-off purchases for things like furniture and equipment or to make repairs and upgrades.
Another thing to consider is how quickly you need the loan. Online lenders like those mentioned above often have quick application processes with funds available in as little as one day after approval. Many traditional banks and credit unions, on the other hand, may have more complex application processes and therefore the time to funding may be longer.
If you need funding for your business, there are several options available. If you have the time, reviewing grant options is often the most affordable way to access fund, but loans from both traditional and online lenders can get your funds much quicker with far fewer stipulations and less competition.