Best Small Business Loans in Ohio
Find funding from $10,000 to $2 million to support or expand your business.
State-wide loan options for Ohio small businesses
If you’re looking for a small business loan in Ohio, here are some options to consider:
Local small business loans in Ohio
Depending on your company’s industry and location, you might qualify for one of the following local Ohio business loans.
Nationwide small business loans for Ohio
If you want a lender with a national presence, these lenders offer various small business financing solutions for Ohio-based companies.
What to know about small business lending in Ohio
Approximately one million small businesses in Ohio help fuel the state’s economy. But operating a business in the state comes with its own challenges, especially finding funding.
Fortunately, small business loans in Ohio are available from state and local government agencies, which can help you to start or expand your business in the Buckeye State.
Types of business loans in Ohio
With a portion of the funds guaranteed by the U.S. Small Business Administration (SBA), SBA loans can help underserved small business owners access capital for various purposes. The SBA 7(a) loan can fund day-to-day expenses, while the SBA 504/CDC loan is better suited for more significant projects, like purchasing real estate or equipment.
If you need a lump sum of cash at once, consider a business term loan. Short-term business loans are ideal for more immediate needs or emergency expenses. For more substantial investments or projects, a long-term business loan can usually provide higher loan amounts and longer repayment windows.
A business line of credit lets you borrow up to your limit whenever you need extra funds for unexpected or recurring business expenses. Interest is only charged for the amount you withdraw, although some lenders charge additional fees like maintenance and annual fees.
Equipment financing can help your business get the equipment or machinery it needs to efficiently run your business. Equipment loans typically have more lenient eligibility requirements since the equipment acts as collateral, helping reduce lender risk. If your credit score is on the lower side, you can consider an equipment loan for bad credit.
Other resources for your small business in Ohio
Grants
A small business grant can also help provide financial assistance for your business. This type of funding comes from the federal or local government and, unlike a loan, the funds don’t have to be repaid. Some places to find small business grants in Ohio include:
SCORE
SCORE is a nonprofit organization that provides coaching and mentorship to small businesses. Backed by the U.S. Small Business Administration, SCORE also offers opportunities to participate in educational workshops to support your business. You can use the SBA local assistance search tool to find an expert counselor in your community.
Small Business Development Centers
Small Business Development Centers (SBDCs), such as the Ohio Small Business Development Centers , offer counseling and training to small businesses on anything from business planning to market research, to both new and existing companies. To find an SBDC near you, search your zip code online for a location near you.
Business loan requirements
When applying for a small business loan in Ohio, pay attention to each lender’s specific business loan requirements. Lenders will typically review the following criteria and documents:
Credit score
Minimum credit scores will vary by lender, but it’s generally recommended to have a strong personal FICO Score. Some lenders will also look at your business credit score. You can monitor your score for free with LendingTree Spring.
Business plan
A business plan helps show your business’ ability to pay back the loan with details on how the company will grow and bring in revenue. A traditional business plan usually showcases the description of the company, the service or product it provides, market analysis and requests for funding.
Annual revenue
Lenders look at your annual revenue to ensure you have enough cash flow to make loan payments. Annual minimums vary by lender, with the typical range being $30,000 to $250,000 or higher, although certain lenders may accept lower earnings for startup business loans.
Time in business
In general, leaders require companies to operate for at least one or two years before approving a business loan. However, some lenders offer loans for startup businesses that have only been operating for six months or less.
Collateral and/or personal guarantee
Lenders may require collateral for certain small business loans in order to reduce lender risk, such as with secured business loans. Collateral can be a fixed asset like equipment or real estate, or a financial asset like cash or investments. If you default on your business loan, your lender can seize your collateral for payment.
Note that a personal guarantee is only connected to your personal assets.
How to apply for a small business loan in Ohio
If you are ready to take your business to the next level, here are the general steps on how to get a small business loan in Ohio.
Step 1: Pick the right type of business loan for you
Research the different types of small business loans to see which option best suits your business’s immediate and long-term goals. Some lenders only fund certain industries or have restrictions on how you spend the funds.
Step 2: Review your eligibility
Take a quick look at your personal and business credit scores to see if they can meet your potential lenders’ criteria. Boosting your credit score in advance can improve the likelihood of approval. If your credit score falls short, consider looking into business loans for bad credit.
Step 3: Compare small business lenders
Searching through potential lenders can be time consuming and overwhelming. Start by reading small business lender reviews to help narrow options and avoid scams. Remember, you have multiple options when looking for a small business loan, such as local banks with branches in Ohio, online lenders and government lenders.
Step 4: Gather required documents
Most lenders will want to see your business licenses, business plan, business tax ID number, personal and business tax returns, a certificate of good standing and business financial statements. Check your lender’s website in advance to ensure you’re prepared.
Step 5: Submit and review offers
You can typically apply for a small business loan online, although certain banks still require an in-person appointment. Read all the fine print to ensure you understand all the details, including prepayment penalties and late charges.
How to compare Ohio business loans
When trying to get a business loan, here are some features that you may want to look for:
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Affordable interest rates
Business loan interest rates can vary based on the lender, loan product and your credit profile. Fixed interest rates remain the same throughout the duration of your loan, while variable interest rates can change over time. Shop around by getting quotes from multiple lenders to find the best rate. -
Transparent repayment terms
Each lender should provide clear repayment terms so you know not only when your loan needs to be paid off in full but can also compare terms with other lenders. -
Short-term or long-term
Short-term loans tend to range from three to 24 months, with weekly or daily repayments, while long-term loans can have terms up to ten years or more with monthly payments. The term length will depend on how much funding you need and for what specific expense it will go toward. -
Collateral
Secured loans are backed by collateral, an asset such as equipment or real estate, that can be seized by the lender if you should default. If you don’t have a high credit score but have the assets, a secured business loan might help you receive a larger sum of money. An unsecured business loan does not require collateral, so you’ll likely need an excellent credit score to apply. -
Funding speed
The time it takes to get your funds can vary greatly. Online lenders specialize in quick business loans, making sure you get your money within a few days — although you’ll typically pay a higher price for this convenience. In comparison, SBA loans and traditional banks can take several weeks or months to approve your loan application but often come with better rates and terms. -
Location
If you prefer to bank in person, check how close the nearest branch is to you and what services it offers. Some banks may work with Ohio business owners but not offer any in-person branches, or may only have branches in some cities.
Our methodology: How we chose the best small business loans in Ohio
We reviewed the leading local and nationwide lenders to determine the best business loans in Ohio. To make our list, lenders must meet the following criteria:
- Geographical area serviced: We give preference to lenders who either focus on serving communities in Ohio or who have a robust presence in the state while lending nationwide.
- Rates and terms: We prioritize lenders with a range of loan amounts, competitive rates, limited fees, flexible repayment terms and APR discounts.
- Repayment experience: We consider each lender’s reputation and overall business practices. We favor lenders that report to all major credit bureaus, offer reliable customer service and provide extra support to customers, like free business coaching.