Small Business Loans in California

With its world-class economy, California is a land of bounty for small businesses, and a business loan can be instrumental in helping your business launch, grow, and thrive in the Golden State.


Loan Types in California

A wide variety of business loans are available for Californian businesses, and it’s critical that you research your options to determine which will work best for your company.

SBA Loans

With upfront disbursement and repayment periods of several years, SBA loans are partly backed by the Small Business Administration (SBA) and are serviced by private lenders.

Line of Credit

A line of credit allows you access to a certain amount of credit that you can use to spend on business expenses. Unlike with a traditional loan, you need only repay the amount that you’ve actually used.

Term Loan

A term loan involves a financier providing your business with a disbursement of funds which is then repaid over the years, along with interest and fees.

Equipment Finance

You can finance equipment, meaning you obtain the equipment and then pay back the cost of the machinery over its working lifespan.

Accounts Receivable Financing

In an accounts receivable financing arrangement, a financier provides you with a loan based on how much you are owed from unpaid invoices.

Local Business Loan Options in California

Several local organizations provide small business funding resources in California.

The state government has several lending options for Californian small businesses, many of which now target companies hit hard by the pandemic as well as those that can help recover California’s economy.

IBank, another program connected to the state government, is focused on providing loans to small businesses across the state in a transparent, easy-to-understand manner.

The Accion Opportunity Fund is a small business-serving non-profit with the goal of getting loans to entrepreneurs, particularly those from underserved backgrounds. 

How to apply for a small business loan

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

See which credit cards you qualify for before choosing the one that best suits your business needs and offers the cash rewards you’re looking for.

STEP
3
Get funded.

Once you choose a card, you can get approved in as little as 7-10 days.

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Speak with a California representative

FAQ about Small Business Loans in California

The California Secretary of State offers a handy checklist for setting up a business in the Golden State and will also answer questions submitted by citizens to the agency. Small Business Majority is a nationwide organization, but it is particularly active in multiple regions of California and provides a wealth of small business resources and networking opportunities. With offices throughout the state, California’s Small Business Development Centers are another tremendous resource for business owners.

  

California is home to several funds—like the Dream Fund and the Social Entrepreneurs for Economic Development (SEED) Grant—that provide small grants to entrepreneurs, especially those from disadvantaged backgrounds. For small business owners and their employees, the state also runs grant programs centered on retirement accounts and paid family leave.

 

To qualify for a California small business loan, first you must register your company with the Secretary of State and select a corporate structure, like a corporation or limited liability company (LLC). You should also see if you need to register with your city or county, because you might owe taxes to multiple entities. Then, put together a business plan and start researching and comparing loan options. Lendio’s free online platform makes it easy to find and compare loan options that can work for you, and then select the best one.

Once you have applied, financiers will look at your business’ history, plan, and your personal creditworthiness to make their final approval decision.

The right loan will depend primarily on your business’s needs. Some options, such as equipment financing, are specific to a particular need. Others, depend on how quickly you need access to cash and the types of loans or financing your Texas business will qualify for.

California is a massive economy with a lot of competition. Help your small business stand out with marketing, great talent, or other awesome elements that can be funded with a larger loan like an SBA loan or term loan. Think about how financing can help your business grow and prosper, not just survive.

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