Business Loans in Iowa

Iowa is home to more than 250,000 small businesses, which employ over 600,000 workers and make up 47.8% of the state’s total workforce. Whether you already own a small business in the Hawkeye State or hope to do so one day, small business loans can help you meet your goals.

Applying is free and won't impact your credit¹

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SBA loans

SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.

Line of credit

Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.

Term loan

Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.

Equipment finance

With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.

Accounts receivable financing

Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.

Iowa Small Business Loan Options

Several organizations service loans to small businesses that set up shop in Iowa.

Community Savings Bank has branches throughout Iowa and offers a number of business loan products, such as term loans, lines of credit, and SBA loans. In addition to loans, you can count on the bank for ACH services and credit card processing.

The Iowa Targeted Small Business (TSB) program also provides small business loans of up to $50,000 for minorities, women, disabled veterans and entrepreneurs with disabilities through the Iowa Center for Economic Success.

Additionally, the Iowa Innovation Acceleration Fund offers loans to Iowa small businesses in the advanced manufacturing, bioscience, or information technology (IT) industries.

Four simple steps to funding.

Tell us about your business.

Answer a few simple questions and complete the application in minutes.

Submit your application.

We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.

Compare offers.

Find the funding option with the terms that best fit your small business goals.

Get funded.

Once you accept, funding can hit your bank account in as little as 24 hours.

Get started

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Blue box with text 'We’ll help find your best fit' above logos of loan and financial service companies including Credibly, Backd, Fora Financial, GoodFunding, OnDeck, and Kapitus.

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FAQ about Small Business Loans in Iowa

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FAQs

What other resources are available to Iowa small businesses?

IASourceLink was designed to help Iowans start, scale, or accelerate their businesses. Another great resource is the Greater Des Moines Partnership, which offers a free mentorship program and a variety of online tools and newsletters for entrepreneurs and small business owners in Iowa. SBDC Iowa hosts affordable workshops and provides free, customized business advice.

What Iowa small business grants are available?

Dream Big Grow Here is a grant program for new and experienced entrepreneurs interested in pursuing or growing their business in northwest Iowa. You can also explore Iowa GrantWatch, which contains an updated list of small business grants in the state. In addition, there’s Iowa SourceLink, which features a Resource Navigator tool that you can use to connect to nonprofits that offer grants and other business resources.

What do I need to qualify for a loan in Iowa?

To qualify for a business loan in Iowa, you’ll need to register your business with the state. The process of doing so will depend on whether you go the sole proprietorship, LLC, or corporation route. Be sure to check the Iowa Secretary State business database to make sure your preferred business name is available and appoint a registered agent if you intend to form an LLC or corporation. Once you’re up and running, you’ll be ready to apply for small business loans. To determine the amount and interest rate you can qualify for, the lender might require that you share your business plan, revenue figures and projections, and credit score.

Which loan is right for my Iowa business?

It’s your job to do your research and compare business loan options in the state. You can use an online platform like Lendio to take the time and hassle out of the process. As you explore loans, consider interest rates, repayment terms, and fees. Also, be sure you understand eligibility requirements.

How can an Iowa business loan help my business?

A business loan in Iowa can help you cover a wide array of small business expenses, so you can meet (or even exceed) your goals. These may include startup costs, payroll, marketing, insurance, and equipment.