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.

Types of Business Loans in Iowa

It’s simple and affordable to launch a small business in Iowa. Plus, there are plenty of highly skilled and experienced workers available. As you shop around for small business loans, keep the following financing options on your radar. 

SBA Loans

SBA loans are partially guaranteed by the U.S. Small Business Administration (SBA). The SBA 7(a) is the most common SBA loan. It offers up to $5 million in funding and can be used for working capital, equipment, supplies, real estate, and business expansion. Other SBA loan programs include SBA Express loans, SBA 504 loans, SBA microloans, and SBA disaster loans.

Line of Credit

A line of credit offers funds you can withdraw at any time, up to a set credit limit. You’ll only pay interest on the amount you borrow, rather than the entire amount you’re approved for. Compared to credit cards, lines of credit typically come with lower interest rates and larger loan amounts. 

Term Loan

Term loans disperse a large sum of money upfront. While they often have low interest rates and favorable terms, good credit is typically required to get approved. Funding may also take weeks or even months, depending on the lender. 

Equipment Finance

If you need to buy or lease equipment for your business, like computers or bulldozers, for example, equipment loans may make sense. Most equipment loans are fairly easy to get and you may be able to cover 100% of your equipment costs. 

Accounts Receivable Financing

With accounts receivable financing, you borrow against your outstanding invoices or accounts receivables. The company will advance you a portion of them in the form of cash and collect customer payments for you.

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.

How to apply for a small business loan

Fill out the 15-minute online application.

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

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.

Get funded.

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

Apply Now

FAQ about Small Business Loans in Iowa

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. 


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.


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.

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. 

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. 

Quickly compare financing options from multiple funders.

Applying is free and won’t impact your credit

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