Small Business Loans in Virginia

They say Virginia, The Old Dominion state, is for lovers, and Virginians love their small businesses. If you already have a business in Virginia or are looking to start one, the state has plenty of resources to help you find the financing to get going or expand your business. 


Types of Virginia Small Business Loans

Major corporations are flocking to Virginia and bringing thousands of new jobs with them. Recently, Amazon, Boeing, Raytheon, and Nestle announced that they are opening new facilities in Virginia, largely due to the state’s abundance of talented personnel and the favorable business environment. 

This influx of new businesses will create more opportunities for small businesses in Virginia. Entrepreneurs will create new startups, and existing businesses will expand. And all of them will need additional money to fund their operations. Fortunately, Virginia has plenty of opportunities for small business owners to find the funding they need.

SBA Loans

Small businesses like Small Business Administration (SBA) loans because they usually come with extended terms and attractive interest rates. Private lenders like SBA loans because they have a partial government guarantee that reduces the lender’s risk.

Line of Credit

Lines of credit are a flexible form of financing. You can draw down funds against the line of credit as needed and repay the loan when you have cash flow available.

Term Loan

Term loans are used to finance major purchases, such as a plant addition, and are repaid over several years. The interest rate can be either fixed or variable. 

Equipment Finance

An equipment finance loan allows you to acquire an expensive piece of equipment and start using it immediately to produce cash flow and profits. The loan is repaid in installments over several years. 

Accounts Receivable Financing

You can use your accounts receivable as collateral to get an advance loan. The benefit: you receive your cash sooner without having to wait until your customers pay their invoices. 

Virginia Small Business Loan Options

The Old Dominion state has numerous commercial banks, government agencies and nonprofit organizations that offer loans and other financing options to small businesses. 

Atlantic Union Bank is headquartered in Richmond and is a top lender for SBA loans, lines of credit, and term loans.

Virginia Credit Union offers equipment loans, lines of credit, and business credit cards. Credit unions are generally more lenient than commercial banks and offer loans at lower rates. 

Virginia Community Capital (VCC) Is a nonprofit that offers management advice and financing to small businesses. In addition to lending for SBA Loans, VCC also offers loans to refinance debt and business acquisitions.

Virginia SSBCIi Cash Collateral Program is a state-funded program that provides cash collateral in those instances where the borrower does not have enough collateral to meet the lender’s requirements. 

Virginia SWaM Business Microloan Fund provides smaller loans that are not attractive for a bank or other conventional lenders. 

M&T Bank provides funding for new and established businesses in Virginia and is nationally recognized as a Top 10 SBA lender.

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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FAQ about Small Business Loans in Virginia

SCORE Is a nonprofit organization sponsored by the SBA and made up of volunteer, retired executives. It has several chapters located throughout the state of Virginia to provide advisory services and mentoring to small business owners. In addition, the SBA has several offices of its Small Business Development Centers located across the state that can provide advice, suggestions, and other resources for small businesses. Virginia provides its own version of business advice and resources with its Business OneStop program.

  

Both new and existing companies may qualify for grants that are specific for the state of Virginia. You can check this site at the Virginia SBDC to find out which grants are applicable for your situation. 

 

First, you have to decide on a business structure. It could be a sole proprietorship, a corporation or a Limited Liability Corporation (LLC). If you’re going to operate as a sole proprietorship, you will generally just need to register the name of your business with your county. If you are going to incorporate, you’ll need to register with the Virginia Secretary of State. Depending on your type of business, you may also need to obtain certain permits or licenses.

After you’ve taken care of the paperwork, you’ll need to prepare your documentation for the lender. You’ll need a business plan stating the purpose of the loan, cash flow projections, and how you intend to pay it back. Of course, each lender will have their own requirements, so you’ll need to do your homework to prepare for their needs.

The type of loan you’ll need depends on its purpose. If you’re looking to buy a piece of equipment, equipment financing could be a good fit. If you need to finance a temporary increase in current assets, then a revolving line of credit could be an ideal solution for your business. Online platforms like Lendio help you explore your financial options in just a few minutes—and at no cost to you.

Business startups and expansions of existing businesses need funding to support their growth and development. Small business loans offered by nonprofits and lenders in the state of Virginia are there to help you grow your business. Loans fill an important role in the capital structure of any business and finding the right lender and type of loan is important. 


An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.


SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.

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