Finding an adequate business loan is a challenge for many Illinois small businesses, and a number have failed because they could not manage to raise the funds they need. So, if you need funds to start a new business in Illinois and looking for a small business loan, You’ve come to the right place. This guide contains everything you need to know about getting a small business loan in Illinois.
First, let’s start with the most common types of small business loans in Illinois.
Personal Loans
A personal loan is a type of unsecured financing that you can use for various purposes, including business funding. However, you will need a good credit score and debt-to-income ratio to qualify.
Here are some of the best personal loan lenders in Illinois.
- Marcus by Goldman Sachs
- Prosper
- Alliant Credit Union
- BMO Harris Bank
Bear in mind that every lender has different loan limits and terms.
Banks Loans For Businesses
Your financial health is vital if you already have a business checking or savings account. It will help you when you need to borrow money. Community banks like Town and Country Banks and Peoples Prosperity Banks are famous for their willingness to lend to smaller businesses and entrepreneurs. If bigger banks reject you for whatever reason, these community banks will not let you down.
Below are some of the most common types of small business loans you can get in Illinois.
- Business Term Loans
- Equipment Loans and Leasing
- Commercial Real Estate Loans
- Agriculture Loans
- Home Equity Loans
Small Business Administration (SBA) Loans
A small business administration loan makes it easier for small businesses to get the funds by serving as a guarantor for a portion of the loan. It enables community bank lenders to provide flexible terms and competitive rates. The two major types of SBA loans are:
- 7(a) Loans: These loans come in various amounts and can be used for anything related to business.
- 504 Loans: Fixed-rate financing loans are mainly used for owner-occupied commercial real estate. It also covers heavy equipment and assets used to modernize or expand your small business.
Alternatives to Small Business Loans
Grants
For any society to thrive, small business has a vital role. Considering this, the Illinois state government offers grants and another incentive to the small business in the state.
Below is the list of best grants and other programs designed to aid small business owners and entrepreneurs.
- Employer Training Investment Program (ETIP)
- Downstate Small Business Stabilization Program
- AgriFirst
- Recycling Expansion and Modernization (REM) Program
It is worth mentioning here that grants are on the smaller side. So, don’t expect it to provide all the funding you need. But, it can be helpful to provide you with the support you and your business need.
Grant programs are generally tailored to specific niches, whether in business, location, race or gender. To apply for a grant, you will have to write a proposal describing your needs and plan.
Angel Investors
Have you watched the show “Shark Tank”? If yes, then you already know what an angel investor is. That investor buys a share of ownership in your company through equity investments. If you want to connect with an angel investor, click here.
Final Words
If you need a small business loan in Illinois, online brokers and business leaders are there to help you.
Do you want to find out how to get a genuine loan for your small business? Speciality Capital is there to help. We work with suitable lenders. We save you time and money. Please find out more about us here.
