At a glance — The majority of businesses in the state of Connecticut are classified as small businesses. Almost 350,000 of these small businesses employ over 700,000 employees. These small businesses create more than 7,000 new jobs every year and make up 99.4% of the state’s total economy. It’s clear that small businesses are the backbone of this state. There are many lenders in the area that provide Connecticut small business loans to help businesses develop.
The Top Four Connecticut Small Business Loan Options
The biggest challenge that a small business owner faces is finding the best institution to acquire a loan. You have a few solid choices in the state of Connecticut.
1. Charter Oak
Charter Oak has come a long way since it started as a lending institution in 1939, growing into a billion-dollar company. It’s the biggest lending union in eastern Connecticut and one of the state’s leading financial institutions. Its long history of operation in the Connecticut area makes it a trusted institution for many small business owners.
Charter Oak offers various loans to Connecticut small businesses. Some of the benefits include easy application processes and quick decisions. Most of the loans offer flexible rates and terms, and payments depend on the type of financing that interests you.
You can also apply for the paycheck protection program through Charter Oak. These loans have a 1% interest rate and a maturity of five years. You don’t need collateral or any personal guarantees to qualify for the loan. The paycheck protection program is a loan that you take out through the Small Business Administration. If the COVID-19 pandemic affected your business, you can apply for a paycheck protection loan through Charter Oak. Contact any of the Connecticut branches for more information on any of the loans available to your business.
Fast Capital 360 offers Connecticut small business owners a variety of loans depending on their needs. You can apply for a working capital loan, SBA loan, or short- or long-term loans. The company offers quick applications and feedback within 24 hours. If you apply and you’re denied, it won’t affect your credit score. You can borrow up to $500,000, with interest rates starting at 7%. Repayment can take place between one and five years.
Fast Capital 360 offers alternative loans to small businesses that don’t consider your financial history. The company is a third-party lender and looks at your business’s overall health instead of simply looking at your credit score. Fast Capital 360 can give you various options for loans, and you can decide which loan is best suited to your needs.
You can also apply for SBA loans through Fast Capital 360, which the company can approve within a week. This is the slowest program that Fast Capital 360 offers since its emphasis is fast loans so that you don’t need to wait for financing to carry on with your business activities.
The Community Economic Development Fund is a nonprofit organization that helps businesses in Connecticut grow. Besides the various loans that the organization offers Connecticut small businesses, there are also plenty of resources that you can access.
The CEDF is another place where you can access an SBA loan. They also offer a specific loan program for women and minority groups. You can contact the Business Advisory Service that the CEDF offers to small business owners for advice and other solutions. The organization can assist you with your business plan and help you see if you qualify for a loan before applying to another institution.
The mission that the CEDF has is to educate small business owners, especially on financial aspects such as loans. This nonprofit has been serving the Connecticut community for more than 25 years. Before you commit to any small business loan, you should look at the CEDF website and see what they have to offer.
4. Local Banks
Your local bank is always a good option when looking into a Connecticut small business loan. A bank will look at your credit score, but the interest rates you pay are often lower since the bank doesn’t have to take risks with the loans they approve. Most banks will offer various loan options for small businesses with different terms and interest rates.
You’ll also be able to access an SBA loan through your local bank. Approval for an SBA loan may take a little longer through your bank, where institutions dedicated to small business loans can speed up the process.
Your local bank will be willing to help your small business to grow, and you know that the terms and conditions of a bank loan will be reasonable.