Nevada Small Business Loans

Over the last year, the struggles of the average small business owner have increased, as a result of the pandemic. Lockdowns have closed the doors of businesses across the country. Hence, many entrepreneurs are exploring how to get small business loans and grants. This article will outline Nevada’s small business loans and other financial resources in the silver state.

At a glance Nevada is home to more than 230,000 small businesses, which employ more than 480,000 people. Spanning across a diverse range of industries, small business owners have a variety of lending options at their disposal. Federal, state, and private institutions cater to the financing needs of Nevada’s entrepreneurs. Start-up loans of up to $300 000 can be processed in a short amount of time. While traditional lenders carry annual percentage rates (APRs) from three to seven percent, online and alternative lenders provide owners with a more customized loan service. 

Top Three State Small Business Loan Options

Nevada small business loan and grant offers range from traditional secured loans and lines of credits to specialized equipment financing. In this section, we have listed some of the local loan providers and how their products can help you start or grow your business.

Bank of Nevada

The Bank of Nevada holds a significant share of the lending market in Las Vegas. Being one of the larger lenders in the area, they have several local branches which cater to both retail and business banking needs. It can provide financing for more significant investments if you need to expand your business’s working capital, or implement an expansion project. 

Their product line includes secured loans, lines of credit, Small Business Administration (SBA) loans, equipment financing, commercial real estate lending, mortgage warehouse lending, and technology financing. The loan processing times are competitive but are slower than those available through online lenders. 

Businesses and owners can use collateral, such as current assets, to secure certain loans. Banks need to verify payment history and payment records before processing a loan, and one of the ways they do this is by checking credit records. This adds to the processing time and creates a barrier for newer businesses that don’t have a credit history.

Entrepreneurs in Las Vegas may get easier access to the Bank of Nevada services compared to citizens in the more rural parts of the state.

Clark County Credit Union

Clark County Credit Union has developed a strong reputation for helping small businesses with their financing needs. They have six branches in the Las Vegas region. 

They offer products such as commercial loans, land and construction loans, equipment financing, unsecured lines of credit, letters of credit, and more. As far as traditional lenders are concerned, they provide one of the best rates and charge low closing fees. 

There are certain advantages of selecting to finance your business through a credit union instead of through local banks for loans. Credit union loans are easier to obtain. Also, company owners claim that credit unions consider more factors when they assess small business loan applications. This means that small businesses are more likely to be eligible for loans of higher amounts. 

Greater Commercial Lending

Greater Commercial Lending is popular in the Reno, Nevada region. Traditional lenders cater to various market segments, whereas Greater Commercial Lending specializes in SBA loans. 

Their product line includes the Paycheck Protection Program (PPP), a loan that aims to help small businesses during the Covid-19 pandemic. They also provide regular business loans, construction loans, and express SBA loans, among other products. Due to the global Coronavirus pandemic, the volume of PPP loan applications has increased. 

Their new products are advertised at very competitive interest rates of 1% with advantageous repayment terms. This option has become a significant lifeline for businesses affected by the lockdowns and other related financial restraints. 

Top Online Nevada Small Business Loan Options

Now that you know who the most competitive local lenders are, let’s look at the top online loan providers. Online lenders have become a prevalent source of alternative financing for small business owners. 

Online lenders offer faster loan processing times and are accessible from any part of the country. Here’s a list of the top online small business loan lenders for Nevada businesses: 

1. BlueVine

Many small business owners desperately exploring how to get a small business loan in Nevada are having trouble paying emergency expenses. BlueVine offers an innovative solution to this problem. They provide valuable emergency funds for struggling businesses. 

Applicants don’t need a credit score and will know the outcome of their application within 24 hours. This is a big relief to new businesses that don’t have an extended payment record. 

The interest rates can be high, in part because the lender is accepting higher risks. 

However, borrowers do need to keep the interest rates in mind. Interest rates can be increased during the course of the loan, and compounds every seven days.  

2. Fundera

Fundera serves as a complete, comprehensive financial solution for business owners. Unlike some other companies, they offer accounting solutions, payment management systems, and financing. The rates for loans on the platform are varied. 

Loan products include loans for startups and equipment acquisitions. The loan value that owners qualify for is determined by their credit score.

Fundera is also helping US businesses get their Paycheck Protection Loan to help combat the effects of lockdowns.  

3. Fundbox

Fundbox is a niche financing solution for small business owners. Its product line includes two types of loans: a line of credit and term loans. As with online lenders, the entire application process can be completed online. 

The credit score required is 550, which is much lower than traditional lenders. The credit offered isn’t tied to any specific use, so business owners have complete freedom regarding their use of the funds. Repayment terms vary from one to six months.

Interest rates are higher than traditional lenders, ranging from 4.66% to 8.99%. Loans are granted with terms that relate to business performance, which could be a deterrent if you have a new business. 

Additional Nevada Small Business Financial Resources

The state has additional grants and resources for entrepreneurs unable to secure Nevada small business loans. The City of North Las Vegas Small Business Stabilization Forgivable Loan Program for businesses in Las Vegas, which provides alternative options for small business owners. 

There is also a county small business grant program, which is open to companies that have received SBA funding. 

How to Prepare for a Nevada Small Business Loan

We’ve discussed the different options and methods of financing available in Nevada. Now let's talk about how you can maximize your chances of securing a small business loan in the silver state.

  • You will need a complete and updated set of business records - traditional lenders will assess your payment history. Lenders will analyze your business payment history and your credit scores. Discrepancies in those records will affect your chances of getting that loan designed for small businesses in Nevada

When it comes to non-traditional lenders, business records are more important. These lenders will provide financing to businesses even if they have low credit scores. However, such businesses will need to show promising revenue and disciplined payments to creditors.

  • You will need a fully detailed business plan - this is essential for any new business. Lenders need to know how much money you’re asking for, what precisely you’ll invest the money in, and what funds you’ll use to pay it back. A business plan should explain these things in detail. The length of the business plan doesn’t matter as long as these basic questions are answered.

  • Ideally you should provide some form of collateral - securing a loan is much easier if you can provide collateral or any other form of security. This becomes even more important if you have a low credit score.

  • You may need to provide a credit report - for most traditional forms of borrowing, lenders will use credit reports to assess risks. You need an excellent personal finance statement, and your business needs to show prospective profit. 

The Bottom Line

The state of Nevada is one of the most business-friendly states in the union.  To fully take advantage of all that the state offers, business owners need to capitalize on the best small business loans in Nevada

The lending industry is constantly changing. However, traditional lenders might not be able to change at the same rate as your business. The online lending platforms, however, offer different tools. We recommend looking at online lenders when you conduct your research, so that you can make the best financing decisions for your business.