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New York Small Business Loans

New York state has plenty of traditional and alternative financial support for small businesses. A combination of loans, grants, and practical training makes it a superb place for entrepreneurs looking to acquire a business, start their own business, or expanding an existing one.

At a glance With around 2 million small businesses in New York State, it’s no surprise that it’s one of the top states for business loan applications. However, how does New York fare when it comes to financial support in the form of loans? How supportive is the state of New York in relation to small businesses and startup businesses? If you want to find out how to get a small business loan in New York, keep reading. 

Top 3 New York Small Business Loan Options  

Here we’ll look at financial and non-financial support and training.

1. Bethpage Federal Credit Union

Credit unions usually have a strong contingent of residents, so they have a specific interest in helping local firms. Already being a member of the community can improve your chances of having your loan approved.

Bethpage Federal Credit Union has 30 branches across the state, but you must be a member to access its services. It’s quick and easy to join – you just need to open a savings account with a minimum deposit of $5.

Bethpage offers loans for increasing your capital, including buying or refinancing equipment and expanding your business.

BFCU doesn’t publicize loan amounts or interest rates, although it claims rates are low – without giving any figures. Lenders realize that every applicant’s case is different, so these factors are typically negotiated between the applicant and the credit union.

2. Excelsior Growth Fund

Excelsior is a Community Development Financial Institution (CDFI,) meaning that it’s a non-profit organization. As a community-focused institution, Excelsior Growth Fund predominantly services small businesses in low-income and impoverished communities. It aims to free up the entrepreneurial opportunities within its precincts.

More than 15 loans or loan programs are available, so it’s important to choose the most suitable one for your needs. One of those options is the SBA loan. 

Unlike more specific loan options, the SBA loan can be used for virtually any business use. The maximum loan amount is $5 million, with repayment periods of up to 10 years for general funding and 25 years for real estate purchases. Approval typically takes between 30 and 45 days.

3. KeyBank

KeyBank has 19 branches spread through New York State and is one of the top SBA lenders. The bank has approved more than $4.5 billion in loans to date.

Naturally, one of the biggest advantages of applying for a loan with an institution with physical premises is face-to-face consultation. You can schedule a meeting with one of KeyBank’s advisors, who will review your business plan and offer expertise to help improve it.

KeyBank’s business term loans range from $10,000 to $500,000, and repayment periods are from 12 to 84 months. For SBA loans, up to $12 million can be borrowed, depending upon the loan type.

A Summary of the New York Small Business Loan Options

Lender

Maximum Loan Amount

Maximum Repayment Period

Bethpage Federal Credit Union

Not specified

Not specified

Excelsior Growth Fund

$5 million

25 years

KeyBank

$500,000

7 years

Top Online New York Small Business Loan Options

In addition to traditional lenders, such as banks and credit unions,  online lenders can also be excellent options.

Online lenders often have much faster approval times than traditional lenders, and they’re usually far more flexible when it comes to your credit history or business sector.

To help you decide if an online lender is a good option for your New York small business loan, we’ve rounded up some of the best lenders on the market.

1. SmartBiz

SmartBiz offers SBA loans and lines of credit.

This company acts as a broker and has created a database of preferred SBA lenders. SmartBiz has a straightforward pre-qualification process, after which you match with the most suitable lenders based upon the information you provide.

There’s also a team of financial experts who help you identify the best small business loan for your firm.

Once you’ve settled on the perfect loan, an advisor will accompany you through the loan application process. 

SBA loans are available between $30,000 and $5 million, with a repayment period between 10 to 25 years. Because SBA loans can be used for various purposes, the flexibility and the longer repayment terms make SmartBiz an excellent choice for new businesses.

2. BlueVine

BlueVine is different from many online lenders because it doesn’t offer small business loans. Instead, it offers invoice factoring and lines of credit.

The invoice factoring is flexible. You connect your accounts system to BlueVine and decide which invoices - and how many - you want to use to secure the credit you need. BlueVine typically lends around 85% to 90% of your invoice values. As your business grows, so too does your invoice factoring amount.

The line of credit offered by BlueVine works like a bank overdraft. As you pay off the credit amount, that sum becomes available for use again.

Both options can work well for short-term funding needs as there’s no fixed payment period. In this respect, they’re far more dynamic than term loans.

The standard application process can be used to apply for credit of up to $250,000. For higher amounts, BlueVine will need additional information from you.

3. Ondeck

Ondeck is another great option, as it’s extremely flexible, making it especially useful for first-time entrepreneurs.

Fixed amount repayments, no fees or penalties for paying the loan off early, and up-front notification of what the loan will cost, all make it easy to keep control of your repayments.

One of the other great aspects of Ondeck is that once approved, standard fund transfers are done in three days, and in some cases, it’s possible to receive them on the same day.

The application and approval processes are quick, and you have a dedicated loan advisor to help you through it.

Loan amounts range from $5,000 to $250,000, and the maximum repayment period is 18 months.

Additional New York Small Business Financial Resources

New York State offers other types of financial support for small businesses, other than loans.

In common with other states, tax credits are available for qualifying small businesses. However, to be eligible, your firm must belong to one of the sectors designated by the state.

There’s also the state’s Linked Deposit Program, which gives an interest reduction of 2% on loans from various kinds of lenders.

The state also has a plethora of financial support options, including New York small business grants. Some of these are industry-specific, while others focus on developing community needs and cultural aspects of New York life. The New York Healthy Food & Healthy Communities Fund and the Metropolitan Economic Revitalization Fund are two examples of these initiatives.

Other Resources for New York Small Businesses

While a New York small business loan can be a boon for a new or growing company, New York State also has many programs that provide practical help in establishing or running a business.

There are 24 Entrepreneurship Assistance Centers (EACs) spread throughout the state. These support hubs provide technical assistance and training to business owners. 

From basics like writing a business plan to refining business concepts, the EACs aim to get you in the best possible shape and make your business a success.

How to Prepare for a New York Small Business Loan

It’s essential to understand the small business loan requirements in New York.

Although lenders will usually have specific requirements for loan applications, there’s some information that will always be requested. Here’s a rundown of what you should get ready before applying for a New York small business loan.

  • Get your personal and business credit score in order. Try to resolve any issues before talking to lenders. If possible, boost your credit score by taking a small amount of credit and paying it back punctually.
  • Prepare the critical financial information about your business, including credit reports, tax returns, profit and loss reports, and balance sheets.
  • Write a business plan. It doesn’t have to be a lengthy document, but it should cover how much money you want, what you’ll spend it on, and how you envisage paying it back.
  • Be clear about what collateral (personal or from your company) and assets you could offer to help secure a loan.

The Bottom Line

An SBA loan can make it much easier for a small business to obtain financing; the federal government guarantees a proportion of the amount borrowed, making your request less risky to the lender. However, the requirements are demanding, and it can take a month or more to be approved and receive the funds.

By contrast, online lenders usually have a much quicker application process, with faster approvals and transfer of funds. Some of them also have a pre-qualification process in which they match you up with lenders likely to approve your loan request.

Online lenders often target applicants who are less likely to be approved by mainstream lenders, so it can be easier to get a New York small business loan through them.