|Written by Tetiana Sitiugina-Babiuk - Independent writer and content strategist, updated on 9/10/2021|
|At a glance — According to the 2020 Small Business Profile, there are over 965,000 small businesses in Ohio, employing over 2.2 million workers. This accounts for 99.6% of all companies within the state. Out of these, 15.52% of small companies receive a loan, with the average size for a Small Business Administration (SBA) loan being $164,053.|
Top 3 Ohio Small Business Loan Options
Whether you are looking for additional funding to expand your small business, purchase equipment, or consolidate debt, a plethora of Ohio small business loan providers can help you achieve these goals. Below, you will find the top three private sources to consider when trying to obtain a loan for your company.
The Economic and Community Development Institute (ECDI) is a non-profit organization serving underbanked and underserved small businesses within the Cleveland, Columbus, Cincinnati, Akron, Canton, and Toledo areas.
The ECDI offers loan amounts as high as $350,000 with terms of up to five years. The application fee is $25, and you can expect to pay an additional 5% of the loan amount in closing fees. In addition, to qualify for the loan, you will be required to participate in specialized financial training.
Some of the common products offered by the ECDI include:
- Small Business Solutions Loans. The Small Business Solutions Loan is a microloan offered by ECDI that can provide up to $2,500 with a twelve-month repayment term. This option comes with a fixed APR of 7% and is available to entrepreneurs who are members of the Women’s Business Center.
- SBA loans. ECBI is also one of the top intermediaries for SBA funding, targeting business owners with low to moderate income and entrepreneurs who have had difficulty obtaining financing from traditional financial institutions. A minimum credit score of 590 is necessary to access SBA loans.
Fifth Third Bank offers lines of credit and small business loans for Ohio-based companies. Financing typically comes as SBA funding and is applicable for real estate purchase, working capital, and equipment financing, among others.
These loans provide flexible amounts and repayment options, meaning you can tailor the funding to your needs. You can choose a fixed or variable interest rate, and terms can extend to 25 years, depending on the loan’s purpose.
If you’re purchasing property, you can take advantage of down payments as low as 10%. You may also choose to finance the closing costs.
To qualify for these loans, you must meet the following criteria:
- You operate a for-profit business within the United States.
- Your company has a tangible net worth below $15 million.
- The two-year average net income after taxes isn’t over $5 million.
Huntington National Bank has repeatedly ranked as the best SBA lender in Ohio. It provides the following types of SBA loans:
- 7(s) SBA loans. 7(a) loans are suitable for acquiring, opening, or expanding a small business
- SBA Express loans. SBA Express loans offer an expedited review process if you need to access the funds sooner.
- 504 SBA loans. These loans can be used to pay for the equipment needed to modernize or expand a small business
In addition to SBA financing, Huntington also offers the following types of loans:
- Business term loans for small businesses owners who wish to purchase or upgrade machinery and equipment.
- Real estate funding to help small business owners buy, refinance, or build owner-occupied real estate.
- Dental and veterinary financing to help entrepreneurs start or acquire a practice, purchase equipment, or expand office space. These loans can also pay for construction expenses.
- Business lines of credit. These credit lines can be accessed either online or by phone. Fixed and variable interest rates plus flexible repayment options can help you tailor the loan to your company’s needs.
- Lift Local Business program. In addition, Huntington National Bank offers the Lift Local Business program, which provides access to capital at a lower cost. This initiative supports entrepreneurs who are women, veterans, or ethnically and racially diverse.
Summary of Top 3 Ohio Small Business Loan Providers
Economic and Community Development Institute
Up to $350,000 / Microloans up to $2,500
Maximum 5 years or 12 months for microloans
7% fixed APR for microloans
$25 application fee, 5% closing fee
Fifth Third Bank
Depends on the loan - some over $10,000,000
Up to 25 years
Fixed and variable
Option of financing closing costs
Huntington National Bank
$1,000 to $150,000 for Lift Local Business program
Fixed and variable rate, average 6.1% for SBA loans
Lift Local Business program supports entrepreneurs who are veterans, women, or minorities.