Delaware Small Business Loans

Delaware is a top state for business development, ranking #1 nationally on patents issued per capita and #8 on the US State Innovation Index, according to Bloomberg. Many small businesses have emerged in Delaware throughout history and have grown into gigantic multinational corporations, especially within the biotech and chemical industries.

At a glance Delaware is amongst the best states to get a business loan. Delaware has 1,318 active small business loans. On average, Delaware's small business grants are worth $262,686. There are 19,000 small businesses in Delaware, which means 6.94% of small businesses currently have loans. Individuals are typically granted loans through private institutions. However, the state offers many partnership programs and unique business opportunities in growing sectors, such as science and technology.  

The Top Four Small Business Loans Options in Delaware

M&T Bank

M&T Bank is a widely accredited institution that works across the United States. This lender  provides the greatest number of small business loans in Delaware. 

M&T Bank offers a wide variety of small business grants such as SBA 7(a), Express, and 504 loans.  Each of these loans may be suitable for a different stage in your business’s development process. 

The SBA Express loan provides a line of credit of up to $350,000, which lets small businesses upgrade equipment, renovate infrastructure, or more effectively deploy capital. The SBA Express loan's main benefit is that the approval time takes between 45 and 60 days. 

The SBA 7(a) offers a credit size of up to $5,000,000, which is meant to help with long-term growth and cash flow development.

Scheduling an appointment is usually the best way to see if your business will be approved at the end of the loaning process.


WSFS Bank is a Delaware institution, through and through, offering small business loans to businesses of various scales. The SBA program through the WSFS Bank provides approximately $10 billion in loans to small businesses each year. 

Their 7(a) loans have a refinancing period of 10 to 25 years and a loan amount of up to $5 million. SBA Express loans of up to $100,000 can be approved in two days and funded within three days. These loans have to be paid back within a term period of three to 10 years. 

Other types of loans provided are lines of credit of up to $500,000, term loans to purchase fixed assets, and letters of credit to credentialize purchases for small businesses. WSFS also offers loans for commercial real estate investing and will give loans for commercial mortgages paid back within 25 years. 

Dover Federal Credit Union 

Dover Federal Credit Union was started by a few air-force veterans with the intention of helping people develop their dreams. The Dover Federal Credit Union offers a wide variety of services to help citizens get small business grants in Delaware. Most popular are business vehicle loans, commercial real estate loans, business checking services, equipment and machinery loans, and credit lines. 

To apply for a loan at a Dover Federal Credit Union location, you must fill out a business loan application and a personal financial statement, which you can find on their website. You also need to have a business plan and be able to show personal tax returns from the past two years. Other requirements are to have a business license from the state of Delaware and to have your business registered within the state. 

All these requirements may vary, however, based on your prior relationship with the institution and the type of loan you are applying for. 

First Citizens Community Bank

First Citizens Community Bank has two locations in Wilmington. It prioritizes cash flow and transparency, offering digital accessibility with all of its loan information and processing with online banking. 

They also offer a host of different loans options, including:

  • Commercial real estate loans, which have flexible and competitive term rates 
  • Business lines of credit, which can be repaid based on the flow of your business  
  • Agriculture loans, at low rates 
  • Equipment loans, for new and used equipment in a variety of industries  
  • 504 and 7(a) small business loans of up to $350,000 with an expedited waiting period, and up to $5 million for regular waiting times 
  • Business term loans with maturity 
  • Letters of credits for larger purchases  
  • Accounts receivable financing  

The small business checking services offered are free as long as you keep $10,000 in your account or process 400 transactions a month.




Services Offered

M&T Bank

SBA Express, SBA 7(a), 504 loans


SBA 7(a) loans, commercial real estate loans

Dover Federal Credit Union

Vehicle loans, commercial real estate loans, business checking services, equipment and machinery loans, lines of credit

First Citizens Community Bank

SBA 504, SBA 7(a), commercial real estate, equipment, agriculture, business term loans, and lines of credit

Top Online Delaware Small Business Loan Options 

Online bank loans are accessible nationwide and can often be competitive with bank loans obtained within accredited institutions within Delaware. Online loan processes are fast and are easy to fill out.

1. SmartBiz Loans

SmartBiz offers small business loans at competitive rates of 4.75 to 7.00%, over a repayment period of 10 to 25 years for values of $30,000 to $500,000. Checking whether your business can accept a loan takes five minutes for evaluation. SmartBiz offers SBA loans, PPP loans, and bank loans primarily. If you are an artist or craftsman PP loans may be a good option for you.

SBA loans at SmartBiz are competitive and have varying credit requirements, which are based on your loan requirements. Unlike physical banks, online institutions such as SmartBiz, help individuals with small businesses irrespective of the location of their business. 

2. Square Capital

Square Capital is the business financing arm of Square Inc. It’s known internationally for its Square Stand, a device that allows for in-person checkouts through iPad attachments and its popular app CashApp. Square Capital offers small business loans to over 435,000 businesses and has provided funding of $8.1 billion in funds. 

Unlike with other online and bank loan options, a loan with Square Capital can be directly taken out of your Square Stand point-of-sale device. Traditional repayment options are also available. 

Most notable is Square Capital’s flexible payment options. Because most small businesses repay their loans through their daily sales revenue, they can choose to repay various amounts on slower or faster days. This method is very effective for small businesses that don't have a physical structure or travel from cities within Delaware.

3. Camino Financial

Camino Financial offers small business loans with an approval process lasting only a couple of days. After filling out a brief introductory application you’ll be in contact, within 24 hours, by a business loan specialist to discuss loan options. 

Individuals can qualify for loans within two days if they have businesses that have been operating for a minimum of 9 months, and have sales of $30,000 annually or $2,500 monthly, and if they have a credit score of above 550. Interest rates compound monthly at a rate of 1.0% to 2.5% for monthly payments over two to five years. 

Camino Financial was founded to develop growth in low-to-medium income areas, and more specifically, to increase the credit scores of businesses that banks wouldn’t traditionally accept. A significant objective of Camino Financial is to help finance minority small business owners. 

Additional Delaware Small Business Financial Resources

In this section, we will provide additional financial resources for small businesses in Delaware. 

Delaware Prosperity Program

The Delaware Prosperity Program is run by the Delaware state government and is a blanket term that covers a whole sleuth of business financing grants, research grants, workplace training grants, business networks, and investment networks. 

Delaware is essential for any small business owner or entrepreneur. Partnered R&D networks include the Delaware Crossing Investor Group, the First State Angels, the Angel Investment Network Mid-Atlantic, and Leading Edge Ventures. The government also awards EDGE Grants within two tracks: STEM and general startups. Riskier businesses can also be funded through the Delaware Capital Access Program and State Small Business Credit Initiative Participation Loan.

Grow Wilmington Fund

The Grow Wilmington Fund offers Delaware small business loans at below-market interest rates with longer loan terms. The Grow Wilmington Fund is a culmination of efforts between the Grow America Fund and the City of Wilmington's Office of Economic Development. Companies with two to 500 employees, which make between $500,000 and $20,000,000, can apply. 

To be eligible for these loans businesses also have to serve a public function either by creating permanent jobs, serving low- or medium-income areas, be located in redevelopment areas and Enterprise Zones or if the business serves or is a minority or female-owned business. The loans can be repaid over 10 years, with some specific loans being repaid in 25 years. 

The interest rates are fixed at a seven-year treasury rate of 2%. The borrowing allowance is between $150,000 and $2.5 million. The loans can be used to pay for working capital expenses, machinery and equipment expenses, real estate acquisition (not real estate investment), and tenant improvements.

How to Prepare for a Delaware Small Business Loan

To obtain a small business loan in Delaware, you’ll need to prepare various documents. The type of documents you require, may vary according to the loan you are applying for. 

If you follow the steps listed below, you’ll have a greater chance of obtaining a loan:

  • Improve your credit score - your credit score will often determine the amount of interest you will pay. A higher credit score will often mean lower interest rates and higher loan payments. 
  • Register your business - registering your business notifies the lenders of your business's legitimacy. Registering your business will also connect you to the state of Delaware so you can be notified of grant possibilities. 
  • Create a business plan - if your small business is a startup, you must create a business plan. A business plan will explain how your business will grow and what you’d be using your loan for. Banks and lenders often look at business plans to see how safe their investments are. 
  • Obtain all legal documentation - this paperwork may show your business's status and is often requested to prove the legitimacy of your business. It’s crucial to show your balance sheets when applying for a loan because lenders are interested in seeing how you earn revenue.
  • Opening a business checking account - generally speaking, if you show that you have existing lines of credit - either at the place you are trying to get a loan from or elsewhere - it shows that your business is accountable for its debts and keeps track of their expenses.

The Bottom Line

Delaware has a great range of small business loan options and also has a proven track record of being a state that supports small business owners. There’s a lot to consider when choosing a lender to go with. Each loan option has its own advantages and pitfalls. When deciding which loan to apply for, you should consider the type of business you plan to run and how you plan to grow your business.