Written by Tetiana Sitiugina-Babiuk - Independent writer and content strategist, updated on 9/10/2021
|At a glance — Georgia has over a million small businesses, and more are appearing every day. It’s one of the best states to get a business loan as numerous lenders and non-financial resources are available. The average loan amount in Georgia is $124,893, with interest rates ranging from 3% - 7% on average. The loans provided often range between $13,000 - $1.2 million. So how can you go about getting your business financing, and where should you look for loan providers? Read on to find out more.|
Top Georgia Small Business Loan Options
The top methods for obtaining small business loans in Georgia are listed below.
The federal Small Business Jobs Act of 2010 spawned the Georgia State Small Business Credit Initiative (SSBCI). This act provides that each state gets federal money to expand local loan services that help small businesses. Georgia now supports small enterprises with two forms of financial assistance.
Georgia Loan Participation Program
Georgia state will buy up to a maximum of 25% of a small business loan granted to a company by a private investor or bank. The state's current maximum loan is $250,000. Loans vary between $100,000 and $5 million.
Georgia Small Business Credit Guarantee
Up to half of a small business loan in Georgia is guaranteed by the state. The estimated value is $400,000, with a $200,000 guarantee. Banks and participating lenders maintain their discretion regarding underwriting loans and their agreements with small business owners under the SSBCI. The state’s assurance lowers the lender's liability and allows them to lend to small business people who may not qualify otherwise.
Southwest Georgia United is a Community Development Financial Institution (CDFI) that provides small companies with microloans and business loans in 14 counties of Georgia. They go up to $250,000, with a limit of 75% of the overall project expense. Interest rates as low as 6% are available, with repayment periods of up to 10 years. These loans may be used for operating capital as well as machinery, property, and construction investments.
The microloans offered are only accessible to companies in Georgia's rural areas and cover 75% of the project expenses, up to $50,000. Stock, materials, operating capital, facilities, and debt refinancing are potential applications for these loans. Microloans have interest rates that start at 6% and can last up to 10 years, much like regular business loans. To get started, go to Southwest Georgia United's office in Vienna, Georgia, or call them.
Although Albany Community Together is a CDFI, it works uniquely. To offer gap funding, Albany collaborates with banking institutions and conventional lending institutions. For instance, if you require $50,000 to purchase equipment but the lender only provides $30,000, Albany Community Together can help you make up the difference.
Several loan services are available to companies in 35 counties of Georgia. Albany is a member of the SSBCI, and the SBA has allowed them to offer microloans. They also have City of Albany business loans customized to the needs of companies in Albany.
The Small Business Assistance Corporation is a CDFI that offers loans to companies in Savannah, Georgia, and South Carolina. They invest in a range of SBA funding schemes and offer a variety of other loan options.
A credit builder loan of $1,000 is available for small businesses as one of their loan options. SBAC reports your loan payments to the credit bureaus to help you boost your credit rating and apply for more significant amounts of credit.
SBAC also provides contract loan programs for companies that need financing to complete contracts for the municipal government. The SBAC's small steps loan program is another successful program. As businesses repay what they borrow, small business owners may qualify for larger loans and extended payment periods.
Credit unions, which are often ignored by small businesses, may be an excellent source of working capital. Credit unions limit who is eligible for their lending services to a particular demographic. Because of this, they often offer lower fees, better interest rates, and more benefits than banks.
Delta Community Credit Union is Georgia's largest credit union, serving everyone who resides, works, and owns a company in the Atlanta metropolitan area. Commercial real estate bonds, SBA loans, machinery, car financing, and even business credit lines are all available through Delta Community Credit Union. To get more details, contact one of Delta's business bankers or go to one of Georgia’s credit union branches.
Type of loan
State Small Business Credit Initiative
Loan participation program,
Loan guarantee program
Depends on the initial lender
Depends on the initial lender
25% of the initial loan up to $250,000
50% of the initial loan up to $200,000
Southwest Georgia United
75% of costs up to $250,000
75% of costs up to $50,000
Average 6% on both types
Up to 10 years on both types
Albany Community Together
$50,000 to $250,000
Three months to 72 months
Depends on the current market rate and the loan risk
Small Business Assistance Corporation
Credit builder loans,
Contract loan programs,
Small steps loans
It depends on contract costs
Up to $10,000
Up to 10 years for all loan types
Depends on the current market rate
Delta Community Credit Union
Commercial real estate bonds, SBA loans, machinery, car financing, and even business credit lines
It depends on what you need the loan for
Up to 240 months
It depends on the term and amount borrowed