washington

How to Get a Small Business Loan in Washington State

Washington State has become the new business hotspot on the West Coast. This state boasts a vibrant technology industry which contributes to its current robust economic environment. So, how can you take advantage of the opportunities presented by the State of Washington? And, what challenges will you face as you launch and grow your business? On this page, we look at the best small business loan options in Washington State.

At a glance The ongoing economic growth in Washington State has made it the best state to get a small business loan. Small businesses represent 99.5% of all the organizations in Washington, making it the 12th largest economy in the U.S. There are over 608,956 small businesses registered in the state, which employ over 1.4 million workers. The average loan amount is approximately $300,000. Selecting an appropriate small business loan in Washington State is crucial as each lender has different interest terms, documentation requirements, and loan amounts on offer.

Top Washington State Small Business Loan Options 

In this section, we look at the best small business loans in Washington State and briefly explain the benefits of each loan, the loan amounts, rates, and other valuable information. 

SBA Loans

The Small Business Administration (SBA) offers loan assistance to small businesses through government-endorsed guarantees, eliminating some of the risk of the financial institution issuing the loan. The SBA works with approved financial institutions, such as banks.

Applying for an SBA loan can be time-consuming. It can sometimes take up to three weeks to process an application, as the SBA must perform due diligence. Nevertheless, the SBA will also cover up to 85% of the loan amount if you can’t repay your loan. The requirements to qualify can be challenging and an SBA loan may not be the best option for new businesses.

National Funding

National Funding has been granting small business loans since 1999, and has provided over $2.5 billion in capital to over 40,000 businesses across the US. You can complete the application process from your mobile phone. Funds are available within 24 hours of your loan approval, and you can use them for any business expense, from marketing to payroll. 

At National Funding, they have experienced loan specialists who will help you grow your business. National Funding delivers in six key areas: minimal paperwork, high approval rates, fast funding time, early payoff discounts, no requirement for a perfect credit rate, and renewable sources of capital. Other business solutions from National Funding include credit card processing services and merchant cash advances.

PayPal Working Capital

Small businesses can use PayPal’s services to accept online payments and send invoices. With PayPal Working Capital, businesses can also access specialist funding and cash advances in just minutes. With the help of the PayPal Loanbuilder, you can create your own loan and get estimated loan options immediately. You can also adjust the loan terms so that they meet your requirements.

If you wish to apply for a loan through PayPal, you must have had a PayPal Business or Premier account for three months, or you must be able to show a minimum of $20,000 in annual PayPal sales (if you’re a Premier user) and $15,000 in annual PayPal sales (if you have a Business account).

Below is a summary table of the main features of each provider:

PROVIDER

AMOUNT OFFERED

APPROVAL TIME

REQUIREMENTS: Revenue and credit scores

SBA Loans

$500 - $5,5 Million

3 weeks

Annual revenue of $100,000

Credit score of 640

National Funding

$5,000 - $50,000

24 hours

Annual revenue of $100,000

Credit score of 500

PayPal 

$5,000 - $500,000

Less than one hour

Annual revenue of $42,000

Credit Score of 550

Top Online Washington State Small Business Loan Options 

When looking for the best small business loan in Washington State, you should also consider online small business loans. Not only do they have a quick turn-around time, but they’re also available nationwide. We explain each provider’s benefits and features to help you make the right choice for your business.

1. BlueVine

When you apply for a small business loan through BlueVine, you can get your approval within five minutes and access to your funds on the same day. BlueVine offers small business owners multiple loan options, from a line of credit to invoice factoring. Your business must have been running for three months to qualify for a loan. To apply for a line of credit, you must have been in business for at least six months.

BlueVine offers multiple term lengths for different financing needs. It also considers businesses with bad debt. If your credit score is below 630, they’ll take your business’s cash flow into consideration. If you’re applying for an invoice factoring account, they’ll check the creditworthiness of your customers. Their credit line carries short repayment terms of up to 12 months and is payable weekly or monthly. BlueVine’s fixed interest rate can be as low as 4.8%, depending on your circumstances, and their online customer support is fast and efficient.

2. Fundbox

Fundbox is a financial services platform that offers small businesses various credit and payment solutions. Fundbox helps you optimize cash flow for your small business by offering both a line of credit or a term loan. 

The line of credit is ideal when cash flow is a problem and you need to cover significant expenses. You can use your line of credit for purchases like inventory, supplies, or operating expenses and can pay back the loan anytime, without any early repayment fees. On the other hand, term loans are loans that you use once and repay once, with interest.

To apply for a loan with Fundbox, you must be willing to share some basic business information, such as at least two months of business activity in any supported accounting software. You must also have a business bank account. 

3. Kabbage

Kabbage is flexible, technology-driven, and lets you see all your finances in one secure place. The application process is quick, as you simply connect your business checking account, bookkeeping software, or payment platform to their site. Kabbage requires a minimum credit score of 560, at least one year in business, and annual revenue of at least $50,000.

Kabbage had to furlough employees in March 2020 and pause its traditional lending operation.

The company turned its attention to the government’s Paycheck Protection Program (PPP) and has processed more than 130,000 such loans, primarily to businesses with five or fewer employees.

Additional Washington State Small Business Financial Resources

The State recently announced the Washington Small Business Emergency Grant program to assist small businesses impacted by the COVID-19 outbreak. Up to $5 million in funds are provided through the Strategic Reserve Fund and administered by the State Department of Commerce. 

Other Resources for Small Businesses in Washington State

The Washington Small Business Development Center (SBDC) gives you the advice you need at no cost. More than 30 expert business advisors work in communities across the state to help entrepreneurs or small business owners start a business. They also give valuable advice on growing your business and how to buy or sell a business.

The state has also put together a meta site of resources, called the Washington State Coronavirus Web Portal, with links and official updates for use by businesses and workers related to the Coronavirus pandemic.

How to Prepare for a Small Business Loan in Washington State

When applying for the best small business loan in Washington State, keep the following issues in mind, as they could influence the outcome of your application.

Build Personal and Business Credit Scores

Your credit scores indicate your ability to repay personal debts, such as car loans, credit cards, and your mortgage. Small business lenders look at your personal credit score to determine how you manage your debt. You need excellent business credit and good personal credit to qualify for a bank small business loan or SBA loan. Online lenders tend to be more lenient when it comes to credit scores.

Know the Lender’s Minimum Qualifications and Requirements

Most lenders of small business loans in Washington State will first look at your credit scores and annual revenue and then the years in business before granting a loan

Gather Financial and Legal Documents

The financial and legal documents you may need to apply for a small business loan in Washington State include:

  • Your personal and business income tax returns
  • Balance sheet and income statement
  • Personal and business bank statements
  • A photo of your driver's license
  • Commercial leases
  • Business licenses
  • Articles of incorporation

The Bottom Line 

If you’re an entrepreneur waiting to create your dream business, or an established owner looking to grow your small business, consider the many small business loans in Washington State.  With the quick and easy financing offered by small business loans, you can make your dreams a reality.  For busy entrepreneurs, we suggest you look at one of the many online small business loan options for their easy application process and quick turnaround time.