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Washington State Small Business Loans

Washington 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.

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. 

1. 1st Security Bank

With 22 branches throughout the State of Washington, 1st Security Bank has been serving both personal and business customers since 1936. The bank offers a wide variety of small business loan options, including:

  • Business lines of credit. Business lines of credit are ideal for short-term financial needs, such as seasonal cash flow, working capital, equipment and accounts receivable, unexpected buying opportunities, and more.
  • Term loans. 1st Security Bank also offers conventional term loans with predictable payments at a fixed rate. This financing option is ideal for longer-term asset purchases, such as capital expenditures, equipment purchases, refinancing debt, titled assets, and more.
  • Small Business Administration (SBA) loans. Government-backed SBA loans offer flexible financing terms with an opportunity to get lower monthly payments. The interest rates are comparable to more traditional types of financing.

2. Wheatland Bank

Formed in 1979 in Davenport, Washington, Wheatland Bank is an independent, locally-owned community bank. Today, the bank has expanded to include 14 branches throughout central and eastern Washington, serving over 15,000 personal and business customers.

Wheatland Bank offers a variety of business loan and commercial lending products, including:

  • Business loans and lines of credit. Flexible terms and interest rates associated with this type of financing make it ideal to address short-term financial needs and manage seasonal cash flow.
  • Term loans. Term loans come with a structured repayment schedule customized to match your cash flow and ability to pay. These loans can be used to finance capital improvements, purchase equipment, or finance the expansion of your business.
  • SBA loans. SBA 7(a) and 504 loans are designed specifically for small businesses that may have difficulties qualifying for traditional business loans.
  • Other types of loans. Wheatland Bank also offers land acquisition and development loans, as well as construction and real estate loans.

3. Riverview Community Bank

Riverview Community Bank has been providing financial support to Washington-based small businesses for over 90 years. While the bank delivers full-service banking to its customers, it also provides a variety of lending solutions that benefit local businesses and communities.

As such, small business owners are welcome to apply for:

  • SBA 504 and 7(a) loans
  • Business lines of credit for operational and working capital purposes
  • Real estate financing for both non-owner occupied and owner-occupied properties
  • Term financing f

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

Provider

Types of Loans Offered

1st Security Bank

  • Business lines of credit
  • Term loans
  • SBA loans

Wheatland Bank

  • Business lines of credit
  • Term loans
  • SBA loans
  • Land acquisition and land development loans
  • Construction and real estate loans

Riverview Community Bank

  • SBA 504 and 7(a) loans
  • Business lines of credit
  • Real estate loans
  • Term loans

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 - Best for Invoice Factoring

When you apply for a small business loan through BlueVine, you can get your approval within five minutes and access 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 - Best for Short-term Loans

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 - Best for Line of Credit

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.

4. Biz2Credit - Best for Term Loans

If you are searching for a small business loan provider with high borrowing limits, it is worth taking a look at Biz2Credit. This established online lender offers three types of small business financing to Washington-based entrepreneurs:

  • Term loans. This type of funding is ideal for small-to-medium projects, with borrowing limits reaching $250,000.
  • Working capital loans. Working capital loans can range up to $6 million and are a great way to fund larger projects.
  • Commercial real estate loans. Should you require funds for commercial real estate acquisitions, this loan option can provide you with up to $6 million.

All three loan alternatives come with interest rates starting at a reasonable 8.99%. However, minimum credit score and application requirements are somewhat stringent, which makes it difficult for startups and small businesses to receive approval.

Additional Washington State Small Business Financial Resources

In addition to small business loans, Washington-based entrepreneurs are welcome to apply to a range of small business grants that don’t need to be paid back. Some of these grants are designed specifically for local businesses, while others are nation-wide opportunities, for which Washington-based businesses can qualify.

1. State Trade Expansion Program (STEP)

The State Trade Expansion Program is dedicated to providing awards for territory and state governments across the United States with the goal of assisting small businesses with export development. While this is a nation-wide program, the Washington State Department of Commerce has received an award of $1.35 million to provide funding to small businesses on a local level.

Through STEP, Washington small businesses can receive financial support to:

  • Participate in foreign trade missions
  • Learn to export
  • Support e-commerce capabilities and website globalization
  • Design international marketing campaigns and products
  • Participate in export training workshops and trade show exhibits
  • And more

2. Public Participation Grants (PPG)

The Washington State offers Public Participation Grants to individuals and non-profit public organizations with the goal of increasing public awareness about the issues related to recycling, waste management, and cleaning up of contaminated sites. The PPG awards can range up to $120,000 for funding larger, two-year projects.

So, if your small business falls within this small niche category, it is well-worth applying for a PPG grant.

3. USDA Rural Business Development Grant

USDA Rural Business Development Grant is available on a national level, meaning that those located in rural areas within Washington State are eligible to apply. The goal of the grant is to provide technical training and assistance for small rural businesses. In that context, “small” means that the business has less than $1 million in gross revenue and less than 50 new workers.

While small businesses cannot apply for the grant directly, rural towns, communities, nonprofit corporations, and institutions of higher education are welcome to apply. These organizations must then use the funding on projects that will benefit emerging and small businesses in rural areas, such as providing technical training, assistance with project planning, help with land acquisition or development, and more.

4. National Association for the Self-Employed (NASE) Grant

Small businesses across the United States, including those in Washington State, can receive up to $4,000 from the National Association for the Self-Employed. Keep in mind, however, that in order to qualify for the grant, you must be an active member of the organization for at least three months and demonstrate financial need.

In order to apply, you would need to provide your professional resume, your company’s business plan, and the outline of how this grant would contribute to your company’s growth.

Other Resources for Small Businesses in Washington State

In addition to financial support, various organizations within the State of Washington offer valuable non-financial services, such as business training and mentorship, professional guidance and advice, and more. Should you need any help with starting or running your business, make sure to check out the following Washington-based organizations:

Washington SCORE

SCORE is a volunteer-run organization with separate chapters in each state of the country. The organization is dedicated to providing support to small businesses in the form of free mentorship and education on how to start, grow, and manage a successful company.

The mentors at SCORE are experienced corporate managers, entrepreneurs, and executives from a wide range of industries. They are willing to share their experience and professional advice to help young entrepreneurs start and develop their own businesses. These mentorship sessions are free of charge and can take the form of a telephone or virtual meeting, or an in-person meeting at your place of business or an agreed location.

Furthermore, SCORE conducts regular educational workshops and training sessions related to establishing and running a small business.

The Washington Small Business Development Center (SBDC)

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 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 from conventional lenders, 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. Finally, don’t limit yourself to financial support exclusively, - the State of Washington is rich in organizations providing valuable training and education for new entrepreneurs.