|At a glance — The number of small businesses in Ohio is growing steadily. According to the 2020 Small Business Profile, there are over 965,000 in the state, accounting for 99.6% of all Ohio companies. Over 2.2 million employees work in these establishments.Data from the past decade shows an average Small Business Administration (SBA) loan of $164,053 for Ohio. With 15.52% of small companies receiving a loan, Ohio ranks as the third best state to get a business loan.|
Top 3 Ohio Small Business Loan Options
Here, we’ll show the top five private sources of Ohio small business loans. You’ll find a short description of each lender, followed by a table that summarizes amounts, rates, and other pertinent information.
1. Economic and Community Development Institute
The Economic and Community Development Institute (ECDI) is an excellent source of Ohio small business loans. This organization serves 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 5% of the loan amount in closing fees. To qualify, you’ll need to participate in financial training.
The Small Business Solutions Loan is a microloan from ECDI that can provide up to $2,500 with a twelve-month repayment term. There’s a fixed APR of 7% for this solution, which is available to entrepreneurs who are members of the Women’s Business Center.
ECBI is one of the top intermediaries for SBA funding and targets 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.
2. Fifth Third Bank
Fifth Third Bank offers Ohio small business loans and lines of credit. 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.
- The company has a tangible net worth below $15 million.
- Two-year average net income after taxes isn’t over $5 million.
3. Huntington National Bank
Huntington National Bank has repeatedly ranked as the best SBA lender in Ohio. It provides the following types of SBA loans:
- 7(a) for acquiring, opening, or expanding a small business
- SBA Express, offering an expedited review process
- 504, which can pay for the equipment needed to modernize or expand a small business
In addition to SBA financing, Huntington also offers business term loans. Funding is also available for real estate purchases and dental and veterinary practices.
You can access a business line of credit online or by phone. Fixed and variable interest rates plus flexible repayment options help you tailor the loan to your company’s needs.
Dental and veterinary financing can help entrepreneurs start or acquire a practice, purchase equipment, or expand office space. These loans can also pay for construction expenses.
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.
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.