Small Business Loans New York
Access capital from market leaders in $100K to $10MM transactions.
Small Business Loan Qualifications
1+ Year in Business
$500K in Annual Revenue
No Minimum Credit Score
Although New York City is home to countless multinational corporations, small businesses constitute a critical part of local economies both within the city and throughout the state. In fact, government statistics show that 98% of all NYC businesses are small, out of approximately 220,000 businesses located in the city.
Each one of these businesses will deal with unique challenges throughout their lifetime, but fortunately, there is no shortage of small business loans to help these entrepreneurs serve their communities.
Many businesses rely on funding to launch or grow operations. In fact, lack of funding is one of the main reasons small businesses fail. Financing can be a critical lifeline in allowing you to smooth over cash flow disruptions and manage any challenges that arise.
Funding also allows you to go after new opportunities and expand operations. Continue reading for everything you need to know about small business financing in New York.
What Can Small Business Loans Be Used for?
At a glance, small business loans in New York can be used for:
- Working capital needs
- Inventory purchases
- Supplies or raw materials
- Marketing efforts
- Business acquisitions
- Real estate purchases
- Equipment or technology purchases
- Refinancing debt
- And more
What Are My Options for Small Business Loans in New York?
There are a few different ways you can find small business loans in New York. For starters, you may choose to work with a bank, credit union, or online lender.
– Banks and Credit Unions
Banks and credit unions boast some of the lowest interest rates on lending products in the market. That said, these lenders also tend to have strict requirements and low approval rates. You’ll typically need good credit and at least two years of business history – and even then, you may not qualify for funding.
Although banks do offer favorable terms and low interest rates, navigating through the process is difficult and time-consuming. The underwriting process can potentially take months, and that’s not to mention the difficulties of reaching an approval at all.
– Non-Bank Lenders
If you can’t find what you’re looking for at a bank or credit union, there’s an entire world of alternative lending that can help you meet your goals. Approval rates are significantly higher, and funding times are faster as well. In some cases, turnarounds are as quick as 24 hours. The downside is that online lenders tend to offer higher interest rates on average.
Online lenders are everywhere on the internet, but the sheer number of options can make choosing the right one for your circumstances more difficult than you’d anticipate.
You’ll have to apply with multiple lenders and compare the offers, which takes time and effort on your part. It’s not impossible, of course, but many entrepreneurs find it difficult to complete their research while managing the day-to-day of their operations. This brings us to our next option—marketplaces.
– Marketplaces
Marketplaces combine traditional and online lenders into one centralized platform, allowing you to apply once and receive multiple offers. You’ll still have to decide which option is best for your unique needs, though, so their real benefit is their increased speed and efficiency.
However, marketplaces like National Business Capital take the benefits of this type of lender one step further. We combine the speed and simplicity of our marketplace with expert advice from our team, which helps you narrow down your search and secure your funds in record time.
– Small Business Grants
There are a number of non-profit and government-sponsored small business loans in New York worth exploring, such as
- Empire State Development’s Small Business Division: Browse microloans (up to $25,000) and larger funding options from state-sponsored programs and New York State (NYS) approved lenders. Qualifying businesses must have under 100 employees.
- NYC Capital Access Loan Guarantee Program: Guarantees up to 40% of the loan for qualified New York City micro and small businesses who have traditionally struggled to access loans. Businesses must have less than 100 employees to be considered.
- WE NYC: This NYC-based fund specifically invests in female entrepreneurs looking to grow their businesses.
- Excelsior Growth Fund (EGF): Non-profit organization providing small business loans and business advisory services throughout New York, New Jersey, and Pennsylvania.
Types of Small Business Loans in New York
The most common types of small business loans in New York that you can get for your business include term loans, business lines of credit, SBA loans, and alternative loans, among others. They differ mainly in term length, interest rates, as well as the purpose of the loan.
New York small business loans and funding programs can be a great resource, but they can often fall short of fulfilling all your business’s financing needs. More mainstream financing solutions may be a better fit if you’re looking for a larger amount of capital or need funds quickly.
| Type of Financing | Term Length | Interest Rates | Ideal for |
| Term Loans | Can be short-term or long-term – less than one year or up to 25 years | Prime rate + 2-30% | One-off purchases or investments, when you know exactly how much a project will cost, long-term financing needs |
| Business Line of Credit | Revolving | Prime rate + 2-30% | Ongoing purchases or investments, working capital needs, when you don’t know the final cost of a project, long-term financing |
| SBA Loans | Can be short-term or long-term – less than one year or up to 25 years | Starting at the prime rate | Borrowers with good credit, borrowers looking for the lowest-cost options |
| Revenue-Based Financing | Short term – between 8 and 18 months | Factor rates: 1.1 to 1.8 on average | Borrowers with challenged credit, high profitability, and those with short term plans |
| A/R Financing | Varies based on the structure, but generally mid-term with options to renew | Factor rates: 1.1 to 1.8 on average | Businesses with strong, current B2B receivables |
Small Business Loan Interest Rates in New York
Interest rates vary based on a number of factors, including the lender you’re working with, the financial background of your business, the type of financing you’re seeking, and the economic conditions surrounding your transaction, among many others.
Interest rates are broken down into two categories: fixed and variable. Fixed interest rates stay the same throughout the term, while variable interest rates fluctuate based on the Federal Reserve’s prime rate.
| Type of Interest Rate | Best for |
| Fixed | When you believe interest rates will rise in the future |
| Variable | When you believe interest rates will fall in the future |
If you’re looking to get the best interest rate on your financing, you’ll need to start the application process as prepared as possible. Proactively strengthen your credit score, prepare all relevant documentation beforehand, and apply with multiple lenders to ensure you have options to choose from.
Eligibility Criteria for Small Business Loans in New York
Eligibility criteria vary depending on the type of financing you’re applying for and the lender you’re dealing with. Generally, you’ll need at least 1 year in business, $120,000 in annual revenue, and a 580 credit score to meet most minimums.
At National Business Capital, you’ll have to meet the following:
- 1+ Year in Business
- $500,000 in Annual Revenue
Once you meet the relevant criteria, you’ll start to apply with lenders of your choice. Each one may require different documentation than the other, but here’s a list of the most commonly requested:
- At least one full year of business bank statements
- Two – most recent – business tax returns
- Balance sheets
- Cash flow statement
- Profit and loss statement
- Business debt schedule, if applicable
- Details of accounts receivable and accounts payable
- Description of and proof of ownership for collateral
- Proof of business insurance
- Licenses, permits, articles of incorporation, and other legal documents
- Business certificate
- Detailed personal financial information
- Complete business plan, including a detailed description of your business, products or services, structure, management, and marketing plan, as well as financial projections
How to Get Small Business Loans in New York
Getting a small business loan can be as easy as filling out an application and handling a few phone calls. Finding the right small business lender for your business, however, isn’t as straightforward.
If you’re looking to get a small business loan in New York or otherwise, here are the steps you’ll need to take.
- Research lenders, their qualifications, and offered programs
- Find a list of 5-10 top choices
- Prepare the relevant documentation, then apply with each
- Wait for decisions
- Filter through your approvals and select the best one(s)
- Negotiate terms with the lender
- Once a contract makes sense, finalize it, then receive your funds
All of this requires time, effort, and patience. If you want to skip the line and have an expert do the research for you, reach out to National Business Capital.
Why Choose National Business Capital?
National Business Capital, a Specialty Finance Group, makes it easy for businesses to grow and scale.
Instead of taking the time to fill out multiple applications, you can apply with us once and receive multiple competitive offers. Our Business Finance Advisors learn about you, your business, and your goals to find the right lender for where you’re headed.
We advocate for your business every step of the way. All you have to do is tell us how much you need and when you need it. The speed, simplicity, and professionalism of our process have eased the complexities of growth and pioneered the way for over $2 billion in financing.
Apply now to see why so many entrepreneurs trust New York’s leading FinTech business financing marketplace.
FAQs
Can My Small Business Qualify for a Loan in New York?
Yes! Your small business can qualify for financing in New York if you meet the eligibility criteria of your lender. Typically, lenders will require a 580+ credit score, at least a year in business, and a minimum of $500,000 in annual sales to offer capital.
However, businesses without these qualifications can still secure the funding they need, but they might have to search a little longer and offer collateral.
What Is the Easiest SBA Loan to Get in New York?
The SBA’s microloan program is among the easiest SBA loan programs that you can qualify for. With borrowing maximums of $50,000, this option is perfect for entrepreneurs seeking a minor amount of capital to help support their operations.
However, you should note that the SBA’s eligibility criteria are strict compared to those of alternative lenders, so you’ll likely still need a high credit score and solid annual revenue to qualify.
What Credit Score Is Needed for an SBA Loan?
You’ll need a credit score of 640+ to give yourself the best possible chance of qualifying for an SBA loan. If your credit score is less than that, you should consider preemptively strengthening your score before you apply.
Remember: The higher your score, the easier it is to reach approval.
Is It Difficult to Get an SBA Loan in New York?
It’s not difficult to qualify for an SBA loan in New York, so long as you meet the minimum eligibility criteria. If you have at least one year in business, a 640+ credit score, and generate a minimum of $500,000 in annual revenue, you’ll likely find the process very easy.
However, if you don’t meet those guidelines, you might want to consider proactively strengthening your organization’s financials to prepare for the process.
What Disqualifies You From Getting an SBA Loan?
Other than not meeting the minimum requirements, you may get disqualified from getting an SBA loan if your business is “engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole,” according to the SBA.
What Are the Requirements for Small Business Loans in New York?
The requirements for small business loans in New York will depend on the lender you’re doing business with. Some lenders, like banks and credit unions, will want to see high credit scores, a lengthy time in business, and substantial annual revenue in order to qualify.
On the other hand, other lenders might not have these strict requirements, like alternative lenders, who often have loose eligibility criteria. To get the best deal, it’s important to shop around and compare your options.
How to Get a Small Business Loan
Hear CEO Joseph Camberato discuss strategies to secure the right small business loan for your business.
$2+ Billion Financed
Since 2007, National Business Capital has accelerated business growth nationwide
How It Works
You’re only a few clicks away from the capital you need to reach your full potential.
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1.Apply Safely & Securely
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2.Review Your Offers
Our expert Business Finance Advisors reach out within minutes, taking the time to learn about you, your business, and your goals.
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3.Start Growing
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