Small Business Loans Georgia

Before you start searching for small business loans in Georgia, you’ll want to ask yourself the what, where, when, why, and how questions:

• What are you using the money for?
• Where will I get the funding from?
• When do I need the funds?
• Why am I borrowing money?
• How much money do I actually need?

Taking these proactive steps can help set yourself up for success and allow you to fully take advantage of the opportunity. Some of these questions, like the when and the why, might seem unnecessary to ask yourself because they seem so simple.

However, asking yourself why you need the money can help you avoid “throwing money” at problems instead of actually solving them, which is a common misstep in financing.

If you’re growing, the reality is that you’ll likely need consistent capital to help support your growth and ensure your organization comes out on the other side of the financing tunnel as strongly as possible.

Now that you’ve asked yourself the important questions, it’s time to search for a lender to finance your business, otherwise known as the where portion of the above mentioned questions. Should you go for banks or lenders when it comes to finding the best small business loans in Georgia?

Banks

First, you have banks and credit unions, which are the original lending institutions. These lenders are characterized by strict eligibility criteria and lengthy underwriting processes. Businesses without high credit scores, extended times in business, and significant annual revenue might find it difficult to reach approval with a bank or credit union.

Although, it should be noted that these institutions carry lower interest rates compared to other lenders, and you shouldn’t let the strict requirements deter you from applying.

Online Lenders

Next, we have online lenders, which are sometimes called “alternative lenders.” These institutions are relatively new, and most of them provide their service exclusively online. Online lenders tend to have looser eligibility criteria than banks or credit unions, which allows more businesses to reach approval and grow their business.

However, the more accessible financing does come at a price, higher interest rates, so make sure to account for that as you conduct your research.

Searching through lenders and their various programs will require you to set time aside, which is something that many business owners can’t afford. Rather than take your focus away from your operation, you can team up with a marketplace of lenders, like National Business Capital, to streamline your search for financing.

Other than the previously mentioned lending institutions, there are some Georgia-specific programs that you can leverage to support your business growth, including:

• Georgia State Small Business Credit Initiative (SSBCI): Beginning as a subsection of the federal Small Business Jobs Act of 2010, the SSBCI allocates federal funding to strengthen lending programs in local communities. The program is further broken down into two subsections:
  • Georgia Loan Participation Program: In this program, Georgia’s state government backs up to 25% of a loan made by a bank for a small business. However, the loan amount must be between $100,000 and $5 million, and the government can only purchase a maximum of $250,000.
  • Georgia Small Business Credit Guaranty: Much like the other program, the Small Business Credit Guaranty involves the State government backing up to 50% of a small business loan.
• Access to Capital for Entrepreneurs (ACE): ACE small business loans are provided by one of the largest non-profit organizations in the state, and they’re designated as a community development financial institution (CDFI). CDFIs prioritize lending to underserved groups of individuals, like minorities, women, and veterans, to keep the market competitive. You can borrow up to $50,000 through ACE, with repayment terms ranging from three months to six years. ACE also provides one-on-one counseling services to help entrepreneurs navigate their industry and reach their fullest potential.
• Invest Atlanta: This lending institution provides small business financing to entrepreneurs located specifically in the city of Atlanta. You can borrow up to $100,000 through Invest Atlanta, with smaller subsections of the organization offering minor financing for individual needs. For example, their Atlanta Forward Loan Fund offers up to $20,000 to startups that deal with accelerators, incubators, or co-working spaces in the city.
• Southwest Georgia United: This lender is another CDFI, but they only serve select communities in southwest Georgia, including Ben Hill, Baker, Calhoun, Colquitt, Decatur, Early, Miller, Mitchell, Pulaski, Terrell, Thomas, Tift, Turner, and Wilcox. They offer up to $100,000 in financing, with maximum repayment terms of 25 years. The interest rate is a stagnant 6%, and you can use the funds for a variety of purposes, such as working capital management and equipment/inventory purchases.

There are many other lenders that can offer you small business loans in Georgia. Credit unions, like the Delta Community Credit Union, and banks like Wells Fargo, commonly finance entrepreneurs as they seek to grow their business. To find the best option for your situation, you’ll need to take the time to research, or you can team up with us at National, so we can do the heavy lifting for you.

While the aforementioned programs are great for Georgia business owners and entrepreneurs, exploring the traditional options available to you is worthwhile. Here are some of the most common financing products used today:

Term Loans

Term loans are some of the most common financing instruments, and a majority of the aforementioned Georgia-specific options are term loans at their core. This financing option is given in a one-time lump sum payment that you must repay over the terms outlined by your lender.

The repayment terms for term loans are tailored to your specific needs, and the interest rate you’ll pay will depend on your business’s financial information, your time in business, and the lender you’re dealing with.

Term length

Can be short-term or long-term – less than one year or up to 25 years

Interest rates

Starting at the prime rate to 6%

Ideal for

One-off purchases or investments, when you know exactly how much a project will cost, long-term financing needs

Business Line of Credit

A business line of credit is a revolving credit line that you can draw on whenever you need additional capital. Once you repay the amount you’ve taken, you can draw the same funds again, making this financing product one of the most flexible for business owners.

You won’t have to give your lender a plan on how you plan to use the borrowed amount, but you will have to make timely and consistent payments to ensure your line of credit is properly managed.

Additionally, you should note that interest rates on business lines of credit are often high, and you may have to pay an initial start-up fee to start using this financing product. 

You can secure a line of credit with significant borrowing limits, but you shouldn’t necessarily use this type of financing to make any major business decisions. The high fees, coupled with the need to make consistent payments on the line, make it excessively expensive to fund these larger ventures on a business line of credit.

However, many business owners choose to secure lines of credit on top of other loan products to manage their working capital and other expenses as they repay the more sizable loan. The options are endless, as long as you repay the amount you’ve drawn.

Term length

Revolving

Interest rates

Starting at the prime rate to 6%

Ideal for

One-off purchases or investments, when you know exactly how much a project will cost, long-term financing needs

Equipment Financing

Some industries rely on bulky and expensive equipment to conduct their daily operations. While this machinery improves productivity and makes cumbersome work easier, the price of the equipment stands as a massive hurdle to new entrepreneurs and existing businesses trying to keep up with their competitors.

Rather than find a way around using the equipment, you can break down the expense into more manageable monthly payments with equipment financing. Although, the total cost of the financing will end up being more than the price of the equipment itself due to the interest rate, so make sure to account for that before you make any final decisions.

Term length

Medium length, but it depends on your needs – two to ten years on average

Interest rates

 2% to 20%

Ideal for

Breaking down sizable equipment purchases into manageable payments

SBA Loans

If you’re looking to secure a sizable loan to support your business growth, SBA loans are one of the best choices available to you. You can borrow up to $5 million through the SBA’s 7(a) and 504 loan programs, and the interest rates are some of the lowest on the market.

This is because the government partially guarantees 75% to 85% of the borrowed amount, meaning that they will repay this portion of the loan if you default on your payments. The added layer of security allows lenders to offer financing at a lower cost to the borrower, but it also makes the eligibility criteria more strict. You will need to have:

• A strong credit score (685+)
• At least two years in business
• $500,000 in annual revenue

In order to qualify.

Term length

Can be short-term or long-term – less than one year or up to 25 years

Interest rates

Starting at the prime rate 

Ideal for

Borrowers with good credit

When looking for small business loans in Georgia, it’s important to keep in mind that Georgia’s economy is competitive, and you’ll need to take advantage of every opportunity that comes your way to earn a spot in your industry. Whether you’re in Atlanta, Macon, or along the Savannah River, you can use small business loans to grow your business and outpace your competition.

Some of the most influential and profitable businesses have leveraged small business loans at one point over their lifetime. If you want to take your operation to the next level, you can follow in their footsteps and reach your true potential.

At National Business Capital, we specialize in helping entrepreneurs grow. Our team of experienced Business Finance Advisors leverages a 75+lender marketplace to find best-fit financing options that meet the needs of your business. We do the heavy lifting for you, and we’re always just a phone call away if you ever need to ask questions.Ready to see the options available to you? Complete our streamlined, digital application in minutes and kickstart your financing journey today.