Small businesses in Florida make up 99.8% of the Sunshine State’s businesses, and they employ 3.6 million Floridians, according to the U.S. Small Business Administration (SBA). 

If you’re looking to start a new business or expand an existing one, there are plenty of opportunities for financing, both locally and nationally.

Local Small Business Loan Options for Small Businesses in Florida

If you like the idea of going local, there are plenty of small business loans in Florida to consider. Here’s a list of some of the top options to consider.

Microfinance Guarantee Program

Enterprise Florida, the principal economic development organization for the state, works with private lenders by providing a guarantee of up to 50% on loans to select entrepreneurs. 

Some of the program’s participating lenders include Citizens Bank & Trust, First Commerce Credit Union, Marine Bank & Trust, United Bank, Seacoast National Bank, and Neighborhood Lending Partners.

To qualify, your business must be located in Florida, have 25 or fewer employees, and have an average of $1.5 million or less in gross annual revenues for the previous two years. Microfinance Guarantee Program loans can be as much as $250,000.

State Small Business Credit Initiative

The SSBCI was created in 2010 to provide funding for Florida businesses owned or controlled by socially and economically disadvantaged individuals, which includes minorities, women, veterans, rural residents, and more.

Some of the programs under the SSBCI include collateral support, loan participation with private lenders, loan guarantees, loan portfolio insurance, and even venture capital. 

Any small business with 500 or fewer employees is eligible, and you can use the funds for a variety of purposes, such as:

• Startup costs
• Working capital
• Business procurement
• Franchise fees
• Equipment
• Inventory 
• Purchase, construction, renovation, or tenant improvements of an eligible place of business 

That said, you can’t use it for a passive real estate investment.

Florida Black Business Loan Program

If your business is at least 51% Black-owned, you may qualify for the Florida Black Business Loan Program. Some of the other requirements include:

• The business is owned by U.S. citizens or permanent residents.
• Your business is a for-profit corporation (sole proprietorships don’t qualify).
• You can demonstrate that the loan will help create new jobs.
• You plan to use the funds for working capital, cash flow, inventory, or equipment.
• If your business is less than one year old, you must make a 20% down payment. 

These loans, which are offered through Miami Bayside Foundation and FAMU Federal Credit Union, generally range from $5,000 to $75,000, but you may qualify for up to $250,000. 

LiftFund

LiftFund is a nonprofit Community Development Financial Institution (CDFI) and Community Development Corporation (CDC) that works with entrepreneurs who may have difficulty obtaining capital. 

More specifically, LiftFund offers small business loans of up to $250,000, primarily for women and minority entrepreneurs. They partner with the SBA, a nonprofit organization that offers startup loans, microloans, 7(a) Community Advantage Loans, and 504 loans.

Florida Credit Union

If you live in one of the 48 counties that Florida Credit Union serves, have an immediate relative who’s a member, or meet any of the other membership eligibility requirements, you may be able to apply for a loan. 

The credit union offers a variety of options, including:

• Car, truck, or van loans
• Equipment and machinery loans
• SBA loans
• Business real estate loans
• Business lines of credit
• Business credit cards

Note that the eligibility criteria for each of these loan options can vary. Contact the credit union to learn more about what’s required to qualify.

Rebuild Florida Business Loan Fund

Offered in partnership between the Florida Department of Economic Opportunity and the U.S. Economic Development Administration, the Rebuild Florida Business Loan Fund offers loans ranging from $25,000 to $2.5 million with reasonable interest rates and terms.

Eligible businesses must use the proceeds for:

• Purchase orders
• Seasonal financing 
• Purchase of inventory
• Machinery, and equipment 
• Acquisition of land as part of a business development project
• Furniture
• Fixtures and equipment
• Commercial real estate
• Landscape 
• Business acquisition
• Business expansion 

To qualify, you must be someone who is lawfully in the U.S. and have an appropriate work visa, be located in Florida, operate primarily in Florida, be authorized to operate in Florida, and be able to legally contract debt. Note that all loans require collateral.

National Small Business Loan Options for Small Businesses in Florida

There are plenty of business financing opportunities outside of Florida, primarily through banks, credit unions, and online lenders. Here are some to consider.

Bank Loans

These loans are offered through traditional banks and credit unions. They typically come with favorable terms, including high loan amounts, low-interest rates, and more flexible repayment terms. Additionally, bank loans can come in the form of term loans and lines of credit. 

That said, these loans typically require that you have a strong financial track record, at least a few years in business, and a good business credit history. You can find these loans from any bank or credit union that offers commercial financing on a national level. 

SBA Loans

SBA loans are loans that are offered through private lenders but partially insured by the SBA. Like bank loans, these loans typically come with very favorable terms, including capped interest rates, long repayment terms, and a variety of options that you can tailor to your business needs.

But also like bank loans, SBA loans tend to have relatively stringent requirements, which are generally set by the approved lenders. 

Also, keep in mind that these loans can take up to 90 days to fund. So while they’re excellent for long-term needs, they may not be the best fit if you need capital immediately. You can get started on the loan process through the SBA lender match tool.

Online Loans

Online business loans can come in a variety of options, including term loans, lines of credit, invoice financing, merchant cash advances, and more. 

These loans tend to have less stringent requirements than bank and SBA loans, but they also come with higher interest rates/fees and, sometimes, also less flexible repayment options.

Online loans can be a good fit if your small business is relatively new, doesn’t have a strong credit history, or if you need quick funding. Before you apply, however, take your time to shop around and compare multiple options to ensure that you get the best deal.

How to Get a Small Business Loan in Florida

The process for getting a small business loan in Florida can vary depending on the type of loan you’re applying for and the lender. That said, here are some general steps you can take:

1. Prepare your business: For starters, you’ll want to make sure that your business is registered in Florida, particularly if you’re trying to apply for a loan from a local provider. You’ll also want to have an employer identification number (EIN), which you can get through the IRS, and a business bank account to make things official and also allow you to build your business credit history.
2. Compare your options: Take some time to research and compare multiple loan options. There are many different types of small business loans available, so you’ll want to make sure you get one that serves your specific needs and eligibility.
3. Compare lenders: Once you’ve figured out which type of loan you want, go through the same research process with individual lenders. While it may be tempting to make things easy and go through your current bank or credit union, you may be able to get better terms with another financial institution.
4. Prepare your business plan: In addition to reviewing your credit history, financials, collateral, and other aspects of your creditworthiness, lenders may also want to see your business plan. This plan should explain how you want to use the funds to build your business, your experience, a competitive analysis, and other sections to convince the lender that it’s a good match.
5. Submit your application: Once you’ve gathered all of your documentation and understand the requirements, submit an application directly to the lender of your choice.

What Is the Minimum Credit Score for a Business Loan?

There is no general minimum credit score to obtain a business loan—there are options available for business owners across the credit spectrum. 

However, the higher your business credit score, the better your chances of securing a loan with favorable terms. One way to do that is with a business credit builder loan through Credit Strong. 

You can build up to $10,000 in commercial credit with affordable or no interest payments. Credit Strong reports your monthly payments to commercial credit bureaus, which can help you establish a positive business credit history.

How to Qualify for a Small Business Loan in Florida

Business lenders typically review a lot of different factors when you apply for a commercial loan. In addition to your business credit scores, lenders may also consider:

• Annual revenue
• Time in business
• Cash flow
• Outstanding debt
• Personal investment
• Personal credit history
• Household income
• Business plan
• Economic factors

You’ll likely need to prepare several documents, including registration papers, articles of incorporation (if applicable), tax returns, bank account statements, a balance sheet, a cash flow statement, a profit-and-loss statement, and more. 

Contact your lender before applying to understand what’s required and your chances of approval.

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