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Across the country, small businesses rely on borrowed capital to fuel their growth and keep their businesses running. The same goes for small businesses in Virginia. Keep reading to learn more about Virginia small business loans.

With nearly 750,000 small businesses in Virginia, there are a lot of people employed in Virginia small businesses, about 1.5 million employees. That’s nearly half of all people employed in private business. In other words, small businesses in Virginia are an important part of the state’s economy.

Although there are many small business loan options available to business owners, they may be more difficult to obtain from a local bank. In fact, in recent years, the number of banks in Virginia has declined. And, since 2009, no new startup banks have been licensed in Virginia.

That doesn’t mean a Virginia business can’t find a small business loan, they may have to look in different places.

How a Virginia Small Business Loan Can Help You

Small businesses take advantage of borrowed capital for many different reasons. It can fuel growth, bridge a slow season, or bridge a short-term cash flow shortfall, to name a few.

In fact, there are more small business financing options today than ever before, but finding the right option for your business will require you to be a little more discerning when looking at what’s available.

Virginia Small Business Loan Options

the Virginia Small Business Financing Authority (VSBFA) has been providing Virginia businesses and nonprofits with the capital they need to grow and grow for more than 30 years.

In addition to the VSBFA, there are other options to consider, depending on your business’ financial situation and the type of financing you are seeking.

SBA Loans

With the exception of their disaster loan program, the Small Business Administration (SBA) is not a lender. SBA member banks generally offer Virginia small business loans that are part of the SBA Loan Guarantee Program. Interest rates for an SBA loan are often among the lowest with very favorable terms. This option for low-interest loans with long repayment periods offered by the US Small Business Administration is worth considering if your business qualifies. Some of these loans are also specifically for economic development in disadvantaged areas, while others are available to any eligible small business.

Traditional bank loans

The local bank has traditionally been the source of small business financing for small businesses for the past 100 years. If your personal credit score is above 680 and your business credit history is good, a bank loan is another good option for low interest rates and favorable terms.

Online loans

Whether you are looking for a short term loan or something longer term, small business loans are available from online lenders. Plus, the application process is simple, and you can often get your loan request answered in as little as 24 hours. Depending on the lender, loan amounts can range from $5,000 to $500,000 or more and the qualification criteria are less stringent than the bank or SBA.

A business line of credit

A business line of credit is probably one of the most popular ways to access borrowed capital for most commercial borrowers. It is flexible, it provides quick access to cash once it is in place, and the commercial borrower only has to pay interest on the amount of credit they use. A line of credit also allows small business owners to access the line of credit, pay off the line of credit, and use it again.

Business credit cards

Business credit cards are another flexible way for businesses to access borrowed capital and are one of the few ways a start-up or start-up business can leverage credit to access working capital to meet business needs. ‘business.

Many business credit card providers often rely on your personal credit history to approve a business credit card, which means that if you have a good to excellent personal credit score, you can get approved for a certain number of business credit cards.

Equipment financing

Equipment financing is another option for many small businesses. This is a good option because many items a business needs can be considered equipment, not just large construction or manufacturing equipment. For example, the pizza oven in a restaurant or the computers in an office are all considered equipment.

Since the purchased equipment serves as collateral, many businesses that might not qualify for a more traditional term loan or line of credit may qualify for an equipment loan.


If your business can leverage a small loan amount to have a big impact, a microloan could be a good option for you. Some microcredits are even available with a very low or even zero interest rate.

How to get a small business loan in Virginia?

Depending on the lender you choose, you will either need to go to the bank or credit union where you intend to apply, or you can, in many cases, apply online. If you are looking for an equipment loan, many equipment dealers offer financing at the time of purchase, or you can apply online.

Online lenders can have very short applications that require little more than your business details, time spent in business and annual income.

How much can I get in a Virginia small business loan?

Loan amounts vary depending on the nature of the loan, the lender and your creditworthiness. Microloans, for example, will likely be from less than $50,000 (the SBA threshold) to as little as $5,000 or $10,000.

Some online lenders will lend up to $500,000 to qualified borrowers, and a bank or credit union in Virginia could lend up to several million dollars.

How to Get an SBA Loan in Virginia

Although the SBA does not provide loans directly, any participating SBA lender will accept your loan application for one of the SBA loan offers. You can also apply for an SBA loan through Nav or speak with a local SBA representative in Virginia at 804-771-2400.

This article was originally written on June 21, 2021.

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