A Complete Guide to Business Loans in Florida
Mon | January 2024
Want to take advantage of Florida's $1.6 trillion economy? In the first three months of 2023, Florida's economy grew an impressive 3.5% compared to the previous year. It also accounted for 5.7% of the entire US economy, ranking fourth among all states. This rapid economic growth has created many opportunities and intense competition for business owners in Florida.
If you aspire to thrive in this vibrant market, getting the right financial support for your business is vital. In this guide, we will navigate the world of business loans in Florida. We explore local companies for small businesses, including SBA loans, Florida Credit Union, and One Park Financial. We also mention their main requirements and explain how they can help your business grow.
Start your growth journey today, outperform the competition, and achieve your dreams in Florida's active economy.
Let's see how.
1. SBA Loans in Florida
The Small Business Administration (SBA) has different government-backed loan programs that you can apply for in Florida. These include the 7a, 504, and Express programs, which allow you to purchase working capital, new equipment, and real estate for your small business. Everything will depend on your business's needs and each program's minimum requirements.
The essential features of SBA loans are that they typically have low interest rates and extended repayment terms. Which means you will have more time to return the borrowed capital. Plus, instead of making smaller monthly payments over a shorter period, you'll spread the payments over a more extended period. However, the terms and conditions of each business loan change depending on the program to which you apply.
7(a) loan program is one of the SBA's leading programs. The capital you can request ranges from $500,000 to $5 million, with a negotiable interest rate (the highest SBA rate is 15.00%).
On the other hand, the SBA 504 loan program is specifically for business owners looking to acquire assets that promote business growth and job creation. This includes purchasing, constructing, or remodeling existing buildings or land. Some of the requirements you must meet to obtain a 504 loan are:
Operate as a for-profit company in the United States or its territories.
Have a tangible net worth of less than $15 million. This value represents the physical assets of your business.
After federal income taxes, your business's average net income must be less than $5 million for the two years before you apply for the loan.
It would help to have a business credit score of 680 or higher.
Like any business loan, SBA loans have their advantages and disadvantages. For example, SBA loan applications are more extensive and complex than loans from banks or online financiers. Getting approval can take weeks or even months. This can be a drawback if your business needs capital quickly.
Before applying for an SBA loan in Florida, you analyze the essential requirements and choose the program that best suits the needs of your small business. You can consult the SBA website for more information about the different SBA loans in Florida.
2. Enterprise Florida
Enterprise Florida, Inc. (EFI) is a top economic development organization in Florida. It's a partnership between business and government leaders who want to grow and diversify Florida's economy by creating good-paying, highly skilled jobs. EFI works with economic development partners across the state to achieve this goal. Enterprise Florida has two programs that can help you get a loan for your small business in Florida.
These programs work with local funders and make it easy to apply for a loan. You can borrow up to $5 million for business investments like buying equipment, expanding your inventory, or running marketing campaigns.
These programs simplify the application process and may offer competitive interest rates and flexible payment terms. You could even receive valuable assistance and mentoring to strengthen your business plan and increase your chances of success.
Is Enterprise Florida right for you? The process can take much documentation, so you should be prepared to provide at least a business plan and financial projections. If you need immediate financing, other options may suit you better. For more details or to start your process, contact Enterprise Florida.
3. LiftFund
LiftFund is a nonprofit organization that helps small businesses in Florida. They focus on companies that traditional banks ignore, like women-owned businesses, minority-owned businesses, and startups. LiftFund has these main features: - They help neglected companies. They provide loans and support to minorities, women, and new businesses. - They offer flexible loans. They have different loan options, ranging from $500 to $500,000. This helps companies pay for essential things like equipment upgrades or access to working capital.
To get a LiftFund loan in Florida, you must meet the following requirements:
Employer Identification Number (EIN)
Social Security Number or ITIN Number
Driver's license information
Credit history details
Employer information
Two personal references
The last three months of business income
Co -Co-borrower information, if applicable
Consider the following factors for the application process:
Preparation: Gather all necessary documentation, including financial statements and business plans.
Submission: Complete the application form and send it along with your documents.
Duration: The process can take a few weeks to a few months, so planning it well is advisable.
To fully understand your lending needs, go to LiftFund 's Florida page. When applying for a loan, you must complete all detailed documentation.
4. Florida Credit Union
Florida Credit Union (FCU) is a financial institution owned by its members. It is headquartered in Gainesville, Florida, and serves the North Central Florida area. FCU offers various services like business loans, commercial mortgages, lines of credit, term loans, and SBA loans. To use these services, you must first become a member of Florida Credit Union. Most people who live or work in certain parts of Florida and their families can become members.
Joining FCU is free. All you have to do is open a savings account with a $5 balance. That small deposit buys you one share of ownership in FCU! Businesses must meet specific criteria set by FCU in addition to membership. The criteria include:
Being creditworthy.
Having a certain amount of business income.
Having an operating business history.
Keep in mind that the details of business loans in Florida might differ. Contact Florida Credit Union or visit their website for accurate and current information.
5. SunCoast Credit Union
SunCoast Credit Union is the largest credit union headquartered in Tampa, Florida. It is known for being friendly to startups and for its community focus. Suncoast Credit Union offers SBA loans, microloans, and equipment loans. It is a good option for small businesses seeking friendly, community-focused financing. However, it is essential to be aware of the potential limitations of using a credit union, such as fewer branches and slower loan approval times.
How much can you borrow? There is a maximum amount of capital that can be lent. If you need a large loan, check if it fits within your limits. The daily deposit limit is up to $2,500 for personal accounts and $25,000 for business accounts. Limits are subject to review and may change at any time. For more information on becoming a member, visit the official SunCoast Website.
6. Revenue-Based Financing in Florida
Local companies like One Park Financial offer access to a vast network of financiers and revenue-based financing programs. Borrowing capital from a bank or credit network usually involves a complex application process. For example, banks often ask for collateral (something valuable) to make sure they get their money back.
With revenue-based financing, funders give you fast working capital. In return, you share a small portion of a business's future revenues until the advanced capital is repaid. It's just like paying them back with a portion of your sales. This type of business financing is attractive because you can access capital quickly. It is not necessary to offer guarantees like bank loans, nor do you have to give up part of the ownership of your company. YES! After all, it's relatively simple to access a small business loan in Florida.
If you want to learn more about this type of financing, consider working with One Park Financial. A company that specializes in helping small businesses obtain operating capital quickly. Your business must have been open for at least three months and generate a minimum of $7,500 monthly revenue. If you meet these requirements, complete our online form and prequalify today.
A financing expert will contact you today and guide you through the options to find the best choice for your business. You could obtain between $5,000 and $500,000 if your financing proposal is approved in 72 hours.
Disclaimer: The content of this post has been prepared for informational purposes only. It is not intended to provide and should not be relied on for tax, legal, or accounting advice. Consult with your tax, legal, and accounting advisor before engaging in any transaction.