Small business loans & SBA loans in California.

With its world-class economy, California is a land of bounty for small businesses, and a business loan can be instrumental in helping your business launch, grow, and thrive in the Golden State.

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Applying is free and won't impact your credit*

Loan types in California.

A wide variety of business loans are available for Californian businesses, and it’s critical that you research your options to determine which will work best for your company.

SBA loans

SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.

Line of credit

Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.

Term loan

Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.

Equipment finance

With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.

Accounts receivable financing

Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.

Local business loan options in California.

Several local organizations provide small business funding resources in California.

The state government has several lending options for Californian small businesses, including the small business loan guarantee program and California Capital Access Program (CalCAP).

IBank, another program connected to the state government, is focused on providing loans to small businesses across the state in a transparent, easy-to-understand manner.

The Accion Opportunity Fund is a small business-serving non-profit with the goal of getting loans to entrepreneurs, particularly those from underserved backgrounds.

Los Angeles Federal Credit Union (LAFCU) is provides loans for any business-related purposes from advertising costs to costs related to expanding a business to Southern Californians.

Fresno First Bank offers various SBA loans, including SBA 7(a) loans, SBA express loans, and SBA 504 loans, to small businesses across California’s Central Valley.

Working Solutions offers business loans of $5,000 to $100,000 with no collateral requirement to businesses in Northern California. To be eligible, owners must be current on all debt and have a secondary source of income if they are a startup.

San Diego Commercial & Business FInancing focuses primarily on commercial real estate but also offers SBA 504 and SBA 7(a) loans.

Heritage Bank of Commerce has 17 offices in the Bay Area and offers business lines of credit, SBA loans, equipment loans and commercial real estate loans.

JFLA is a nonprofit offering interest-free small business loans to Los Angeles, Ventura, or Santa Barbara County residents. The organization works with business owners of any religion.

Accessity is a CDFI located in California that offers term loans of $300 to $100,000 with a focus on supporting entrepreneurs of color, women, and immigrants.

California Bank & Trust is an SBA-preferred lender offering SBA 7(a) and 504 loans, term loans, equipment financing, invoice factoring, and lines of credit.

Four simple steps to funding.

Tell us about your business.

Answer a few simple questions and complete the application in minutes.

Submit your application.

We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.

Compare offers.

Find the funding option with the terms that best fit your small business goals.

Get funded.

Once you accept, funding can hit your bank account in as little as 24 hours.

Speak with a California representative.

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FAQs

What other resources are available to California small businesses?

The California Secretary of State offers a handy checklist for setting up a business in the Golden State and will also answer questions submitted by citizens to the agency. Small Business Majority is a nationwide organization, but it is particularly active in multiple regions of California and provides a wealth of small business resources and networking opportunities. With offices throughout the state, California’s Small Business Development Centers are another tremendous resource for business owners.

What California small business grants are available?

California is home to several funds—like the Dream Fund and the Social Entrepreneurs for Economic Development (SEED) Grant—that provide small grants to entrepreneurs, especially those from disadvantaged backgrounds. For small business owners and their employees, the state also runs grant programs centered on retirement accounts and paid family leave.

What do I need to qualify for a loan in California?

To qualify for a California small business loan, first you must register your company with the Secretary of State and select a corporate structure, like a corporation or limited liability company (LLC). You should also see if you need to register with your city or county, because you might owe taxes to multiple entities. Then, put together a business plan and start researching and comparing loan options. Lendio’s free online platform makes it easy to find and compare loan options that can work for you, and then select the best one.

Once you have applied, financiers will look at your business’ history, plan, and your personal creditworthiness to make their final approval decision.

Which loan is right for my California business?

The right loan will depend primarily on your business’s needs. Some options, such as equipment financing, are specific to a particular need. Others, depend on how quickly you need access to cash and the types of loans or financing your Texas business will qualify for.

How can a California business loan help my business?

California is a massive economy with a lot of competition. Help your small business stand out with marketing, great talent, or other awesome elements that can be funded with a larger loan like an SBA loan or term loan. Think about how financing can help your business grow and prosper, not just survive.

What is the Small Business Loan Guarantee Program?

The California Small Business Loan Guarantee Program was created by the state government to assist small businesses in obtaining financing. The program will guarantee up to 80% of a small business’ loan making the investment less risky for lenders. Businesses must have 1-750 employees to qualify.

What is an SBA preferred lender?

An SBA preferred lender is a lender that’s been approved by the Small Business Administration to administer SBA loans without additional approvals from the SBA. Typically these lenders have years of experience and can approve SBA loans faster than non-preferred lenders.

What are the benefits of an SBA loan?

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.

Ready for funding?

See what you can qualify for on the Lendio Marketplace.

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