Small Business Loans in Rhode Island

Rhode Island, the Ocean State, offers a range of diverse industries to attract entrepreneurs for startups and growth. Local banks and financial institutions focus on economic development in their communities and have experience arranging loans that fit the needs of their small businesses.

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Types of Rhode Island Small Business Loans

Lenders in Rhode Island have experience structuring loans to all types of businesses unique to the state, such as biomedicine, defense shipbuilding, maritime products, and cyber and data analytics. These lenders can provide loans to finance short-term working capital needs or long-term loans for acquisition of fixed assets.

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.

Rhode Island Small Business Loan Options

The Ocean State has numerous commercial banks, credit unions, nonprofit organizations, and government agencies that make loans available to small businesses.

Commerce RI Small Business Loan Fund makes direct secured loans to existing businesses for working capital purposes.

Rhode Island Small Business Development Fund Program has a mission to provide financing for Rhode Island businesses to create and retain jobs.

Providence Business Loan Fund provides low-cost financing to Providence businesses to fund working capital, inventory, and non-permanent equipment.

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.

FAQ about Small Business Loans in Rhode Island

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FAQs

What other resources are available to Rhode Island small businesses?

Commerce RI promotes renewable energy projects with its Renewable Energy Fund, which has the goal of producing electricity in a sustainable manner and creating more jobs based on green technology. The Center for Women & Enterprise is a nonprofit organization that aims to build community economies by encouraging women to launch new businesses.

Small business owners in the Ocean State can get professional mentoring and advice from the retired executives at SCORE or from the SBA Small Business Development Center. Both of these organizations have offices located in Providence. The University of Rhode Island also provides support to small businesses with its Small Business Development Center.

What Rhode Island small business grants are available?

The Commerce Rhode Island Renewable Energy Fund provides grants for renewable energy projects that are expected to produce electricity in a cleaner, sustainable environment. Rhode Island businesses can also find out if they qualify for federal grants by searching at Grants.gov.

What do I need to qualify for a loan in Rhode Island?

Each lender will have their own requirements to meet when applying for a loan in Rhode Island. Generally, most lenders will require a business plan, cash flow projections, an explanation for the purpose of the loan, a description of the collateral that will be used to secure the loan, and how the borrower intends to pay the loan back.

The business will also need a defined structure, which could be a sole proprietorship, a corporation, or a limited liability company. If your business is a sole proprietorship, you’ll only need to register its name with the county, but if you decide to incorporate or form an LLC, you’ll have to file the registration with the Rhode Island Secretary of State.

Which loan is right for my Rhode Island business?

The type of loan you need depends on how you intend to use the proceeds from the loan. Suppose you need to purchase a piece of equipment to manufacture a new product. In this case, you’ll want a loan with payments spread over several years to coincide with the cash flow generated from the sales of products made from the new machinery.

In another situation, you might need funds to support an increase in current assets resulting from a large sale or a seasonal rise in sales. A short-term revolving line of credit would meet this requirement since it would be paid back by future collection of accounts receivable or a decline in inventory.

How can a Rhode Island business loan help my business?

Even though small businesses start out with a certain amount of owner’s equity, they will eventually need funds to support growth and expansion in the Ocean State. The business owner could solicit funds from other investors, but this would mean giving up a portion of their ownership. Taking out loans means the owner doesn’t have to relinquish control or give away any equity to outside parties.

Ready for funding?

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