Finimpact
Updated on

Idaho Small Businesses Loans: Best Local and Online Options

Idaho has grown to be a busy, solid state, specifically in southwestern Idaho where the capital Bois is located. Today, small businesses in Idaho employ 96.7 percent of the state’s total population.

Idaho
Tetiana Sitiugina-Babiuk
Financial Sector Specialist and Content Strategist
reliable

Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

According to the recent Small Business Administration statistics, Idaho is home to 176,029 small businesses, accounting for over 99.2% of all businesses in the state. So, if you want to start a business or try to expand an existing one, Idaho is among the best states for startup loans. Here, we’ll discuss the top four local funding options available for Idaho small businesses. We will also cover grant opportunities, online lenders, and more.

Idaho Small Business Loans: Top 4 Loan Options

Whether you are starting a new Idaho small business or you want to expand your existing business, there are several business loan options you can apply for. Most Idaho small business loans will come from government agencies, private lenders, non-profit organizations, grants, and more.

Below are four top options for Idaho small startup loans:

Idaho Central Credit Union

Idaho Central Credit Union came into existence on June 28, 1940. Since its inception, the credit union has been famous for providing small businesses with significant fundings. If you have a business in Idaho and are looking for a reputable local lender, Idaho Central Credit Union is a great option.

If you require additional information about how the credit union operates, you can fill the business request form, and a specialist will reach out to you. Idaho Central Credit Union specializes in different loans, which come with various benefits:

  • Flexible loan terms
  • Increase long-term working capital
  • Low fixed interest and monthly payment
  • Payment terms up to 10 years

If your Idaho startup is ready to expand or needs to make some upgrades, you can trust Idaho Central Credit Union to give you the best startup funding.

Idaho Independent Bank (First Interstate Bank)

Another great loan option for small business owners is the Idaho Independent Bank, one of Idaho’s biggest local banks. The bank is now a part of the First Interstate Bank (a merger between Community 1st Bank and the Idaho Independent Bank). The bank has a significant presence in the state, so it’s a good option for startup owners looking for a local lender with a lot of experience. They have a variety of local loan options, including regular loans and SBA loans.

SBA loans are government loans that give small businesses a long-term payment plan with a low interest rate. Regardless of your business needs, First Interstate Bank has a diverse mix of borrowing options for you to choose from. These include Letters of Credits, Commercial Loans, Commercial Real Estate Loans, Small Business Administration Loans, Agri-Business Loans, and Mortgage Loans.

Bank of Idaho

Bank of Idaho is a mid-sized bank with its branch in Idaho Falls. The Bank of Idaho understands the chances you are taking to build something. So they take time to understand your business to give you the support and advice you need throughout the entire loan application.

Whether your business is just starting or wants to launch your startup, Bank of Idaho has a wide range of loan options to support your startup. The different loan options available include:

  • Agriculture loans: including revolving lines of credits, equipment loans, operating lines of credits, and more
  • Term operating capital loan
  • Term equipment loan
  • Business operating line of credit
  • Eagle business line of credit
  • SBA and FSA loan
  • Commercial real estate loans
  • Business letter of credit

The Bank of Commerce

The Bank of Commerce came into existence in August 1959 and provides funding for the agricultural sector and local businesses in Idaho. Regardless of your business needs, the Bank of Commerce will help you decide on the best funding for your startup. The different business loan options available include:

  • Business real estate loans. This type of loan can be used to finance commercial real estate acquisitions.
  • Agricultural loans. You can take advantage of the equity in your farm equipment or land and apply for a farm and ranch acquisition loan, inventory and farm equipment financing, or livestock financing.
  • Business loans and lines of credit. The Bank of Commerce offers a variety of business term loan options tailored to fit your business needs.
  • Small Business Administration loans. Both 7(a) and 504 SBA loans are available for situations when conventional collateral might not be adequate.

Top Online Small Business Loans Options in Idaho

In addition to government and private lenders, there are other loan options for Idaho business owners. One of them is online business lenders, which offer a more convenient way for small startup owners to apply for financing. Below are some of the top online lenders for small startups in Idaho.

1. Fundbox

banner Fundbox

Fundbox is one of the top financial lenders that can be used by every startup in Idaho. The lender offers business term loans and lines of credit with a convenient online application process. When applying for a Fundbox loan, you need to integrate your accounting software or business checking account into the lender’s application. Once they have assessed and approved you, you will get your loan without delay, and the loan payments will be automatically debited from your account.

Pros
Easy online application
Fast fund disbursement
No monthly minimums
Low credit score requirements
No additional fees
Can set up automatic loan payments
Cons
Relatively small loan limits
Interest rates can get expensive

With Fundbox, the loan amount can go up to $150,000 for both term loans and business lines of credit, with a weekly repayment schedule. The term loans come with a 24- or 52-week term, while the term for lines of credit can vary from 12 to 24 weeks. You can expect the APR to reach 18% in case of a term loan and 20% in case of a line of credit.

The Bottom Line

If you are searching for an alternative lender offering a convenient application process and automated loan payments, Fundbox is a great option for you. You can also expect to get more favorable terms and rates when you become a repeat Fundbox customer.

2. OnDeck

banner OnDeck

OnDeck is another online business lender that provides Idaho small business owners with business loans and lines of credit. Small business loans from OnDeck can be used for virtually any business need, from paying employee salaries to covering a tax bill, to purchasing new machinery and equipment.

Pros
Convenient online application
Quick turnaround
Funds disbursed as quickly as in 24 hours
Applicants with low credit are welcome
Commitment to a partnership approach
Personalized approach
Cons
Information on rates is not readily available
Daily repayment structure
Slow response times sometimes

To qualify, you need to have the following:

  • Annual revenue of $100,000
  • A credit score of 600 or more
  • Operation history of 1 year

The maximum limit for a business line of credit from OnDeck can reach $100,000, with a term length varying from 3 to 18 months. A business term loan, on the other hand, can reach $250,000 in value to be repaid over the same period.

With either loan option, be prepared for a relatively high APR, reaching 35.2% in a case of a credit line and 46.06% in case of a term loan. However, you will be able to reduce the overall borrowing cost by paying off the loan early.

The Bottom Line

While small business loans from OnDeck come with a relatively high borrowing cost, the lender is still worth considering due to its easy application, fast turnaround, and customized customer service.

3. BlueVine

BlueVine

BlueVine unsecured lines of credit present an excellent alternative to traditional lenders like banks and credit unions. This type of financing is also an excellent option for younger Idaho small businesses who do not yet have a great credit history: when submitting an application with BlueVine, your credit score won’t be harmed like with other types of lenders. When considering BlueVine, keep in mind that the lender only works with businesses from specific industries and some states. So, if you work in gambling, auto sales, political campaigns, financial institutions, or non-profits, BlueVine might not be the right choice for you.

Pros
Easy online application process
Fast turnaround time
Competitive rates
Personalized customer service
Cons
Repayments can be high
Funds not available in North and South Dakota
Interest rates can get expensive
Services only available for B2B companies

Lines of credit from BlueVine are unsecured and, therefore, come with slightly stricter qualification requirements. As such, you need to have a credit score of 600 or more, make at least $10,000 in monthly revenue, and be in business for at least 6 months.

The line of credit limit can reach $250,000, with a term between 6 and 12 months. The interest rates are competitive, starting at only 4.8% for applicants with great credit scores.

The Bottom Line

BlueVine is an excellent option to consider if you are looking for a business line of credit with attractive interest rates. With this lender, you can enjoy an easy application process, fast fund disbursement, and attentive customer service team.

4. Fora Financial

Fora Financial

Fora Financial is a reliable online lender offering merchant cash advances and business term loans to entrepreneurs in Idaho and the rest of the country. These loans are available for companies from a variety of industries and can be used for a variety of business purposes.

Pros
Funding issued in 24-72 hours
Loans available for a variety of industries
Credit score isn’t important for approval
Cons
Interest rates can be high
Additional fees are charged

With both term loans and merchant cash advances, you can receive up to $500,000, at a factor interest rate ranging from 1.1 to 1.3. Business term loans must be repaid over 4 to 15 months, while merchant cash advances are more flexible, without a specific repayment term.

The Bottom Line

Fora Financial is an excellent option for Idaho small business owners looking for short-term loans or merchant cash advances. With this lender, you can receive up to $500,000, within only 1 to 3 days.

Additional Idaho Small Business Financial Resources

Aside from online and government loans, several grants are also available for small businesses in Idaho. If your business is new or existing, you can apply for grants to help achieve your business goal. Grants are very competitive, but one benefit of a grant is that you don’t need to pay it back.

Are you looking for business grants in Idaho? Here are some that you can consider.

STEP Grants

The State Trace Expanded Program (STEP) was created to raise the number of small businesses that export and also to increase the value of exports. Administered by the Idaho Department of Commerce, this initiative provides matching grants to states, which must be used to assist eligible small businesses.

The individual awards can range from $2,000 to $10,000, with a 35% cash match requirement. This means that for every authorized $100 that you spend, you will receive $65.

ITC Grant Program

Since 1981, the Idaho Regional Travel and Convention (ITC) Grant Program has been promoting the state of Idaho and the designated travel regions within the state. The program is funded through 2% tax on the sales of motels, hotels, and private campground accommodations. The maximum award is, therefore, the total amount available within the region.

The ITC Grant is open to non-profit corporations which have viable convention or travel programs in their region. The funds can be used for advertising, public relations, marketing research, trade shows, conferences, and more.

Community Development Block Grant

The Idaho Community Development Block Grant is intended to support the development of needed public infrastructure within Idaho cities and counties. The grant funds must be used to construct projects benefiting moderate- and low-income people, mitigate health and safety threats, or help eliminate slum and blight conditions.

Incorporated cities or counties with under 50,000 in population are eligible to apply. However, special service providers, such as senior citizen centers, can benefit from the grant if they are sponsored by a city or county.

Rural Community Investment Fund

Created by the Idaho State Legislature in 2001, the Rural Community Investment Fund program provides financial assistance to support the economic expansion and job creation within the state’s rural communities.

Idaho cities, counties, and tribes may apply for projects that have a measurable rural benefit. The three applicant categories may then sub-grant Rural Community Investment Funds to an eligible sub-recipient.

The Bottom line

Idaho small business loans are available from a wide range of nonprofit and bank institutions. Most of these organizations only offer loans to businesses located within the state of Idaho. Nevertheless, if you are finding it challenging to get a loan from these institutions or if your application is rejected, you can try applying for a loan with one of the top online lenders mentioned in this guide.

Related Loan Picks

About the Author

Tetiana Sitiugina-Babiuk

Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

More about me