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Best Small Business Loans in Michigan

Small business loans in Michigan can help cover payroll expenses, pay for marketing, and manage day-to-day costs that arise. Whether you need extra capital to get you through a slow period or you’re hoping to expand your business, a Michigan small business loan can help.

Michigan Small Business Loans
Tetiana Sitiugina-Babiuk
Financial Sector Specialist and Content Strategist

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

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.

The state of Michigan has a rapidly growing number of small businesses and job opportunities. If you are looking to start a small business in Michigan, you can benefit from a variety of financial resources and support available within the state, including regional banks, credit unions, and non-profit organizations.

After the 2008 economic crisis, Michigan recovered quickly enough and now has almost 900,000 small businesses, making up 90% of Michigan’s economy. It’s a priority for the Michigan authorities and other companies to invest in this state’s small businesses. 

Top Six Michigan Small Business Loan Options

1. Detroit Community Loan Fund

The Detroit Community Loan Fund is a certified Community Development Financial Institution and is explicitly aimed at small business owners who historically have not had access to capital and loans. The fund seeks to provide loans to women and minorities, groups most financial aid institutions have continually overlooked. 

To access this fund, you’ll have to pay a $100 application fee, and you can ask for anything between $5,000 and $50,000. You can pay the loan back at a flat 7% rate, and you have an option to pay back only interest during the loan term and pay the principal back at the end. 

The fund doesn’t place many restrictions on what you can use the money for. You can use it for working capital, equipment, business expansion, purchasing materials, supplies, or property improvements. The most significant restriction is that you can’t purchase real estate with the Detroit Community Loan Fund. 

2. Huntington National Bank

In 2021, TCF Bank moved to Huntington and is now Huntington National Bank.Huntington National Bank is a top provider of Small Business Administration loans (SBA), guaranteed by the U.S government. These loans offer low interest rates on large loan amounts. You also get long repayment periods. Huntington National Bank is the #1 lender of SBA loans in the region from 2008 to 2021. In 2018, they issued a total of $57 million in SBA loans. Since these loans come with a government guarantee, the bank is more willing to provide an SBA loan to small business owners who wouldn’t otherwise qualify. 

If you’re not interested in an SBA loan, Huntington National Bank also offers various other loans and lines of credit to small business owners.

To qualify for an SBA loan, you’ll need a strong credit record and established business revenues. A bank loan is not for companies that require working capital, but rather for a business looking to expand. In other words, these loans are more applicable to established enterprises rather than start-ups. 

3. Opportunity Resource Fund

For start-ups, the Opportunity Resource Fund is a great option. It also provides working capital loans to existing Michigan businesses. You may be wondering, “How to get a small business loan in Michigan through the Opportunity Resource Fund?” To do so, you have to meet specific requirements. Your company has to work towards a social goal, like employing unemployed individuals or training at-risk youth. You’ll have to submit a complete business plan with your application and down payment for the loan.

For loans under $150,000, you have to provide a 10% down payment, while for loans above $150,000, the fund requires a down payment of 15%. Additionally, you also need to provide a guarantee. This can be in the form of real estate, inventory, or other assets. In individual cases, the fund has also accepted personal guarantees 

4. Michigan Department of Environment, Great Lakes, and Energy (EGLE)

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) provides Pollution Prevention (P2) loans to small businesses. You can apply for a P2 loan if your small business works towards sustainability. If you’re engaging in energy conservation or waste reduction, your business could qualify for a loan. 

To be eligible for a P2 loan, your business has to be independent and not part of a franchise or chain. You can’t have more than 500 full-time employees, and the business shouldn’t be a dominant entity in your industry. While you can run a for-profit business, you have to be involved in projects regarding waste reduction, sustainability, or energy conservation. 

The P2 will grant loans up to $400,000 with a 5% interest rate. The government provides half of the funding, while private lenders offer the other half. 

5. Invest Detroit

As part of initiatives to expedite Detroit’s economic growth, Invest Detroit was formed by several philanthropic and local organizations to provide loans to small businesses. It targets those that don’t qualify for traditional business loans. Your business can receive a capital influx between $50,000 and $2.5 million. 

Invest Detroit offers assistance with writing business plans, mentorship programs, and technical training in various areas. You can also apply for equity financing from Invest Detroit’s venture capital arm.

6. Michigan First Credit Union

A credit union is often a good place to apply for financing. These institutions work on a members-only basis but are usually more community-oriented than banks. Since credit unions are nonprofit organizations, their interest rates are generally much lower than traditional banks. If you don’t have a good credit record, low revenues, or other aspects that conventional financial institutions look for, a credit union could still grant a loan. 

If you live or work in the state of Michigan, you can qualify for a loan from the Michigan First Credit Union. You can apply for SBA loans, conventional term loans, or U.S. Department of Agriculture-backed loans. You can contact any Michigan First Credit Union branch to apply for a small business loan.

Top Six Local Small Business Loan Options in Michigan

Interest Rates

Credit Check

Loan Amounts

Detroit Community Loan Fund

7% flat rate

Aimed at people who haven’t had access to credit


Huntington National Bank

Depends on the credit score


Varies according to the type of loan

Opportunity Resource Fund

Depends on the credit score


Varies according to the type of loan

P2 Loans

5% flat rate


Up to $400,000

Invest Detroit

Not specified


$50,000-$2.5 mil

Michigan First Credit Union

Competitive rates


Varies according to the type of loan

Top Online Michigan Small Business Loan Options

In addition to the local Michigan small business loan options, you should also consider looking into nationally-available online small business loans. These loans are easily accessible, and the requirements are typically lower than you’d otherwise find. 

1. Kabbage - Best for Decent Monthly Revenue Requirements

Kabbage offers small businesses a business line of credit up to $250,000. Backed by American Express, Kabbage’s online application is quick and funding decisions are made in real-time. Kabbage funding is best for established businesses with decent monthly revenues.  
Straightforward application
No prepayment penalties or origination fees
Decent monthly revenue requirements
Rates can be high for some
Personal guarantee required
Cannot be used to build business credit

kabbageKabbage offers lines of credit from $2,000 to $250,000 with terms of six, 12, or 18 months. The fees are straightforward, and you pay a fee only on the amount you use during the months you have an outstanding balance. Six-month fees are 2-9%, 12-month fees are 4.5-18%, and 18-month fees are 6.75-27%.

To qualify for a line of credit from Kabbage, you need to be in business for 12 months and have a minimum credit score of 640. Monthly revenue requirements are $3,000 per month, which is much lower than many other online lenders.

The Bottom Line

If you’ve been in business for at least one year and have monthly revenues of $3,000 or more, a line of credit from Kabbage is worth looking into. You can use your credit line for anything related to your business, including day-to-day operating expenses, purchasing inventory, or updating your existing space.

Try Kabbage
Learn more about Kabbage in our comprehensive review.

2. Bluevine - Best for Business Lines of Credit

If you’re looking for competitive interest rates, consider Bluevine for your business financing needs. Bluevine offers lines of credit up to $250,000. When you get a line of credit from Bluevine, you can access the money within a few hours of loan approval. 
Funding within hours of approval
Competitive interest rates
Excellent customer support
Not available in every state
Repayment can be weekly
Rates can be high for borrowers with low credit

Bluevine’s line of credit ranges from $5,000 to $250,000 with rates starting at 4.8%. A line of credit allows you to only pay interest on the amount you borrow, pay it back, and use it again. It’s a revolving line of credit that acts similarly to a credit card.

To qualify for a line of credit from Bluevine, you’ll need to be in business for six months, have a minimum credit score of 625, and have $10,000 per month in revenue.

The Bottom Line

A Bluevine line of credit is best for borrowers who prefer to access funds when they need them as opposed to receiving a lump-sum of money. Funding can be quick and interest rates are competitive to those with good credit, making them a great option for small business borrowing.

Try BlueVine

Learn more about BlueVine in our comprehensive review.

3. Fundbox - Best for Easy Application

Fundbox is an online platform offering short-term loans and lines of credit to small business owners nationwide. The application is quick and easy, and you can get a funding decision within three minutes of applying. If approved, funds can be in your account as soon as the next business day.
Fast and easy application
Quick funding decision
Flexible repayment terms
Short repayment period
Relatively small credit limit

Fundbox offers term loans and lines of credit from $1,000 to $150,000. Term loans are paid back weekly over 24 or 52 weeks, with rates starting at 8.33% for 24-week terms. Lines of credit are paid back weekly over 12 or 24 weeks, with rates starting at 4.66% for 12-week terms. Fundbox does not charge origination fees or prepayment penalties.

To qualify, you’ll need a credit score of 600 or higher, be in business for at least six months, and have $100,000 minimum in annual revenue.

The Bottom Line

If you need capital for your business quickly, Fundbox is a great option. Loans and lines of credit can be approved within minutes of applying and funds can be in your account as soon as the next business day. Repayment terms are no longer than one year, so this option is best for borrowers who can pay their loans off quickly.

Try Fundbox

Learn more about Fundbox in our comprehensive review.

4. Fora Financial - Best for Large Loan Amounts

Fora Financial is a trusted fintech lender providing easy access to business loans for thousands of entrepreneurs in Michigan. This online lender offers merchant cash advances and short-term loans that range between $5,000 and $750,000, providing much-needed support for businesses operating in a broad range of industries, from hospitality to construction.
Large loan amounts up to $750,000
Easy, one-page application
Quick funding times
Approval not strictly based on credit
Interest rates can be high
Relatively short terms

Fora Financial short-term loans range from $5,000-$750,000 with terms of four to 15 months. Factor rates start at 1.1 and the company does charge origination fees. They do offer discounts for early repayment, though.

Fora Financial is known for its fast turnaround times, with an approval usually provided within 24 hours, and the fund disbursement 72 hours later. To qualify for a loan, your business must have been in operation for at least six months, with annual revenue of $12,000 or more. Credit score isn’t as important, but you will receive a better rate if your score is in good condition.

The Bottom Line

If you need a large sum of money in a relatively short period of time, Fora Financial is worth considering. They have no restrictions on how you use your funds, allowing you to use the money however you please. Keep in mind, though, that the company does charge additional fees and has higher interest rates than are seen with other online lenders.

Try Fora FInancial

Additional Michigan Small Business Financial Resources 

Some states provide financial assistance to small businesses, including Michigan. You can access Michigan small business grants from a few sources.

1. Michigan Business Development Program

If your small business creates 25 jobs, you can apply for a Michigan small business grant from the Michigan Business Development Program. These grants do not work the same as loans since you don’t have to pay the money back. You can contact the Michigan Business Development Program directly to get more information and application forms. 

2. Accelerate Michigan Innovation Competition

Accelerate Michigan Innovation Competition is a program created by Invest Detroit with a goal of allowing entrepreneurs to showcase their business ideas in front of investors. In addition, the competition provides a valuable networking opportunity and allows young entrepreneurs to build meaningful connections.

The event features the brightest startup ideas and introduces them to venture capital firms and angel investors, while awarding $1,000,000 in cash and prizes. As such, if you have a tech start-up or a high-growth company, you can compete for your share of $1 million. 

3. Motor City Restore

If you’re looking to expand your business premises, you will need to have plans drawn up by an architect or engineer. In that case, the Motor City Restore fund can help to offset some of the costs of the renovations with a grant. Not only will the program connect you with architecture experts and provide you with free conceptual design services, but it can even cover up to 50% of your total project costs. 

To qualify for the grant, you need to be running a Detroit-based business actively operating in a commercial storefront.

The Bottom Line

Naturally, starting your own business is not possible without certain difficulties. If you have ambitious business plans, but lack the financial resources necessary to turn your ideas into life, a Michigan small business loan can help. There are plenty of Michigan small business loan and grant opportunities available within the state. From traditional banks and online service providers to state programs and initiatives, you will be sure to find the right financial product to meet your needs.

About the Author

Tetiana Sitiugina-Babiuk

Written by: 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
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me

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