Whether you’ve acquired a business, are starting your own business, or expanding an existing one, New York State has plenty of traditional financial and alternative financial support for small businesses. A combination of loans, grants, and practical training makes it a superb place for...
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With around 2 million small businesses in New York State, it’s no surprise that it’s one of the top states for business loan applications. However, how does New York fare when it comes to financial support in the form of loans? How supportive is the state of New York in relation to small businesses and startup businesses? Keep reading to find out how to get a small business loan in New York.
Top 4 New York Small Business Loan Options
Here we’ll look at financial and non-financial support and training.
Credit unions usually have a strong contingent of residents, so they have a specific interest in helping local firms. Already being a member of the community can improve your chances of having your loan approved.
Bethpage offers loans for increasing your capital, including buying or refinancing equipment and expanding your business.
BFCU doesn’t publicize loan amounts or interest rates, although it claims rates are low – without giving any figures. Lenders realize that every applicant’s case is different, so these factors are typically negotiated between the applicant and the credit union.
Pursuit is a Community Development Financial Institution (CDFI,) meaning that it’s a non-profit organization.
As a community-focused institution, Pursuit predominantly services small businesses in low-income and impoverished communities. It aims to free up the entrepreneurial opportunities within its precincts.
Unlike more specific loan options, the SBA loan can be used for virtually any business use. The maximum loan amount is $5 million, with repayment periods of up to 10 years for general funding and 25 years for real estate purchases. Approval typically takes between 30 and 45 days.
KeyBank has 19 branches spread through New York State and is one of the top SBA lenders; it has approved more than $4.5 billion in loans to date. Naturally, one of the biggest advantages of applying for a loan with an institution with physical premises is face-to-face consultation. You can schedule a meeting with one of KeyBank’s advisors, who will review your business plan and offer expertise to help improve it.
Hudson Valley Credit Union is a community-based financial cooperative serving the New York counties of Orange, Dutchess, Putnam, Ulster, Rockland, Greene, Westchester, Albany, Columbia, Schenectady, Rensselaer, and Saratoga.
As such, the following types of loans are available:
Equipment loans. Hudson Valley Credit Union provides equipment loans to help finance the purchase of commercial vehicles, machinery, or equipment.
Term loans. Term loans are available to help finance equipment purchases, capital improvements, or to replenish working capital from a previous expenditure or expansion.
Keep in mind that these loans require collateral, - either qualified securities (stock) or qualified savings (shares) can be used for this purpose.
Summary of the New York Small Business Loan Options
Maximum Loan Amount
Maximum Repayment Period
Bethpage Federal Credit Union
Excelsior Growth Fund
Hudson Valley Credit Union
Top Online New York Small Business Loan Options
In addition to traditional lenders, such as banks and credit unions, online lenders can also be excellent options. Online lenders often have much faster approval times than traditional lenders, and they’re usually far more flexible when it comes to your credit history or business sector. To help you decide if an online lender is a good option for your New York small business loan, we’ve rounded up some of the best lenders on the market.
1. Fundbox - Best for Lines of Credit
Fundbox is an online financial services platform providing short-term lines of credit and invoice factoring for small businesses within the New York state and beyond.
With Fundbox, you can apply for loans ranging between $1,000 and $100,00, with repayment terms of 12 to 24 weeks. These loans don’t require a personal guarantee or collateral and have no hidden fees.
The online application process is relatively simple, and you can enjoy fast approval and disbursement of funds. To qualify for a loan with Fundbox, you need:
Learn more about Fundbox in
our comprehensive review.
2. Fora Financial - Best for Merchant Cash Advance
Fora Financial is another online lender option offering short-term small business loans and merchant cash advances ranging between $5,000 and $500,000. The short-term loans come with terms ranging between 4 and 15 months, but merchant cash advances don’t have any associated fixed-term repayments.
With Fora Financial, you can expect fast turn-around times, with approval taking only one day, and fund disbursement - three days since application. In order to qualify for a loan from this lender, you need to have:
Credibly is an established online lender that has been providing small business loans to companies based in New York and other states for over 10 years. The platform is devoted to opening funding opportunities to a wide range of customers, and, therefore, Credibly’s loans come with fairly lenient eligibility requirements. As such, you are only required to have a personal credit score of 500 to apply.
Credibly offers seven varieties of small business loans, with a working capital loan being the most popular. This type of loan works slightly differently from a regular term loan. Here, rather than paying interest rate, you will be charged a lump sum as a percentage of the total loan.
Learn more about Credibly in
our comprehensive review.
4. SmartBiz - Best for Equipment Loans
SmartBiz offers SBA loans and lines of credit. This company acts as a broker and has created a database of preferred SBA lenders. SmartBiz has a straightforward pre-qualification process, after which you match with the most suitable lenders based upon the information you provide.
There’s also a team of financial experts who help you identify the best small business loan for your firm. Once you’ve settled on the perfect loan, an advisor will accompany you through the loan application process.
The Bottom Line
SBA loans are available between $30,000 and $5 million, with a repayment period between 10 to 25 years. Because SBA loans can be used for various purposes, the flexibility and the longer repayment terms make SmartBiz an excellent choice for new businesses.
Learn more about SmartBizin
our comprehensive review.
Additional New York Small Business Financial Resources
New York State offers other types of financial support for small businesses, other than loans. In common with other states, tax credits are available for qualifying small businesses. However, to be eligible, your firm must belong to one of the sectors designated by the state. There’s also the state’s Linked Deposit Program, which gives an interest reduction of 2% on loans from various kinds of lenders.
The state also has a plethora of financial support options, including New York small business grants. Some of these are industry-specific, while others focus on developing community needs and cultural aspects of New York life.
The Metropolitan Economic Revitalization Fund (MERF). MERF provides loans to government or businesses investing in projects aiming to create or retain a significant number of jobs in economically distressed areas within New York City and parts of Nassau, Rockland, and Westchester counties.
The Restaurant Resiliency Program. The Restaurant Resiliency Grant Program provides a total of $25 million to restaurants that offer meals to people within under-represented or distressed populations. The grant is meant to allow businesses to cover the cost of food, preparation, and delivery to vulnerable communities.
Other Resources for New York Small Businesses
While a New York small business loan can be a boon for a new or growing company, New York State also has many programs that provide practical help in establishing or running a business.
From basics like writing a business plan to refining business concepts, the EACs aim to get you in the best possible shape and make your business a success.
How to Prepare for a New York Small Business Loan
It’s essential to understand the small business loan requirements in New York.
Although lenders will usually have specific requirements for loan applications, there’s some information that will always be requested. Here’s a rundown of what you should get ready before applying for a New York small business loan.
Get your personal and business credit score in order. Try to resolve any issues before talking to lenders. If possible, boost your credit score by taking a small amount of credit and paying it back punctually.
Prepare critical financial information about your business, including credit reports, tax returns, profit and loss reports, and balance sheets.
Write a business plan. It doesn’t have to be a lengthy document, but it should cover how much money you want, what you’ll spend it on, and how you envisage paying it back.
Be clear about what collateral (personal or from your company) and assets you could offer to help secure a loan.
The Bottom Line
An SBA loan can make it much easier for a small business to obtain financing; the federal government guarantees a proportion of the amount borrowed, making your request less risky to the lender. However, the requirements are demanding, and it can take a month or more to be approved and receive the funds.
By contrast, online lenders usually have a much quicker application process, with faster approvals and transfer of funds. Some of them also have a pre-qualification process in which they match you up with lenders likely to approve your loan request.
Online lenders often target applicants who are less likely to be approved by mainstream lenders, so it can be easier to get a New York small business loan through them.