Small Business Loans In California
When it comes to entrepreneurship, California leads the way. 13% of all small businesses in America can be found here, with new ones launching every day. However, getting started isn’t easy – this state has some of the highest living and business costs in the USA. This fact makes it tough for aspiring business owners to make it on their own.
Fortunately, there are numerous business lenders in California. Thanks to these venture capitalists, there is no shortage of capital floating around. Everywhere you look, you’ll find firms that offer small business loans California.
In this guide, we list the best business lenders in California. These operators are authorized to offer loans to Californians and deal only with small businesses. They are fast, have transparent payment terms, and possess a higher acceptance rate than the banks. Whether you’re looking for small business loans in San Francisco or Los Angeles, they have what you need.
Best 5 Online Lenders in California
- Funding: $5,000 to $300,000
- Multi-award Winning Market Leader
- 1-2 Days for Response to Application
- 4.9 / 5 on TrustPilot
- Unsecured Business Loans Available
- 100,000+ Businesses Funded Worldwide
Est. 2011
- Funding: $5,000 to $250,000
- Secured Business Loans Only
- Machine Learning Based Algorithm
- Smooth Process
- For FICO Score 600+
Est. 2013
- Funding: $5,000 to $1,000,000
- Secured and Unsecured Business Loans
- Versatile Loan Size
- Smooth Website Experience
- 98% Positive Feedback Online
- Dedicated Business Advisor
Est. 2005
- Good For Business Owners With Bad Credit
- Compatibile With Many Types Of Businesses
- Better For Short Term Loans
- Easy Application Process
- Funding Realeased The Next Day
- Low Requirements
Est. 2015
- Many Types of Loans Available
- FICO Score 550+
- Application Process is Fast And Easy
- Helpful Customer Service
- Flexible Loan Terms
- Quick Release Of Funds
Est. 2011
Additional Business Loan Options in California
On top of our list presenting the best business loans for small businesses in California, which is focused on online, quick, lending for the most part, there are also local business lenders and business loan brokers available in California. Read our short reviews below:
Gud Capital (gudcapital.com) is a business loan broker network based out of LA. As per their website, Gud Capital offers access to 4,000 lenders and 12,000 loan products with $120m in funded loans. The broker advertises more than 50 years of combined experience and offers SBA loans, invoice financing, and asset finance among other options.
Republic Lending (republiclending.com) is a business loan company that offers a variety of loans to small businesses. The company offers conventional, FHA, and nonprime multifamily and apartments loans, commercial retail and small business loans, with a maximum loan amount of up to $50,000,000.
Lendistry (lendistry.com) is a business loan company that has helped over 590,000 small businesses with over $8.7 billion in loans and grants. The company offers loans for working capital, equipment financing, SBA loans, commercial real estate, grants and special programs. The company is headquartered in Los Angeles, California.
CDC Small Business Finance (cdcloans.com) offers a variety of business loans to meet the needs of small businesses, including SBA-backed loans, Credit Blind Financing for Entrepreneurs of Color, commercial real estate and working capital loans. Their loans helped over 11,900 businesses grow and create jobs, having facilitated over $20.4 billion in loans since 1978.
QuickBridge (quickbridge.com) offers business loans with a quick and easy application process. Loans can be used for a variety of purposes, including working capital, inventory financing, equipment purchases and much more. QuickBridge offers flexible repayment terms and rates that are competitive with other lenders.
Fidelity Funding (fidelityfundingcorp.com) is a company that offers business loans to small businesses. The company is based in San Francisco, California and was founded in 2006. The company is willing to work with businesses of all sizes, and they offer a variety of commercial mortgage loan options to suit the needs of the borrower.
Cal Coastal (calcoastal.org) offers business loans with quick approval times and flexible repayment options. The current typical loan range can be from $5,000 to $5,000,000 and can be utilized for building purchases, machinery and equipment, inventory, or working capital.
Access Plus Capital (https://www.accesspluscapital.com/) partners with small businesses in Central California to help them flourish by funding up to $1,000,000. Apart from funding, Access Plus Capital also supports these businesses by providing free advice, assistance, and other resources that might help them succeed. It offers all types of funding including startup loans, microloans, enterprise loans, etc.
U.S. Business funding (usbfund.com) is a trusted company that provides a loan in about 24 hours. It only takes 60 seconds to approve our request for a loan and the funding continues to process for 24 hours. US Business funding provides equipment leasing services, loans for small businesses, working capital, and vendor programs.
Maxim Commercial Capital (maximcc.com) is a business loan company headquartered in Los Angeles, California. It has helped about 8,200 business owners in the U.S in achieving their aims and goals by providing much-needed financial support. It helps 1,200 SMB owners annually who fail to get equipment loans, real estate loans, or assistance from a conventional bank.
PCR Business Finance (pcrcorp.org ) is a business lending, training, and advisory company with about 45 years of experience. It is located in LA, California, and strives to improve economic opportunities in communities where people have talent but no financial assistance. PCR Business Finance has provided its services to about 2,190 people and also came up with more financing solutions like working capital, business expansion, inventory, equipment financing, and many more.
California Private Lenders (cplenders.com) is an equity lender based in Los Angeles. California Private Lenders specialize in short-term bridge loans on commercial and residential properties. It coordinates with investors, rehabbers, estates, and prime borrowers who fail to get loans via conventional methods.
Accessity (accessity.org) has its main office in San Diego, California. It provides access to financial opportunities for startups and entrepreneurs by offering small business loans. It also provides resources and a community of support. It aims to support women-owned businesses, immigrant entrepreneurs, and people of color facing racism in society. Accessity promotes livelihood in the community by strengthening it.
CalCap Lending (calcapfinancial.com) is a platform for both lenders and investors. CalCap Lending is a sub-branch of CalCap Advisors, and it provides speedy funding through private money loan programs that are good enough to cover business purposes. It also offers investment loans for residential and small-balance commercial properties.
Mid Valley Financial (mvloans.com) is California’s leading mortgage lender, and it helps save a huge amount by refinancing your home with its well-equipped and experienced team members. Located in Fresno, California, Mid Valley Financial Team offers the lowest rates on SBA loans, farm and land loans, acquisition financing, and many types of commercial property loans.
Farm Credit West (farmcreditwest.com) is a leading agriculture lender in the USA. It aims to provide financial assistance and loans to farmers, agribusiness, and ranchers. Farm Credit West is an integral part of the Farm Credit system, which has been around for 100 years and is the main source of credit for American agriculture.
California Small Business At A Glance
From a macro perspective, the scale of small business in California is enormous. In 2019, the state posted GDP figures of over $3.1 trillion, or roughly 1/7 of America’s economic output. Put another way, California’s numbers surpass the GDP figures of developed nations like France and the UK.
In California, top industries include technology, financial services, tourism, energy, and agriculture. San Francisco is an anchor for the finance industry, with many regional bank HQs. The city is home to iconic attractions like the Golden Gate Bridge and Alcatraz, which draws scores of tourists. And of course, the Bay Area is home to Silicon Valley, the heart of America’s tech industry.
Down the coast, Los Angeles is most famous for its entertainment industry. As a result, it also attracts its fair share of tourism. In addition to these two mainstays, LA also is home to many aerospace and energy firms. Last but not least, San Diego has healthy tourism and biotech industries, and the Central Valley produces 8% of America’s agricultural output.
Small businesses are crucial to California’s prosperity. In this state, net job growth is most robust among firms with 20 employees or less. Firms with 20 employees or less comprise 88% of all businesses in the state. Businesses with 100 employees or less make up 97% of companies. To thrive, they need easy access to small business grants California. Unsurprisingly, business loan broker California has no shortage of customers.
Why Do Entrepreneurs Need Small Business Loans In California?
SMEs dominate the California business landscape. However, the Golden State isn’t a comfortable place to do business. For starters, commercial rents are incredibly high – Sand Hill Road in Menlo Park – at $119.38/sq. ft – has the most expensive rates in America. Things aren’t much better in downtown San Francisco, where prices can be as high as $75/sq. ft. For this reason alone, small business funding California has thrived. Otherwise, startups wouldn’t have a prayer of getting off the ground.
With sky-high overhead, all it takes is an economic downturn to plunge a firm into financial distress. All it takes is one missed payment for a firm to end up with a bad credit score. With a black mark on their record, getting small business loans in California for bad credit can be frustrating.
Successful small businesses may also need small business loans in California. Sudden spikes in demand can empty shelves. When this happens, smaller companies may not have the cash-on-hand to fund a new production run on such short notice. Small businesses make liberal use of business financing California to avoid under-capacity problems.
In all instances, California small businesses find online loan companies in California to be fast, reliable sources of capital. Rather than wait weeks, California entrepreneurs can get their hands on small business funding California in less than 24 hours.
Grants & SBA Lenders Available To California Small Businesses
California SMEs are integral to the success of the state’s economy. As such, they have access to numerous grants for small business owners in California. These government programs provide qualified applicants with the seed funding or tax credits needed to get off the ground. These programs include, but are not limited to, the following:
- The Small Business Technical Assistance Expansion Program is providing $17 million through 2022-2023 to fund low-cost training. It also offers one-on-one consulting, with emphasis on persons of color, women, veterans, rural-based, and/or low-income entrepreneurs.
- The Capital Infusion Program is providing $3 million in funding through 2022-2023. This program offers one-on-one consulting to assist SMEs in the task of accessing venture capital. This assistance can be useful for SMEs seeking small business loans in California for bad credit.
- The California Competes Tax Credit provides over $180 million in tax credits to businesses willing to relocate to California. Funds are also available to SMEs looking to expand in California. To qualify, the California government evaluates firms on 12 different metrics, such as projected job creation numbers, investment amount, and strategic importance. Together with business financing in California, this program can supercharge growth.
- The Advanced Transportation and Manufacturing Sales and Use Tax Exemption is available to businesses that manufacture advanced transport or alternative energy products. Successful applicants are exempted from a portion of sales and use taxes on the sale of their products.
- The Research & Development Tax Credit exempts a portion of the expenses incurred when conducting research in California. Wages paid to researchers and the costs of needed supplies are an example of these expenses. After a base amount, 15% of qualified expenses and 24% of research payments are tax-exempt.
- The Employment Training Panel offers grant funding to businesses that wish to upgrade the skills of their workers. Completion of an in-person/phone orientation and a preliminary application is needed to qualify for this program.
- The Economic Development Rate Program offers discounts to businesses that use considerable amounts of energy in their daily operations. Depending on their needs, companies can qualify for a standard deduction of 12%, or an enhanced discount of 30%.
Firms that opt for a loan instead of a grant should seek out small business loans in California through an SBA lender. SBA loans are guaranteed by the SBA, or the Small Business Administration. These financial products are backed by the federal government – because of this, they come with flexible terms. This fact makes it easier for business lenders in California to offer them.
Notable business lenders in California that issue SBA loans include institutions like:
- S. Bank
- Wells Fargo
- JP Morgan Chase
- CDC Small Business Finance Corporation
- Newtek Small Business Finance
Summary
California is, and will continue to be, an economic juggernaut. While it faces concerns like affordability and energy/water availability, it still has the 5th largest economy in the world. Its 3.3 million small businesses are its foundation – to stay healthy, these enterprises need access to small business loans in California. If your company needs cash, our list of reputable lenders will get the capital you need, fast.