Business loan

New Hampshire Small Business Loan Options

Small business owners in Concord, Merrimack, and Manchester, as well as any other town in New Hampshire, are what fuel the state’s economy.

But even with such an important role, these small businesses sometimes need a little help with business finances. Fortunately, there are several resources for small business loans available in New Hampshire.

How a Small Business Loan Can Help Your New Hampshire Business

If you’ve never taken out a business loan, you may not know what to use it for. A small business loan can be used for a number of expenses for your business. If you need working capital to invest in marketing, inventory, or payroll, a loan is a great tool. If you want to buy another business or invest in real estate, there are also loans for that.

Even if you experience a temporary shortage of cash, taking out financing can get you through the hurdle until the money comes back.

Types of small business loans to choose from

When it comes to small business loans, there are many different options and many different lenders. Your choice depends on your financing needs and what you qualify for. Here is a sampling of the loan programs available to you in New Hampshire.

Bank loans

For businesses with excellent credit, bank loans are ideal, as they offer low interest rates to those who qualify. Start your search with the bank you already have a relationship with, but don’t stop there. Here are other banks that offer good loans.

SBA Loans

The US Small Business Administration also offers low interest loans with long repayment periods. Its loan programs include 7(a), 504 and microcredit programs. The New Hampshire district office for the SBA is in Concord, although businesses across the state can qualify for SBA loans. Visit SBA.gov to find lenders in your area, or explore these:

Commercial real estate loans

Entrepreneurs looking to purchase high-priced commercial property have a specific category of financing available to them in New Hampshire. These loans use the property you buy as collateral for the loan, which can keep interest rates low.

Merchant Cash Advance

New Hampshire startups may not be eligible for the above options. Banks and the SBA often want a higher credit score and two or more years in business. If you don’t have these qualifications, you can still qualify for a merchant cash advance. It is not a loan but rather an advance on future credit card sales.

What it takes to get approved for a small business loan

I’ve given you a taste of what it takes to qualify for a loan through the SBA or the banks. They tend to have the highest standards when it comes to getting loan approval. Along with needing a certain credit score and business time, you may also need to provide your business plan and financial documents like tax returns and profit and loss statements.

Other options such as merchant cash advances, business credit cards, and invoice financing may have less stringent requirements to qualify.

How to choose the right loan for your New Hampshire small business

Start by determining how much you want to borrow, then see which programs match that amount. Some banks won’t lend less than $10,000, so if you just need a bit of financing, you can seek out a microloan.

Next, find out what you are entitled to, based on the lender’s criteria. This will eliminate some options from your list.

Look for the loan program with the lowest interest rate and most favorable terms that you qualify for.

Small Business Grant Options for New Hampshire

You may also be able to get financial assistance in the form of a small business grant. This money, unlike loans, does not have to be repaid. In New Hampshire (and the United States in general), you can find grants offered by nonprofits, corporations, and governments like those listed below:

Additional Resources for New Hampshire Small Businesses

Let’s round out this article with some small business support programs and resources that can provide you with free training and workshops, mentorship, advice, and networking.

With so many loan programs for borrowers in New Hampshire, you are spoiled for choice! You should take seriously limiting yourself to the loan that best suits your business needs. You want a loan from a lender who will be there for you throughout your business relationship and who will work with you to help you find the right loan for you.

This article was originally written on March 16, 2022 and updated on March 21, 2022.

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