Small Business Loans in New York: An In-Depth Guide

Camino Financial30 Jan 2024
Small Business Loans in New York: An In-Depth Guide
Thanks to this guide, finding small business loans in New York will be easy. With numerous programs and lenders dedicated to supporting the entrepreneurial spirit of the Empire State, securing funding for your venture is within reach. This article demystifies the process and illuminates the path toward securing the right financial support. From understanding different loan types to navigating the application process, we've got you covered. Let's delve into the vibrant ecosystem of business financing in NY and unlock the potential of your entrepreneurial dream.

Top Small Business Loans In New York

In New York, various lenders offer varying terms, interest rates, and requirements. Let's consider some of the top options and their offerings:

Camino Financial

Camino Financial's logo Camino Financial can provide funds to meet your business expenses. Our interest rates are competitive and depend on your credit score. Our loan specialists will work with you to ensure that you get the loan best suited for your needs.
At Camino Financial, our commitment is to help small business owners. We focus on providing underbanked entrepreneurs with funds at a reasonable cost.
Learn more about our affordable and accessible loans:
  • Loan amounts: $10,000 to $50,000
  • Terms: 24 months
  • Interest rates: 32% to 45%
  • Minimum credit score: 670
Apply For A Business Loan!

NYC Capital Access Loan Guarantee Program

ntc business services logo Managed by the New York City Department of Small Business Services, this program guarantees loans for small businesses. Key details are:
  • Loan amounts: $25,000 to $250,000
  • Terms: 3 to 7 years
  • Interest rates: determined by the lender
  • Minimum credit score: no minimum credit score required

The Business Center For New Americans

The Business Center For New Americans logo As a non-profit micro-lender, BCNA provides small business loans, emphasizing immigrant and refugee entrepreneurs in NYC. Highlights are:
  • Loan amounts: $500 to $35,000
  • Terms: up to 6 years
  • Interest rates: 8% to 10%
  • Minimum credit score: 620

TD Bank

td bank logo A well-established financial institution, TD Bank offers a variety of lending products to small businesses. Key features include:
  • Loan amounts: $10,000 to $1 million
  • Terms: 1 to 5 years
  • Interest rates: based on the Prime Rate plus an additional margin of 3.50% to 5.50%
  • Minimum credit score: 680

WE Fund Credit

ntc business services logo A partnership between WE NYC and Grameen America, WE Fund Credit targets women entrepreneurs in NYC. Their offerings include:
  • Loan amounts: $10,000 to $100,000
  • Terms: 2, 24, or 36 months
  • Interest rates: start at 6.99% APR
  • Minimum credit score: 660


fundbox logo A leading online lender, Fundbox offers fast and flexible business loans and lines of credit. Key features of their line of credit are:
  • Loan amounts: $1,000 to $100,000
  • Terms: 12 or 24 weeks
  • Interest rates: 6% to 12%
  • Minimum credit score: no minimum credit score required

Excelsior Growth Fund (EGF)

Excelsior Growth Fund (EGF) logo A non-profit organization, EGF offers affordable and accessible business loans in New York. Highlights of their ImpactLoan include:
  • Loan amounts: $10,000 to $500,000
  • Terms: 5 to 10 years
  • Interest rates: 6.00% to 12.75%
  • Minimum credit score: 680


WE NYC logo WE NYC offers various services through the NYC Small Business Opportunity Fund (SBO Fund) to immigrant, women, or BIPOC-owned businesses. Key features are:
  • Loan amounts: $2,000 to $250,000
  • Terms: 60 or 72 months
  • Interest rates: fixed rate of 4%
  • Minimum credit score: no minimum credit score required

Empire State Development's Small Business Division

Empire State Development logo This state-run division offers a variety of services to small businesses. Their offerings include the New York State Small Business Revolving Loan Fund (SSBRF):
  • Loan amounts: up to $250,000
  • Terms: up to 10 years
  • Interest rates: 5%
  • Minimum credit score: 660

Balboa Capital

Balboa Capital logo Balboa Capital is a division of Ameris Bank, an online lender that provides business owners with fast business funds to fuel growth and success. Here's more info on their working capital loans:
  • Loan amounts: $20,000 to $250,000
  • Terms: 12 to 24 months
  • Interest rates: 9% to 20%
  • Minimum credit score: 620

Most Common Business Loan Requirements

  • Credit History. Lenders often require a 650+ credit score to qualify for a loan. Your credit history reflects your reliability as a borrower.
    • At Camino Financial, we only require 670.
  • Business Plan. A solid business plan demonstrates your company's potential for success. It's your chance to showcase your business concept, market analysis, organizational structure, and financial projections.
    • At Camino Financial, we won't ask for a business plan.
  • Financial Records. Lenders must review your financial records to assess your business's financial health. Some examples are your income tax returns, bank statements, and financial statements.
    • At Camino Financial, you can share all this information online.
  • Collateral. Secured loans require collateral—assets that the lender can seize if you default. However, unsecured business loans don't require collateral.
    • At Camino Financial, we offer unsecured loans.
  • Time in Business. Most lenders require businesses to have been operational for a certain period, typically at least one or two years.
    • At Camino Financial, we only require 12 months.

How To Get A Small Business Loan In New York: 6 Steps

You can easily access loans if you follow these steps:
  1. Assess your needs. Understand why you need the loan, how much money you need, and how you plan to repay it.
  2. Prepare your business plan. This document is your chance to convince lenders that your business is a worthy investment.
  3. Compare lenders. Compare loan products from various lenders to find the right small business loan. Look at the loan amounts, terms, interest rates, and credit score requirements.
  4. Fill out an application. Once you have chosen a lender, follow their application process, which typically involves filling out a form and submitting your documents.
  5. Complete the process. The lender will ask you for more information, like financial documents, including income tax returns, bank statements, and financial statements.
  6. Sign the contract. If you're approved and like the final terms the lender offers, just sign the contract.
Apply For A Business Loan!

Where To Get Loans In New York

The diverse landscape of lenders in NY ensures a perfect match for every entrepreneur. The key is to take your time to understand each option, compare terms, and choose the lender that best suits your needs.

Banks And Credit Unions

Traditional banks and credit unions offer a range of loan products. They tend to have extensive services and can provide substantial loan amounts.

Alternative Lenders

Alternative lenders, such as Camino Financial, offer a more flexible and quicker process, making them suitable for business loans in New York.

Small Business Administration

The SBA partners with lenders to provide small businesses with loans. They guarantee a portion of the loan, reducing the risk for lenders and the cost for borrowers.


Online loan marketplaces aggregate multiple lenders, allowing you to compare different loan products in one place. These platforms simplify the process of finding the best small business funding option.

Types Of Commercial Loans You Can Access

Term Loan

Term loans are the most traditional type of business loan in NY. They provide a lump sum of cash upfront, which the borrower repays over a set term, typically with fixed interest rates. These loans are excellent for substantial one-time investments or expenses. Apply For A Business Loan!

Business Line of Credit

A business line of credit is a flexible and revolving form of borrowing. It operates similarly to a credit card; businesses can borrow up to a specific limit, repay it, and borrow again. This type of loan is suitable for managing cash flow or unexpected expenses.

SBA Loan

Small business loans backed by the Small Business Administration (SBA) are highly sought after. The SBA guarantees a portion of these loans, making it less risky for lenders and often leading to more favorable business terms and rates. You can use SBA loans for various purposes, including working capital, equipment purchases, and real estate.

Merchant Cash Advance

Merchant cash advances (MCA) are a quick, high-cost business funding option. With an MCA, the lender advances you a lump sum, which you repay by giving the lender a percentage of your daily credit card sales. This type of loan can benefit businesses with substantial credit card sales.

Accounts Receivable Financing

Also known as invoice financing, accounts receivable financing allows businesses to sell their outstanding invoices to a lender at a discount. This type of loan helps businesses manage cash flow by getting immediate funds rather than waiting for customers to pay invoices.

Equipment And Machinery Loans

Equipment loans are specifically for the purchase of equipment or machinery. Instead of paying the total cost upfront, businesses can make payments over time while the equipment itself serves as collateral for the loan.

How Small Business In New York Spend Their Loans

Business owners can use borrowed funds in many ways. The main reasons small business owners apply for a loan are:
  • Expand the business
  • Meet operating expenses or strengthen working capital
  • Working capital needs
  • Machinery or equipment
  • Purchasing inventory
  • Business acquisitions
  • Marketing
  • Refinancing debt

Top NY Small Business Grants

While loans provide excellent financial resources, let's not forget about grants. These are essentially free money awarded to businesses for specific purposes. They don't need to be repaid, making them an attractive funding option for entrepreneurs. Here are some of the top small business grants in the state:
  • Appalachian Regional Commission (ARC) grant
  • Global NY Fund Grant Program.
  • New York Foundation Grant.
  • Global NY State Trade Expansion Program (STEP)
  • New York State Seeding Funding Grant Program.
  • Global NY Fund Grant Program
  • New York StartUP! Business Plan Competition
  • New York Foundation Grant

What Should You Keep In Mind While Applying For Grants?

When applying for business grants, it's essential to:
  • Understand the Requirements. Ensure you meet the eligibility requirements before applying.
  • Follow Instructions. Grant applications often have stringent guidelines. Be sure to follow them to the letter.
  • Have a Clear Purpose. Be clear about how you will use the funds to benefit your business and the wider community.
  • Pay Attention to Deadlines. Grants usually have strict application deadlines. Don't miss out by applying too late!

NY Small Business Statistics

New York small business loan programs play a significant role in the state's economy, given the immense contribution of small businesses. Here are some enlightening statistics about small businesses in NY:
  • According to the SBA, small businesses make up 99.8% of all businesses in the state. In 2015, they employed 4 million people, accounting for about 50.2% of the private workforce.
  • As of 2012, according to census information, there were over 709,021 minority-owned small businesses and 725,709 women-owned businesses in the state.
In a nutshell, small businesses are the backbone of New York's economy, and programs providing financing play an instrumental role in supporting them.

Why Is It Hard To Get Small Business Loans In New York?

Small business loans can be tough to get because of most banks' stringent requirements. Of course, each bank or financial institution will have different rules. But getting your loan application approved can be challenging, especially for many small companies. Here's what the Small Business Credit Survey – Report on Nonemployer Firms – 2019, issued by the Federal Reserve Bank of New York, says about the ability of small companies to raise the money they need: "32% of nonemployers reported having no collateral with which to obtain financing…" And what about employer firms? The New York Fed's Small Business Credit Survey – Report on Employer Firms points out that:
  • 9% of small businesses applied for loans and didn't receive any funds at all
  • 14% received only part of the money they needed
  • Another 9% didn't apply for a loan because they believed they would not receive approval
Apply For A Business Loan!

Starting A Business In New York

Launching a venture is an exciting journey filled with opportunities and challenges. And when it comes to starting a business in NY, preparation is vital.

How Much Does It Cost To Start A Business In New York?

The average cost to start a business in New York is around $3,000. The minimum cost to start one is around $200, which is the filing fee for the Articles of Organization, the basic requirement for forming an LLC. The cost can go up to $100,000 or more. That said, the cost of starting a business can vary widely, depending on the type of business, its location, and your business model. Here are some potential costs:
  • Business registration fees
  • Office space
  • Licenses and permits
  • Staffing

Things To Consider Before Starting A Business In New York

Before diving into the world of entrepreneurship in the Empire State, consider the following:
  • High Taxes. The state is known for its high tax rates, which could significantly affect your business's bottom line.
  • High Costs. New York, especially New York City, is one of the most expensive places to live in the US. Consider how this high cost of living will impact your business and personal expenses.
  • Complex Regulations. The state has a well-established, albeit complex, regulatory environment. Understanding these laws and regulations is crucial to avoid any legal complications.
You can navigate these challenges and start a thriving business with thorough planning and understanding.

The Importance Of Having A Business Plan Before Starting A Business in New York

A business plan is essential in a competitive environment like New York. Here's why:
  • Clarity. It helps you understand your business concept, identify your target market, and define your unique selling proposition.
  • Financial Planning. It provides a financial forecast, allowing you to budget effectively and plan for costs.
  • Attracting Investors. A well-crafted business plan can help attract investors or secure loans, as it demonstrates the potential profitability of your business.

The Financial Help NY-Small-Business-Owners Are Looking For

A timely and reasonably priced cash infusion can play a pivotal role in allowing a business to survive and prosper. If you need funds, we encourage you to apply for a business loan from Camino Financial.
Our motto is “No business left behind.”
Our business loan specialists are trained to help you find the most suitable financing option for your company. We'll ensure you get the money you need as quickly as possible. We specialize in helping small businesses that can't get capital elsewhere. Our loan application process is easy and quick. Here are some of our requirements:
  • Collateral-free loans.
  • Our minimum requirements are easy to meet.
Apply For A Business Loan!


What credit score is needed for a small business loan?

The minimum credit score required for a small business loan varies by lender, but a score of 680 or higher is generally preferred. However, some lenders may approve loans for scores as low as 670, particularly alternative lenders like Camino Financial.

What is the easiest loan to get from SBA?

The SBA's Microloan program is often considered the easiest to qualify for. It provides loans of up to $50,000 to help small businesses start and expand. The SBA's 7(a) program is also popular due to its flexibility and broad usage.

Do banks give loans to small businesses?

Yes, banks do provide loans to small businesses. These are often term loans, lines of credit, or commercial mortgages. However, the lending criteria can be stricter than alternative lenders or government-backed loans.

How fast can you get a small business loan?

The timeline to get a small business loan can vary from a few days to several weeks, depending on the lender and loan type. Online lenders often have faster application processes, while traditional bank loans or SBA loans may take longer due to more rigorous approval processes.

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