Small business lenders in Alabama provide financial tools to support small businesses as they grow and expand.
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Biglaw Investor connects you with small business lenders who can help you expand your business, whether through working capital or via acquisition. A small business loan loan is a great way to grow your business—but it can be hard to know where to start. Our small business lenders offer an experience specially tailored to your goals.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your business needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
Alabama is known for many things. It’s called the Heart of Dixie, the Yellowhammer State, and even the Cotton State. Yet, there is much more that this state is recognized for, including Southern hospitality. From its beautiful Gulf Coast region to its dense forested areas and agricultural areas, it has a diverse ecosystem. Many people know Alabama for its college football programs. Most recognize the state as the birthplace of the Civil Rights Movement.
The state’s economy is driven by many sectors, including those in aquaculture, agriculture, and healthcare. It also has a strong industrial economy based in areas such as electronics. Many come to Alabama for tourism, especially in the southern portion of the state. Though there are many large employers in Alabama, the state is also recognized for its many small businesses. According to the U.S. Small Business Administration, there are over 417,000 small businesses in the state, providing jobs for over 822,600 people.
It is easy to see how important the state’s economy and small businesses are to those who call this area home. The total payroll in the state paid by small businesses tops $33,717,700. From small artisan shops to tourism-focused businesses, these small businesses are a critical component of the state’s overall financial health and quality of life.
Many small businesses in Alabama need financial support from time to time. There is no doubt that small business lenders in Alabama are a critical resource for that. According to the most recent three years of data available by the U.S. Small Business Administration, there are 1075 small business loans in place right now with a total loan volume of over $920,102,900. The average loan size in the state is over $855,900. These loans have provided financial support for employers for a long time, helping them to build their business and expand.
Small business loans are a type of financial tool that many organizations utilize to help with having available capital. To build a business – especially to grow it over time – it is necessary to have capital. Small business lenders in Alabama offer these loans to qualified borrowers to help fund their needs. Borrowers promise to repay the amount borrowed along with interest applied to the principle. Many loans are in place for 5 to 10 years, though some may be longer, and terms may be more flexible with some lenders.
When it comes to establishing a small business loan, most lenders expect borrowers to meet specific requirements. Just like obtaining a personal loan, business owners must prove to the lender that the company can cover the cost, including making payments on a consistent basis on time. If the company cannot do that, then the lender may not be willing to loan.
Each lender sets their own terms for what specific needs a business needs to provide to qualify, such as creditworthiness standards, revenue and earnings, industry information, and often a business plan. If the company does not have a strong credit history, the business owner’s personal information may be used.
Small business lenders are often willing to work closely with businesses, but they need to be sure that the company has the means to make payments on time. To do that, they will ask questions about what the business does and how profitable it is. Though some lenders offer loans to younger businesses, most will not work with startups that are unproven, especially if they are under a year old. That increases the risk (and if the funds are loaned, it likely increases the costs.) Check our your local credit union and small business development center to discuss a microloan program, too, to make sure understand eligibility.
There are numerous types of small business loans available, providing options for most needs. Alabama small business lenders typically provide a range of options for borrowers based on their unique needs. Some of the small business loans available include:
There are also other alternatives for for-profit business owners, such as real estate loans, if you meet the requirements for those programs. Financing options depend on availability of business credit or grants.
When a borrower is ready to apply, a formal application is completed. It outlines the expectations of the borrower and the lender, along with all terms. Most lenders can offer financing quickly, depending on qualifications. For companies that need capital to grow and expand, Alabama small business lenders are typically the best resource for that support for entrepreneurs and aspiring small business owners.
There are many options out there, including business or nonprofit grants, SBA.gov loans, traditional and fixed rate business financing loans, credit cards, and even aid for economic development. What you’re eligible for depends on your business.
| Rank | Bank Name | # of Alabama Loans | Avergage Interest Rate | Average Loan Size |
|---|---|---|---|---|
| 1 | PNC Bank | 32 | 8.8% | $244,062.00 |
| 2 | Wells Fargo Bank | 31 | 7.6% | $286,552.00 |
| 3 | United Midwest Savings Bank | 19 | 5.8% | $307,547.00 |
| 4 | Live Oak Banking Company | 16 | 5.4% | $859,763.00 |
| 5 | Cadence Bank | 14 | 5.4% | $932,350.00 |
| 6 | Newtek Small Business Finance | 14 | 6.0% | $679,321.00 |
| 7 | Friend Bank | 13 | 5.6% | $109,654.00 |
| 8 | BankFirst Financial Services | 11 | 5.0% | $498,855.00 |
| 9 | Community Bank of Mississippi | 10 | 4.5% | $792,310.00 |
| 10 | Regions Bank | 10 | 5.2% | $1,383,990.00 |
PNC Bank, headquartered in Pittsburgh, Pennsylvania, was founded in 1845 and now operates in 27 states as well as the District of Columbia. With a number of personal, business, and institutional banking products available, PNC Bank is able to meet the needs of all of its customers.
We reached out to PNC Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Wells Fargo Bank was started in 1852 by Henry Wells and William G. Fargo as a bank to help customers build business and manage money. Wells Fargo Bank offers many products through its many branches to meet customers’ needs, including mortgages, wealth management, and personal and small business banking.
We reached out to Wells Fargo Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Founded in 1889 as a community bank to provide for local individuals and businesses, United Midwest Savings Bank has over 130 years of experience in meeting customers’ needs. With 5 branches and 1 administrative office in the Columbus, Ohio area, United Midwest Savings banks can help all of its customers.
We reached out to United Midwest Savings Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Live Oak Bank is based in North Carolina but serves all 50 states as a cloud based digital bank. Offering a number of products and services to its customers, from personal to small business loans, as well as options for personal and business banking like checking and savings accounts.
We reached out to Live Oak Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Started in 1876, Cadence Bank has almost 150 years of experience in helping its customers in Mississippi, Texas, Florida, Missouri, Tennessee, Florida, Georgia, Alabama, Arkansas, and Oklahoma meet their needs. Cadence Bank offers a number of tools, including small business loans and personal banking tools like checking and savings accounts.
We reached out to Cadence Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
While lenders can provide companies with a wide range of funding options, it is also critical for business owners to have the financial education necessary to make their own wise financial decisions. It is not always easy to know how to run a business, even if you have a great idea. The U.S. Small Business Administration in Alabama offers the help you need. It offers free educational articles and tools to help you with decision making. It also provides a wide range of resources to help businesses to create business plans, budgets, and expansion plans.
Another key resource for most companies is SCORE. With its main location in Birmingham, Alabama, businesses across the state can turn to this organization for information and education. There are seminars, webinars, online articles, and many other resources designed to help support a business as it works to grow and develop. More so, there is no cost to a business owner at all for this service. Most of it is available right on their website, so you can start using it right away.
If you want to find the best small business loans in other states, click on your state below.
Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.
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