Small business loans in California provide an effective way for businesses to fund startup and growth.
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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
California is known for many things, from its diverse climate to the Pacific Coast. It is home to numerous large cities, including Los Angeles, San Francisco, Sacramento, San Diego, and numerous others, with a population of over 39 million people. The Golden State is also known for Silicon Valley, one of the largest tech-focused areas in the country. California small businesses are the heart of the state, though, with many people creating small companies. It’s a state known for the entertainment industry, tourism, and its natural beauty.
When it comes to small businesses, California is home to many of them, an estimated 4.2 million in fact, according to the U.S. Small Business Administration. Those small businesses employ 7.4 million people, with a payroll of about $415,043. While there are numerous large companies that make California their home, it is those millions of small businesses that often set the tone for the state’s culture and charm. Many families rely on the income produced through small businesses as well, making them vitally important.
With so many businesses present, California also has a large number of small business loans issued. Per the most recent three years of data provided by the U.S. Small Business Administration, there are 19,015 small business loans in the state of California. That is a total loan value of over $18,705,000. The average loan size for those companies is over $983,675, which is a substantial amount of value for the state’s loans. Many companies depend on those funds to help them to keep operations growing, often spreading beyond the state’s borders to improve profitability. Small business owners especially need working capital, whether they are a for-profit business or starting a non-profit enterprise.
What is a small business loan in California? These are loans provided to smaller businesses, often those with under 100 employees (though this differs from one lender to the next). These loans allow businesses to borrow capital to help meet their financial needs. This could include using those funds to grow the company, purchase inventory, upgrade equipment, expand, or for a wide range of other needs. In exchange for borrowing funds to help support the business, lenders charge a fee, in the form of an interest rate, that the borrower will pay over the lifetime of the loan.
The maximum amount of money you can borrow through a small business loan in California depends widely on many factors. That includes the need for the loan, the company’s existing debts and revenue, credit score information, and the age of the company. Lenders want to be sure they are able to count on the funds being returned to them, which is why the cost to borrow funds like this ranges widely.
Most of the time, small business loans are not available to startups with under a year of operation under their belt. Most of the time, lenders will require a formal application in which things like credit scores, income, years in business, financial records, and the company’s industry all play a role in the decision of whether or not to lend as well as how expensive borrowing can be. With so many loan options out there, from general microloans to those related to operation in the pandemic, knowing all that you’re eligible for is key.
For start-up costs, look into your local economic development board for information about grants and support from financial institutions, and you can look into small business loans for entrepreneurs once you have some time in operation under your belt. Knowing the application process, loan process, and repayment terms sets you up for success. You can work with financial development corporations or a small business finance center if you choose.
The good news is there are a range of California small business loans available, often ensuring there is something to meet the needs of every borrower. There are a variety of small business loans that you can expect to find in California, such as:
Most businesses will not qualify for all types of business funding, but many will have access to a wide range of borrowing options to support their business. Take a few minutes to consider several options to determine which offers the best terms and conditions for your specific needs. Many times, lenders can be flexible in offering loans that fit your specific needs.
Other specific options for business needs may be available, such as the California Capital Access Program or the California Small Business Loan Guarantee Program. You might also explore assistance programs, the Office of Business and Economic Development, or set up a meeting with your local credit union or small business development center. Nonprofit organizations supporting low-income communities or marginalized groups such as people with disabilities may be able to look into grants as well.
Small business loans in California can provide resources to help you to build your company over time, often allowing you to better compete with larger organizations through an affordable capital resource. While most lenders expect companies to be established with revenue, there are many times when they will provide the resources you need to right the ship, too.
| Rank | Bank Name | # of California Loans | Avergage Interest Rate | Average Loan Size |
|---|---|---|---|---|
| 1 | U.S. Bank | 573 | 5.58% | $356,974 |
| 2 | Wells Fargo Bank | 354 | 6.74% | $486,283 |
| 3 | Harvest Small Business Finance | 243 | 5.51% | $1,238,479 |
| 4 | Enterprise Bank & Trust | 222 | 5.10% | $1,149,422 |
| 5 | Live Oak Banking Company | 220 | 5.24% | $1,560,762 |
| 6 | MUFG Union Bank | 216 | 3.96% | $1,667,818 |
| 7 | Bank of the West | 181 | 4.35% | $1,004,748 |
| 8 | Commonwealth Business Bank | 170 | 4.85% | $1,132,447 |
| 9 | Newtek Small Business Finance | 167 | 6.15% | $680,742 |
| 10 | CDC Small Business Finance Corporation | 157 | 7.62% | $145,556 |
First coming into existence in 1863 as the First National Bank of Cincinnati, U.S. Bank now operates in 26 states across the country. U.S. Bank offers a number of products and services to meet customers’ needs, including small business loans and personal banking solutions, including checking and savings.
We reached out to U.S. 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.
Harvest Small Business Finance is located in California and is able to meet the loan needs of small businesses with a number of products available for businesses of varying needs and types. From SBA loans to loans to meet other needs from $300,000 to $5 million.
We reached out to Harvest Small Business Finance 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.
With 47 branches in 13 states, Enterprise Bank & Trust has the ability to help s its customers across the US. Enterprise Bank & Trust offers a number of products for both personal and business banking to meet the needs of all of its customers, including small business loans.
We reached out to Enterprise Bank & Trust to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
Offers the SBA 7(A) Loan Program, SBA 504 Loan Program, SBA Express, SBA Export Working Capital Program and CAPLines Program.
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.
California small business lenders are one resource for help for many organizations, but there are others as well. The better educated business owners are, the more financially savvy they can be when making decisions about their business. Perhaps the best resource is the Small Business Administration in California. This resource can help you to navigate funding options, but it also provides a learning platform to help to establish and grow your company. The Small Business Administration is a resource available to all smaller organizations in the state, and there are no costs associated with using these services.
Another resource is SCORE. It is an exceptional resource for finding a mentor who can help guide you as you work to grow your company over time. You can learn a great deal about the small business industry and also get valuable information about how to build your success, including through informational tools, live webinars, and lots of additional business training. There is no cost to these services, either. Its main office is in Santa Rosa, California, but anyone in the state can use these tools.
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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