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10 Best Small Business Loans in Mississippi

Key Terms

Numerous types of small business loans exist in Mississippi, including Small Business Administration (SBA) loans, bank loans, equipment financing, and lines of credit.
Small business loans may help organizations fund growth and expansion or may be a necessary tool to refinance existing debt.
Most small business loans can have 5-to-10-year terms, but some are longer, providing a more affordable monthly payment for borrowers that fits within their financial goals.

Mississippi is known as The Magnolia State and sits along the Mississippi River and the Gulf of Mexico. Its location makes it a popular location for those looking to enjoy fishing and beaches on the Gulf Coast. The state is also one of the most affordable, with a low cost of living. For those that live here, there are many things the area is known for, from the subtropical climate that creates enjoyable temperatures throughout the year to the lowland plains and bayous. The state has over 2.9 million people living in it, with Jackson being the largest city. It is the home of The Blues and is recognized for its cactus plantations.

When you consider the economy of Mississippi, it’s easy to see just how diverse this area is. The state’s economy relies heavily on manufacturing, tourism, and seafaring. It also has a large agricultural sector, including the development of cotton. Large companies, including Nissan, call the state home. The state is also home to 270,534 small businesses, according to data from the U.S. Small Business Administration. Those companies are vital to the overall success and support of the local population contributing 449,099 jobs to the industry with a payroll of over $15,660,336. Many of those small businesses operate in the service sector, while others are a part of the farms, entertainment sector, and food services.

To operate, it is not uncommon for a business to need capital. Mississippi small business lenders are readily available and offer a wide range of loan types to meet the needs of companies in the state. The U.S. Small Business Administration’s most recent data shows that there are 885 small business loans active in the state according to the most recent three year data. Those loans have a combined value of $471,594,455, with an average loan size of $532,875. The funds from these types of loans can be used for many things, including the growth of the companies and the creation of new jobs to further support the state.

Show Me Lenders

How small business loans work in Mississippi

A small business loan is a financial investment that lenders make in companies that typically have under 100 employees. Mississippi small business lenders include big banks, smaller financial institutions, and private lenders. These organizations provide capital to qualified businesses that can then be used to meet their business growth and development needs. The borrower agrees to repay the loan to the lender with interest, which makes these loans profitable for them while still allowing the funds to be affordable for the business owners.

Lenders take on risk when providing these loans. That is one of the reasons why they charge interest. Yet, they also often have very specific qualifications they require of all small businesses they lend to, though those qualifications can differ significantly from one lender to the next. It is very common for Mississippi small business lenders to require companies to provide an updated business plan that outlines the company’s organizational structure, financial health, ownership, and products. It will also provide insight into the company’s ability to generate revenue.

This information, along with the credit qualifications for the borrowers, will be used to help determine if the lender can provide a loan to the company. They may offer more than one type of loan as well. Some examples of available loans include term loans, in place for a set number of years with a set monthly payment, business lines of credit that borrowers can use and pay back over and over again, and equipment financing for the purchase of various types of business-related equipment. Typical loans you may find in Mississippi include:

Bank loan
SBA loans, available at SBA.gov or SBA express
Business term loan
Business line of credit
Equipment financing

Most small businesses will tap into business loans from time to time. Interest rates are often very competitive and based on the qualifications of the borrower as well as the company’s needs. Even if a company does not have a long history, there could be loans available to help cover its financial needs. Borrowers need to take into consideration the affordability of each loan, including whether or not they have the financial means to make payment on time. Not all of these loans are based on collateral though some are, which could put business assets at risk of the borrower defaults.

If you meet any of the special requirements for that funding, leverage it. Whether you need help with commercial real estate, buying new equipment, or just expanding your operations, there are many possibilities with small business loans. Once you’ve passed the startup phase and you have tax returns showing your company’s growth and profit and loss statements, you may be able to take out a loan.

In the state of Mississippi, there are many financing options available for entrepreneurs. There are plenty of resources as well, such as the Mississippi Development Authority, local development centers, business services for minority-owned companies, and grant assistance for non-profit organizations.

For most company owners, however, their business needs are large in scale and they need more from business financing than what is available through grants or what could be put on credit cards. If this applies to you, check out your eligibility for microloans or small business loans.

Businesses that need loans may wish to compare a range of lenders to find the best one for their needs. This should take into consideration things like the lender’s availability, costs, and benefits.

10 Biggest small business loan lenders in Mississippi

Mississippi small business loan lenders ranked by loans issued in the state.

Rank	Bank Name	# of Mississippi Loans	Avergage Interest Rate	Average Loan Size
1	Peoples Bank	92	5.65%	$406,655
2	Community Bank of Mississippi	51	4.89%	$381,984
3	BankFirst Financial Services	42	4.92%	$708,036
4	Trustmark National Bank	40	4.33%	$296,408
5	BankPlus	15	4.43%	$684,127
6	First Financial Bank	11	5.13%	$292,000
7	Renasant Bank	11	4.29%	$1,394,154
8	Wells Fargo Bank	9	7.70%	$94,644
9	Cadence Bank	8	5.22%	$467,938
10	Live Oak Banking Company	8	5.09%	$944,588

Get Small Business Loan Quotes

1. Peoples Bank

Opening in January 1921 in Lynden, Washington, Peoples State bank began to serve its community. Now known as Peoples Bank and with over 100 years in service and $2.6 billion in assets, it is able to meet the needs of all of its customers from its 9 locations.

We reached out to Peoples Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

While the bank offers small business products, we weren’t able to verify their experience with SBA loans specifically. If you are interested in working with them, we suggest reaching out and contacting the bank directly.