10 Best Small Business Loans in Rhode Island


Rhode Island small business lenders connect companies with capital to build and grow over time.

Key Terms

  • Small businesses have a wide range of resources available to them that can help with financing, budgeting, debt management, and more.
  • Most small business loans can have 5-to-10-year terms, but some are longer, providing a more affordable monthly payment for borrowers that fit within their financial goals.
  • Small business loans are a common way for companies to raise funds at all stages of their establishment and growth.

Rhode Island is a small New England state, but it is one that has a unique charm and class to it that’s unlike any other. As the smallest state in terms of area, it is still home to 1.1 million people. It is the second most densely populated state in the country. Rhode Island, also known as The Ocean State, sits on the Atlantic Ocean and is well known for its maritime lifestyle, waterfront homes, and affluent communities. Its history is long, dating back to 1774 as the first colony. Today, the state, with its 400 miles of coastline, is still historically charming, but it is also a modern state with much to offer homeowners and businesses alike, including a significant amount of economic development and growth, beautiful parks and natural areas, and a high quality of life.

The Rhode Island economy is regional, with many areas along the coastline having a strong fishing industry. The area has also long been an important manufacturing area and financial sector. Health services, education, and finance are some of the largest industries here. While that may be the case, small business makes up a big part of the lifestyle here, too. That includes many service-oriented businesses, tourism-focused companies, and specialized providers. There are 108,360 small businesses in Rhode Island, according to data from the U.S. Small Business Administration. Those companies contribute 227,699 jobs to the state with a payroll that’s over $10.4 million. There is no doubt these are a big part of the household income throughout the state.

Looking further, it is critical that these small businesses have access to capital to help them grow. Not all companies need loans, but when they do, they have options through numerous lenders. There are 626 small business loans in place. That’s based on data from the last three years provided by the Small Business Administration. These loans are worth $29,044,849. The average size of a small business loan in Rhode Island is $525,361. These funds can be used for many things and tend to be one of the most important resources for capital in the state.

Show Me Lenders

How small business loans work in Rhode Island

Rhode Island companies need capital. Lenders offer that capital with the promise of earning interest from the loan. Qualified business owners can apply for capital through a range of small business loans in Rhode Island. These lenders range widely from local banks and credit unions to national lending organizations to government-backed loan programs. This versatility is valuable because it helps ensure companies have access to the funding they need from more than one source.

Loans are designed to meet the needs of both the lender and the borrower. Companies who apply for a loan will agree to repay those funds over a period of time, sometimes 5 to 10 years or longer. The lender agrees to accept payment over time for the amount borrowed as well as interest. The lender is taking on some risk, but they tend to do a good amount of research to make sure a borrower has the means to repay the debt over time.

One way that they do this is by looking at the company’s small business plan. This can outline the company’s industry, market share, profitability, ownership, and management. In addition to this, most companies also take a closer look at a company’s financial records. That may include balance sheets, profit and loss statements, and bank statements. The company’s credit history, or use of credit, as well as the business owner’s credit history, may be considerations as well.

Once a company applies to Rhode Island small business lenders, the lender may offer a loan that’s designed to meet that borrower’s unique needs. Often, there is a specific purpose in mind, such as purchasing equipment or refinancing debt. Other times, the line of credit is more versatile, providing more flexibility for use for the business.

Rhode Island small business lenders offer a range of loan types to meet the needs of borrowers. Some of the most common types include:

  • Bank loan
  • SBA loans from sba.gov
  • Business term loan
  • Business line of credit
  • Equipment financing

New companies may use business resources like credit cards, small business grants, or personal funds to startup. This is because loans are usually only available to established companies. If your business profile is more established, however, you could be entitled to apply for a loan amount needed to take your company next level in Rhode Island commerce.

Some companies tapped into coronavirus short-term loans like PPP loans or economic injury disaster loans from the government. However, these were limited to specific application periods and requirements that have since passed. Now if you need cash flow support for your for-profit or non-profit entity, you might need to explore small business loans.

Any new company in the State of Rhode Island should explore their business assistance options. This could include financial assistance grants, monies from a small business loan fund, business financing through loans, and other sources for business needs. Entrepreneurs with a company track record might join other small business owners who got help through term loans.

Businesses interested in borrowing capital may wish to compare several lenders to find the most affordable and flexible loan options for their needs. Luckily, there are a number of lenders in Rhode Island that can offer loan support. Bear in mind that each lender has their own interest rates, loan application, repayment terms, application process, and rules around whether you can refinance.

10 Biggest small business loan lenders in Rhode Island

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

RankBank Name# of Rhode Island LoansAvergage Interest RateAverage Loan Size
1HarborOne Bank324.69%$459,609
2Webster Bank274.78%$564,548
3Newtek Small Business Finance146.00%$1,160,214
4Bank Rhode Island115.05%$319,373
5Bristol County Savings Bank94.92%$666,111
6Navigant Credit Union95.94%$231,833
7Community Investment Corporation77.00%$148,571
8TD Bank75.21%$913,429
9Citizens Bank65.79%$549,667
10Jewett City Savings Bank64.69%$523,217

Get Small Business Loan Quotes

1. HarborOne Bank

Starting as the Brockton Credit Union in 1917, HarborOne Bank now has 31 branches across Rhode Island and Massachusetts, with two lending offices as well. HarborOne Bank offers a number of products to meet the needs of small businesses, personal banking, and commercial banking processes.

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

  • SBA Preferred Lender
  • Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

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.

2. Webster Bank

With multiple locations throughout Connecticut, Webster Bank has the ability to reach all of its customers and provide for their banking needs. Webster Bank offers a number of products for its customers, both in their business banking and personal banking, including loans and wealth management.

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

  • New England’s #1 SBA lender
  • Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

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.

3. Newtek

Newtek offers a number of services for businesses to help them to meet their financial needs. Products such as loans, cloud solutions, IT security, payment processing, payroll, and options when it comes to disaster recovery are available to protect and help a business to thrive and grow.

We reached out to Newtek 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 and SBA 504 Loan Program.
  • One of the nation’s largest non-bank government guaranteed lender.
  • Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

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.

4. Bank Rhode Island

Bank Rhode Island is able to meet the needs of its customers by providing 20 locations and many banking and financial services to meet their needs. Bank Rhode Island offers products for investments and commercial banking as well as personal and business banking products like checking and savings accounts.

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

  • Preferred SBA Lender
  • Also offers other business banking products like lines of credit, term loans and commercial mortgages

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.

5. Bristol County Savings Bank

With over $2.5 billion in assets, Bristol County Savings Bank is able to offer its customers in Massachusetts and Rhode Island the tools and products they need to find financial success. From small business loans to personal and business checking and savings accounts, Bristol County Savings Bank can help.

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

  • SBA Preferred Lender
  • Offers the SBA 7(a) loan, SBA 504 loan, SBA Express Loan and SBA Microloan
  • Repayment periods are up to 10 years or sometimes longer
  • Loans are offered by Bristol County Savings Bank and guaranteed by the federal government

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.

Other resources for small businesses in Rhode Island

Rhode Island businesses should work to build a strong financial base for the company. Doing that often means having extensive knowledge of the legal and strategic methods necessary to build a strong company. There are a few local resources that can help.

The Small Business Administration in Rhode Island is a strong first step. This organization offers a wide range of resources, online and locally, to help companies to gain insight into topics such as financing, building credit, securing government contracts, marketing, and hiring employees.

Another valuable resource is SCORE. This organization is supported by successful business owners who want to help companies that are just starting out or working toward growth. One of the most valuable tools available from this organization is its mentorship program. This, along with local and online workshops and seminars, can be a valuable way for companies to build their foundation.

Looking for a small business loan in a different state?

If you want to find the best small business loans in other states, click on your state below.

Find A Small Business Loan Specialist

Joshua Holt

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.

Save more money than your friends

One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.