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10 Best Small Business Loans in Washington

Key Terms

Borrowers should consider their credit score along with the ability to repay these loans before choosing a loan, with careful attention paid to the actual terms and conditions.
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 fits within their financial goals.

Washington sits on the Pacific Coast, in the Pacific Northwest of the country. It’s named for the first president of the country and is called The Evergreen State for its beautiful, dense forests and stunning rolling hills. The state’s capital is Olympia, but its largest city by far is Seattle, which is easily recognized as one of the most important locations in the country for technology and business growth. The state is a thriving location and is one of the wealthiest places to live. It has some of the best life expectancies and a strong economy with low unemployment. For the 7.8 million people that live here, it can be considered an excellent place to call home.

The economy in Seattle is quite diverse. There is a strong agricultural component here, including wine production, but other industries dominate, including technology, manufacturing, and forestry. The state is home to many large organizations, including Amazon, Microsoft, and Nintendo of America. While it is home to so many large organizations, Washington is also a thriving place for small businesses. The U.S. Small Business Administration (SBA) states there are 657,529 small businesses operating here, providing jobs for 1.4 million people and a total payroll of $74,445,676. That is a substantial amount of jobs for the workforce of the state, and it shows just how critical these companies are to the overall health of the region.

The good news is that many of these businesses have access to capital through the support of small business lenders in Washington – of which there are numerous organizations. The SBA states data shows that the most recent three years of data show 4,096 active small business loans in the state, with a total loan volume of $3,072,660,782. These loans can be used for many things, including company growth, new product launches, branding, equipment purchase, and much more. The average loan size in the state is $750,161. For many companies, these funds are critical to not just growing but also competing against the larger organizations in the state.

Show Me Lenders

How small business loans work in Washington

A small business may need cash to help it with the purchase of assets or to meet other financial obligations as it works to grow and modernize. A small business loan is a type of capital infusion provided by lenders who specialize in these types of financial offerings. This is a traditional loan in which the lender expects repayment of the loan with interest over a predetermined amount of time. The interest rate and terms are often dependent on the qualifications of the company as well as the overall type of loan.

A small business that needs capital can apply for a small business loan in Washington with a range of lenders. This could include small and larger banks, private lenders, and specialized lending institutions. They can also consider a wide range of loan types, including:

Bank loans
SBA loans from sba.gov
Business lines of credit
Business term loans of various lengths
Equipment financing

Once a business is ready to apply for a loan, they need to provide information to the lender about its company and operations, outlining the ownership, the products or services, its competitive edge, and the market for its products. A business plan is a great way to do this. Lenders then need to determine the amount of risk associated with the company. To do that, they need to see the financials of the business, including profit and loss statements, tax returns, balance sheets, and bank statements for the last several years. Many Washington small business loan lenders also request the credit history of the business or the owner if the business does not have a credit history established.

There are a few key things to know about these loans. First, they are not guaranteed, as most lenders have very specific and stringent requirements that borrowers must meet. Second, most are in place for 5 to 10 years, though there is some flexibility. Some of these loans are backed by the SBA, which helps to reduce some risk and helps keep the availability of the funds and the interest rate and fees lower. Other loans are not asset-based at all. Some may include a line of credit. Whether you’re opening in Spokane, Seattle, or somewhere else in Washington state, they may be many small business resources available to you.

For example, during the worst of the coronavirus pandemic, special loans were available to small business owners such as the PPP or the economic injury disaster loan. While those loans are no longer available, other programs may exist at the time you need funds. A grant program or business credit may apply based on your kind of business, too, such as if you work in commercial real estate.

In Washington state, most startups don’t use loans to launch. That’s because for-profit or non-profit entities need to show that they have revenue capable of paying back the loan. Small business owners usually tap into their own savings or personal credit cards to get things started, but after local businesses have proof of concept in their revenue, may meet the grounds for a small business loan. If you have evidence of annual revenues and other tax return data, be prepared to share this in your loan application.

Aspiring entrepreneurs should also look into additional business financing resources such as the Washington State Department of Commerce, small business grants, the Washington Small Business Development Center, the Small Business Flex Fund, and community development financial institutions. In addition to helping with referrals to financing options, you may also be able to get mentoring support for your small business. If you’ve been in operation for some time, federal government programs like those from the SBA are other options to help with your cash flow.

As a business owner, access to capital is critical, but it can be challenging without information and guidance. Take the time to compare several loan offers to determine which structure and option is best for your needs.

10 Biggest small business loan lenders in Washington

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

Rank	Bank Name	# of Washington Loans	Avergage Interest Rate	Average Loan Size
1	Columbia State Bank	184	5.63%	$243,577
2	KeyBank	140	5.67%	$454,820
3	Banner Bank	139	5.12%	$299,127
4	U.S. Bank	102	5.35%	$570,118
5	Umpqua Bank	50	5.20%	$931,234
6	Wells Fargo Bank	42	6.41%	$604,179
7	Heritage Bank	36	4.78%	$636,056
8	Readycap Lending	34	5.26%	$1,382,144
9	GBC International Bank	33	4.96%	$624,897
10	Washington Trust Bank	30	4.82%	$691,060

Get Small Business Loan Quotes

1. Columbia State Bank

Starting in 1993 as a community Bank, Columbia Bank now has over 145 branches in Washington, Idaho, and Oregon. By providing services such as wealth management, small business loans, and personal and business checking and savings, Columbia State Bank can meet almost all of its customer’s needs.

We reached out to Columbia State 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
Participates in the SBA 7(a), SBA 504 and SBAExpress loan programs.
Throughout the process you will work with local people in Washington. Your loan will be processed, underwritten, closed and disbursed by local people.