Set against the backdrop of the majestic Rocky Mountains, Wyoming offers vast landscapes and a rural lifestyle across its 97,000 square miles, with a population of just 576,000. Known for iconic sites like Yellowstone and Grand Teton, it provides high-income professionals in Cheyenne and beyond unique opportunities for small businesses amid breathtaking natural beauty and rich history.
Some of the largest industries present in Wyoming include ranching, mining, and agriculture. Yet, there’s more to offer here as well. Tourism is a big component of the industry, as is the service industry. Wyoming is also home to a large number of small businesses, not just big industrial organizations. The U.S. Small Business Administration states there are 72,081 small businesses operating in the state. These companies provide 132,595 jobs for those who reside in the area. These businesses generate $5,903,309 in payroll, helping to support those who live here in many ways. For many companies, Wyoming is the ideal place to operate.
One of the reasons for this is the access to small business loans in Wyoming. The state has 326 active small business loans, according to the latest data from the Small Business Administration for the last three years. These loans have an overall value of $194,395,578. For those who need access to funding, the average loan size is $596,305. These funds are essential and allow businesses to use them in many ways, including for the acquisition of assets, expanding services, growing employment, and much more. These funds – and the lenders that offer them – are vital to the area’s development.
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How small business loans work in Wyoming
Wyoming small business loans are a valuable resource for any company operating in the state. These loans provide a way for companies to purchase assets and equipment, expand operations, fund their existing operations, modernize, and even just pay to market the next product or service they launch. These loans are typically meant for companies that have been in operation for a year or more and often have 100 employees or fewer.
A small business lender could be a bank or a larger financial institution. Some are private lenders, too. The lender offers the capital to the business owner with the expectation of repayment over a predetermined amount of time. The borrower repays the borrowed amount along with interest on the loan. If the borrower is approved for the loan, they are able to use those funds for any business related expense. This can provide a valuable source of capital for many growing companies.
The key here is to choose the right type of loan for your needs. The most common types of small business loans in Wyoming include:
- Bank loans
- SBA loans from sba.gov
- Business term loans
- Business lines of credit
- Equipment financing
Borrowers may wish to consider several of these loan formats to determine which ones are best suited for their specific needs. For example, many lenders offer SBA loans, which offer a bit more protection to the lender because they are backed by the federal government. These loans are a good option for many borrowers because they tend to offer competitive interest rates and easier qualifications. Another option is to consider business lines of credit, which allow lenders to extend credit over a period of time, allowing borrowers to borrow and repay the debt and then borrow again over time.
No matter which type of small business loan is selected, lenders will have requirements that borrowers must meet to obtain the loan. This often includes a business plan that outlines the company’s overall organization, structure, products, services, and competitors. It may also include a market analysis and a plan for using the money. In addition, lenders need to see the financials of the company, including business expenses, tax returns, balance sheets, profit and loss statements, and more. This helps them to determine how likely it is for the business to repay the debt on time as agreed.
If you can’t qualify for a loan yet because your company is in the startup phase, you still have options. Lots of entrepreneurs look for ways to bootstrap things. For example, maybe you don’t need to buy commercial real estate yet and can operate from your home or a rental space. Many entrepreneurs in the state of Wyoming look for ways to start with personal savings or even credit cards while keeping costs very low.
You can also look into other resources and funding options, such as the Wyoming Business Council, the Wyoming Small Business Development Center, getting government contracting gigs, help from the Wyoming Women’s Business Center, support from the University of Wyoming, grants for nonprofit organizations, and specific financial assistance from small business grants. There are many financing options out there even if you can’t yet meet eligibility for small business loans. Local governments might also offer microloans or can refer you to other providers of grants.
Once you have a company track record, look into your loan options. Without a doubt, this can be a valuable decision to make. Wyoming small business loans are available, though, with the flexibility that you need and want.