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Small Business Loans in Virginia: The Old Dominion has a LOT to offer!

November 14, 2023
Small Business Loans Virginia Credit Suite

For business owners seeking small business loans in Virginia, the Old Dominion has a lot to offer. For the past three years, CNBC has included it in its top three best states for business. But the costs of doing business here are high.

Small business owners can also investigate the Virginia Jobs Investment Program.

Best Small Business Loan Options In Virginia

Option 1– Atlantic Union Bank

With branches all over the state, including Alexandria in Northern Virginia, Atlantic Union offers term loans, lines of credit, and commercial real estate loans. They offer online banking, too and they are SBA lenders.

You can make interest-only payments on their business line of credit. With their commercial real estate loan, fully amortizing and balloon options are available.

They also offer equipment financing, including for specialty vehicles. Atlantic Union touts its expertise in industries as varied as health care, construction, government contracting, and nonprofit organizations.

This includes more niche financing choices, such as account receivable small business financing for construction contractors, and practice acquisition and partner buy-in financing (up to 100%) for veterinary practices. 

Option 2 – Virginia SSBCI Cash Collateral Program

The SSBCI Cash Collateral program can only be obtained via participating lenders. Eligibility requirements are similar to the SWaM program, below, but there are more restrictions on usage.

To be eligible, a business must be earning $10 million or less in annual revenues over each of the last three years; have a net worth of $2 million or less; or have fewer than 250 employees. 

All owners with a 20% share or more are required to personally guarantee the loan. 

Loan funds may not be used to repay delinquent federal or state taxes unless the borrower has a payment plan in place with the relevant taxing authority; or repay taxes held in trust or escrow, e.g. payroll or sales tax.

Option 3 – Loans from SMB Compass

SMB Compass offers business lines of credit, asset-based lending, factoring, bridge loans, business term loans, equipment financing, purchase order financing, inventory financing, and commercial real estate loans.

Industries they work with include hotels, beauty salons and spas, technology, franchises, and restaurants. 

Get invoice financing of up to $10 million with rates starting at 12% in as little as 24 hours. 

Purchase order financing is good for startups with at least 30% profit margins. To qualify, you must work with other companies or the government, and sell finished assembled products.

And for more business assistance, startup ventures can turn to the Community Business Partnership (not affiliated with SMB). And to get set up the Virginia Business One Stop.

Option 4 – Virginia Credit Union

The Virginia Credit Union offers business loans, including term loans, commercial mortgages, and lines of credit. They also have business credit cards.

With their business credit cards, you can earn 1.5% cash back on every purchase and get $200 when you spend $3,000 in the first 90 days.

To become a member, you will have to be an employee or retiree of any state agency or municipality in Virginia or of a select group of companies. There are also membership allowances for students or employees of certain colleges. 

You can also become a member if you live, work, worship, volunteer or attend school within the boundaries of certain cities and counties, including Richmond, and Prince Edward County.

Option 5 – Virginia Community Capital

Virginia Community Capital offers term loans and lines of credit, SBA loans, USDA loans, solar loans, and more. Get business acquisition financing, debt refinancing, or funding for owner-occupied real estate. Or get a line of credit.

When they were still available, VCC also offered PPP loans.

VCC Bank has the flexibility to take on slightly more risk than traditional lenders might because of grants from partner organizations to deploy small business financing to mission-aligned projects. VCC also uses government guarantee programs like SBA, USDA, and VSBFA. 

They will underwrite based on the fundamental ability of the borrower to repay the proposed debt.

It typically takes 45 days for a loan to close.

Option 6 – Fast Capital 360

Fast Capital 360 offers working capital loans, business term loans, lines of credit, merchant cash advances, SBA financing, and more, even lending based on cash flow.

Get the most money ($500,000) with an MCA or a short-term loan. For short-term loans, you must be in business for at least a year with a FICO score of 540 or better, and $75,000 or more in annual revenue. Pay 10% interest with repayment terms of three to eighteen months.

For an MCA, you must be in business for four years or more, with annual revenues of at least $100,000. Your FICO score must be at least 500. Get a factor rate of 1.10 with a repayment term of three to 24 months.

With both types of small business financing, you can get funded on the same day.

Option 7 – AdvancePoint Capital

AdvancePoint Capital offers small business loans for up to $1 million. 

Get an SBA loan, merchant cash advance (business cash advance), business line of credit, invoice financing, an emergency business loan, or short or long-term loans. 

Their short-term loan programs are good for those who have recently been able to start a new business in Virginia. It is also a viable option for business owners with bad credit or with business bank statement issues like overdrafts.

AdvancePoint Capital also offers the main Small Business Administration loans, like the 7(a), 504, microloans, and EIDL loans.

Option 8 – Virginia Department of Small Business and Supplier DiversitySmall Business Loans Virginia Credit Suite

The Virginia Department of Small Business and Supplier Diversity offers loans directly to businesses and nonprofits, and credit enhancements to lenders working with businesses and nonprofits.

They also offer bond financings to benefit for-profit businesses, and 501(c) (3) not-for-profit entities, and to support clean energy and P3 transportation projects.  They also help small businesses seeking to attract equity investments by providing an equity incentive grant program.

Their Small Business Investment Grant Fund does not provide funding for small businesses. Rather, it goes to eligible investors which invest in eligible businesses. An eligible investor is someone who has paid Virginia taxes within the last two years.

Option 9 – VA 30 Day Fund

The VA 30 Day Fund offers forgivable loans for Virginia small businesses as a direct response to the Covid-19 situation. 

A small business can qualify if they employ between three and thirty people; are a local business based in Virginia and has been in operation for at least one year, and is owned and operated by a Virginia resident.

They are not a government program. Rather, the Virginia 30 Day Fund is an organization fueled by the private sector committed to supporting small business jobs and business owners in Virginia.

To apply, a business owner must fill out a one-page form and submit a brief video (up to three minutes) about the business and its employees. Approved businesses can expect an immediate transfer of funds.

Option 10 – Economic Development Loan Fund

The Economic Development Loan Fund offers a minimum business loan of $50,000. In economically distressed areas of the state, the maximum loan available from the Fund for each project is 40% of the project costs or $1,000,000, whichever is less. 

But for all other areas of the state, the maximum loan is $500,000 or 40%, whichever is less.

To be eligible, borrowers must be one of these:

  • Economic or Industrial Development Authority empowered to lend for economic development purposes and other Virginia economic development entities
  • Technology, biotechnology, tourism, manufacturing, and renewable energy businesses. Or government contractors, basic commercial and industrial companies, and businesses or entities providing for a place’s economic and quality of life development.  
  • Businesses derive 15% or more of their revenue from defense-dependent activities and can demonstrate economic hardship from defense downsizing.

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Online Loan Options

Provider 1 – SWaM Business Microloan Fund

The SWaM Business Microloan Fund offers microloans up to $10,000 and is a great small business resource. You can find out more about it on the Virginia government website.

There is special consideration given to increasing the approved loan amount to $25,000 if requested by the business on the application and accompanied by a referral form from the Small Business Development Center. 

To be eligible, a business must be earning $10 million or less in annual revenues over each of the last three years; have a net worth of $2 million or less; or have fewer than 250 employees. 

All owners with a 20% share or more are required to personally guarantee the loan. 

You cannot use the funds to refinance or restructure existing debt; finance businesses engaged in residential construction or passive real estate investment; or compensate for a fundamental business weakness.

Provider 2 – Kabbage via American Express

Kabbage has teamed up with American Express. Together, they offer a corporate line of credit. 

In order to be eligible, you must be at least eighteen years of age and have started your business at least one year prior to applying. You must have a FICO score of at least 640 at the time of your application. 

And, your business must have an average monthly revenue of at least $3,000. You must have a valid business checking account.

Get a six, 12, or 18-month loan with flexible monthly fees. If you are not a current American Express customer, they will do a hard pull on your credit.

Provider 3 – Fundbox

Fundbox offers a company line of credit for up to $150,000. You can apply without your application affecting your personal credit score. Get funds in the next business day if approved.

You can also access working capital via their partnership with Stripe. As a result of their partnership, you can access funds directly from the Stripe app on your phone.

To apply, you will need to provide information on your average monthly revenue for the past three months.

You will need at least three months of transaction history in a business checking account, $100,000 or more in annual revenue, and a personal credit score above 600.

Provider 4 – Bluevine

Bluevine offers business lines of credit, Get up to $250,000 with rates as low as 4.8%. You can get a lending decision within minutes. 

You will need to have a 625 or better FICO score, and have been in business for at least six months. Your business must be bringing in $10,000 in monthly revenue. The business must be operating or incorporated in an eligible US state.

The non-eligible states are:

  • North Dakota
  • South Dakota
  • Nevada
  • Puerto Rico
  • US Territories

To apply, you need:

  • Basic details about you and your business
  • A bank connection or bank statements for the past three months

Your business must be in good standing.

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How to Qualify for a Business Loan in Virginia

Fundability Foundation™ 

A business owner should make sure their company has a Fundability Foundation™ before they start to apply for business loans. In particular, this will help you to save time, because you will have already gotten together some of the requirements that many lenders have.

Many of the steps that you need to take for Fundability™ will also help you establish and build a business credit score. And good business credit scores will always help you get approvals for a variety of business loan options

For more information on Fundability, you can check out our Fundability mini course, and convert denials into approvals.

Have a Good Credit Score

Small Business Loans Virginia Credit SuiteA good personal credit score will always help you get Virginia small business funding. A small business owner who can prove they responsibly pay back everything from a business credit card to a small business loan will be in an advantageous position.

In fact, good credit can help you get any type of small business financing.

For entrepreneurs who do not have a good credit history, getting your spending in check and avoiding inquiries will help. It will also help to reduce your utilization rate. In turn, by using less of your personal credit, you will be more likely to pay your bills on time.

If you take all these steps, your personal credit score will start to rise.

Have a Proper Business Plan

A proper business plan, prepared by a professional, will increase any small business’s chances of loan approval. You would be hard-pressed to find lenders who don’t want a valid company plan as part of a funding application.

This is not the time to wing it. Professional preparation will increase your small business’s Fundability™.

Business Revenues

Proving your small business is bringing in consistent business revenues will also increase your chances of qualifying for a Virginia business loan. 

In general, you can prove your business revenues with business tax returns and other business financial statements, such as a Profit and Loss statement.

Here, professional preparation will always make a difference. As a bonus, much of the documentation you will need in order to prove your business revenues will be what many credit providers are looking for. 

Newer businesses will have trouble with this piece, so having good personal credit, and valuable collateral to offer, will be key to getting a small business loan approval in Virginia or anywhere else.

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Small Business Loans in Virginia: Takeaways

Many of the available business loans in Virginia are actually lines of credit. These are flexible forms of financing and can be even better than loans for many businesses.

To increase your chances of approval, and finance your business, build business credit. Contact us today to find out how our expertise can help you.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the seasoned Finance Writer and a former content manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

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