Best Small Business Loans in California 2024: Finest Selection

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Best Small Business Loans in California

In 2023, the landscape for small business loans in California is expected to remain competitive and diverse, offering entrepreneurs various financing options to support their ventures. With the continued growth of online and alternative lenders, small businesses will have even more opportunities to access tailored financing solutions that best suit their needs. 

Discover a world of funding solutions for your California LLC, from short-term cash boosts and flexible credit lines to tailor-made financing options. Gain access to diverse lenders, loan products, and cutting-edge fintech platforms for speedy, efficient, and accessible small business loans in California. Let LLCBase guide you through the exciting journey of setting up your business – we’ve got your back every step of the way.

What is a Small Business Loan

A small business loan provider is a financial institution, lender, or service that offers financing solutions specifically designed for small businesses in California. These providers facilitate access to capital for small businesses, helping them meet various financial needs such as working capital, equipment purchases, expansion, and other growth-related expenses. Small business loan providers can include California banks, credit unions, online lenders, and alternative financing companies. They offer a range of loan products, such as term loans, lines of credit, invoice financing, and merchant cash advances, each tailored to meet small businesses’ unique needs and requirements.

10 Best Small Business Loans in California

We will discuss California’s ten best small business loans, including eligibility criteria, loan amounts, annual percentage rates (APRs), and required minimum credit scores. Business loans provide financing options for business owners who want to start an LLC in California. We’ll also provide the pros and cons of each business loan to help you make the best decision for your California LLC.

1. OnDeck – Best for Short-term Loans

OnDeck is a leading online lender specializing in providing small businesses with short-term loans and lines of credit. With a simple application process, fast approval times, and flexible repayment options, OnDeck is an ideal choice for businesses seeking quick access to capital for short-term needs, such as working capital, inventory purchases, or unexpected expenses.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 29.9%

Minimum Credit Score: 625

Pros
  • Fast approval process
  • Flexible repayment options
  • Offers both term loans and lines of credit
Cons
  • High-interest rates for those with lower credit scores
  • Requires a personal guarantee
  • Not ideal for long-term financing
  • Unavailable in Nevada, North Dakota, or South Dakota.

2. Lendio – Best for Lender Comparison

Lendio is a small business loan marketplace that connects borrowers with a vast network of lenders, allowing business owners to compare loan options from various providers. By offering a wide range of loan products and personalized recommendations, Lendio helps businesses find the best financing solutions tailored to their unique needs and financial situation.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 560 or higher

Loan Amounts: $500 – $5,000,000

APR: starts at 3%

Minimum Credit Score: 560

Pros
  • Access to a vast network of lenders
  • One application for multiple loan options
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees

3. QuickBridge – Best for Fast Funding

QuickBridge is an alternative lender that provides fast and flexible funding solutions to small businesses. With a simple application process, quick approval, and funding often within 24 hours, QuickBridge is an excellent choice for businesses needing immediate capital to address short-term financial needs or seize growth opportunities.

Eligibility Criteria

  1. At least nine months in business
  2. Minimum monthly revenue of $8,000
  3. Personal credit score of 850 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10-factor rates

Minimum Credit Score: 850

Pros
  • Fast funding, often within 24 hours
  • Simple application process
  • Early payoff discounts
Cons
  • Requires daily or weekly repayments
  • Short loan terms (up to 15 months)
  • Not ideal for startups or businesses with low revenue

4. American Express Business Blueprint™ – Best for Lines of Credit

American Express Business Blueprint™ offers a range of financial solutions, including term loans and lines of credit, exclusively to American Express cardmembers. With flexible repayment options, competitive rates, and no origination or prepayment fees, this program provides businesses with the financial flexibility and support they need to grow and succeed.

Eligibility Criteria

  1. Must be an American Express cardmember
  2. Good credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $250,000

APR: Varies by loan term

Minimum Credit Score: 640; good credit history is required

Pros
  • Flexible repayment options
  • No origination or prepayment fees
  • Offers both term loans and lines of credit
Cons
  • Only available to American Express cardholders
  • Limited to businesses with strong financial performance
  • Requires a personal guarantee

5. BlueVine – Best for Flexible Lines of Credit

BlueVine is an online lender that offers flexible lines of credit and invoice factoring solutions to small and medium-sized businesses. With fast approvals, competitive rates, and the ability to draw funds only when needed, BlueVine’s lines of credit provide businesses with the financial flexibility they need to manage cash flow and seize growth opportunities.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 625 or higher

Loan Amounts: $5,000 – $250,000

APR: starts at 6.2%

Minimum Credit Score: 625

Pros
  • Fast approval and funding
  • No prepayment penalties
  • Only pay interest on the funds you use
Cons
  • Not available for some industries
  • Requires a lien on business assets
  • Higher APRs for those with lower credit scores
  • Unavailable to businesses in North and South Dakota, Puerto Rico, and other U.S. territories

6. National Funding – Best for Small to Mid-Sized Businesses

National Funding is a trusted alternative lender that offers a variety of loan products, including working capital loans, equipment financing, and merchant cash advances, designed to meet the unique needs of small to mid-sized businesses. With flexible terms, high approval rates, and a quick application process, National Funding is a reliable financing partner for businesses seeking tailored funding solutions.

Eligibility Criteria

  1. At least one year in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 600 or higher

Loan Amounts: $5,000 – $500,000

APR: start at 1.10%-buy rates

Minimum Credit Score: 600

Pros
  • Flexible loan terms and repayment options
  • High approval rates
  • Quick application process
Cons
  • Not transparent about APRs
  • Requires a personal guarantee
  • Not ideal for startups or businesses with low revenue

7. Fundbox – Best for Small to Mid-Sized Businesses

Fundbox is an innovative financial technology company that provides lines of credit and invoice financing solutions to small and medium-sized businesses. With a fast and straightforward application process, transparent pricing, and flexible repayment options, Fundbox helps businesses manage cash flow challenges and unlock growth opportunities.

Eligibility Criteria

  1. At least two months in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 600 or higher

Loan Amounts: $1,000 – $150,000

APR: Start at 4.66%

Minimum Credit Score: 600

Pros
  • Fast funding, often within 24 hours
  • No prepayment penalties
  • Transparent pricing and fees
Cons
  • Short loan terms (up to 12 months)
  • Requires weekly repayments
  • Not suitable for startups or businesses with low revenue

8. TD Bank – Best for Healthcare Professionals

TD Bank offers specialized financing solutions designed exclusively for licensed healthcare professionals, including dentists, veterinarians, and physicians. With flexible repayment terms, relationship-based pricing, and a deep understanding of the healthcare industry, TD Bank is a trusted financing partner for healthcare practices seeking to grow, expand, or modernize their operations.

Eligibility Criteria

  1. Licensed healthcare professionals
  2. Good personal credit history
  3. Satisfactory financial performance

Loan Amounts: Up to $5,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 660; good credit history is required

Pros
  • Specialized financing options for healthcare professionals
  • Flexible repayment terms
  • Relationship-based pricing for existing customers
Cons
  • Limited to healthcare professionals
  • Requires a personal guarantee
  • Not transparent about APRs and fees
  • Only located in 16 states

9. Funding Circle – Best for Established Business

Funding Circle is a leading online lender that offers affordable and transparent term loans to established small businesses. With competitive interest rates, longer loan terms, and no prepayment penalties, Funding Circle provides businesses the capital they need to invest in long-term growth opportunities and strengthen their financial position.

Eligibility Criteria

  1. At least two years in business
  2. Minimum annual revenue of $50,000
  3. Personal credit score of 660 or higher

Loan Amounts: $25,000 – $500,000

APR: 7.49% to 24.99%

Minimum Credit Score: 660

Pros
  • Competitive interest rates
  • Longer loan terms (up to 5 years)
  • No prepayment penalties
Cons
  • Requires a lien on business assets
  • Not ideal for businesses with low revenue or credit scores
  • Longer application process compared to other lenders

10. Biz2Credit – Best for Loan Options

Biz2Credit is a small business financing platform that connects borrowers with a wide range of loan options from an extensive network of lenders. With a personalized approach to loan recommendations and various loan products, Biz2Credit helps businesses find the right financing solution to meet their unique needs and financial goals.

Eligibility Criteria

  1. At least six months in business
  2. Minimum annual revenue of $100,000
  3. Personal credit score of 575 or higher

Loan Amounts: $25,000 – $6,000,000

APR: Varies by loan product and borrower qualifications

Minimum Credit Score: 575

Pros
  • Wide range of loan options
  • Access to a network of lenders
  • Personalized loan recommendations
Cons
  • Not a direct lender – acts as a marketplace
  • Loan terms and rates vary depending on the lender
  • Some lenders may have additional fees

FAQs

What is the best small business bank in California?
There are several banks that cater to small businesses in California, such as Bank of America, Wells Fargo, and U.S. Bank.
How can I find a small business bank in California?
You can do an online search for small business banks in California, or you can ask for recommendations from other small business owners.
What kind of services do small business banks in California offer?
Small business banks in California offer services such as checking and savings accounts, lines of credit, business loans, merchant services, and online banking.
Is it difficult for small businesses to get loans from banks in California?
It can be difficult for small businesses to get loans from banks in California, especially if they have poor credit or lack collateral. However, there are many resources available to help small businesses improve their credit and secure loans.
What is the interest rate on small business loans in California?
The interest rate on small business loans in California varies depending on a number of factors, such as the creditworthiness of the borrower and the size of the loan.
Can banking online be done from anywhere in the world as long as I have access to the internet or does it depend on the bank located at California?
It depends on the bank you are using. Some banks allow you to do online banking from anywhere in the world, while others may have restrictions depending on your location.
Do small business banks in California have physical branches or are they all online?
Many small business banks in California have physical branches, in addition to offering online banking services.
How do I open a small business account with a bank in California?
The process for opening a small business account with a bank in California may vary depending on the bank, but typically involves filling out an application, providing documentation, and meeting certain requirements.
Can I use a personal bank account for my small business in California?
While you technically could use a personal bank account for your small business in California, it is not recommended. It is important to keep your personal and business finances separate to avoid legal and tax issues.
What is the cost for small business banking in California?
The cost for small business banking in California varies depending on your needs and the bank you choose. Some banks may have fees for certain services, such as wire transfers or account maintenance.
Do small business banks in California offer cash management services?
Yes, many small business banks in California offer cash management services designed to help businesses manage their cash flow and stay financially organized.
Are there any specialized types of small business banks in California?
Yes, there are some specialized small business banks in California that cater to particular industries, such as agriculture or technology.
Do small business banks in California offer credit cards for businesses?
Yes, many small business banks in California offer credit cards designed specifically for small businesses.
What is the best small business loan option in California?
The best small business loan option in California will depend on your unique business needs and financial situation. Some options to explore include SBA loans, microloans, and lines of credit.
How can I get advice on starting a small business in California?
There are several resources available to small business owners in California, including the Small Business Administration (SBA) and local business organizations.
Can my small business deposit cash at a bank in California?
Yes, small businesses can deposit cash at banks in California, although there may be limitations on the amount that can be deposited at one time.
How can I improve my credit score to get a small business loan in California?
To improve your credit score, you can make sure to pay bills on time, keep your credit utilization low, and review your credit report for errors.
What is the maximum loan amount for a small business loan in California?
The maximum loan amount for a small business loan in California will depend on the lender and the purpose of the loan. Some loans may have limits of a few thousand dollars, while others may go over $1 million.
Do small business banks in California offer financial planning?
Some small business banks in California may offer financial planning services or resources to help businesses plan for their financial future.
How long does it take to get approved for a small business loan in California?
The time it takes to get approved for a small business loan in California can vary depending on the lender and your specific situation. It could take a few weeks or even a few months to get approved.
Can I get a loan from a small business bank if I have bad credit in California?
It may be more difficult to get a loan from a small business bank in California if you have bad credit, but it is still possible. You may need to provide collateral or find a co-signer to secure a loan.
What are the eligibility requirements for a small business loan in California?
The eligibility requirements for a small business loan in California will vary depending on the lender, but typically involve factors such as credit score, revenue, and business history.
Are there any grants available for small businesses in California?
There are some grants available for small businesses in California, but they may be limited and have specific eligibility requirements.
What is a small business line of credit?
A small business line of credit is a type of loan that allows businesses to borrow money as needed up to a certain amount.
Can I get a small business loan without collateral in California?
It may be more challenging to get a small business loan without collateral in California, but some lenders offer unsecured loans for businesses that meet certain requirements.
Are there any tax incentives for small businesses in California?
Yes, there are some tax incentives available to small businesses in California, such as tax credits for certain types of investments or hiring opportunities.
What is online banking?
Online banking is a service offered by banks that allows users to access and manage their account information online, including checking balances, transferring money, and paying bills.
Can I access my small business bank account online from a mobile device in California?
Yes, many small business banks in California offer mobile banking apps and mobile-optimized websites that allow users to access their accounts from a mobile device.
What are some of the best small business banks in California?
Some of the best small business banks in California include Wells Fargo, Bank of America, and Golden 1 Credit Union.
What are some of the advantages of using a small business bank in California?
Some advantages of using a small business bank in California include personalized service, specialized financial products, and local market knowledge.
How can I find the best small business bank in California for my needs?
You can find the best small business bank in California for your needs by reviewing different banks’ programs and services, reading customer reviews, and comparing interest rates and fees.
Are credit unions a good option for small business banking in California?
Yes, credit unions can be a good option for small business banking in California, as they typically offer lower fees and rates than traditional banks.
How much capital is needed to open a small business bank account in California?
The amount of capital needed to open a small business bank account in California varies by bank and account type, but generally ranges from $1 to $1,000.
Can I open a small business bank account in California online?
Yes, many banks in California offer online account opening for small business banking, although some will require you to visit a branch to complete the process.
Are there any grants or loans available to small businesses in California through local banks?
Some California banks may offer grants and loans to small businesses, but these opportunities vary by bank and by program.
Can I use my personal credit score to apply for a small business loan in California?
Yes, some lenders in California will accept a personal credit score in lieu of a business credit score for small business loans.
How can I improve my chances of qualifying for a small business loan in California?
You can improve your chances of qualifying for a small business loan in California by having a solid business plan, good credit, and a history of paying bills on time.
What kinds of small business loans are available in California?
Small business loans available in California include traditional bank loans, SBA-backed loans, and other types of crowdfunding and peer-to-peer lending.
What types of bank accounts does a small business need in California?
A small business in California typically needs a checking account, savings account, and perhaps a business credit card.
Can a small business in California open a self-directed 401(k) or IRA account through a bank?
Yes, some banks in California offer self-directed retirement accounts to small businesses.
Can a small business in California use its bank account to process payroll?
Yes, many banks in California offer payroll processing services to small businesses.
Are there any special tax laws for small businesses in California?
Yes, California has special tax laws for small businesses, including reduced tax rates and tax credits.
What types of insurance do small businesses in California need?
Small businesses in California typically need liability insurance, worker’s compensation insurance, and property insurance, among other types of coverage.
Are there any government programs in California that provide loans or grants to small businesses?
Yes, there are several government programs in California that provide loans and grants to small businesses, including the California Small Business Development Center Network and the California Infrastructure and Economic Development Bank.
Can non-profits and other types of organizations apply for small business loans in California?
Yes, non-profit organizations and some other types of organizations can apply for small business loans in California, although eligibility requirements may vary.
How long does it typically take to get approved for a small business loan in California?
The length of time it can take to get approved for a small business loan in California varies by lender and by program, but generally takes anywhere from a few weeks to a couple of months.
Can I get a loan to start a business in California if I have no credit or poor credit?
It may be difficult to get a loan to start a business in California with no credit or poor credit, although some lenders and programs do cater to individuals with less-than-perfect credit histories.
What kind of information do I need to apply for a small business loan in California?
The information you need to apply for a small business loan in California includes a business plan, financial and banking statements, and personal and business tax returns, among other documentation.
Can I switch my small business bank account from one bank to another?
Yes, you can switch your small business bank account from one bank to another in California, although some banks may charge early termination fees or other charges.
What happens if my small business bank closes in California?
In most cases, the FDIC will insure deposits up to $250,000 if a small business bank closes in California.
Can I get overdraft protection for my small business bank account in California?
Yes, many banks in California offer overdraft protection for small business bank accounts.
What is the average interest rate for small business loans in California?
The average interest rate for small business loans in California can vary widely depending on factors like type of loan, amount borrowed, and the lender.
How much does it cost to open a small business bank account in California?
The cost to open a small business bank account in California can vary by bank and account type, but generally ranges from free to a few hundred dollars.
Can I get a line of credit for my small business in California?
Yes, many banks in California offer lines of credit for small businesses.
Are there any limitations on the number of transactions I can make on my small business checking account in California?
Some banks in California may impose transaction limits on small business checking accounts, although these vary by bank and account type.
Is it better to take out a business loan in California or to use my personal savings to fund my small business?
The best option for funding your small business in California depends on your personal financial situation and the needs of your business.

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Conclusion

As California, also known as The Golden State continues to foster a vibrant entrepreneurial ecosystem, having access to the right financial partners and resources will be crucial in navigating this thrilling ride. By exploring various small business loan options and staying attuned to the ever-evolving financing landscape, entrepreneurs can achieve their dreams and contribute to the ongoing prosperity of the California economy.

When looking for the best small business loans in California, it’s essential to consider your unique needs and financial situation. Whether you’re forming a California LLC or growing your existing LLC in California, each of these lenders offers something different to help you achieve your goals. Be sure to compare loan options, eligibility criteria, APRs, and repayment terms to find the right fit for your business. Visit LLCBase for more information about starting an LLC in California.

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