Best Small Business Loans in Iowa 2023: Finest Selection

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Best Small Business Loans in Iowa

In 2023, the landscape for small business loans in Iowa 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 Iowa 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 Iowa. Let LLCBase guide you through the exciting journey of setting up your business – we’ve got your back every step of the way.

Small Business Loans

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 Iowa. 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 Iowa 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 Iowa

We will discuss Iowa’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 Iowa. We’ll also provide the pros and cons of each business loan to help you make the best decision for your Iowa 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.
Apply to OnDeck

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
Apply to Lendio

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
Apply to QuickBridge

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
Apply to Amex

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
Apply to BlueVine

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
Apply to National Funding

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
Apply to Fund Box

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
Apply to TD Bank

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
Apply to Funding Circle

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
Apply to Biz2Credit

FAQs

What are some of the best small business banks in Iowa?
Some of the best small business banks in Iowa include Wells Fargo, Bankers Trust, and US Bank.
Are there any local banks in Iowa that cater specifically to small businesses?
Yes, there are several local banks in Iowa that specialize in providing services to small businesses such as Lincoln Savings Bank and Iowa State Bank.
What kind of services do small business banks in Iowa offer?
Small business banks in Iowa offer a range of services such as business checking and savings accounts, business loans, lines of credit, credit card processing, and more.
How can I find the best small business bank for my business in Iowa?
To find the best small business bank for your business in Iowa, you can consider factors such as customer service, fees, and interest rates. You may also want to get recommendations from other business owners or conduct research online.
Are there any credit unions in Iowa that cater to small businesses?
Yes, there are some credit unions in Iowa that cater to small businesses such as Collins Community Credit Union and Premier Credit Union.
Do small business banks in Iowa offer online banking options?
Yes, many small business banks in Iowa offer online banking options that include mobile banking, online bill pay, and online transfers.
Are there any grants or programs available in Iowa for small businesses?
Yes, there are several grants and programs available in Iowa for small businesses such as the Main Street Iowa Challenge Grant Program and the Iowa Targeted Small Business Program.
Can I use my personal credit score to qualify for a business loan in Iowa?
This depends on the lender. Some lenders may require a personal credit score to qualify for a business loan in Iowa, while others may only consider your business credit score and financials.
What are some common fees associated with small business bank accounts in Iowa?
Some common fees associated with small business bank accounts in Iowa include monthly maintenance fees, transaction fees, and overdraft fees.
Do small business banks in Iowa offer merchant services?
Yes, many small business banks in Iowa offer merchant services such as credit card processing and online payment processing.
How important is it to choose the right bank for my small business in Iowa?
Choosing the right bank for your small business in Iowa can be an important decision as it can impact your business’s financial stability and success.
Are there any community-focused banks in Iowa that support small businesses?
Yes, there are several community-focused banks in Iowa that support small businesses such as American Trust & Savings Bank and MidwestOne Bank.
What is the average interest rate for business loans in Iowa?
The average interest rate for business loans in Iowa can vary depending on the lender and the type of loan. It is a good idea to shop around and compare rates before choosing a lender.
How long does it take to get approved for a small business loan in Iowa?
This can vary depending on the lender and the type of loan, but it is safe to assume that the approval process for a small business loan in Iowa may take several days to several weeks.
Are there any tax incentives available for small businesses in Iowa?
Yes, there are several tax incentives available for small businesses in Iowa such as business tax credits, tax abatements, and sales tax exemptions.
How can I protect my business finances while banking in Iowa?
To protect your business finances while banking in Iowa, you can consider practices such as keeping your bank login and passwords confidential, regularly monitoring your accounts for suspicious activity, and securing your business’s electronic devices.
Can I establish a business checking account for my LLC in Iowa?
Yes, you can establish a business checking account for your LLC in Iowa by providing the bank with your LLC’s articles of organization and EIN or SSN.
What do I need to bring with me to open a business checking account in Iowa?
To open a business checking account in Iowa, you will likely need to provide the bank with your business’s Articles of Incorporation or organization, Employer Identification number (EIN), and government-issued identification.
Can small business owners in Iowa apply for a small business loan if they have bad credit?
This depends on the lender. Some lenders may require good credit for small business loan approval, while others may be more lenient based on other factors such as business financials and overall potential.
Are there any online-only banks in Iowa that cater to small businesses?
Yes, there are online-only banks in Iowa that cater to small businesses such as Axos Bank and LendingClub.
Can I apply for a business line of credit in Iowa?
Yes, you can apply for a business line of credit in Iowa. This type of financing can give businesses access to a predetermined credit limit, which they can draw from as needed.
Do small business banks in Iowa offer business credit building services?
Yes, many small business banks in Iowa offer business credit building services which can help you establish good credit for your business.
How can I avoid overdraft fees with my Iowa small business bank account?
To avoid overdraft fees with your Iowa small business bank account, you can practice habits such as regularly checking your balance, monitoring your spending, and setting up automatic notifications for low account balances.
How important is good customer service for small business owners when working with a bank in Iowa?
Good customer service can be very important for small business owners when working with a bank in Iowa since prompt and courteous service could be the difference between quickly solving a problem and having a customer be frustrated.
Are there any network of banks in Iowa that I can tap into for financing and support?
Yes, there are network of banks in Iowa such as Iowa Bankers Association and the Independent Community Bankers of Iowa that connect businesses with local banks and provide ongoing support and resources.
Can small business owners in Iowa apply for an SBA loan?
Yes, small business owners in Iowa can apply for an SBA loan. These loans are guaranteed by the Small Business Administration, and can offer favorable terms for businesses.
What is the difference between APR and interest rates for small business loans in Iowa?
APR includes interest rates along with additional fees and charges, such as origination and closing fees, to represent the overall cost of a loan, which makes it higher than just an interest rate that solely reflects lender’s interest profit.
Are there any grants or programs in Iowa that can help my small business relocate or expand?
Yes, the Community Economic Betterment Account (CEBA) provides flexible, deal-closing resources to businesses that engage in expansion projects or relocate to Iowa, while Iowa Industry New Jobs Training (260E Training) Program train newly-hired employees to ensure competitiveness and lasting success of small businesses.
What are the best small business banks in Iowa?
Some of the best small business banks in Iowa include Iowa State Bank, American Trust & Savings Bank, and Northwest Bank.
Are there any credit unions that offer small business banking in Iowa?
Yes, some credit union options for small business banking in Iowa include Veridian Credit Union and Linn Area Credit Union.
What types of loans are available to small businesses through Iowa banks?
Iowa banks offer a range of loan options for small businesses, including commercial real estate loans, equipment loans, lines of credit, and SBA loans.
Can I open a business checking account at any Iowa bank?
Most Iowa banks offer business checking accounts, but it’s important to compare features and fees before choosing a bank.
Are there any community banks in Iowa that specialize in small business services?
Iowa banks like West Bancorporation and Central Financial Bancshares prioritize serving small businesses in their communities.
What types of fees do Iowa banks charge for small business accounts?
Fees for small business accounts at Iowa banks can vary, but may include monthly maintenance fees, transaction fees, and ATM fees.
What do I need to open a small business account with an Iowa bank?
You’ll typically need to provide identification for yourself and your business, proof of business registration, and tax documents when opening a small business account with an Iowa bank.
Are online banking services available for small businesses at Iowa banks?
Yes, many Iowa banks offer online banking services for small businesses, allowing for easy account access and management.
Can I get a merchant services account for my Iowa small business through my bank?
Some Iowa banks offer merchant services accounts, but it’s important to compare fees and features before choosing a provider.
Do Iowa banks offer business savings accounts?
Many Iowa banks offer business savings accounts, with varying interest rates and fees.
Is it possible to apply for a small business loan entirely online with an Iowa bank?
Some Iowa banks offer online applications for small business loans, but the approval process may require additional documentation or follow-up phone calls.
How can I find an Iowa bank that offers business lending services?
You can start by researching banks in your local area and checking their websites for information on business lending services or contacting them directly.
What is a good interest rate for a small business loan in Iowa?
Average interest rates for small business loans in Iowa can vary depending on loan type, loan amount, and your business’s creditworthiness.
Are there any Iowa banks that provide funding for startups?
Iowa banks like Bankers Trust and Premier Bank offer funding options for startups, which may include SBA loans or lines of credit.
Can I connect my Iowa small business bank account to accounting software?
Most Iowa banks offer integrations with popular accounting software, which can streamline bookkeeping and financial management for small businesses.
What are the requirements for obtaining an SBA loan through an Iowa bank?
SBA loan requirements can vary depending on your business’s industry, size, and credit history. Some common requirements include a solid business plan, financial history, and collateral.
How long does it typically take to get approved for a small business loan at an Iowa bank?
The approval process for small business loans at Iowa banks can take anywhere from a few days to several weeks, depending on the lender and the loan amount.
Are there any Iowa banks that offer grant funding for small businesses?
Some Iowa banks partner with organizations that offer grant funding for small businesses, such as the Iowa Economic Development Authority or the Small Business Development Center.
How can I avoid the most common fees associated with small business banking in Iowa?
Common fee-management strategies include choosing a bank with low or no fees, opting for paperless statements, tracking transactions closely, and keeping a buffer of funds in your account.
What is the application process like for a business credit card at an Iowa bank?
The application process for a business credit card at an Iowa bank typically involves providing business and personal information, such as social security numbers and income documentation.
Can I get help choosing the right Iowa bank for my small business?
Yes, you can speak to a banking specialist or customer service representative at an Iowa bank to determine which bank and account would be best for your business.
Do Iowa banks have Small Business Development Centers that can provide business resources?
Some Iowa banks partner with Small Business Development Centers, offering resources like mentorship, workshops, and startup funding.
Are there any Iowa-based online-only banks that offer small business accounts?
While there aren’t currently Iowa-based online-only banks that solely specialize in small business services, some national online banks like Azlo and Novo provide options for Iowa businesses.
Can Iowa banks help me establish a line of credit for my business?
Yes, Iowa banks can help small businesses establish lines of credit with options like asset-based lending, SBA loans, and business credit cards.
What is a good website to compare small business banking options in Iowa?
Websites like NerdWallet, WalletHub, and Bankrate offer tools for researching and comparing small business banking options in Iowa.
What types of educational resources do Iowa banks offer for small businesses?
Iowa banks may offer educational resources like financial literacy workshops, online forums, or webinars tailored to small businesses and entrepreneurship.
Can Iowa banks help me build or rebuild my business credit?
Yes, Iowa banks can help businesses establish and rebuild credit through options like secured loans, credit builder loans, or specific lines of credit.
Are there any Iowa banks that specialize in small business loans for women-owned businesses?
Some Iowa banks like VisionBank and US Bank prioritize providing funding and resources to women-owned businesses specifically.

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Conclusion

As Iowa, also known as The Hawkeye 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 Iowa economy.

When looking for the best small business loans in Iowa, it’s essential to consider your unique needs and financial situation. Whether you’re forming a Iowa LLC or growing your existing LLC in Iowa, 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 Iowa.

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