Business Loans in Connecticut

According to the most recent data from the U.S. Small Business Administration (SBA), there are  355,596 small businesses in Connecticut, employing 739,870 people or 48.4% of the total workforce in the state. Whether you currently own a small business or have plans to launch one, small business loans in Connecticut can help. 


Types of Business Loans in Connecticut

Connecticut is a great place to open a business. It has high startup productivity and success rates, as well as no shortage of resources for small business owners. As you shop around for small business loans in the Constitution State, you’re sure to come across the following options. 

SBA Loans

SBA loans are partially guaranteed by the Small Business Administration or SBA. The 7(a) loan, the most popular program, offers up to $5 million in funding and lengthy repayment terms of up to 25 years. 

Line of Credit

A line of credit is a flexible form of financing. You can withdraw funds as much or as little as you’d like up to a set credit limit. Factors like your credit score and time in business will impact the amount you can borrow. 

Term Loan

Term loans are likely the first thing that comes to mind when you think of small business financing. Upon approval, you can receive a lump sum of money upfront and repay it over time via fixed monthly payments. 

Equipment Finance

Equipment loans are a good option if you’d like to purchase or upgrade any type of equipment. Since they’re secured by the equipment itself, they’re easier to qualify for. You can use an equipment loan to buy a computer, tractor, oven, or anything else you depend on.

Accounts Receivable Financing

Also known as invoice financing, accounts receivable financing is when you sell your outstanding invoices in exchange for immediate cash. The company will collect payments from your customers on your behalf and distribute the remaining amount minus any fees. 

Connecticut Business Loan Options

Several organizations service loans to small businesses that set up shop in Connecticut.

Charter Oak Credit Union has branches throughout Connecticut in cities like Dayville, New London, and Groton. It offers a number of products for business owners, including business lines of credit, fixed-term business loans, and commercial real estate loans.

Another option is Union Savings Bank in Bethel, Brookfield, and a few other places. Its business loan lineup includes term loans, business lines of credit, equipment financing, SBA loans, and overdraft protection lines.

There’s also the Southeastern Connecticut Enterprise Region (seCTer), which is an economic development agency with loan programs in New London County.

How to apply for a small business loan

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

See which credit cards you qualify for before choosing the one that best suits your business needs and offers the cash rewards you’re looking for.

STEP
3
Get funded.

Once you choose a card, you can get approved in as little as 7-10 days.

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FAQ about Small Business Loans in Connecticut

The Connecticut Small Business Development Center offers free business advisory services and online resources. An organization called Southeastern SCORE CT has 9 locations throughout Southeast Connecticut and can provide business mentorship. CTNext, which supports entrepreneurs in Connecticut with capital, skill development, networking, and training, is another great resource. 

  

Connecticut Innovations—an organization that connects entrepreneurs and established business owners with venture capitalists, angel investors, lenders, and other resources—offers a number of small business grants. If you’re a new business who is ready to grow, the Growth Company Grants Program can help you out. The funds can be used for marketing, sales, technology, organizational development, and other initiatives. Don’t forget to check out Connecticut GrantWatch, which offers an updated list of other grant opportunities for small businesses in the Constitution State. 

 

Before you qualify for a loan in Connecticut, you’ll need to choose a business structure, like a sole proprietorship, corporation, or LLC. Then, use the Connecticut Business Registry Search to find out if your preferred business name is available. If you’re forming an LLC or corporation, use the Secretary of State’s Business Startup Tool to start your business through a series of easy steps. Keep in mind that you’ll also have to appoint a registered agent. Once you go through these steps, you can apply for a small business loan. Lenders will typically review your credit score, time in business, and business finances when qualifying you for a loan. 

There are countless small business loans available, making it important to do your research and explore all your options. With Lendio, you can take the time and hassle out of the process. An SBA loan may be your best bet if you have good credit and want to borrow a large sum of money. If you need fast cash and don’t have the best credit score, however, accounts receivable financing may be the way to go, especially if you have many slow-paying customers. 

A business loan in Connecticut can help you cover virtually any business-related expense. Whether you need funds to purchase a commercial property or market your offerings, it’s in your best interest to take advantage of small business financing. 

Compare loan options from multiple funders.

Applying is free and won’t impact your credit.
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