10 Best Small Business Loans in Iowa

The Midwestern portion of the U.S. is home to a number of agricultural-based states, including Iowa. It sits on the Mississippi River and Missouri River. Home to 3.1 million people, Iowa is known for many things. That includes the political caucuses that happen here, its large corn and pork production, and its beautiful natural amenities. Des Moines is the capital city and the largest overall. For those that call The Hawkeye State home, it is an excellent place to live and often to start a business as well.

When it comes to the economy in Iowa, it is dominated by several key sectors. This includes agriculture, manufacturing, finance, and biotechnology. It also has a strong healthcare industry. A number of large companies call it home, including Quaker Oaks, Heinz, and ConAgra Foods. Yet, aside from all of these large companies, Iowa also has a thriving number of small businesses that provide an important source of jobs for the workforce. The U.S. Small Business Administration states there are 273,623 present in the state. Those companies provide 644,100 jobs contributing a total payroll of $26389,167 to the state’s households. That’s a sizable number of businesses, and they are in a wide range of industries as well.

When it comes to supporting business, it is not uncommon for companies to need to turn to small business lenders in Iowa for financial support through loans. The most recent information from the last three years of data from the U.S. Small Business Administration states there are 338 active small business loans in the state. Those loans have a total value of $739,223,558. The average small business loan size was $580,238. With these funds, companies may have the financial means to build and expand, meet ongoing needs, and remain competitive in one of the most challenging economic climates.

How small business loans work in Iowa

Iowa small businesses often need capital to help fund expansion, new product development, marketing campaigns, and much more. Small business lenders in Iowa can help. These lenders, which may include big banks to private lenders, recognize the need for capital infusion and offer competitively priced loans to support that growth. In doing so, the lender expects the borrower to repay the principal with interest. The interest rate on small business loans ranges widely but can be competitive depending on the qualifications of the borrower.

Iowa small business lenders set the terms and requirements for borrowers. This often starts with having a business that is already producing revenue. Most loans are not available to those companies just starting up. Lenders then look at how much revenue the company has each month to determine if it is enough to make payment on existing debts but also on a new loan. Most lenders also consider things like the business’s industry, competitors, services, and products, as well as the need for capital. All of this information helps the lender to determine if offering a loan is a financially wise decision.

In some situations, the company’s financial history is considered to determine creditworthiness. If the company is not that established just yet, the lender will consider the owner’s credit score as a way to verify the ability of the borrower to repay the loan. The better this creditworthiness is, the lower the interest rate on the loan in most situations.

Small business owners might need a business loan for any number of reasons, including to expand operations, purchase real estate, buy new equipment or for other business development reasons. While an entrepreneur usually uses their own funds or savings to start-up, you may receive eligibility for business loans once you’ve begun to generate revenue in your company.

There are a variety of loan types available. Each one has a different structure to create an opportunity for borrowers to secure the funds they need. Some examples include:

• Bank loans
• SBA loans from SBA.gov
• Business term loans
• Business lines of credit
• Equipment financing

Lenders will often offer loans based on the unique qualifications of the borrower, such as their credit history and business success. However, they also take into consideration the type of loan the borrower needs. For example, a line of credit works much like a credit card in which the company can borrow and repay the debt over a period of time, increasing the overall availability of credit over time. Other loans are a one-time payment made at the time the loan is put into place and then repaid over a period of 5 to 10 years. If your business needs are immediate but you believe you’ll have the funds to repay, a business loan may work.

If you meet special qualifications, such as being a minority business owner, qualifying for a targeted small business program, or being a service-disabled veteran, you may also be eligible for a broad range of business loans for your existing business there. Business financing options are many, so explore all avenues to see what’s required in the loan application.

Iowa small business loans, commercial real estate loans, financial assistance through grants, and loan funds from financial institutions are just a few places where you may be able to find funding for cash flow and other needs. In addition to contacting lenders directly, research options from the Iowa economic development authority as well.

1. Lincoln Savings Bank

Lincoln Savings Bank was founded in 1902 under the name of The German Savings Bank until 1917. Since then, the bank has grown to 8 branches serving the areas of northeast and central Iowa with a number of products, including small business loans and personal and business checking.

We reached out to Lincoln Savings Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

• Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
• SBA 7(A) loans and SBA 504 loans up to $5 million
• Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

2. Farmers State Bank

With eight locations in Missouri, Farmers State Bank is able to provide the services and tools needed for its customers to get the services and financial security they need. Farmers State Bank offers a number of different types of financing, including small business loans and business and personal banking.

We reached out to Farmers State Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

• While the bank offers small business products, we weren’t able to verify their experience with SBA loans specifically. If you are interested in working with them, we suggest reaching out and contacting the bank directly.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

3. U.S. Bank

First coming into existence in 1863 as the First National Bank of Cincinnati, U.S. Bank now operates in 26 states across the country. U.S. Bank offers a number of products and services to meet customers’ needs, including small business loans and personal banking solutions, including checking and savings.

We reached out to U.S. Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

• Preferred SBA Lender
• Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
• Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

4. Wells Fargo Bank

Wells Fargo Bank was started in 1852 by Henry Wells and William G. Fargo as a bank to help customers build business and manage money. Wells Fargo Bank offers many products through its many branches to meet customers’ needs, including mortgages, wealth management, and personal and small business banking.

We reached out to Wells Fargo Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

• Offers the SBA 7(A) Loan Program and SBA 504 Loan Program.
• Loans can be used for working capital, business acquisition, equipment purchases or other purposes.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

5. Clear Lake Bank & Trust Company

Clear Lake Bank & Trust Company was founded in 1934 in Iowa to meet the needs of the community. Clear Lake Bank & Trust Company provides a number of tools for its customers to help them achieve their financial goals, including small business loans, personal checking, and credit cards.

We reached out to Clear Lake Bank & Trust Company to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:

• Preferred SBA Lender
• The bank did not provide us with a list of which SBA programs they participate in, so we reccomend contacting the bank directly if you want to work with them for your SBA loan needs.

When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.

Other resources for small businesses in Iowa

For many business owners, having a strong financial foundation is critical to long-term growth and success. Yet, having the skills to build that foundation is not always easy to do. That is where small business resources in Iowa can help.

The Small Business Administration in Iowa is a good starting point. This organization provides clear, transparent, and accurate information that companies can count on to make wise financial decisions or obtain loans. There is help for loans, credit health, business plans, marketing, and much more. All of the information and resources provided are at no cost to the user.

Another resource is SCORE, an organization that helps connect small businesses in Iowa with experts in the industry. There are training, webinars, educational programs, and lots of valuable content on the website. The organization has a main office in Davenport that companies can turn to as well. These resources are designed to help companies to gain insight and support in building a strong business no matter the industry. There is also no cost to using this service for Iowa businesses, which makes it a solid investment in your company.

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