How to Get a Small Business Loan in Mississippi
How to Get a Small Business Loan in Mississippi
June 10, 2022

How to Get a Small Business Loan in Mississippi

There are 264,858 small businesses in Mississippi, employing more than 400,000 workers, representing 46.3% of the total workforce in the state. The top industries in Mississippi include construction, administrative, support, waste management, health care, social assistance, and retail trade.

Small business loans can be invaluable if you’re a small business owner in the Magnolia state or have dreams of becoming one. In this post, we’ll look at Mississippi small business loan options. 

Common Uses for a Small Business Loan in Mississippi

Small business loans are flexible. You can use them to pay for various expenses to start, run, or grow your venture. These loans can also help you build or improve your credit or cover emergencies. Some of the most common uses for Mississippi small business loans include: 

  • Commercial real estate
  • Startup costs
  • Inventory 
  • Equipment
  • Debt consolidation
  • Refinancing
  • Payroll 
  • Insurance
  • Taxes
  • Expansion costs 

Types of Small Business Loans in Mississippi

Since there are many small business loans in Mississippi, it’s good to shop around and explore all of your options. As you do, keep in mind that some loans are easier to qualify for than others. Here’s an overview of the most common Mississippi small business loans.

Term Loans

Offered by banks, credit unions, and online lenders, term loans provide a lump sum of money upfront. You’ll repay what you borrow via fixed monthly payments over an agreed-upon term, ranging from a few years to several years or even longer. In most cases, you’ll need good credit to get approved for a traditional bank loan. However, alternative lending institutions usually look at your business’s overall finances.

Commercial Real Estate Loan

Also known as a commercial mortgage, a commercial real estate loan can help you buy an office, warehouse, restaurant, hotel, or other property for your business. You may also use it to pay for the land or update an existing property. Commercial real estate loans typically offer variable interest rates and terms that range from five years or less to 20 years.

Equipment Loans

Equipment loans can help you buy or lease any business equipment, like computers, ovens, tractors, and cranes. Equipment loans are usually easy to qualify for since the equipment itself will serve as collateral. Depending on the lender, you might be able to cover 100% of your equipment costs.

Small Business Administration (SBA) Loans

The U.S. Small Business Administration partially guarantees SBA loans. You can take one out through an SBA-approved lender and get approved for up to $5 million in funding. There are several SBA loan programs you can choose from, including SBA 7(a) Loans, SBA 504 Loans, SBA Express Loans, and SBA Microloans.

Merchant Cash Advance

merchant cash advance (MCA) can be beneficial if you accept debit and credit card payments from your customers, especially if you can’t wait long for funds. You’ll receive the cash upfront and repay it with a percentage of your sales plus any fees. While MCA offers an easy application process and fast funding, the fees can add up.

Resources for Mississippi Business Owners

As a small business owner in Mississippi, you may find these resources helpful. 

  • Mississippi Small Business Development Center (SBDC)This organization offers on-demand webinars, one-on-one consulting, and funding assistance to Mississippi entrepreneurs and small business owners. Expertise in international trade, marketing, and cybersecurity is also available. 
  • Mississippi Small Business Association: The Mississippi Small Business Association advocates for small business owners in the state. If you’d like to make sure your voice is heard as a small business owner, this organization is right for you.
  • Mississippi Entrepreneurship Forum: Sponsored by the University of Mississippi, the Mississippi Entrepreneurship Forum is a yearly in-person and virtual event for student entrepreneurs and mentors.
  • Innovate MississippiInnovate Mississippi supports startups in the state through coaching and connecting. It focuses on companies with innovative products, processes, materials, or business models.

Conclusion: Set Your Business Up for Success with Mississippi Business Loans

Small business loans in Mississippi should be on your radar if you don’t have the working capital to cover all your business expenses. They’ll provide you with the money you need to meet your goals. Just make sure you shop around and choose the ideal loan options for your unique situation.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].