If you own a small business in the Pine Tree State, you may be curious about how to secure small business loans in Maine. In this blog post, we'll explain how to select and qualify for a business loan in Maine. In addition, we'll provide an overview of how to utilize state resources.
Why You Should Pursue Maine Business LoansBusiness owners often benefit from securing additional funding so that they can have additional cash flow on hand. If you own a startup or newer business, a small business loan can help you pay for expenses such as:
- Commercial Real Estate
- Anything else you need to get up and running
Types of Small Business Loans in MaineThere's no shortage of small business loan programs in Maine. Keep in mind that the business financing lender and type of loan you choose will determine the eligibility requirements.
Small Business LoansThis type of business financing is typically provided by banks, credit unions, and alternative lenders. If you have a good credit score, you’re more likely to get approved for a loan with a competitive interest rate and favorable terms. Note that you might have to wait a few weeks or even longer to receive funds if you apply through a bank. Due to this, you may be better off applying for a loan through an alternative lender.
SBA LoansWhile the Small Business Administration (SBA) doesn't offer loans itself, it guarantees them. You can apply for an SBA loan through an SBA-approved lender. The greatest benefits of SBA loans are lower down payment requirements, great interest rates, and more flexible terms. Since there are several types of SBA loans, it’s a good idea to explore all your options before you apply for one.
Business Credit CardsBusiness credit cards are similar to personal credit cards; you can use them to fund everyday purchases up to a set credit limit. Fortunately, many business credit cards come with perks like cash-back rewards and travel points, which can certainly help your business save money.
Equipment LoansWhether you need a new bulldozer, oven, or printer, an equipment loan can be useful. It’s specifically designed to help you pay for virtually any type of equipment. The type of equipment you’d like to buy, its age, and its lifetime value will all play a role in how much you may finance.
Line of CreditWhen you receive a line of credit, you'll get a predetermined amount of funds that you can access whenever needed. It usually offers lower interest rates than credit cards, making it an attractive option if you’d like a flexible loan.
Merchant Cash AdvanceA merchant cash advance approval is based on a percentage of your future credit and debit card sales. The perks of cash advances are that they are a fast funding option and you don’t need good credit to secure them. However, they may be expensive and a bit complicated to understand.
Relief GrantsIf you own a Maine-based business that has been affected by COVID-19 or another disaster, you may qualify for a grant. There are a wide range of grant programs provided by the state, but these programs are often competitive. In addition, once the grant money runs out, you may have to pursue other funding options.
Business Resources for Maine Business OwnersIf you own a small business in Maine, it’s in your best interest to keep these resources on your radar.
- Maine Small Business Development Center: The Maine Small Business Development Center offers a variety of online tools and resources like a startup checklist, business plan guide, and financial templates. You can also attend workshops or meet with a business advisor for free.
- Maine Center for Entrepreneurial Development: With the Maine Center for Entrepreneurial Development, you can take advantage of a 5-month mentoring program, seminars, and networking events.
- Maine SCORE: Maine SCORE provides workshops that may help you get started, grow your venture, and improve the way you operate. It can connect you to mentors across the state.
- Business Answers: Organized by the Maine Department of Economic & Community Development, Business Answers makes it easier to start and operate a business in Maine. You can contact its representatives for guidance.