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Small Business Loans in Missouri: Your Complete Guide


Small Business Loans in Missouri
Small Business Loans in Missouri

Finding the right business loan or financing can be a challenge for entrepreneurs and small business owners in Missouri. With so many options and factors to consider, it's hard to know where to start. This comprehensive guide provides an in-depth look at SBA loans, lending programs, and resources to help Missouri small businesses access the capital they need to start, operate, and grow.


Whether you need funding for equipment, inventory, expansion, or even disaster recovery, you'll find key information and tips here to navigate business loans in Missouri.



SBA Loan Programs Available in Missouri


The U.S. Small Business Administration (SBA) guarantees loans made by approved lenders to small businesses that may not qualify for traditional financing. There are several types of SBA loan programs used by Missouri lenders:


7(a) Loans


The 7(a) loan program is the SBA's primary financing tool. It provides loan amounts up to $5 million for eligible business purposes like working capital, equipment, renovations, business acquisition, and commercial real estate. Benefits include low down payments, longer repayment terms, and lower interest rates.


504 Loans


The 504 loan program provides fixed-rate, long-term financing for major assets like real estate or heavy equipment. Loans up to $5 million are available, with at least 50% from a private lender. The low 10 or 20-year fixed SBA portion helps businesses manage large investments.


Express Loans


The SBA Express loan offers a streamlined process for amounts up to $350,000. Proceeds can be used for most business expenses except real estate and expansion. Fast turnaround, flexible terms, and easier qualification are benefits.


Disaster Loans


When disasters strike Missouri, the SBA offers low-interest Economic Injury Disaster Loans to impacted small businesses for recovery. Fixed rates up to 30 years help ease the burden.

Across Missouri, SBA loans can provide small and growing businesses with access to affordable financing options that are right for their needs.



Top Missouri Lenders for Small Business Loans


The SBA partners with a variety of banks and alternative lenders across the state to provide financing. Here are some of the most active SBA lenders in key regions:


St. Louis Area Lenders

  • Midwest Regional Bank

  • Magnolia Bank

  • Montgomery Bank

  • Royal Banks of Missouri

  • Midwest BankCentre

Kansas City Area Lenders

  • Blue Valley Bank

  • Enterprise Bank & Trust

  • Academy Bank

  • Bank of Blue Valley

  • Commercial Bank

Springfield Area Lenders

  • Great Southern Bank

  • Guaranty Bank

  • OakStar Bank

  • Bank of Bolivar

  • Southern Bank

Columbia Area Lenders

  • Providence Bank

  • Mid America Bank

  • Southern Bank of Missouri

  • Commerce Bank

In addition to banks, online lenders like LendTek offer quick small business financing in Missouri. Local credit unions are another option. With so many choices, compare lenders to find the right funding solutions.



Financing for Missouri Startups and Underserved Groups


Beyond SBA loans, what other financing options exist for startups and minority/women entrepreneurs in Missouri?


For startups, look into:

  • Angel investors and venture capital

  • Accelerator/incubator programs

  • Bank/CDFI microloans

  • Crowdfunding platforms

  • Business plan competitions

  • State/local grants and incentives

  • Personal loans or credit cards

For minority and women business owners, some options are:

  • SBA microlending

  • SBA Community Advantage loans

  • Specialty lenders like Justine PETERSEN

  • State programs like Linked Deposits

  • MBDA Business Centers

  • Nonprofit and microloan programs

  • Impact investors targeting underserved groups

Connecting with local resources like SBDCs can uncover additional programs and funding sources. Missouri wants to see more entrepreneurs from all backgrounds succeed.



Agricultural Loans for Missouri Farmers & Ranchers


In a state with a strong farming heritage, access to capital is essential for producers. SBA 7(a) and 504 loans can help fund:

  • Land, equipment, and livestock purchases

  • New farm buildings and improvements

  • Operating expenses throughout the year

Low down payments, longer terms, and understanding of the ag business cycle make SBA loans a viable option for farmers. The USDA Farm Service Agency also offers direct farm ownership and operating loans in Missouri.


Additionally, groups like the Missouri Agricultural and Small Business Development Authority have programs to support family farms with irrigation/drainage projects and more. Other resources come from Farm Bureau chapters.



Disaster Relief Funding in Missouri


Unfortunately, disasters frequently strike communities across Missouri - from flooding to tornadoes, fires, and winter storms. The SBA provides vital low-interest federal disaster loans to impacted small businesses.


These loans help repair damaged property, replace inventory or equipment, and offset economic losses until normal operations resume. Having business interruption insurance is also critical.


Beyond SBA assistance, the Missouri State Emergency Management Agency (SEMA) coordinates additional disaster recovery resources. USDA also aids farm producers. Being prepared for disasters will help Missouri small businesses rebound when tough times hit.



Tips for Finding an SBA Lender in Missouri


The SBA works with approved banks and lenders who handle the loan application process. Here are tips for choosing one:

  • Get referrals from local SBA offices or Small Business Development Centers

  • Search the SBA Lender Match tool by city at sba.gov

  • Look for Preferred Lenders with expedited approval authority

  • Consider community banks, credit unions, and alternative lenders

  • Evaluate lenders on expertise, flexibility, rates, terms, fees

  • Make sure they offer the type of SBA loan suitable for your needs

  • Understand any geographical lending restrictions

  • Consider checking out LendTek and get matched fast with other lenders without affecting your credit score

Finding the right lender match provides a smoother path to securing financing so you can operate and expand.



Loan Requirements & Improving Your Chances


When applying for an SBA 7(a) or 504 loan, expect to supply:

  • A business plan with financial projections

  • Several years of financial statements and tax returns

  • Personal financial information

  • Details on proposed project, use of funds, etc

  • Collateral

To improve your chances, be realistic in forecasts, put down equity, and clearly explain how the loan will grow your business. Having solid records and a clean credit history also helps get approved faster.



Know the Loan Interest Rates, Terms and Fees


A major perk of SBA loans is the low cost and flexible repayment terms:


  1. Interest Rates - Fixed rates on SBA 7(a) and 504 loans typically range from 6-8% based on the business. SBA caps the maximum rate lenders can charge.

  2. Loan Terms - Up to 10 years for working capital and equipment, 25 years for real estate with 7(a). 504 loan terms are 10 or 20 years.

  3. Guarantee Fees - Fees are very low - just 2-3.75% upfront plus a 0.55% annual fee on 7(a) loans. 504 loans have fees under 1%.

  4. Prepayment Penalties - None - SBA loans can be repaid early with no penalties.

  5. Collateral - For loans over $25,000, the SBA expects borrowers to pledge available business and personal assets to secure financing.

The affordable rates and terms make SBA loans attractive for Missouri businesses looking to establish a solid financial foundation for growth.



Beyond Financing: Missouri Small Business Programs


While access to capital is crucial, small businesses also benefit from state and federal programs providing education, counseling, training, and networking opportunities. Here are some to consider:

  • SBA Small Business Development Centers (SBDCs) - Missouri hosts several SBDCs that offer advising, growth programs, training and more.

  • SCORE - Get free business mentorship and workshops from SCORE's network of volunteers.

  • Missouri Small Business & Technology Development Centers - Help commercialize technologies and export through counseling.

  • Missouri Main Street Connection - Revitalization resources for downtowns/neighborhoods.

  • Regional Economic Development Incubators (REDI) - Entrepreneurship support through incubators and funding.

  • Missouri Small Business Regulatory Fairness Board - Helps small businesses address regulatory issues.

  • Missouri Linked Deposit Program - Below market bank deposits to reduce borrowing rates.

Leveraging these resources in tandem with smarter access to capital empowers Missouri small businesses to start, grow, and succeed.



Key Takeaways for Missouri Small Business Loans


  • SBA loan programs provide affordable, accessible financing options

  • Compare bank, credit union, online, and alternative lenders to find the right fit

  • Know the different loan uses like equipment, inventory, expansions, refinancing, etc.

  • Prepare a solid loan application with realistic forecasts tied to clear objectives

  • Understand requirements and get financial records in order

  • Maximize other state/local small business assistance programs

  • Finding the right business loan takes diligent research - but worth it!

This guide lights the path forward for Missouri entrepreneurs seeking financing to turn their dreams into reality and grow our local economies. Partner with a trusted lender who can customize solutions. Missouri offers the programs and support small businesses need to start strong, stand resilient, and realize their full potential.



Get Your Loans Fast with Lendtek


Starting or expanding a business in Missouri? Don't let access to capital hold you back. Connect with Lendtek to get matched with the perfect small business loan or financing option for your needs in minutes.


Their fast, easy online process won't impact your credit score. Just answer a few questions and you'll get customized loan offers from their network of top national and local lending partners. Fund your dreams with low rates and great terms! Whether you need equipment financing, working capital, real estate loans, or a credit line to grow, Lendtek has the business loan solutions to fuel your Missouri success story.




Frequently Asked Questions (FAQs)


What is a loan?


A loan is a sum of money borrowed from a lender to be repaid with interest within a specified timeframe. It can be used for various purposes, including personal or business needs.


What is the Small Business Administration (SBA)?


The Small Business Administration (SBA) is a U.S. government agency that provides assistance and resources to small businesses. They offer loan programs, business training, counseling, and other support to help entrepreneurs and small business owners succeed.


What is an SBA loan?


An SBA loan is a loan provided by a bank or lender with a guarantee from the Small Business Administration. It typically offers favorable terms and lower interest rates to small business owners who may not qualify for traditional bank loans.


What is the role of a small business lender?


A small business lender provides financial resources to small business owners. They evaluate loan applications, determine eligibility, and disburse funds to help business owners meet their capital needs, such as purchasing equipment or expanding their business.


How can a lender help me as a small business owner?


A lender can help you as a small business owner by providing financing solutions tailored to your specific needs. They can offer loans for various purposes, such as working capital, equipment purchase, or commercial real estate investment.


What resources are available for small businesses in Missouri?


Missouri offers a range of resources for small businesses. LendTek and other financial institutions provide business loans and support services. Additionally, the state government and organizations like the Small Business Administration offer assistance and programs to help small businesses grow and thrive.

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