Small Business Loans in Boston, MA

Boston has more than 690,000 residents living in the city alone, not including the surrounding suburbs. In addition, millions visit the City of Champions every year, whether to browse Quincy Market, catch a game at Fenway or take in historical landmarks.

With all these people, Boston is a great place to run a company. Often, the challenge for business owners, however, is the competition.

Established businesses want to retain their customers and compete, but that takes money. Unfortunately, many entrepreneurs just don’t have enough cash. That’s where financing comes into play.

Keep reading to find small business loans in Boston, MA, the lenders who offer them and resources to help your business succeed. Also, get a peek into the industries and sectors that make up the city’s small business workforce.

Roughly $15 billion in annual revenue can be credited to Boston’s small businesses, which total more than 40,000 and are responsible for employing 170,000 workers.

Most small businesses here are in the early or startup stage, about 34%, according to the city of Boston.

The city is made up of the following small businesses:

• Small firms providing local services (25%)
• Small professional service providers, such as accountants, lawyers and creative professionals (14%)
• Established businesses (13%)
• Micro restaurants and retailers (9%)
• Small industrial services firm, manufacturers and wholesalers (4%)
• Computer systems and design firms (1%)

Get Your Business Loan Faster

When you think of where to get small business loans in Boston, MA, Citizens Bank or TD Bank might be among the first lenders that come to mind. But here are a few others to consider:

1. Berkshire Bank

The bank has earned an A+ rating from the Better Business Bureau (BBB). Additionally, its parent corporation, Berkshire Hills Bancorp, is listed among Forbes’ list of top 100 U.S. banks for 2020.

In addition to asset-based loans exceeding $2 million, Berkshire Bank offers the following commercial and small business financing:

• Business credit cards
• Equipment financing
• Lines of credit
• Commercial letters of credit
• Construction loans
• Real estate loans
• Short-term loans and time notes
• Working capital loans

Choose from 1 of 3 Berkshire Bank branches in Boston or one of several other locations within a 25-mile radius.

2. Leader Bank

This Boston bank has not only earned the BBB’s A+ rating but it also has earned the organization’s accreditation. The bank has earned the public’s recognition as well, so much so that several area branches have been awarded 5-star ratings on Yelp. Greater Boston area locations include Arlington, Cambridge and Belmont as well as Boston proper.

Business financing options include:

• SBA loans
• Lines of credit ($25,000-$1,000,000)
• Term loans ($25,000-$1,000,000 with repayment terms up to 7 years)

3. Mass Bay Credit Union

Here’s another lender to turn to when you’re looking to apply for a Boston small business loan. Mass Bay is a nonprofit credit union that’s been in operation since 1936 and today has 6 area branches.

It’s earned 5-star ratings on WalletHub and Yelp as well as an A+ rating from the BBB. Finance an equipment purchase, buy a work vehicle, upgrade your facilities and more with business term loans, commercial real estate loans or loan refinancing.

4. Eastern Bank

Eastern Bank is a leading lender of SBA loans, including 7(a) and 504 loans, and is A+ rated with the BBB. Apart from loans guaranteed by the Small Business Administration, other business loans at this Boston bank include:

• Lines of credit
• Term loans
• Commercial real estate loans

5. Radius Bank

This online bank is headquartered in Boston, MA. It has a 4.3 rating from Bankrate and an A+ rating from the BBB.

It offers the following financing:

• Equipment loans
• Lease lines and operating lease financing
• Commercial real estate loans
• Construction loans
• SBA 7(a) and 504 loans and lines of credit
• Refinancing

Conventional lenders such as the ones above are typically able to offer competitive rates and repayment terms. That said, you may find the process to apply and get funded isn’t a piece of cake. Your credit score is important, and there can be a lot of paperwork involved. You may be required to put up collateral to secure your loan too.

Alternative lenders and lending marketplaces offer another option. They’re known for their easy application process and quick-to-fund financing options, including short-term loans, merchant cash advances and more. Whether you need working capital to cover operating expenses or are looking to buy a new piece of equipment or machinery, you can get the funds you need fast.

Alternative lenders can do this because they typically have shorter repayment terms and less competitive rates than you might find with conventional lenders.

Get Your Business Loan Options in Minutes

You’ve probably heard about SCORE, the nonprofit small business mentoring organization with chapters in most major cities across the country. But there are a few other local resources you can turn to for business advice, education and more.

Greater Boston Chamber of Commerce

Check out your city’s chamber of commerce website for up-to-date details about webinars and networking events, including a women’s network event series and executive forum series. Also get information about financial relief and grant programs available for your Boston small business.

City of Boston’s Economic Development Center

Take advantage of free workshops throughout the city. Examples of topics spotlighted include small business development, inclusion and community economic impact. You also can find valuable networking opportunities.

Massachusetts Small Business Development Center Network

Serving the Boston area is the Northeast Regional Office in Salem and the Southeast Regional Office in Fall River. Get free business advice on topics from business growth to marketing to financing. Also, take part in low-cost training programs and seminars, including those sponsored in part by local colleges, trade associations and local chambers of commerce.