While your business is no General Motors or Kellogg, you’re trying to make your own mark on the business landscape of Michigan. Sometimes, a great business idea and hard work alone aren’t enough, though.
Whether you’re looking to weather a temporary downturn in business or are interested in growing your operations, financing could help.
When you’re ready to start looking into lenders and small business loans in Michigan, here’s some information to help you with your search.
Michigan’s Small Businesses
Michigan small businesses employ 1.9 million workers in the private workforce, according to the U.S. Small Business Administration.
The top 5 industries for small business employment include:
- Healthcare and social assistance
- Manufacturing
- Accommodation and food services
- Retail trade
- Professional, scientific and technical services
Additionally, there are more than 13,000 small business exporters.
Self-employed minorities make up nearly 70,000 of more than 885,000 small businesses in the state.
Best Banks for Small Business Loans in Michigan
1. Flagstar Bank
Flagstar Bank was named one of America’s Best Banks by Forbes this year. It was also listed as one of the year’s best banks in the state by WalletHub.
In addition to business credit cards, entrepreneurs seeking small business loans in Michigan will find them here. Initial and refinance loans are available starting at $25,000 and have fixed or floating interest rates. Amortization extends to 5 years or 7 in some cases.
2. Farmers State Bank
Farmers Bank is A+ rated with the Better Business Bureau (BBB). It’s also earned a 4.6-star rating on WalletHub and 4.2 stars on SmartAsset.
In addition to being a Michigan SBA lender offering 7(a) and 504 loans, Farmers State Bank offers the following:
- Lines of credit
- Term loans
- Floor plan loans
- Agricultural loans
- Commercial investment loans
- Commercial real estate loans
3. Horizon Bank
If you’re searching for SBA loans in Michigan, head to this bank, which has earned an A- rating with the BBB. It’s also been rated a 2021 Best Bank in Michigan by WalletHub, where it’s received a 5-star rating from more than 160 reviewers.
Here are some of the other financing options available:
- Business term loans
- Lines of credit
- Commercial real estate loans
- Manufacturing loans
- Medical practice loans
- Agricultural loans
4. Level One Bank
Not only is Level One Bank A+ rated with the BBB, it’s also earned 4.5 stars on WalletHub. Whether you’re on the hunt for Paycheck Protection Program loans or SBA 7(a), 504 or Express loans, you’ll find them here.
In addition to being an SBA lender in Michigan, Level One Bank is also a provider of the following:
- Term loans
- Equipment financing
- Line of credit
- Commercial mortgages
- International financing
5. ChoiceOne Bank
ChoiceOne Bank has been around since 1898, and if that’s not enough of a reason to consider this institution, they’ve also earned an A+ rating from the BBB.
In addition to SBA loans for Michigan businesses, this bank offers these financing options:
- Corporate credit cards
- Working capital lines of credit
- Equipment loans
- Building and construction loans
- Agribusiness loans and lines of credit
- USDA business and industry loans
How to Get a Business Loan in Michigan
When you apply for a small business loan in Michigan, you’ll need to meet certain requirements to qualify, including time in business, credit score and revenue minimums. These will vary depending on the type of funding you’re seeking and the lender.
Not only can you go to conventional lenders, such as the banks listed above, there are also alternative lenders to consider, and you may even apply for a small business grant.
Entrepreneurs looking to obtain funding from banks, however, often have difficulty meeting their strict qualification requirements. That’s particularly true if you’re looking for small business loans in Michigan and you have “bad credit.”
And even some of the most qualified small businesses are asked to provide collateral in their loan agreements, something many small business owners are not in the position to provide.
The high demands of banks have led business owners to look elsewhere for the funding they need. Alternative funding options are available with online business financing companies.
Applying for Michigan Business Funding Through Fast Capital 360
Whether you’re seeking an SBA loan or a merchant cash advance in Michigan, Fast Capital 360 can help.
Here’s how you’ll benefit.
Speed
A few minutes is all it takes to apply.
Multiple Offers
Your application could return multiple offers from our nationwide network of lending partners. Small business loan rates in Michigan start at 6.25% for SBA loans and 7% for term loans.
Expert Guidance
If your company is approved for small business funding in Michigan, one of our experienced Business Advisors will walk you through our financing options so you can decide which one best fits your business needs.
Get Your Business Loan Options in Minutes
Small Business Resources in Michigan
Here are a few organizations helping entrepreneurs in Michigan start and grow, whether through funding assistance or education.
Center for Empowerment and Economic Development
Thanks to the Great Lakes Women’s Business Council and partnerships with the Asian Pacific American Chamber of Commerce, Oakland County Michigan and Washtenaw County Michigan, the Center for Empowerment and Economic Development (CEED) is able to offer microloans to local entrepreneurs.
Funding is available starting at $5,000 and open to existing or startup entrepreneurs living in these Michigan counties: Hillsdale, Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw or Wayne.
Approved borrowers also receive free technical assistance and the guidance of a business growth manager.
SCORE Michigan
This nationwide nonprofit is dedicated to helping business owners through training, networking and mentoring programs. Find a mentor and participate in a free 1-on-1 consulting session.
Access a library of resources, including articles, videos and document templates on the SCORE website. Or sign up for a virtual or in-person workshop, where available. Topics include business planning, marketing, exporting, accounting, taxes and more.
Michigan Small Business Development Center
Register for a free or low-cost workshop and take advantage of individualized business consulting at the Michigan Small Business Development Center, funded in part by the SBA. Get help with starting or expanding your business.
The center also offers help with Paycheck Protection Program and Economic Injury Disaster Loans as well as other resources if your business has been impacted by the coronavirus pandemic.
