Top Small Business Lenders in Philadelphia
If you’re looking for a small business loan in Philadelphia, your mind might go to Citizens Bank. After all, the city’s beloved baseball stadium dons the name of this leading regional bank. They’re not the only game in town, though.
Here’s a list of 5 top area lenders, all of which are part of the Philadelphia Business Lending Network, which collaborates with Philadelphia’s Department of Commerce to increase opportunities for small business financing.
Discover Your Best Business Loan Options
1. BB & T
This financial institution made Forbes’ 2019 list of top banks. BB & T offers funding you can use to supplement your cash flow, manage everyday operations, pay for start-up costs, buy inventory and more. Financing options include:
- Agribusiness loans
- Commercial loans for real estate
- Equipment financing
- Export financing
- Health care practice financing
- Revolving lines of credit
- SBA loans
- Secured and unsecured small business loans (fixed and variable interest rates available)
- Term loans
The bank also offers three business credit cards, two of which have no annual fee and a 0% introductory annual percentage rate (APR).
2. Community First Fund
With a 5-star Facebook ranking, this community development financial institution (CDFI) seems to be a local favorite among borrowers seeking small business loans in Philadelphia. Community First Fund’s focus is on providing business loans for minorities, women, nonprofits and community development, particularly in low-income neighborhoods. They’re especially interested in funding projects that create jobs and bring needed goods to underserved areas in the city of Philadelphia. Business loans at this Pennsylvania agency include:
- Commercial real estate loans
- Community development loans
- SBA 7(a) loans
- SBA Express loans
- SBA Community Express loans
- SBA Patriot Express loans
Microenterprise business loans are also available for new and existing businesses that need less than $50,000. Funds can be used for working capital, supplies and equipment, renovations and expansion.
3. Entrepreneur Works
This lender’s mission is to grow Philadelphia small businesses to improve socially and economically depressed communities. The maximum loan amount for most business loans is $50,000, with repayment terms up to 6 years in most cases. It’s important to note that small business loan requests for start-ups are limited to $15,000.
Small business funding at this Philadelphia organization includes these options:
- Equipment purchase and machinery loans
- Small business loans
- Vendor loans (up to $1,000, with repayment terms of 6-9 months)
- Women entrepreneur loans
Borrowers may request a 6-month interest-only repayment period at the start of the loan term. Additionally, interest rates are fixed for the life of the loan and are based on the current interest rate schedule and collateral type. The organization’s last posted interest rates range from 8%-12%.
Zero-percent interest, enough said. That’s why Kiva makes our top business loans in Philadelphia list. Through this online crowdfunding platform, small business owners can get access to first-time loans of up to $10,000, with loan terms up to 36 months. Funds are distributed via PayPal and can be used for any business purpose. To apply, borrowers must not be currently in foreclosure or bankruptcy.
Here’s more info from our experts to help your small business thrive.
5. Philadelphia Industrial Development Corporation (PIDC)
This community lender has partnered with Goldman Sachs’ 10,000 Small Businesses initiative to help entrepreneurs fuel the workforce and economy.
Small business loans at this Philadelphia organization include:
- Capital project loans (10% equity contribution required) – loan amounts range from $50,000-$750,000; maximum repayment terms are 5, 7, or 15 years depending on the use of funds; the interest rate is half of the Prime Rate but cannot go lower than 2.75%
- Contract lines of credit – loans are for businesses that have won public or institutional contracts; loan amounts start at $50,000 and interest rates range from 2.75%-5% depending on the amount borrowed
- Equipment and working capital loans – loan amounts range from $50,000-$750,000 with flexible repayment terms and interest rate of approximately 6.25%
To be eligible for working capital and equipment loans, Philadelphia borrowers must have at least 4 employees, have revenues of at least $150,000 and have been in operation for at least 2 years. Additional fees include application, origination (1.5% of the loan amount) and closing or legal fees.