Small Business Loans in California

In a state with 4.1 million small businesses, there comes a time when extra capital is essential to grow or even just operate. That’s true whether you run a Napa Valley winery or an Orange County gym, a Los Angeles eatery or San Francisco art gallery.

With that in mind, we’re letting you in on lenders offering financing and small business loans in California as well as taking a look at the state of small businesses.

Small businesses employ 7.2 million workers, according to the 2020 Small Business Profile compiled by the U.S. Small Business Administration. That’s nearly half of all California employees in the private sector.

In terms of small business loan size, these 10 industries ranked ahead of others:

1. Professional, technical and scientific services
2. Other services (except public transportation)
3. Warehousing and transportation
4. Real estate, leasing and rental
5. Health care and social assistance
6. Retail trade
7. Construction
8. Administrative, support and waste management
9. Entertainment, arts and recreation
10. Food and accommodation services

Of note, more than 68,000 California small businesses were responsible for exporting $165.6 in goods from the state.

When you’re researching how to get a small business loan in California, you’ll see you have a lot of options. Between big-name banks, credit unions and alternative lenders, it can be challenging trying to evaluate your best funding option, so we’re breaking down a few to help you in your search.

In 2018 alone, more than 1.1 million loans of less than $100,000 were granted by California lenders reporting under the Community Reinvestment Act. When it comes to California business loans, though, your options extend beyond the doors of Wells Fargo, Chase and Bank of America.

Here are several other conventional lenders offering small business financing in the Golden State:

1. Citizens Business Bank

The holding company for this bank was ranked No. 1 on Forbes’ America’s Best Banks list for 2020. Citizens Business Bank’s roots date back to 1974.

Today the lending institution offers various financial products, whether you’re in search of Small Business Administration (SBA) loans in California, revolving lines of credit or another form of financing. Additional loan types include these:

• Commercial real estate lending
• Term lending
• Construction lending
• Asset-based lending
• Equipment financing and leasing
• Dairy and livestock industry financing
• Agricultural lending

2. Pacific Premier Bank

Pacific Premier also ranked high on Forbes’ best banks list, No. 3 to be exact. Whether you’re looking for a Southern California commercial loan or a Northern California business line of credit, you have options.

Bank locations are available in these counties:

• Orange
• Riverside
• San Bernardino
• San Luis Obispo
• Los Angeles
• Santa Barbara
• San Diego

If you’re looking for commercial real estate loans in California or other types of California business loans, you can find them here.

• Lines of credit
• Term loans
• Single advance loans
• Construction lending
• Healthcare financing
• Asset-based lending
• Liquid collateral secured loans
• Employee stock ownership plan financing

3. East West Bank

Founded in 1973, this bank has earned spot No. 11 on Forbes’ list. It also has A+ rating with the Better Business Bureau (BBB).

Financing products available here include the following:

• Term loans
• Lines of credits
• SBA loans
• Asset-based lending
• Equipment leasing and financing
• International trade financing
• Commercial real estate financing

4. Mechanics Bank

This bank has also earned an A+ rating from the BBB, and many branches are accredited by the nonprofit too. Additionally, Mechanics Bank ranked among Forbes’ top 100 best banks.

Take advantage of the following funding options here:

• Lines of credit
• Term loans
• Real estate financing
• Construction financing
• Agricultural financing
• Vineyard financing
• Equipment financing
• Letters of credit
• Professional practice financing
• Business credit cards

5. Tri Counties Bank

With locations throughout the state of California and an A+ rating from the BBB, Tri Counties makes our list. Available loans at this bank include the following:

• Term loans
• Lines of credit
• Business credit cards
• Equipment loans and leasing
• Commercial real estate loans
• Business auto loans
• Agriculture loans
• SBA loans, including 7(a), 504 and Express
• USDA loans
• Bureau of Indian Affairs loans

Conventional lenders, such as the ones noted above, abound throughout the state. And while a local bank might be at the forefront of your mind when you’re seeking a small business loan in California, the process to apply and get funded can be taxing. In addition to taking some time, there can be a lot of paperwork involved and you’ll likely need a good credit score and collateral to secure your loan.

Online nonbank lenders and merchant cash advance companies in California offer alternative financing options. They’re known for their speed of funding and streamlined applications.

Additionally, if you’re looking for small business loans in California for bad credit, an alternative lender typically accepts applicants with lower credit scores, provided other requirements are met. To offset their risk, alternative lenders often offer shorter repayment terms and less competitive rates than conventional lenders.

At Fast Capital 360, minimum financing and small business loan requirements in California include the following:

• 500+ FICO score
• 6 months in business
• $10,000 monthly revenue
• 6 months of most recent bank statements

Additionally, our business loan rates in California start as low as 7%. Merchant cash advances (MCAs) in California have factor rates starting at 1.10, with advance amounts up to $500,000 and repayment terms ranging from 3-24 months.

Get Your Business Loan Options in Minutes

Now that you’ve got the low-down on commercial real estate loans, merchant cash advances and Small Business Administration loans in California, here are a few additional resources you can turn to.

SCORE

This nationwide nonprofit organization is a go-to resource for many entrepreneurs and small business owners. There are locations throughout California, including Los Angeles, Orange County, Sacramento, Santa Barbara and San Luis Obispo, to name a few.

Take advantage of their mentorship program and benefit from complimentary business consulting advice. In addition, the organization offers a wealth of information through its online library, including access to webinars and articles. Free and low-cost workshops also are available.

California Small Business Development Center

This organization is partially funded by the SBA and offers free 1-on-1 business advising. With 35 centers throughout California, there’s likely one near you. Educational opportunities are available through conferences and workshops that are low cost if not free to attend.

East Los Angeles Entrepreneur Center

This service is offered by the Los Angeles County Department of Consumer and Business Affairs. Since 1976, the center has been offering a wealth of resources to benefit local California small business owners.

• Counseling
• Small business advocacy
• Business development workshops
• Government contracting workshops
• Networking events
• Business startup assistance
• Business certifications
• Succession planning help
• Loan and budget counseling
• Financing assistance
• Legal representation
• Permit and licensing assistance