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Small Business Loans in Massachusetts (2021 Update)
There are almost 600,000 small business in the state of Massachusetts alone. Entrepreneurship is common in the state because of the number of grants and tax breaks that small business owners receive. Out of all the small businesses in Massachusetts, 400,000 of them are without employees and staff, only run by their owners. Most new owners require loans and grants to get their businesses off the ground, while older companies benefit from small business loans just as much when finances get tight.
Why Take Out a Small Business Loan?
Business loans are specifically made for different types of companies. Large conglomerates and minuscule town-side shops can equally benefit from taking out a loan. Small businesses take out loans because they require finances for some aspect of their company. You might be looking to renovate or expand on your property and need a large lump sum of cash to get things started. Others find that taking out a loan gives them a second chance at making their businesses work. You can use the money you receive as part of the loan for whatever business endeavor you think will work best for your company.
The Application Process and Repayment
Most banks will not lend out loans to brand new companies that are freshly established. Eight out of every ten new businesses will fail within their first year, making these companies a huge risk factor to banks and lenders. In order to obtain a loan, your company needs to be over one year old and be firmly established. Banks may deny loans to niche companies that target a small and specific market, as this is also a liability to them. Your credit score will be taken into consideration when applying for the loan, so owners with poor or average credit may not get the money they need due to past financial blunders.
The application process is different from typical personal loans. You'll need capital information on your business, proof of sales and receipts to identify the success of your company. If you do not make a substantial revenue, your application can be refused. Banks can be rather picky with giving out small business loans because the rate of failure is so high among entrepreneurs, but it doesn't hurt to apply for one and see if you're approved.
Repayment is based on the contract terms you've signed. Most small business loans have an interest rate of about five percent with a term length of five years. Your loan may vary depending on the lender you've chosen and how much time you need to pay it back.
Banks Available in Massachusetts
Here is a list of banks in Massachusetts that offer small business loans:
The Bank of Canton
Located in Canton, this lender has lent out over 125,000 loans to small businesses throughout the state. They have a satisfaction rating of 87.5 percent.
Enterprise Bank and Trust Company
You'll find this bank in Lowell offering small business loans to entrepreneurs within the state. They work with high-risk individuals and have a customer satisfaction rating of 87.5 percent.
North Shore Bank
North Shore Bank can be found in Peabody and has given out 120,000 loans to date. They have a superb customer service department and work with a variety of new businesses.
Top Cities in Massachusetts and Their Lenders
Massachusetts is the most prominent state in the area of New England. It plays home to much of the area’s professional sporting teams and entertainment industries. It also has a number of cities that are perfect for starting small businesses in. The area can be expensive to live in, so you need to make sure you choose the right city for your budget. With close links to other major Northeastern cities, such as New York City, Massachusetts is a great spot to be.
In this article, we’ll take a look at the top business cities in the state. We’ll also provide you with information on their best small business lenders!
Boston is by far the largest city in the state. It played a crucial role in the forming of the nation – many of the key events in the Revolutionary War took place here. It’s the services capital of the state – finance and other professional services are extremely popular in the state. The cost of living is quite high, so you need to consider this if you’re going to start a business in the area. Below are our favorite lenders in the Boston region:
Our top pick for Boston is Century Bank. If you’re going to start a business in Boston, you’ll want a lender that can match your ambition. They can provide you with large loans to meet all your financing needs. They also specialize in SBA loans. Century Bank can set up business bank accounts for your company if you want to keep all your business finances in the same place.
Mass Growth Capital Corp.
Mass Growth Capital Corp. is a Boston-based lender that provides a range of services geared towards helping certain types of business owners. They have a focus on helping minority and women business owners in the Boston region. They offer great rates to those who qualify for their small business loans.
Worcester is the manufacturing capital of the state. It also has a recent focus on various technology industries. If you’re looking to start a business in either of these industries, this is an affordable place to start a new enterprise. Our favorite lenders in the area are listed below:
Bay State Savings Bank
Bay State Savings Bank is our top choice for the Worcester region. They provide a wide variety of different loans. They particularly specialize in term loans, SBA loans, and commercial real estate loans. If any of these forms of finance is of interest to you, we highly recommend you use Bay State Savings Bank as your first choice of lender. They’re well-known for helping Worcester business owners.
Commerce Bank is the commercial lending of Berkshire Bank. They’re another large lender that has an influence in the Worcester region. They’re a great choice for anyone who is looking for full service lending. They’re also able to provide a great deal of business banking services to their clients who want to keep all their finances under a single roof.
Springfield is a city with a diverse economy. Like Worcester, Springfield is much cheaper to live in than Boston. It also has a large manufacturing industry. The city is also known for its transportation and trade industries. If you’re thinking of starting a business in the area, check out our favorite lender below:
GRP Funding is a small business lender with a nation presence. They have a large client base in the Springfield area. They don’t offer any consumer services, so you can be sure they’re experts at helping businesses get the money they need. They have a solid reputation in the area – we highly recommend them!
Lowell is another manufacturing based city in the state. It used to be one of the industrial powerhouses of the country. Recent times have seen the city change its economic platforms. Below is the best lender for the area:
Lowell Five Commercial Lending
Lowell Five Commercial Lending is a great local small business loans company right in the heart of Lowell – they work exclusively with small businesses in the area. They can provide you with up to $1m in capital if you qualify for financing. They’re an awesome option if you want someone who specializes in commercial lending – they don’t offer consumer financing.
Cambridge is the city that plays home to Harvard University – the most prestigious university in the country. The area also benefits from a large tourism industry because of people who travel to visit the college. Like Boston, Cambridge is a very expensive place to live. Out top lender in the area is listed below:
If you want to work with a local lender that will take the time to understand your business, Cambridge Savings is our top choice for Cambridge-based business owners. They have small business credit specialists in their local branches that you can speak with about setting up a new loan. They also provide SBA loans for all their clients. They’re happy to walk through the entire process with you.
Remember, some of these companies or banks are very specialized and may only handle SBA loans or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don't worry as there still may be other alternative lenders willing to work with you.