The internet is a great resource for your small business. It gives you unlimited potential to build your customer base, strengthen your brand, and find new ideas. Even with all the benefits, there can still be some downsides – including predatory lenders that can make their way into your small business lender search results. To simplify your search for a small business loan, you can focus your efforts on non-profit lenders.
In this guide, you’ll learn how to refine and sort through long and confusing search results to help you find the right non-profit lender.
What’s a non-profit lender?
A non-profit small business lender is an alternative lender who focuses on helping small business owners in need rather than on generating a profit. Typically, they offer more flexible and reasonable loan terms to support small business owners who might not qualify for a traditional bank loan.
Non-profit lenders can include Community Development Financial Institutions (CDFIs) and Certified Development Companies (CDCs). The U.S. Small Business Administration (SBA) approves these institutions to offer their loan options.
Why should you look for a non-profit lender?
When you decide to launch and grow a business, you put a lot on the line: Your time, passion, and experience, as well as your savings and collateral. That’s why it’s a good idea to seek financing from lenders who are equally driven by a mission to support your success.
Non-profit small business lenders focus on getting the right financing for your business while also offering information, education, and other support to help your business launch and grow with strength.
Just because a business is for-profit doesn’t mean it has bad intentions. For example, many banks try to help small business owners, including partnering on SBA loans with non-profit organizations and referring you to these organizations.
However, there are still other types of non-bank, for-profit lenders out there that will target you because they know that you may be looking for easy financing. You will need to spend some time sorting through and researching these potential lenders to ensure they are offering you responsible financing.
Tips to find non-profit small business lenders
Here are strategies you can follow to find non-profit small business lenders who will help you get the financing you need and position your business for long-term success:
- Find government programs: Several government agencies will have specific small business loan programs available. These are sites that end in “.gov,” which shows that it’s a government entity. For example, the U.S. Department of Agriculture (USDA) often has opportunities available specifically for small businesses in rural areas.
- Talk to your local Small Business Development Center (SBDC): You can gain insight about your local small business lenders and programs. SBDCs are non-profit SBA-supported organizations that can be found in your local community.
- Visit your local SCORE office: SCORE is a non-profit mentoring service for small businesses. SCORE has a national network with many great resources available to you, including insight on reputable small business lenders in your community and beyond.
- Use the SBA Lender Match: This is a great way to find lenders near you that have been approved by the SBA. This is an easy and free tool you can use to find great financing opportunities.
Give yourself enough time to find the right non-profit lender
It takes time to find the right lender for you. That’s why it’s important to find a responsible small business lender well before you need financing. That way, when you need financing, you’re not overwhelmed.
Use these tips and do your research to put together a list of responsible, non-profit lenders. Then, contact them before applying and giving out your business, personal, and financial information.
Pursuit can help you get the financing you need
Pursuit helps small business owners in New York, New Jersey, Connecticut, Pennsylvania, Illinois, Nevada, and Washington to get the financing you need to grow your business. We’re a mission-based small business lender with a goal to help entrepreneurs thrive.
We offer more than 15 loan options, a business line of credit, and business advisory services to support your business needs and fuel your entrepreneurial dreams. We’re also approved to offer SBA loan products under the SBA’s Preferred Lenders Program and the SBA Express Program.
Contact us to learn more about ways we can help you make your business vision a reality.
