Best Small Business Loans in Ohio

Small business loans in Ohio can help local entrepreneurs get the capital they need to purchase equipment, inventory, commercial real estate and more.

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Written by
Jill A. Chafin
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Carissa Chesanek
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Edited by
Janet Schaaf
Updated July 24, 2024

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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State-wide loan options for Ohio small businesses

If you’re looking for a small business loan in Ohio, here are some options to consider:

GrowNOW: Best for startups

Up to $400,000

Not disclosed

24 months with possible renewal

Not specified

Not specified

Pros
  • Focused on helping new businesses succeed
  • Up to a 3% interest rate reduction
  • Renewable repayment terms
Cons
  • Only available to businesses with fewer than 150 employees
  • Must have headquarters in Ohio

Why we picked it

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Sponsored by the Ohio Treasury, GrowNOW partners with financial institutions to offer low-cost startup business loans to companies with fewer than 150 employees. To qualify, your business must operate in Ohio with a majority of your employees being Ohio residents.These small business loans can be used for most business expenses but the company must commit to create and retain at least one full-time or two part-time jobs for every $50,000 in GrowNOW funds they receive.

See Business Loan Offers

Ohio Micro-Loan Program: Best for microloans

$10,000 to $45,000

0.00%

60 to 84 months

Not specified

12 months

Pros
  • Interest-free microloans for minority and women entrepreneurs
  • Short time-in-business requirement
Cons
  • Principal place of business must be based in Ohio
  • A 10% interest rate applies for loans that go into default
  • Blanket lien and/or personal guarantee might be required

Why we picked it

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The Ohio Micro-Loan Program provides microloans to small businesses for purchasing equipment or refinancing debt. There is a short, online application, but no application fee. To be eligible, your business must be certified as a minority-owned business or women-owned business by the Ohio Department of Development Minority Business Development Division.

See Business Loan Offers

Women’s Business Enterprise Loan Program: Best for women entrepreneurs

$45,000 to $500,000

1.50% if certified as a Women-Owned Business Enterprise in Ohio, otherwise up to 3%

120 to 180 months

Not specified

24 months

Pros
  • Funds specifically for women-owned businesses
  • Competitive interest rates
  • Flexible repayment terms
Cons
  • Interest rate increases to 8% if in default
  • Collateral and a personal guarantee required
  • Must pay an application and commitment fee

Why we picked it

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The Women’s Business Enterprise (WBE) Loan Program offers loans to established women-owned businesses. Funds can be used for equipment, commercial real estate, property renovations or refinancing business debt.While the WBE Loan Program offers rates at or below the market rate, there is a $300 application fee and a commitment fee of 1.50% of the total amount of your loan. To qualify, your business must be in operation for at least two years.

See Business Loan Offers

Local small business loans in Ohio

Depending on your company’s industry and location, you might qualify for one of the following local Ohio business loans.

Columbus-Franklin County Finance Authority: Best for minority entrepreneurs

$25,000 to $500,000

Varies by program

Up to 180 months

Not specified

Not specified

Pros
  • Loans designed for minority entrepreneurs
  • Competitive interest rates
  • Available to both for profit and nonprofit businesses
Cons
  • Extra fees can make the loan more costly than anticipated
  • Business must be based in Franklin County, Ohio
  • Personal guarantee and collateral is required

Why we picked it

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Columbus-Franklin County Finance Authority is a local funding option for minority-owned businesses, although any business with fewer than 100 employees can apply. To qualify, your business must be located in Franklin County, Ohio, and serve low-to-moderate income neighborhoods. Loan funds can be used for equipment and machinery or land and building purchases and renovations.While interest rates are advertised as “below prime,” watch out for additional fees, such as a non-refundable $250 application fee, a commitment fee of $500 and an origination fee of $750.

See Business Loan Offers

Telhio Credit Union: Best for working capital

Not disclosed

Not disclosed

Up to 120 months

Not disclosed

Not disclosed

Pros
  • Funds can be used for training, payroll, marketing, inventory and more
  • A one-stop shop with multiple business products
  • A team of Business Banking Relationship Managers (BBRMs) will help you with our funding needs
Cons
  • Lack of information regarding loan amounts, rates and fees
  • Must be a member to get lower rates on loans
  • Limited physical branches

Why we picked it

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Telhio Credit Union offers working capital loans for businesses in the Cincinnati and Columbus metro areas. You can also explore Telhio’s full range of business products, such as business bank accounts, savings and investment accounts, business credit cards, commercial real estate loans, equipment financing and SBA loans.Since the information on Telhio’s website is limited, interested borrowers should contact Telhio directly for more details or apply online. And with most credit union business loans, you’ll likely need to be a member to be eligible for small business financing.

See Business Loan Offers

LISC Greater Cincinnati: Best for interest-free loans

Up to $10,000

0.00%

36 months

Not required

Not required

Pros
  • Interest-free microloans with no fees
  • Priority is given to minority and women entrepreneurs
  • Free marketing to help draw in more investors
Cons
  • Low loan amounts compared to other small business products
  • Business owners can’t be in foreclosure or have an active bankruptcy
  • Must be comfortable building an online social presence and network

Why we picked it

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Local Initiatives Support Corporation (LISC) Greater Cincinnati partnered with the online lending platform Kiva to offer interest-free business loans up to $10,000 to businesses within the Greater Cincinnati area.Kiva loans differ from traditional business financing by focusing on a borrower’s network and viable business ideas instead of scrutinizing credit scores, revenue and collateral. Lenders from across the globe can contribute funds to specific projects, with business owners repaying the debt without any additional fees. Preference is given to minority- and women-owned businesses.

See Business Loan Offers
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Nationwide small business loans

If you want a lender with a national presence, these lenders offer various small business financing solutions for Ohio-based companies.

Huntington Bank: Best for SBA loans

Up to $5,000,000

Not disclosed (subject to SBA maximums)

Not disclosed (subject to SBA maximums)

680 (recommended)

24 months (recommended)

Pros
  • Longer terms can help increase cash flow
  • Dedicated team of SBA specialists
  • Offers multiple small business financing solutions
Cons
  • Must operate a for-profit business in the U.S.
  • Need to have reasonable owner equity to invest
  • Doesn’t list specifics on rates, terms or eligibility criteria

Why we picked it

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Huntington Bank is a leading SBA lender focused on helping small businesses access the capital they need to start and grow their companies. With Huntington’s SBA loan program, you can enjoy longer terms, no balloon payments and down payments as low as 10%. Options include the SBA 7(a) Loan, SBA Express Loan and 504 Loan.Although Huntington doesn’t publish its SBA loan rates, terms, fees or eligibility criteria in advance, some of these factors are subject to SBA maximums. In addition to SBA loans, Huntington also offers a business line of credit, business term loans and real estate loans.

See Business Loan Offers

KeyBank: Best for variety of business lending products

$10,000 to $500,000

Not disclosed

12 to 84 months

Not disclosed

36 months

Pros
  • Wide selection of business financing solutions
  • Offers 100% equipment financing
  • Secured and unsecured term loans available
Cons
  • SBA lending products not available in all U.S. states
  • Lack of transparency about rates and fees
  • Doesn’t list eligibility criteria for conventional loans

Why we picked it

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With over 900 branches in the U.S. and a strong presence throughout Ohio, KeyBank is ready to help you meet your short- and long-term business goals. With competitive rates and flexible terms, you have multiple business solutions at your fingertips: term loans, business lines of credit, commercial real estate loans, equipment financing, SBA 7(a) loans and SBA 504 loans.KeyBank’s business term loans can be unsecured or secured with adjustable or fixed rates and used for anything from purchasing property to debt consolidation. You will have to fill out a loan application to see a range of rates, terms and fees.

See Business Loan Offers

U.S. Bank: Best for nationwide banking

Up to $200,000

Not disclosed

Starting at 24 months

Not disclosed

Not disclosed

Pros
  • A strong, nationwide presence
  • Offers 125% financing for equipment
  • Smaller loan applications can be completed online
Cons
  • Doesn’t disclose rates, terms and fees in advance
  • As a traditional bank, you’ll likely need a good to excellent credit score
  • Some loans require collateral

Why we picked it

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If you’re looking for a reputable brick-and-mortar bank with a robust nationwide presence, U.S. Bank could be a good fit for you. Lending options include unsecured term loans, secured business loans, lines of credit, equipment financing, commercial real estate loans, SBA 7(a) loans and SBA 504 loans. Additionally, you can finance equipment purchases for up to 125% of the overall costs, using the excess funds to cover other expenses, such as installation and shipping.While U.S. Bank doesn’t list general eligibility requirements in advance, keep in mind that traditional banks typically impose stricter requirements than alternative lenders.

See Business Loan Offers

What to know about small business lending in Ohio

The 989,000-plus small businesses in Ohio help fuel the state’s economy. But operating a business in the state comes with its own challenges, not to mention the bureaucratic headaches of registering with the Ohio Secretary of State and Ohio Department of Taxation.

Small business loans in Ohio are available from state and local government agencies, and can help you to start or expand your business in the Buckeye State. We’ll walk you through the Ohio small business loan options to choose from.

On this page

Types of business loans in Ohio

SBA loans

With a portion of the funds guaranteed by the U.S. Small Business Administration (SBA), SBA loans can help underserved small business owners access capital for various purposes. The SBA 7(a) loan can fund day-to-day expenses, while the SBA 504/CDC loan is better suited for more significant projects, like purchasing real estate or equipment.

Term loan

If you need a lump sum of cash at once, consider a business term loan. Short-term business loans are ideal for more immediate needs or emergency expenses. For more substantial investments or projects, a long-term business loan can provide up to $5 million with terms of 10 years or longer.

Line of credit

Similar to a credit card, a business line of credit lets you borrow up to your limit whenever you need extra funds for unexpected or recurring business expenses. Interest is only charged for the amount you withdraw, although some lenders charge additional fees like maintenance and annual fees.

Equipment financing

Equipment financing can help your business get the equipment it needs to efficiently run your business. Equipment loans typically have more lenient eligibility requirements since the equipment acts as collateral, helping reduce lender risk. If your credit score is on the lower side, you can consider an equipment loan for bad credit.

Other funding options for your small business in Ohio

Grants

A small business grant can also help provide financial assistance for your business. This type of funding comes from the federal or local government and is given to small businesses that meet the designated size standards of the U.S. Small Business Administration (SBA). Some places to find small business grants in Ohio can include:

SCORE

SCORE is a nonprofit organization that provides coaching and mentorship to small businesses. Backed by the U.S. Small Business Administration, SCORE also gives opportunities to participate in educational workshops to support your business. You can use the SBA local assistance search tool to find an expert counselor in your community.

Small Business Development Centers

Small Business Development Centers, such as the Ohio Small Business Development Centers (SBDC), offer counseling and training to small businesses on anything from business planning to market research, to both new and existing companies. To find an SBDC near you, search your zip code online for a location near you.

Ohio business loan requirements

When applying for a small business loan in Ohio, pay attention to each lender’s specific business loan requirements. Lenders will typically review the follow criteria and documents:

 Credit score

Minimum credit scores will vary by lender, but it’s generally recommended to have a personal FICO Score within the 600s. Some lenders will also look at your business credit score. You can monitor your score for free with LendingTree Spring.

 Business plan

A business plan helps show your business’ ability to pay back the loan with details on how the company will grow and bring in revenue. A traditional business plan usually showcases the description of the company, the service or product it provides, market analysis and requests for funding.

 Annual revenue

Lenders look at your annual revenue to ensure you have enough cash flow to make loan payments. Annual minimums vary by lender, with the typical range being $36,000 to $480,000 or higher, although certain lenders may accept lower earnings for startup business loans.

 Time in business

In general, leaders require companies to operate for at least one or two years before approving a business loan. However, some online lenders offer loans for startup businesses that have only been operating for simonths or less.

 Collateral and/or personal guarantee

Lenders may require collateral for certain small business loans in order to reduce lender risk, such as with secured business loans. Collateral can be a fixed asset like equipment or real estate, or a financial asset like cash or investments. If you default on your business loan, your lender can seize your collateral for payment. Note that a personal guarantee is only connected to your personal assets.

How to apply for a small business loan in Ohio

If you are ready to take your business to the next level, here are the general steps on how to get a small business loan in Ohio.

Step 1: Pick the right type of business loan for you

Research the different types of small business loans to see which option best suits your business’s immediate and long-term goals. Some lenders only fund certain industries or have restrictions on how you spend the funds.

Step 2: Review your eligibility

Take a quick look at your personal and business credit scores to see if they can meet your potential lenders’ criteria. Boosting your credit score in advance can improve the likelihood of approval. If your credit score falls short, consider adding a creditworthy cosigner to your application.

Step 3: Compare small business lenders

Searching through potential lenders can be time consuming and overwhelming. Start by reading small business lender reviews to help narrow options and avoid scams. Remember, you have multiple options when looking for a small business loan, such as with traditional banks, government lenders and online lenders.

Step 4: Gather required documents

Most lenders will want to see your business licenses, business plan, business tax ID number, personal and business tax returns, a certificate of good standing and business financial statements. Check your lender’s website in advance to ensure you’re prepared.

Step 5: Submit and review offers

You can typically apply for a small business loan online, although certain banks still require an in-person appointment. Read all the fine print to ensure you understand all the details, including prepayment penalties and late charges.

How to compare Ohio business loans

When trying to get a business loan, here are some features that you may want to look for:

  • Interest rates: Business loan interest rates can vary based on the lender, loan product and your credit profile. Fixed interest rates remain the same throughout the duration of your loan, making them easier to plan for repayment, especially with long-term loans that can take years to pay off.
  • Transparent repayment terms: Each lender should provide clear repayment terms so you know not only when your loan needs to be paid off in full but can also compare terms with other lenders.
  • Short-term or long-term: Short-term loans tend to range from three to 24 months, with weekly or daily repayments, while long-term loans can have terms up to ten years or more with monthly payments. The term length will depend on how much funding you need and for what specific expense it will go toward.
  • Collateral: Secured loans are backed by collateral, or an asset such as equipment or real estate, that can be seized by the lender if you should default. If you don’t have a high credit score but have the assets, a secured business loan might help you receive a larger sum of money. An unsecured business loan does not require collateral, so you’ll likely need an excellent credit score to apply.
  • Funding speed: The time it takes to get your funds can vary greatly. Online lenders specialize in quick business loans, making sure you get your money within a few days — although you’ll typically pay a higher price for this convenience. In comparison, SBA loans and traditional banks can take several weeks or months to approve your loan application but often come with better rates and terms.

How we chose the best small business loans in Ohio

We reviewed the leading local and nationwide lenders to determine the best business loans in Ohio. To make our list, lenders must meet the following criteria:

  • Minimum time in business: Options available for companies who have operated for 12 to 36 months.
  • Minimum credit score: Personal credit score requirements of 680 or lower.
  • Rates and terms: We prioritize lenders with a range of loan amounts, competitive rates, limited fees, flexible repayment terms and APR discounts.
  • Repayment experience: We consider each lender’s reputation and overall business practices. We favor lenders that report to all major credit bureaus, offer reliable customer service and provide extra support to customers, like free business coaching.

Frequently asked questions

While newer businesses may not have the revenue to apply with a more traditional lender, that doesn’t necessarily mean you cannot find funding elsewhere. One example that may be an option is an equipment financing loan. These loans look at the value of the equipment and use that as collateral, rather than focusing on the amount of money the business is making.

While many traditional lenders require you to be in business for a year or two to receive funding, entrepreneurs starting a business in Ohio have several options. Microloans are geared toward start-ups, offering up to $50,000 without strict annual revenue requirements. Additionally, many online lenders have lower credit score and revenue requirements for their startup business loans. You can also research startup grants for small businesses in Ohio to see if any fit your criteria.

Yes, there are bad credit loans in Ohio. Some lenders look at other factors besides your credit score when considering you for a loan. If you can offer collateral for the loan, lenders may be willing to look past a lower credit score.