Cleveland is home to where Rockefeller built his Standard Oil empire, and many other great businesses. While some are struggling after the pandemic, there are still financing options for Cleveland business owners. Cleveland business loans are available through several kinds of alternative lenders, with a local representative in Ohio City. There are also municipal grants, loans, and other assistance worth your consideration. Let’s have a look at the options you can take advantage of right now.
Where Do You Find Cleveland Business Loans?
The simplest place for you to apply for Cleveland business loans is at your bank. Your local bank will be able to look at your financial information and provide you with better personal service. They also offer the lowest interest rates and better repayment terms.
Apply to get a business loan from a local Cleveland lender.
The only downside is that they take some time to go over your application and make an offer, and closing is many weeks or months away. That is, if you are even qualified to get bank money.
Cleveland Business Loans via Credit Unions
There are several credit unions operating in Cleveland. As a Cleveland-based business owner, you may be eligible for membership with some of them. Unions such as the Greater Cleveland Community Credit Union offer membership to some local businesses.
If you can become a member of a credit union, you should do so. You will have access to the best rates and great customer service. Typically credit unions are available for specific professions (i.e. a teachers’ credit union) or ethnicities (i.e. the Croatian and Ukrainian Credit Unions operating in Cleveland).
The Fastest Cleveland Business Loans
The alternative lending space has made business loans faster and simpler to apply for. Many online alternative lenders will approve loans on a state-by-state basis, so it doesn’t matter what town your business is located in. One local provider of Alternative Business Loans is Capital Source Group, or CSG with an office in Ohio City.
Apply with CSG’s Cleveland loan specialist.
Alternative lenders provide the fastest service of all lenders. Many can process your application in one business day. Some can even process your application in a matter of minutes. They are also fast to work with most business borrowers regardless of your credit score. The main downside to alternative lenders is that they don’t offer the best rates. If you have a low credit score, they can still offer you a fast business loan, but your interest rates won’t be good. You’ll be paying more for easier access and much faster service.
Is Your Business Affected By The COVID-19 Pandemic?
The City of Cleveland is offering special assistance to businesses affected by COVID-19. There are several separate programs for Cleveland businesses.
ReStartCLE Emergency Working Capital Program Loan
You can get a loan for up to $10,000 for operating costs through this program. The costs must have been incurred during March or after.
The loan doesn’t require you to pay any application fees or interest payments until January 1st, 2021. From that point on, you will be charged 1% interest. You will then have to pay $150 per month until the loan has been paid off.
If you’re using this program to restore your employees that were laid off due to COVID-19, you’ll be given preference for receiving the loan.
ReStartCLE Emergency Working Capital Program Loan-Specially Impacted Businesses
This is a specific loan program for restaurants affected by COVID-19. It can provide you with a loan of up to $20,000 for expenses incurred from March 2020 and after. Up to 50% of the loan is forgivable for costs associated with personal protective equipment.
To qualify, you must have been operating your restaurant in the City of Cleveland as of March 1st, 2020. You must demonstrate the financial impact that COVID-19 has had on your business. They will give preference to restaurants that retain or restore pre-COVID-19 employment.
ReStartCLE Restoration Working Capital Program
This program can provide a loan for operating costs for large companies and those with at least 30 employees. Companies with more than 30 employees can take up to $100,000 and others can take up to $25,000. The funds can be used for these expenses incurred from March 1st, 2020, and onward:
- Accounts receivable
- Rent/mortgage payments
- Utility payments
- Payroll expenses
Debt Relief For City Loans
Order No. 341-2020 passed on March 23rd, authorizing deferments for some loans owed to the city of Cleveland. Check to see if your business is eligible.
There are also several federal assistance programs you may be eligible for. Check with the Department of the Treasury to see if you’re eligible for Economic Impact Payments or other assistance.