New Hampshire provides ample small business opportunities, but many entrepreneurs require financing to succeed in the Granite State. Fortunately, there are many small business loans available.
[local economic development agencies, sba loan programs]
Understanding New Hampshire small business loans is essential to finding the best option for your business needs. This means finding a lender where you’re likely to qualify, a loan that provides the necessary funding, and a repayment structure your business can realistically afford.
This guide explores business loans in New Hampshire, including the available options, pros and cons, and the application process to help you decide. Specifically, we’ll answer the following questions and more:
Granite Staters can access various business loan program options to fund their operations.
Working Capital Loans: Working capital loans in New Hampshire provide financing to cover a business’s day-to-day operational expenses. Typical uses of working capital loan funds include inventory purchases, payroll, rent, and other short-term financial needs. They provide the cash flow to keep operations running smoothly and seize economic opportunities. Working capital loans are typically easier to qualify for than most other types of business loans, making them a popular choice for small businesses needing quick funding.
Business Line of Credit: A business line of credit in New Hampshire is a flexible financing option that allows small businesses to access funds as needed. Instead of a lump sum payment, funds for a small business line of credit are activated as an available credit limit. A revolving line of credit works similarly to a credit card, where you can borrow and repay funds as needed and only pay interest on the amount you use. This type of financing is ideal for covering short-term expenses, managing cash flow fluctuations, or seizing growth opportunities without applying for a new loan each time.
Revenue-Based Financing: Revenue-based financing in New Hampshire is a form of alternative small business funding where the company’s revenue determines eligibility and amounts. Repayment comes directly from a percentage of future revenue. This type of financing program allows businesses to access capital without taking on additional debt, making it an attractive option for companies with fluctuating revenue streams.
SBA Loans: SBA loans provide funding to help businesses start, grow, and succeed. The Small Business Administration (SBA) partially guarantees these loans, providing security for lenders and allowing small businesses better access to capital. These partially guaranteed loans offer favorable terms such as lower interest rates and more extended repayment periods than conventional loans, making them an attractive option for an NH small business owner. An SBA loan in New Hampshire can be used for various purposes, including working capital and equipment purchases. SBA 504 loan programs fund commercial real estate and other major fixed assets.
Invoice Factoring: Invoice factoring in New Hampshire is an alternative business funding option in which a business sells its accounts receivable to a third party at a discount. This provides immediate cash flow, allowing the business to cover expenses or invest in growth without waiting for customers to pay their invoices. The factoring company then collects the total amount from the customers directly.
Merchant Cash Advance: A merchant cash advance (MCA) in New Hampshire is a form of financing where a business receives a lump sum of money upfront in exchange for a percentage of future credit card sales. Small businesses with fluctuating revenue streams or those needing quick access to capital typically use this type of funding. While merchant cash advances can provide fast funding, they often come with high fees and may not be suitable for all businesses.
Business Term Loan: Business term loans in New Hampshire are a type of financing in which a business borrows a lump sum and repays it with interest over a set period, with a fixed interest rate and consistent monthly payments. These loans are typically long-term financing, but there are also short-term business loans. Businesses usually use term loan proceeds for significant investments like equipment purchases, paying off existing business debt, commercial property purchases, or business expansion projects. The interest rates and terms of business term loans can vary depending on the lender and the borrower’s creditworthiness.
Equipment Financing: Equipment financing in New Hampshire is a type of small business loan specifically used to purchase equipment and machinery for operations. Equipment loans allow businesses to acquire necessary assets without draining their cash reserves. Typically, the financed equipment serves as collateral for the loan, making it easier for companies to secure funding.
Asset-Based Loans: Asset-based loans (ABL) in New Hampshire allow small businesses to unlock the value of the assets on their balance sheet to secure funding. ABL lenders have business assets appraised and then issue loan amounts based on the appraisal value. The assets become collateral for the loan, meaning the lender can claim the assets in case of default. Some examples of asset-based business loans include commercial real estate loans, certain construction loans, secured term loans, and accounts receivable financing.
New Hampshire offers several state-specific financing options to support small businesses.
The New Hampshire Business Finance Authority (nhBFA) is a state agency dedicated to supporting economic development in New Hampshire by providing financial solutions and loan programs to help businesses access capital.
Through partnerships with banks and lending institutions, nhBFA has several financing options, including:
The Community Loan Fund of New Hampshire is another essential resource. It funds small business loans, affordable housing projects, local farms, etc. Your business might qualify if you’ve been in business for at least a year and employ state residents.
This fund is ideal for someone who focuses on community and growth. These programs finance projects to strengthen infrastructure and generate jobs while providing financial support and stimulating local economic development.
| LOAN TYPES | MAX AMOUNTS | RATES | SPEED |
|---|---|---|---|
| Merchant Cash Advances | $7.5k – $1m | Starting at 1-6% p/mo | 1-2 business days |
| SBA Loan | $50k-$10m | Starting at Prime + 2.75% | 8-12 weeks |
| Business Term Loan | $10k to $5m | Starting at 1-4% p/mo | 1-3 business days |
| Business Line of Credit | $1k to $250k | Starting at 1% p/mo | 1-3 business days |
| Receivables/Invoice Financing | $10k-$10m | Starting at 1% p/mo | 1-2 weeks |
| Equipment Financing | Up to $5m per piece | Starting at 3.5% (SBA) | 3-10+ business days |
| Revenue Based Business Loans | $10K – $5m | Starting at 1-6% p/mo | 1-2 business days |
New Hampshire’s economy is a dynamic blend of old and new. The state has a robust small business landscape, with 138,199 small businesses employing more than 308,296 people. This emphasis on local businesses helps keep the state’s economy strong.
Here are some of the most prominent industries driving New Hampshire’s economy:
New Hampshire’s manufacturing sector, including aerospace, defense, and medical device production, is a vital driver of the state’s economy. Known for high-tech manufacturing, the industry focuses on precision machinery, electronics, and advanced materials, contributing significantly to employment.
This sector is one of New Hampshire’s largest employers, encompassing hospitals, clinics, and social services. With a growing aging population, healthcare plays an essential role, driving demand for a range of medical and social support services.
Known for scenic landscapes and outdoor recreation, New Hampshire attracts tourists year-round for skiing, hiking, and coastal activities. The industry supports hotels, restaurants, and other service businesses, significantly contributing to local economies in tourist-heavy areas.
Technology, including software development, cybersecurity, and IT consulting, is a rapidly growing industry in New Hampshire. The sector benefits from a highly educated workforce and offers high-wage jobs, fostering innovation and digital infrastructure.
New Hampshire’s educational institutions, including major universities and community colleges, are not only employers but also serve as hubs for research and workforce development. The industry supports lifelong learning and prepares residents for high-skill industries in the region.
Financial services, including banking, insurance, and investment firms, play a significant role in the state’s economy. These businesses support local commerce and investment, catering to individual and corporate financial needs and offering a range of professional jobs.
Small business loans in New Hampshire offer crucial support for entrepreneurs. They provide access to capital to fuel growth, expand operations, or cover unexpected expenses. These loans come in diverse forms tailored to meet specific business needs.
With competitive interest rates, small business loans are often affordable, enabling businesses to manage costs effectively. Repaying these loans on time also helps build strong business credit, opening doors to more favorable financing opportunities.
Many lenders in New Hampshire also offer networking events and mentorship programs, creating valuable connections within the local business community. This supportive financing ecosystem helps small businesses thrive, grow, and positively impact the state’s economy.
While helpful, business loans in New Hampshire have potential drawbacks. The cost of debt, including interest and fees, can be a significant financial burden, especially for newer businesses with limited cash flow.
Traditional lenders often require stringent qualifications, such as high credit scores and strong financial histories, which can exclude smaller or younger businesses from accessing funding. Many loans also require collateral, putting business assets at risk if repayment terms aren’t met.
Additionally, personal guarantee requirements may endanger personal assets, like homes or savings, if the business defaults. Late payments or defaults can severely damage business credit, limiting future financing opportunities and impacting the business’s reputation with lenders.
The loan application process and required paperwork depend on your chosen New Hampshire business loan. Funds can be approved and distributed for most products within three business days.
Here’s how to apply:
The first step is choosing the most sensible solution to the problem at hand. This should require a decent amount of research, as each product is designed for different types of expenses and cash flow cycles. Are you looking to cover a short-term or long-term cost? Is demand expected to increase or decrease in the coming months?
Considering the funds’ purpose will also help us determine the correct borrowing and terms for your needs.
Here are the documents and additional information required for all New Hampshire business loans:
SBA Loan options require additional documents and information, such as business tax returns, financial statements, and a business plan. Visit our SBA Loan page for further information and learn what’s needed for the application.
You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.
Once you apply, a representative will contact you to explain the repayment structure, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees during repayment.
If and when you’re approved, funds for Business Term Loans, Business Lines of Credit, Working Capital Loans, Equipment Financing, Merchant Cash Advance, Revenue-Based Business Loans, and Accounts Receivable Factoring should then appear in your business bank account in anywhere from 24 hours to one week. For SBA Loans, it usually takes 3-5 weeks (or more in some cases) to receive funding.
Your New Hampshire business loan isn’t just a way to get financing for your business. It’s also an excellent opportunity to start building (or improving) your credit.
Regardless of the type of business loan you get, make all your required payments on time and in full. If you get a business credit line or another form of revolving credit, keep your loan balance below the credit limit.
Consistently making your business financing payments on time and in full will positively impact your credit. And that means preferred rates and terms when you next need business financing.
If your application is declined, you might have applied for the wrong product for your cash flow. In this case, we would likely recommend a different product with a less hazardous repayment structure.
Your loan application might also be declined after it is determined that you cannot afford to take on more debt. Instead, your needs and financial circumstances might be better suited for another financing tool, like a business credit card or even a personal loan. Both options can be accessed through the UCS site and are usually much more accessible to qualify for than business loans.
If your credit score is preventing you from accessing financing, you should consider credit repair services. We can help you identify the issues that keep your score down and develop practical solutions for eliminating them.
New Hampshire business owners have several lender options to consider for their financing needs.
Traditional lenders include banks and credit unions. These institutions can offer attractive terms and large loan amounts but often have stricter qualification requirements, making it challenging for smaller or newer businesses to access funding. Banks and credit unions typically require strong credit, several years in operation, high annual revenue, a steady cash flow, and substantial collateral to secure the loan.
Large national banks, with their robust credit facilities, tend to focus on established commercial enterprises over small businesses, and they may lack the personalized service many small business owners desire. In contrast, local lenders, including regional banks and credit unions, can be more flexible, and their understanding of the New Hampshire market allows them to better support local businesses.
Alternative lenders have transformed the small business financing landscape by offering quick, accessible funding options. These lenders typically operate online, allowing business owners to complete applications conveniently from anywhere, with fast approval times that can have funds deposited in days rather than weeks. Unlike traditional lenders, alternative lenders have fewer qualification barriers, which makes them a viable option for businesses with lower credit scores, limited operating history, or inconsistent cash flow.
While alternative lenders often have higher interest rates, many business owners find the convenience and speed worth the cost, especially when needing fast access to capital. This approach has opened doors for many New Hampshire businesses that might otherwise struggle to secure funding from traditional lenders.
Small Business Loan Marketplaces have emerged as game changers for New Hampshire business owners, simplifying and speeding up the loan search process. These online platforms allow business owners to fill out a single application that connects them with a network of lenders. This one-stop approach saves time and reduces the stress of applying to multiple lenders individually, streamlining the path to funding.
Businesses approved through these marketplaces can receive multiple offers, allowing them to choose the financing option that best suits their needs and cash flow. Additionally, some marketplaces take a concierge approach, pairing applicants with lending experts who can provide personalized guidance and help them select the best loan offer. This customized service allows business owners to feel confident in their decision-making, knowing they have the support of knowledgeable advisors.
Community Development Financial Institutions (CDFIs) are vital in the New Hampshire business financing landscape, providing accessible funding options for underserved businesses. CDFIs are mission-driven organizations that focus on supporting economic development in local communities, often prioritizing small businesses in low-income or economically disadvantaged areas.
CDFIs offer flexible loans with more accessible qualification standards than traditional banks. They emphasize building long-term relationships with borrowers and often provide financial education, business coaching, and networking support. For business owners who may not qualify for traditional loans or who want to work with a lender committed to community impact, CDFIs provide a valuable, supportive alternative.
Several government and nonprofit organizations offer small business assistance programs in New Hampshire.
The New Hampshire Department of Business and Economic Affairs offers a range of support services designed to help small businesses start, grow, and succeed. The department is valuable for navigating the state’s business landscape, from providing information on local business regulations to connecting entrepreneurs with funding resources. Additionally, they offer industry-specific guidance, workforce development programs, and support for international trade initiatives.
The Small Business Administration’s (SBA) Regional Office in New Hampshire directly supports small business owners through access to funding programs, loan guarantees, and disaster recovery assistance. The regional office can also help you find a preferred SBA lender.
It provides specific programs for underserved business groups, including women and minority-owned businesses. The SBA Regional Office also provides workshops, training, and business counseling to help entrepreneurs strengthen their operations.
The New Hampshire Small Business Development Center (SBDC) provides free, confidential consulting and training programs to support small businesses’ needs at every growth stage. From business planning and financial management to marketing strategy and operations improvement, the SBDC offers expert guidance tailored to each business. With various workshops and webinars, the SBDC equips business owners with the skills and knowledge they need to succeed.
Local Chambers of Commerce across New Hampshire support small businesses by fostering connections within the local business community and providing valuable resources. They offer networking events, marketing opportunities, and advocacy efforts that promote business-friendly policies. Many Chambers also offer educational workshops, mentorship programs, and guidance on local issues that impact small businesses, helping owners stay connected and informed.
New Hampshire offers several small business grants to help small business owners succeed.
New Hampshire small business owners can also benefit from several tax credit opportunities. These programs reduce the business’s tax burden, freeing up more capital for business growth and development.
Here are some of the best small business tax credits available in New Hampshire.
A low credit score limits financing options, but credit-challenged New Hampshire small business owners can obtain financing with bad credit business loans. These specialized financing options focus on a business’s cash flow and growth potential more than the personal credit score of the business owner(s), increasing your chances of credit and lender approval.
Several alternative lenders specialize in providing business financing for credit-challenged entrepreneurs. Online lenders offer easy online applications with minimal documentation, quick decisions, and fast funding, which benefits small businesses with urgent capital needs.
However, business loans for bad credit often carry high interest rates and increased fees. In addition, you may receive a lower maximum loan amount, have shorter repayment terms, and require more frequent repayment. These conditions can lead to further financial strain if not properly managed. Ensure you have a plan and budget before agreeing to a bad credit business loan.
A popular strategy for NH business owners is to use a bad credit business loan as short-term financing until their credit improves. With a better credit score, entrepreneurs can potentially access lower-cost, long-term loans and pay off bad credit business loan debt.
New Hampshire business loans can help take your company to new heights, but selecting the best loan and lender for your needs is crucial. Each loan offers different amounts, costs and repayment terms, so ensure you select one that provides the necessary funds for your goals with a repayment structure conducive to your cash flow.
Consider shopping offers from multiple lenders to compare borrowing amounts, interest rates, and terms. You can then choose the best deal for your small business.
Contact us if you’re ready to start your New Hampshire small business loan journey. Our alternative funding experts can help you find the best small business funding options to fuel growth in The Granite State.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
UCS will never communicate with a prospective client on Facebook, Facebook Messenger, or any other type of social media. Further, any email communications will always come from an official UCS email address and not a Gmail, Yahoo, or other email domain. If you believe you have been contacted by someone posing as an employee of UCS, please email [email protected].
