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Are you looking for Iowa’s best business loans & startup financing companies? For your small business in the Hawkeye State, many banks, credit unions, and unconventional lenders are offering different loan types. After all, Iowa is a center for entrepreneurship with more than 33k new businesses constantly opening in this state between 2021 and 2022.

Understand the unique features and benefits of different loan types to empower your business. That’s how you choose the best lender for your business. Also, look into no-credit equipment financing options if you can’t get a business loan via traditional means.

Consider these 11 business loans & startup financing options in Iowa to get started. Check our reviews of these lenders to decide which one’s the best option for you:

1. Swoop Funding

Swoop Funding is every Iowa-based small company’s top startup financing option. It will offer entrepreneurs a range of funding solutions to meet their needs. You can access many loan types, including traditional term loans and innovative financing options with a simplified funding process. At Swoop Funding, you can get $5k to $500k as a small business. Moreover, you have to have a credit score of 600+ with the company’s annual revenue being $50k (at least). Even if it’s been 6 months since you started this business, Swoop will consider your loan application!

2. Lincoln Savings Bank

Even though Lincoln Savings Bank has a pretty high interest rate (almost 6%). However, the loan amount available at this lender is $623,000. Also, Lincoln Savings Bank serves central and northeast Iowa. This lender offers you pretty competitive rates along with longer repayment terms. They also cover startup costs so that’s a plus! You can purchase commercial property & business equipment through this lender, too. 

3. Two Rivers Bank & Trust

If your business is located in the Hawkeye State, you can get in touch with this lender to receive the much-needed funding for your business operations. At the Two Rivers Bank & Trust, you’ll get lower rates, flexible terms, competitive prices, quick decisions, and easy loan processing. So, you can secure the future of your business with this loan provider.

4. Citizens Savings Bank

This provider will offer you various loan types to accommodate your financial needs. Whether you need to purchase/refinance commercial real estate to buy new office equipment, you may get in touch with Iowa’s Citizens Savings Bank. They operate in Gilman, Le Grand, and Marshalltown in Iowa, offering native businesses the financial help they need!

5. First National Bank

This lender also partners with the Small Business Administration (SBA) to provide Iowa-based businesses with ample funding opportunities. You can utilize these financing options to acquire or expand a business. If you’re looking for debt consolidation or settlement, then get in touch with First National Bank for its generous loans. Business owners can apply for up to $5 million in 7(a) loans normally. The lower range is $50k.

6. Hills Bank and Trust Company

This lender has a pretty low interest rate (4.18%), justified by the average loan amount of $106 thousand. You can quickly access working capital loans here at competitive rates and flexible terms. This bank doesn’t charge application fees and the approval time is very short, too. If you want to invest in real estate for business purposes or buy a new office building, get in touch with this bank to provide you with the necessary funding.

7. City State Bank

The average loan amount approved by this bank is $520,000. Also, the average interest rate is around 5%. The City State Bank specializes in various niches & industries, ranging from leases for financing equipment, machinery, and much more. From startup costs to expenses related to expansion, the financing services of this lender will keep your business funded all the time.

8. Guthrie County State Bank

This lender helps Iowa-based farming companies get the funds they need to stay in business. So, you can apply for farm equipment loans or breeding stock loans via this provider. They also provide you with agricultural loans. Qualified borrowers may be able to finance up to 85% of the land value. You can choose the loan amount, duration, interest rate, and other stats to make sure that you are getting the right deal based on your creditworthiness. 

9. United Bank of Iowa

The average loan amount that you can get from the United Bank of Iowa is around $241,000. Also, the average interest rate here is 4.07% (pretty low). You can get loans/leases to purchase commercial real estate. When it comes to SBA guarantees loans, you get various loan options to choose from along with increased flexible terms and credit access.

10. Clear Lake Bank & Trust Company

Clear Lake Bank & Trust Company gives you an interest rate of 4.54% (on average). Also, the average loan is around $408,000. If you run a small business and need financing, then contact this financier to ensure that you have enough money to keep your startup running. They design their loans with greater flexibility for down payments & repayment terms for various purposes.

11. Farmers State Bank

At FSB, the average loan amount is around $170,000. Also, the interest rate is 5.13%. So, you can apply for business loans, commercial term loans, real estate loans, construction loans, and many other forms of financial support. Even though this bank is based in Missouri, you can still get ample lending help from this lender for your Iowa-based business.

Iowa Government Resources

Check out these government resources about business grants/funding and startup financing options in Iowa:

• Iowa’s Targeted Small Business Program
• Iowa Small Business Development Center
• Small Business Forgivable Loan Program | Muscatine, IA

Top Cities in Iowa for Business Loans

Curious to know which cities, townships, municipalities, or census-designated places (CDPs) in the state of Iowa are the best for business loans & startup financing? If you live in any of these 30 cities, then you can easily access SBA loans or other nontraditional financing means to embark on your entrepreneurial journey:

1. Des Moines
2. Cedar Rapids
3. Davenport
4. Muscatine
5. Iowa City
6. Waterloo
7. West Des Moines
8. Council Bluffs
9. Ames
10. Ankeny
11. Urbandale
12. Cedar Falls
13. Marion
14. Burlington
15. Fort Dodge
16. Mason City
17. Newton
18. Clinton
19. Ottumwa
20. Clinton
21. Marshalltown
22. Keokuk
23. Algona
24. Grinnell
25. Storm Lake
26. Hiawatha
27. Coralville
28. Waverly
29. Altoona
30. Charles City

Conclusion

Whether you’re a startup owner or founded a well-established business years ago, you have to choose the right financing partner and lender. That’s how you keep your business vessel afloat and key commercial operations running in Iowa in this economy.

Now, choose a lender that offers you flexible loan terms and interest rates. Check their online reputation, customer service, interest rates, and other factors. If nothing makes sense, get in touch with Sophisticated Investor to understand how to get your entrepreneurial dreams funded quickly. That’s how you can take your business to new heights of success.