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Small Business Loans in Virginia (2021 Update)
Virginia is among the states with the most potential when it comes to bolstering its entrepreneurial scene. The average loan size for a resident in Virginia is $405,000. The figure puts them in the top ten in the list that compares the average loan size that a small business can get in every state. The size of issued loans over the years has also increased by a significant margin. There was a 25% increase in the size of loans issued in the three years leading up to 2016. Virginia has a vibrant venture capital scene, and there have been several investments in companies in the state. Venture capital per 100,000 people came to around $6 million in the last financial year. The amount of venture capital was still less by several magnitudes compared to other states. This could be attributed to the small growth that the small business sector experienced.
Minimal growth in the small businesses sector could be because the number of innovative businesses in the area was few. People should be encouraged to start more and better businesses in the area if Virginia wants to become an entrepreneurial state though some states did not receive any venture capital whatsoever. Venture capital is usually awarded to startups and companies that develop disruptive and innovative products. The state could see an uptick in the size of venture capital invested if more companies like these are started. The total number of small businesses per 100 people will go up thereby raising the credibility of the state as an entrepreneurial hub if more businesses are started.
The state has experienced minimal growth in the small business sector with the percentage of growth coming at around 0.10%. This could be attributed to the fact that there are very few small businesses in the state. The state has one of the lowest ratios of small business to a hundred people in the country. This number was about 2.21 which placed them in the bottom half of that list. The average loan size awarded to small businesses is still one of the highest in the nation. This means that the cost of starting a business could be high or the business sector is healthy. Higher loan increases the number of financial institutions trust entrepreneurs in the area. Business owners are sure that they are likely to get a loan. More people should take advantage of this to start businesses in the state.
States that are nearer to the coast rank highly on the entrepreneurial scale. This could be because there are more business opportunities. Virginia is certainly at an advantage and can leverage this to steer more people towards entrepreneurship in the state. Most of the banks in the state offer lending options to small business owners. Some of these banks include First Capital Bank, Capital One Bank, the Bank of Virginia, Carter Bank & Trust, and Virginia Commerce Bank. This means that getting a loan in the state is hassle free since residents have many options to choose.
Banks in Virginia That Offer Small Business Loans
The following are banks highly rated for small business loans by the SBA:
Benchmark Community Bank
Benchmark Community Bank was founded 1971 and currently based in Kenbridge, Virginia. It offers a variety of loan services to particular sectors such as students, as well as to local businesses.
The Bank of Fincastle
A community bank established in 1875, The Bank of Fincastle is based in Fincastle, Virginia. In 2013, it has helped local small businesses with loans amounting to $49 million.
Capital One Bank National Association
Capital One Bank National Association offers their banking services and products to individuals, small businesses, and commercial clients in the United States, Canada, and United Kingdom.
First National Bank
Ranked by SBA as the fifth best bank for small business loans, the First National Bank helped 570 small businesses in just one year with financial support of $58 million in loans.
Highlands Union Bank
Operating in southwest Virginia, northeast Tennessee, and western North Carolina, Highlands Union Bank offers a variety of business loans for all industries from small-scale to large-scale.
New Peoples Bank, Inc.
Based in Honaker, Virginia, New Peoples Bank, Inc. was incorporated in 1997 and is currently headed by Mr. Christopher Todd Asbury, CPA as its President and CEO.
Top Cities in Virginia and Their Lenders
Virginia is one of the most beautiful states in the Northeast of our country. It has its roots in the original colonial times of the nation – it was one of the first colonies in the United States. It has a rich historic past that includes a significant role in the Civil War. If you’re thinking of starting a business in the state, you’ll want to choose the right area to work in. You don’t want to start a business in a city that is too expensive to afford. Luckily, there are plenty of great cities in the state that have all the infrastructure you need to start a successful company.
Below we will take a look at all the major cities in the Virginia to help you determine which is right for your small business. We’ll also provide you with each city’s top lenders.
Virginia Beach, Virginia
Virginia Beach is the largest city in the state of Virginia. It’s one of the largest hubs of economic activity in the region. If you’re looking to move to a large city in Virginia with plenty of tourism, retail, and industry, this is the place to below. Below are our favorite lenders in the Virginia Beach area:
If you own a business in Virginia Beach, there’s a high chance that you will need a lot of capital to grow or expand your business. If this is the case, there’s no one better to work with than BB&T. They’re a large national lender, so you know they have the financial backing to get you the money they need. They have a local office Virginia Beach to help commercial clients in the area.
Beach Municipal Federal Credit Union
If you’re looking for affordable financing, there’s no better place than Beach Municipal Federal Credit Union. Like most credit unions, they offer extremely affordable financing to their clients, you’ll just need to be a member.
Norfolk is a major Naval are for the US Navy. There are plenty of military hotspots in the region. For this region, hospitality, tourism, and retail all play a major role in the local economy. There are plenty of small business owners in the area that provide services for family members and army personnel. Below are our favorite lenders in the region:
Old Point National Bank
Old Point National Bank is our top pick for Norfolk. They only work with business owners and consumers in the area. They can provide you with business loans, as well as insurance and business banking services. They’re a good one-stop-shop for any business owner in the area.
If you’re looking for a community bank that has an understanding of the Norfolk economy, you should consider working with TowneBank. They care deeply about the local economy and make sure to provide their clients with business banking and loans you need.
Chesapeake is another major city in Virginia that has quite a diverse economy. The area has plenty of serviced-based industries and few regional headquarters. The city is also well-known for hosting a number of data companies. Below is our top pick of lender in the area:
NAEFCU is a credit union that also happens to be our top pick for the Chesapeake, Virginia region. They have a local office that you can use to speak with one of their lending specialists. You’ll need to be a member of their credit union to access their financing, but they do have some of the lowest rates in the area.
Richmond is the capital of Virginia. The area plays home to plenty of government jobs and small business owners. There are a number of Fortune 500 companies headquartered in the area. If you’re looking to start a business somewhere that has a track record for helping grow companies, this is a good spot. Below is our favorite area lender:
Virginia Credit Union
Virginia Credit Union is a large credit union with a presence in Richmond. They have some of the best business lending products available. They can provide you with loans at extremely low rates, and they also have business insurance products for those who need them. Like most credit unions, you’ll need to become a member to access their rates.
Charlottesville is the home of the University of Virginia – one of the best universities in the entire country. Much of the local economy is driven by the students in the area, which means certain times of year see a decrease in demand that you will need to prepare for. Below is our favorite lender in the area:
UVA Community Credit Union
UVA Community Credit Union is one of the best credit unions in Virginia. They’re great for those located in Charlottesville. If you want to work with a lender that has low rates, they’re a good choice. They also have business credit cards available for their clients. You’ll need to be a member of their union to get access to their capital.
Remember, some of these companies or banks are very specialized and may only handle a SBA 504 loan or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don’t worry as there still may be other alternative lenders willing to work with you.