Delaware Business Loans and Lenders

Tourism and special events are just a couple of ways small businesses in the state of Delaware can make a name for themselves. Local initiatives like DE on Tap highlighting local breweries and the Firefly Music Festival, for instance, bring commerce to many area restaurants, shops and hotels. 

That said, marketing a business and trying to keep up with changing customer wants and needs can be an expensive endeavor. In some cases, entrepreneurs just don’t have the funds on hand to take on costly or unplanned expenses. When this happens, a company could benefit from finding a reputable lender for business loans in Delaware. 

In this article, we’ll look at several top funders as well as valuable facts and resources for small business owners.

According to the Delaware Division of Small Business, the First State is home to nearly 25,000 small businesses with fewer than 100 employees.

The U.S. Small Business Administration notes the following as the top 10 industries responsible for the highest number of small business employment:

• Health care and social assistance
• Accommodation and food services
• Construction
• Retail trade
• Technical, scientific and professional services
• Other services (except public administration
• Administrative, support and waste management
• Manufacturing
• Wholesale trade
• Insurance and finance

Interestingly, 98% of the private workforce in Delaware is made up of small businesses.

Business opportunities, critical machinery, payroll, rent, inventory – these are all costs associated with running a company. The right financing can provide you with the capital you need when you need it. Here are a few of the best conventional lenders in the state when you’re looking to apply for a small business loan.

1. WSFS Bank

WSFS, or We Stand for Service, has been in operation since 1832. Most recently, it made Forbes’ list of America’s Best Banks for 2020.

Delaware business loans available here include the following:

• Term loans
• SBA loans
• Express loans
• Business credit cards
• Business lines of credit
• Equipment financing
• Real estate and development loans

2. M & T Bank

This bank has earned an A+ rating from the Better Business Bureau (BBB) and has made Forbes’ list of America’s Best Banks. It has been in operation for more than 160 years and offers the following loans to small business owners:

• SBA loans
• Term loans
• Business lines of credit
• Business credit cards
• Equipment financing

3. First Citizens Community Bank

Awarded an A+ rating by the BBB, this bank has 3 branches in the state. Entrepreneurs can find the following Delaware small business loans here:

• SBA loans
• Term loans
• Agriculture loans
• Equipment loans
• Letters of credit
• Business lines of credit
• Accounts receivable financing
• Commercial real estate loans

4. TD Bank

TD Bank has earned a place on WalletHub’s Best Bank in Delaware list for 2021, where it’s also earned a 4-star rating. Loans are available up to $1 million and lines of credit up to $500,000.

Financing options available here include:

• SBA loans
• Business loans
• Business lines of credit
• Equipment loans
• Working capital loans
• Commercial real estate mortgages

5. Artisans’ Bank

This bank has 17 branches in the state and has been in operation since 1861. Not only is it accredited by the BBB, where it’s earned an A+ rating, but it’s also earned a 4.5-star rating on WalletHub. Business loans, business lines of credit, credit cards are available here. Use funds for inventory financing, short-term working capital, accounts receivable and more.

Though banks are known for their competitive terms, qualifying for a business loan through a conventional bank has become increasingly difficult over the years, not just in Delaware but throughout the United States. High credit score requirements, long application and approval processes and the need for collateral are just a few reasons why. As a result, many entrepreneurs have started to look elsewhere for the small business funding they need to grow.

Today, nonbank lenders offer an alternative for entrepreneurs in need of quick capital, particularly those who may have been turned down for a bank loan. Qualified applicants could benefit from fast financing options, such as merchant cash advances and short-term loans. Because alternative lenders are often more willing to fund business owners with less-than-perfect credit, terms are typically shorter, payments more frequent and rates higher.

In addition to funding opportunities, you can look to the following resources for additional assistance in the form of training, networking and more.

Delaware Small Business Development Center

Take advantage of this nationally accredited program for free 1-on-1 consulting. Get help with any of the following and more: 

• Budgeting
• Capital access
• Financial literacy
• Financial analysis
• Business planning
• Feasibility analysis
• Workflow analysis 
• Market research
• Website design
• Social media marketing

Delaware Division of Small Business

Find networking events and training seminars here. Get information about Delaware small business grants, incentives and credits, or search for angel investors. 

Search the organization’s Business Resource Connection database of more than 300 programs designed to help businesses in the state succeed. Filter programs and organizations by target community, such as those designed to help women, veteran or minority business owners.

Delaware SCORE

Search for a local mentor and take part in complimentary sessions. Or, if you prefer, sign up for a workshop or look through the online resource library, with links to helpful videos, articles and templates. What were once in-person sessions are now available via Zoom. Delaware SCORE serves the counties of New Castle, Kent and Sussex as well as Coastal DelMarVa.