San Francisco and San Jose are among the best places in the U.S. for small businesses. It’s all thanks to their young adult population, income growth, employment, and many other factors.
If you plan to expand this year, a good way to do so may require you to apply for a business loan. A financial company may be an option in case you don’t qualify for the Small Business Administration’s (SBA) 7(a) loan.
The two cities landed on the top five best cities for small businesses due to their proximity to Silicon Valley, where start-up companies enjoy impressive growth rates. Business growth becomes more noticeable if you have used online tools. A Google report showed that 268,000 small businesses in the state generated $67.4 billion in economic activity, just by using search and advertising tools.
The California Economic Impact Report only proved that businesses, whether big or small, have a lot to gain if they expand their online presence. This serves as one reason for some enterprises to take out a small business loan to fund their digital campaigns.
An SBA loan doesn’t originate from the agency itself, but rather involves a guarantee with the lender that they will cover a portion of the funds in case of a debt default. Take note that SBA-affiliated lenders fall under the certified or preferred categories.
You should consider preferred lenders as your initial choice since they no longer need approval from the SBA. The application process for it is generally faster than applying with certified lenders.
California may be among the states with the best cities for small enterprises, but keeping your business afloat or expanding in these cities will require more than just economic factors. Financial capital lets you roll out your expansion plan. Instead of applying for loans from large banks, there’s a higher chance of approval if you do so with smaller lenders.