Financing

Many options are available to help assist with financing your Small Business in Alabama. The options listed below are a small representation of Alabama banks that offer financing for small businesses.

100 Most Active SBA 7(a) Lenders

The table provided by SBA.gov displays the 100 most active SBA 7(a) lenders in the United States by lending volume in FY 2014, though the third quarter. Results are updated quarterly.

Alabama Association of Regional Councils Revolving Loan Fund

Each regional council operates a Revolving Loan Fund (RLF) for the purpose of assisting small local businesses and industries in their start-up and expansion activities. The goal of the program is to create new jobs for citizens of Alabama. The RLF provides gap financing that is not available from commercial lenders. A Loan Review Committee is responsible for approving or disapproving loan applications. The RLF Program is an important economic development tool which consists of locally controlled capital being used to finance new or expanding businesses to create or retain jobs. The program targets small to medium sized businesses and small manufacturing companies. Contact your local Regional Council for more information.

AlabamaSAVES

AlabamaSAVES is a financing program that provides an estimated $60 million dollars for low-interest rate loans to install renewable energy systems and implement energy efficiency improvements (lighting, HVAC, new energy efficient equipment, etc.) for existing private, commercial, industrial, and institutional entities. For more information contact Kathy Hornsby by phone (334) 242-5284 or by email kathy.hornsby@adeca.alabama.gov. You can also visit the AlabamaSAVES website for more information.

ADECA Float Loan

The ADECA Float Loan program provides up to $10 millon dollars, calculated at $35,000. per job, for expanding companies. This is a one year loan, and can be extended once for another year. Interest rate generally run ½ to 1 ½% and the new hires must meet our 51% LMI (low-to-moderate) guidelines. For more information contact Shabbir Olia by phone (334) 242-5468 or by email shabbir.olia@adeca.alabama.gov. You can also visit the ADECA website for more information.

ADECA State Small Business Credit Initiative

​On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 to help increase credit availability for small businesses. The Act created the State Small Business Credit Initiative (SSBCI) and the state of Alabama was approved by the Treasury for $31,301,498. The Alabama Department of Economic and Community Affairs (ADECA) runs this U.S. Treasury program that guarantees term loans or lines of credit to new and existing small businesses. Working with local banks, the SSBCI has a $5 million dollar cap and loan proceeds must be used for a business purpose to include start-up costs, working capital, business procurement, franchise fees, equipment, construction, renovation, tenant improvements, and other associated business costs. For more information contact Howard Wills by phone (334) 353-5353 or by email howard.wills@adeca.alabama.gov.

Alabama Credit Union

Alabama Credit Union funds small business loans such as:

• Building and property purchases
• Equipment purchases
• Business-use vehciles
• Credit cards
• Commercial property refinancing

Alabama Small Business Administration District Office

SBA offers a variety of loan programs. While SBA does not make loans directly, it provides a guarantee for loans which are made by a lender.

Avadian Credit Union

Avadian has all of the tools and resources you need to manage your money, to improve your cash flow and to help you make the most of your business. All while saving you money through lower interest rates and fewer/lower fees. Avadian is a not-for-profit credit union, meaning when you move your business banking services to Avadian, you actually own your financial institution.

Regions Financial Corporation

Regions Financial Corporation serves customers in 16 states across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,700 banking offices and 2,000 ATMs. With $118 billion in assets, Regions is a member of the S&P 500 Index and Forbes Magazine’s “Platinum 400” list of America’s best big companies. For more information please visit the Regions Financial Corporation website.

Search Small Business Administration Lenders by Proximity

Search by State, Zip code, or SBA District Office to find SBA lenders in your area. Discover the size and types of loans that are being provided, then contact one of the Lender Relations Specialists listed to discover how you can get started.

Small Business Administration Loans and Grants Search Tool

To help you identify what government financing programs may be available to help you start or expand your business, check out theAccess Financing Wizard from BusinessUSA. In a few quick steps, this wizard will guide you to government resources to access financing for your business!

TruFind Small Business Loan Fund

TruFund Financial Services focuses on small business lending and affordable housing development. While much of the activity in Alabama has been in Birmingham and other urban markets, we have a targeted focus to lend in rural “Black Belt” communities. TruFund works with various local partners to provide services to low-income and economically distressed communities and to minority- and women-owned businesses that are challenged in today’s financial environment.

• Hale Empowerment Revitalization Organization (HERO), Greensboro, AL:  nonprofit, working capital
• Main Street Birmingham, Birmingham, AL:  leasehold improvements
• Championship Enterprises, Inc., Alabaster, AL:  working capital, equipment and supplies

United State Department of Agriculture Loan Eligibility

This site is used to determine eligibility for certain USDA home loan programs and the USDA Satellite Grant Program. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased or served must be located in an eligible rural area as defined by USDA.