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12 Loan Options for Florida Startups with No Revenue

Written by Ricky Nave in Business Fundraising

The majority of businesses with no revenue fail before they ever bring in a single dime, which means normal lenders such as mainstream banks and even the SBA won’t lend you a single dime. However, there are still lenders who will lend to pre-revenue startups if you know where to look.

One of the best opportunities for pre-revenue startups to get loans is something most founders have never heard of: Community Development Financial Institutions (CDFIs). There are over 1200 CDFIs across all 50 states, DC, Guam, and Puerto Rico, and they exist to lend to startups, small businesses, co-ops & real estate development projects.

CDFIs can be local banks or credit unions, although most are nonprofits which exist solely to serve the role of CDFI. Some CDFIs are hyperlocal and may serve only a few hundred clients while others may serve millions through different branches or partner institutions.

Each CDFI has its own mission statement and targets a specific type of borrower. Many lend to startups and small businesses within a particular geographic area, some lend to businesses with social or sustainability impact, and some lend to minority or women founders. Often these institutions are very flexible on eligibility criteria so if you find one that you think might be relevant, it’s worth calling them to see if they can help you.

The second category of pre-revenue startup loan options is personal loans. Personal loans for business will have stricter credit and income requirements than CDFI loans, but if you have steady income from a current job, you should be able to leverage that into loan offers from personal loan providers. Then you can use that money for starting your own business and quitting your old job once your business is off the ground.

In this article, I’ve compiled the 12 best options for pre-revenue Florida startups I could find from both CDFIs and personal loan providers.

1. Ascendus Start-Up Loan

Loans up to $10,000 at low interest rates. Available anywhere in Florida and several other states.

Requirements

  • FICO score of 575 of higher
  • No more than $3,000 in unpaid / past due debt
  • Any bankruptcy must be discharged for more than 1 year
  • Any foreclosure must be complete for more than 2 years
  • Business must be currently registered
  • Owner must have a full or part-time job for at least 6 months and be able to provide the 2 most recent paystubs

Program Website: Ascendus Start-Up Loan

2. Lift Fund Small Business Loan

Loan amounts from $500 to $250,000. Loan maturity from 6 months to 10 years.

Requirements

  • Founder is least 21 years old
  • Founder is not involved in any active bankruptcy proceedings
  • Founder has lived in an eligible state for at least 6 months (eligible states include Florida but also Texas, Georgia, Tennessee, Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, and South Carolina)
  • Startup is not involved in adult entertainment
  • If business does not have revenue, then either founder must have sufficient income to cover loan payments (e.g. external job income, rental income, disability income, etc) or founder must apply with a co-borrower who has sufficient income to cover initial loan payments

I spoke with a representative who said that credit is considered flexibly. Typically they like to see applicants have at least a 575 credit score, but they are more interested in the activities leading to the credit score than the credit score itself, and they would rather see a low score that is increasing than a high score that is falling. The representative also said they are willing to work with individual borrowers with worse credit.

Email: info@liftfund.com

Phone: 888-215-2373

Loan Info Page: Lift Fund Loan Offerings

Loan Application (choose the “Small Business Loan” option if/when prompted): Lift Fund Small Business Loan Application

3. Upstart Personal Loan for Business

Loans from $1,000 to $50,000 are available to anyone with sufficient credit and income from a current job (the business to be started need not have any income itself).

Website: Personal Loan for Business Pre-Application

4. Ascendus Childcare Business Loan

Loans up to $20,000 are accessible in 48 hours with almost zero paperwork for licensed childcare professionals to start their own childcare business. Available throughout Florida (and several other states).

Requirements

  • Must be a licensed family childcare provider (and have been licensed for at least 3 years)
  • May have no credit, but if you have credit, your FICO score must be at least 575

Loan Program Webpage: Ascendus Childcare Loan

5. Broward Revolving Loan Fund Start-Up Loan

Loans from $10,000 to $50,000 for new businesses located in Broward Municipal Services District. The loan can be used to buy machinery or equipment, to finance tenant and real estate improvements, and to provide working capital.

Program Summary: Broward Revolving Loan Fund Program Announcement

Program Info: Broward Municipal Services District Revolving Loan Program Info & Application

6. Broward Revolving Loan Fund Microloan

Loans from $3,000 to $10,000 for businesses in Broward Municipal Services District that are at least 6 months old. Loan funds can be used for machinery, equipment, financing tenant and real estate improvements, and working capital.

Program Info: Broward Municipal Services District Revolving Loan Program Info & Application

7. Miami Bayside Foundation Minority Business Loan

Loans from $5,000 to $75,000 (and up to $150,000 in special circumstances).

Requirements

  • Minority or women owned
  • Owned by United States citizens or lawful permanent residents
  • Domiciled in Miami-Dade County, as stated in the company’s occupational license
  • For-profit S corporation, C corporation, or LLC. No sole proprietorships.
  • Must demonstrate that the loan will aid in the creation of new jobs
  • Must use funds for working capital, cash flow, inventory, and/or equipment
  • For startups under 1 year old, owners must put up a 20% cash match

Specific Program Info: Minority-Owned Business Loan Program

Foundation Loan Programs Overview: Miami Bayside Foundation Loan Programs

8. Miami Bayside Foundation Black Business Loan

Loans from $5,000 to $75,000 (up to $150,000 in special circumstances).

Requirements

  • 51% black-owned
  • Owned by United States citizens or lawful permanent residents
  • Domiciled in Miami-Dade, Broward, or Monroe Counties, as stated in the organization’s occupational license
  • For-profit S corporation, C corporation, or LLC. No sole proprietorships.
  • Must demonstrate that the loan will aid in the creation of new jobs
  • Must use funds for working capital, cash flow, inventory, and/or equipment
  • For startups under 1 year old, owners must put up a 20% cash match

Specific Program Info: Black Business Loan Program

9. OLCDC Small Business Loan (Startup Option)

Loans up to $250,000 from OLCDC (Opa-Locka Community Development Corporation).

Program Info: OLCDC Small Business Loan

10. Our Microlending Loans

Our Microlending LLC is a CDFI in Miami which provides loans of $3,000 to $50,000 for up to 24 month terms. They can provide loans even to tiny businesses with only a few hundred dollars in revenue, but they do normally require you to have been in business (even if the business is not registered) for at least 6 months and for some cashflow to have been generated during that time.

However, I spoke with a Microlending representative who said her organization is willing to work with founders of pre-revenue businesses in certain situations. Specifically, she said that if the founder had previously been employed in a related capacity, then they may be able to fund them. She gave an example of a woman who previously had a chair at a hair salon but wanted to start her own hair salon, and Microlending was able to work with her to finance that.

The rep also said that collateral and/or a co-borrower could help the application, and she emphasized multiple times that loans are decided case by case with a lot of flexibility.

Info Webpage: Our Microlending Loans

Phone: 305-854-8113

11. Partners for Self Employment Peer Loan

No credit, no collateral loans for entrepreneurs who are qualified residents of Miami Dade County. Loan amounts range from $1,000 to $5,000. You have the best chance of receiving the loan if you are either low income, a minority, or a person of color.

The loan details will be specific to your situation, and the website doesn’t have much useful info so the best way to get information is to contact someone by phone or email.

Phone: 305-438-1407

Email: success@partnersforselfemployment.org

12. Lending Club Personal Loan for Business

Loan amounts up to $40,000 for anyone with sufficient credit and income from a current job (but the startup business itself need not have any income).

Website: Lending Club Personal Loan for Business Pre-Application

19 Types of SBA Loans to Finance Your Business

Written by Ricky Nave in Business Fundraising

Small businesses need capital for many different purposes to expand or maintain their operations, and the SBA offers a multitude of different loan types for different purposes and for different types of companies.

SBA loans are organized into 4 main categories: 7(a) Loans, 504 Loans, Microloans, and Disaster Loans. As a rule of thumb, 504 loans are best for large real estate or equipment loans, 7(a) loans are best for business acquisitions or large working capital amounts, Microloans are best for startups, and Disaster Loans are best for emergencies.

Those categories are broken down into 19 specific loan types, and the key details of each loan type are summarized in the table below. Some details of the loans such as interest rates and fees are dependent upon the specific SBA lending partner and your own financial situation, so I recommend first finding the loan type most applicable to your situation from the table below and then contacting at least 3 different lenders about that specific type of loan to compare the deals you can get before making a decision to accept funding.

Loan TypeUse of FundsMax Loan AmountKey Eligibility RequirementsOther Details
MicroloanAllowed
– Working capital

– Inventory

– Supplies & materials

– Furniture & fixtures

– Machinery / equipment


Not Allowed
– Purchase real estate

– Pay existing debts		$50,000Must be a for profit business or non-profit childcare center with a U.S. presence, but most other eligibility requirements are determined by the specific lender.Terms up to 6 years


SBA Microloan Program Info Page


SBA Search by State for Microloan Lenders
Standard 7(a)Allowed
– Working capital

– Refinance current eligible business debt

– Supplies & materials

– Furniture & fixtures

– Purchasing land or real estate for owner-occupied commercial use

– Construction or renovation of commercial real estate for owner
occupation

– Establishing a new business

– Acquiring, operating, or expanding an existing business

* Any acquired business must generally be profitable and have
existed for at least 2 years.


Not Allowed
– Purchase an investment
property		$5 million– Be a for profit business

– Be a “small business”
by SBA definition (varies by industry)

– Engaged in U.S. business

– In an eligible industry

– “Reasonable” invested equity

– Not deliquent on any existing debts to U.S. gov

– No non-SBA funding available

– Generally, business owner(s) should have at least a 680 credit score		Terms
– Up to 10 years for equipment, working capital, or inventory loans
– Up to 25 years for real estate loans


You must apply through an SBA partnered private lender.


Qualifying can be difficult.


SBA 7(a) Loan Program Overview


Top 100 SBA 7(a) Lenders
7(a) Small LoanSubstantially the same as standard 7(a) uses$350,000Take an easy SBA pre-screening to be fast-tracked for approval. If you fail the fast track, you’ll have to go through the more intensive standard 7(a) processLenders may not advertise this as separate from 7(a) lending but may instead simply use the fast-track 7(a) small application whenever you apply for under $350k
7(a) SBA ExpressSubstantially the same as standard 7(a) uses$350,000Determined by lenderSBA Express Website
7(a) Export ExpressAllowed
– Develop export business

– Participate in a foreign trade show

– Translate product literature for use in foreign markets

– Finance specific export orders

– Finance expansions, equipment purchases, inventory, or real estate acquisitions related to business exports		$500,000– All standard 7(a) requirements, plus

– Business has been in operation at least 12 months		May be a term loan or revolving
credit line


SBA Export Express Fact Sheet
7(a) Export Working Capital Program (EWCP)Allowed
– Manufacturing costs of goods for export

– Purchasing goods or services for export

– Support Standby Letters of Credit to act as bid or performance bonds

– Finance foreign accounts receivable		$5 million– All standard 7(a) requirements, plus

– Business is engaged in export or can provide a valid plan to expand business into export activities		Loan maturities typically 12 months or less

SBA Export Working Capital Fact Sheet
7(a) International Trade Loan (ITL)Allowed
– Working capital related to entering or expanding into foreign markets

– Purchase, construct, renovate, modernize, improve, or expand facilities or equipment in the U.S. to produce goods or services involved
in foreign trade

– Refinance existing debt with unreasonable terms & conditions (including any debt qualifying for refinancing under the standard 7(a) program)		$5 million– All standard 7(a) requirements, plus

– Prove that the loan will allow the business to expand or develop an export market OR demonstrate that the business has been adversely affected by import competition and that the ITL will improve its competitiveness		Terms
– Up to 10 years for equipment, working capital, or inventory loans
– Up to 25 years for real estate loans


SBA International Trade Loan Fact Sheet
7(a) Seasonal CAPLineFinance seasonal
increases in accounts receivable,
inventory, & possibly labor
(but NOT to maintain activity
during the slow periods)		$5 million– All standard 7(a) requirements, plus

– Business has been operating for at least one year

– Need to demonstrate a pattern of seasonal activity		Terms
– Up to 10 years
(but can be renewed at any time before maturity)


SBA Overview of CAPLine Programs
7(a) Contract CAPLineFinance the cost of one or
more specific contracts,
subcontracts, or purchase
orders		$5 million– All standard 7(a) requirements, plus

– Show a specific contract or subcontract which needs financing and in which significant performance has not already begun		Terms
– Up to 10 years
(but can be renewed at any time before maturity)


SBA Contract CAPLine Program Info (Insider Info Lenders Use to Vet Your Application)
7(a) Builders CAPLineDirect expenses related to
the construction and/or
substantial renovation of a
specific eligible project
(residential or commercial
building)		$5 million– All standard 7(a) requirements, plus

– Demonstrate a specific eligible project 		Terms
– Up to 5 years
(but can be renewed at any time before maturity)


SBA Overview of CAPLine Programs
7(a) Working CAPLineAllowed
– Short term working capital

Not Allowed
– Paying deliquent taxes (e.g. state or sales taxes)

– Purchasing fixed assets		$5 millionSame as standard 7(a) requirementsTerms
– Up to 10 years
(but can be renewed at any time before maturity)


SBA Overview of CAPLine Programs
CDC/504 LoanAllowed
– Long-term fixed assets
for expansion or modernization

– Purchasing commercial real estate for owner occupation

– Machinery / equipment

– Refinancing large equipment

– Refinancing owner-occupied commercial real estate

– improving or modernizing existing facilities

– improving or modernizing land, streets, utilities, parking lots, or landscaping (with limits)


Not Allowed
– Working capital or inventory

– consolidating, repaying, or refinancing debt

– speculation or investment in rental real estate		$5 million – Be a for profit business

– Engaged in U.S. business

– Tangible net worth under $15 million

– Average annual net income (after federal income taxes) of less than $5 million for prior 2 years		Terms
– 10 years
– 20 years
– 25 years


Only available through CDCs (Certified Development Companies). Here is the SBA’s official search engine to find CDCs near you.


SBA 504 Loan Info Page
504 Loan for eligible
energy-efficient or
manufacturing projects		Substantially the same as standard 504 Loan above$5.5 million– All standard 7(a) requirements, plus

– Project must reduce building energy usage by 10% or offset energy usage by 10% with renewables		Substantially the same as standard 504 Loan above
Business Physical Disaster LoanAllowed: Repair or replace any of the following past insurance coverage:

– real property

– machinery / equipment

– fixtures

– inventory

– leasehold improvements


Not Allowed
– business expansion

– machinery or equipment upgrades		$2 million– Businesses and most private non-profits may be eligible

– Business is located in a declared disaster area

– Demonstrable physical damages beyond what insurance covers		Terms up to 30 years


SBA Physical Disaster Loan Info Page
Disaster Mitigation Assistance LoanRebuild a stronger business with mitigation improvements to prevent or reduce damage from future disasters20% over Business Physical Disaster Loan AmountSame as Business Physical Disaster LoanThis loan is an add-on to the Business Physical Disaster Loan with essentially the same terms.
Economic Injury Disaster Loan (EIDL)Allowed
– Working capital

– Normal expenses (e.g. continuation of health care benefits, rent, utilities, and fixed debt payments)


Not Allowed
– covering lost income or profits

– to be used in lieu of regular commercial debt

– refinancing long term debt

– business expansion		$2 million– Businesses and most private non-profits may be eligible

– Business is located in a declared disaster area

– Demonstrable economic injury (i.e. show that the business is unable to meet its obligations and pay its ordinary and necessary operating expenses)		Terms up to 30 years


SBA EIDL Info Page


NOTE: The COVID-19 EIDL program is similar but notably different than the standard EIDL
Military Reservist Economic Injury Disaster Loan (MREIDL)The same as the normal EIDL above$2 million (limit may be raised by SBA if business is a substantial employer)Business is unable to meet its ordinary and necessary operating expenses because an essential employee was called to active duty in their role as military reservistTerms up to 30 years


SBA Military Reservist Loan Info Page
7(a) Community Advantage Loan (Pilot Program)Substantially the same as the normal 7(a) uses$250,000Similar to standard 7(a) requirements, but more flexible to serve mission-driven companiesSubstantially the same as the standard 7(a) terms, but with different lenders usually who may be more lenient and focused on community-serving organizations.

Program ends September 30, 2022.
Veterans Advantage ProgramThe Veterans Advantage Program is not a single type of loan but rather a loan program than can apply to most of the loans previously mentioned.Same or higher than non-veteran version of the loan typeBusiness is at least 51% owned by one or more individuals who are: honorably discharged veterans, active duty military eligible for TAP, active reservists, active national guard members, or current spouse or widow of any of the above or of someone who died or was disabled in serviceSBA Veterans Advantage Fact Sheet
19 Types of SBA Business Loans