Types of Small Business Funding in Rhode Island

At Business Development Company, we understand that every established business in Rhode Island is unique. That is why we offer customized lending solutions that match your cash flow, collateral, and growth plans.

Whether you are looking to build, buy, or expand your business, we work with you to create a funding strategy that fits your situation and supports your long-term goals.

Term Loans

Term loans are lump sum loans that businesses use to finance a specific need or project. For Rhode Island small businesses, term loans can be a way to invest in growth while keeping a predictable repayment schedule.

Term loans are ideal for:

Financing equipment or vehicle purchases
Providing growth capital for expansion
Restructuring existing debt, such as paying down a line of credit
Funding acquisitions or partner buyouts

Term loans are usually repaid monthly over a period of 5 to 7 years using the business’s operating cash flow. Interest rates can be fixed or floating, depending on what works best for your situation.

Business Development Company can structure initial interest-only periods for qualified borrowers. This gives growing businesses time to build momentum and generate revenue before beginning repayment of the loan principal.

Tiered term loan options allow funding to be provided in stages. Your business can access capital to meet immediate needs and then draw additional funds in the future once agreed targets are met. This approach supports expansion while managing risk and cash flow.

SBA Loans

As an approved SBA 7(a) and SBA Express lender, Business Development Company offers Small Business Administration guaranteed loans to qualified Rhode Island businesses. SBA guarantees can reduce the risk profile of a loan request, since 50 to 75 percent of the loan amount may be guaranteed by the U.S. government.

SBA loans can be a good fit for established small businesses that need longer terms, lower down payments, or more flexible collateral options than a conventional loan may allow.

We help you determine whether an SBA 7(a) or SBA Express loan is the right choice and guide you through the application, documentation, and approval process.

*Business Development Company is approved to offer SBA loan products under SBA’s 7(a) and Express programs.

Lines of Credit

A line of credit is a revolving credit facility. Your business can draw funds, repay them, and borrow again up to an approved limit. For many Rhode Island businesses, a line of credit helps smooth cash flow between payable and receivable cycles.

Lines of credit are often used for short-term working capital needs, such as:

Managing timing differences in receivables collections
Purchasing inventory or raw materials
Covering vendor payments and payroll during seasonal peaks

Lines of credit are especially useful for growing, seasonal, and cyclical businesses that experience uneven cash flow. In most cases, the availability and amount of a line of credit is based on eligible accounts receivable and inventory.

Not sure which type of funding is right for your business?

Choosing between a term loan, an SBA loan, or a line of credit depends on your business purpose, collateral, and cash flow. We work directly with Rhode Island business owners and financial decision makers to recommend the structure that fits your situation, not a one-size-fits-all template.

If you have questions about eligibility, collateral, or how our process works, you can also review our FAQs for small business borrowers.

Ready to discuss funding for your Rhode Island business?

If you are looking for capital in the near term, we understand the need for speed and clear communication when it comes to financing your business.