Seattle is one of the nation’s most dynamic hubs for innovation, food, tech, and small business growth. Whether you’re launching a retail shop in Capitol Hill, expanding a construction firm in South Lake Union, or building a startup in Pioneer Square, access to capital is key to scaling your business.
This guide covers the top small business loan options in Seattle, WA, including SBA loans, credit unions, city-backed grants, and fintech alternatives—along with tips to help you qualify and grow.
Small business success in Seattle often hinges on location, innovation, and staying ahead in a fast-moving economy. From inflation to rising rents, business owners need funding to:
Launch or expand operations
Cover seasonal cash flow gaps
Purchase equipment or renovate space
Hire and train staff
Upgrade tech or inventory
Invest in real estate or vehicles
🏙️ With the right funding partner, Seattle business owners can turn bold ideas into long-term growth—without sacrificing cash flow or control.
The U.S. Small Business Administration (SBA) backs flexible loan programs that are well-suited for Seattle’s diverse and growing small business ecosystem.
Use: Working capital, expansion, equipment, refinancing
Loan Size: Up to $5 million
Terms: Up to 10 years for working capital, 25 years for real estate
Rates: Prime + 2.25%–4.75%
Best For: General purpose funding with competitive terms
Use: Real estate purchases, construction, large equipment
Structure: 50% lender, 40% CDC, 10% borrower
Fixed rates and long terms
Best For: Fixed asset purchases and business expansion
Use: Inventory, marketing, working capital
Loan Size: Up to $50,000
Administered by: Nonprofit lenders in Seattle (e.g., Business Impact NW)
Best For: Startups, women-, veteran-, and minority-owned businesses
📍 Apply through the SBA Seattle District Office or local intermediaries like Business Impact NW.
Define your funding need (e.g., real estate, working capital)
Choose the right SBA loan type
Prepare a business plan and financials
Find a Seattle-area SBA-approved lender or CDC
Submit your application and supporting documents
Complete underwriting and loan approval
Receive funding and launch your project
Seattle-based banks and credit unions are strong community lending partners that offer more personalized support.
Offers lines of credit, equipment loans, and SBA 7(a) loans
Special programs for underserved communities and new Americans
SBA Preferred Lender
Offers working capital lines, term loans, and CRE loans
Administers 504 loans in partnership with the SBA
Ideal for business owners buying or renovating property
Seattle’s Capital Access Program (CAP) is a city-backed loan assistance initiative:
What It Does: Pays up to 20% of the loan principal (up to $30,000)
Purpose: Reduces lender risk and borrower costs
Partners: Local lenders and CDFIs (Community Development Financial Institutions)
💡 This program is especially helpful for startups and underserved business owners who may lack traditional collateral.
📍 Learn more at seattle.gov/economic-development
Helps small businesses secure commercial leases
Offers equity-building support and lease negotiation grants
Administered by Seattle’s Office of Economic Development (OED)
Offers loan guarantees and collateral support
Funded by the federal government
Aimed at small businesses that don’t meet conventional lending standards
Provides funding to improve or renovate leased commercial space
Popular with food and retail businesses
📍 Find more at business.wa.gov
Business: Sound Roast Café
Goal: Expand with a second location and build out a 1,200 sq ft leased space
Funding Strategy:
$120K SBA 7(a) loan through Seattle Credit Union
$20K CAP-backed loan principal reduction
$15K City of Seattle tenant improvement grant
Result:
Store opened in under 5 months
Achieved break-even in 8 months
Hired 6 new employees
Repay based on monthly revenue instead of fixed installments
Offered by Seattle-based Lighter Capital
Ideal for SaaS and tech companies
Platforms like Lendio allow Seattle businesses to:
Compare SBA, term loan, and short-term funding offers
Access multiple lenders with one application
Receive funds in as little as 1–3 days
Seattle businesses may qualify for:
Small Business B&O Tax Credit
High Tech R&D Credit
Rural County Job Credits
Maintain strong personal and business credit
Keep clean, up-to-date financial statements
Create a well-structured business plan
Have clear projections and use of funds
Prequalify with multiple lenders to compare terms
Free consulting
Help with financials and loan prep
Free business mentoring
SBA loan support and pitch prep
seattle.score.org
Support for LGBTQ+ entrepreneurs
Grants, advocacy, and community network
SBA Seattle District Office (opens in new tab)
Seattle Capital Access Program (opens in new tab)
Washington State SSBCI (opens in new tab)
Evergreen Business Capital (opens in new tab)
| Pros | Cons |
|---|---|
| SBA loans offer low rates and long terms | May require strong credit and extensive documentation |
| Local grants and CAP reduce borrowing costs | Grant availability can be limited and competitive |
| Revenue-based options support tech companies | Often more expensive than bank loans |
| Credit unions provide community-centered lending | May not scale well for large capital projects |
Seattle offers one of the most diverse ecosystems of business funding in the U.S.—with everything from SBA programs to local grants, mission-driven lenders, and fintech innovation. The key is matching your growth goal with the right capital partner and taking full advantage of free local resources.
Ready to fund your Seattle small business?
Get prequalified with an SBA lender, explore CAP or tenant improvement grants, or schedule a free consultation with the Seattle SBDC today.