Eligibility Criteria for Funding

At FundLocal, we aim to provide accessible and flexible financing options for small businesses in a variety of industries. While we strive to make our funding available to as many businesses as possible, there are certain eligibility requirements you need to meet in order to qualify for a Business Line of Credit, Equipment Financing, or Working Capital Loan. Here’s a detailed overview of the key eligibility criteria for funding.

One of the first factors we consider when determining eligibility is how long your business has been operating. FundLocal requires that businesses be operational for a minimum of 6 months before applying for funding. This ensures that your business has some operational history and has had time to generate revenue.

• Minimum Requirement: 6 months in business

• Why It’s Important: A business with at least 6 months of history is more likely to have stable cash flow, making it easier to assess its ability to repay the loan.

Your business’s annual revenue is a key factor in determining eligibility for funding. FundLocal requires businesses to have a minimum annual revenue of $100,000. We also review your recent monthly revenue to gauge your business’s financial health and ability to manage repayments.

• Minimum Requirement: $100,000 in annual revenue

• Why It’s Important: Revenue helps us understand your business’s financial strength and stability. It is one of the most important indicators of your ability to manage and repay the funding.

As part of the application process, you will be required to submit business bank statements to demonstrate your business’s cash flow. FundLocal typically requires:

• 3 months of business bank statements for most states.

• 4 months of business bank statements if you are located in California, New York, or Utah.

These statements help us verify your business’s financial activity and ensure that your business has a consistent flow of income to cover loan repayments.

• Minimum Requirement: 3 to 4 months of recent business bank statements.

• Why It’s Important: Bank statements provide insight into your cash flow, average daily balance, and overall business health. Consistent deposits and a healthy balance show that your business can manage the loan or credit line repayments.

FundLocal offers financing to businesses located within the United States. While most states are eligible for our services, there may be state-specific regulations that apply to your business, particularly in states like California, New York, and Utah, which require additional bank statements or have other regulations in place.

• Minimum Requirement: Must be a business operating in the U.S.

• Why It’s Important: State-specific regulations may impact your eligibility or the documents required for funding, so we tailor our application process accordingly.

We work with businesses in a wide range of industries, from construction and auto repair to restaurants, retail, and healthcare. However, there may be some industries that face regulatory or risk-related challenges that affect eligibility for funding. If your business falls into a highly regulated or niche industry, it may require additional review.

• Minimum Requirement: Your business must operate in an industry that we serve (e.g., retail, construction, manufacturing, etc.).

• Why It’s Important: Different industries present different levels of risk, which we take into consideration when reviewing applications. However, we aim to serve most industries, with a broad range of solutions available.

FundLocal does not require a hard credit check for an initial funding quote, meaning that your credit score will not be affected when exploring your options. However, a soft credit check may be performed during the application process to evaluate your business’s creditworthiness.

• Minimum Requirement: No minimum personal or business credit score is required to receive a quote. A soft credit check may be performed later in the process.

• Why It’s Important: While we don’t require a high credit score, credit history can help us understand your borrowing behavior. However, we are committed to offering options even if your credit history is less than perfect.

Businesses that are currently involved in bankruptcy proceedings are typically not eligible for FundLocal financing. However, if you have a previous bankruptcy that has been fully discharged, you may still qualify for funding.

• Minimum Requirement: No open or active bankruptcy proceedings.

• Why It’s Important: Open bankruptcies can signal financial instability, making it more challenging to assess the business’s ability to repay a loan. However, we may consider businesses that have successfully exited bankruptcy.

Your business must be legally registered and compliant with local regulations. We may request documentation related to your business’s structure (e.g., LLC, sole proprietorship, corporation) and its licenses or permits to verify that it is operating legally.

• Minimum Requirement: Must have a legally registered business (e.g., LLC, Corporation, Sole Proprietorship) and any required licenses or permits for your industry.

• Why It’s Important: A valid business structure and licensing show that your business is legitimate and in compliance with state or federal regulations.

FundLocal requires all applicants to have a dedicated business bank account. This ensures that your business’s financial activity is separate from your personal finances and helps us track your business’s cash flow more effectively.

• Minimum Requirement: A valid and active business checking account.

• Why It’s Important: Having a business bank account helps ensure that you’re managing your business finances responsibly, and it simplifies the process of transferring funds and setting up repayments.

Depending on the type of funding you are applying for, there may be additional criteria specific to that product:

• For Equipment Financing: You will need to provide information about the equipment you intend to purchase, including its cost and potential business impact.

• For Business Lines of Credit: We will evaluate your business’s ability to manage revolving credit, including how you handle current debts and expenses.

• For Working Capital Loans: We assess your short-term cash flow needs and your ability to repay the loan based on operational revenue.

To recap, here’s what you’ll need to qualify for funding through FundLocal:

• A business that has been operating for at least 6 months.

• Minimum annual revenue of $100,000.

• Recent business bank statements (3 to 4 months).

• A valid business structure and necessary licenses.

• A dedicated business bank account.

• Located in the United States, with compliance to any state-specific regulations.

• No open bankruptcies.

• Credit history may be reviewed with a soft credit check (no hard inquiry required for a quote).

At FundLocal, we are committed to providing financing options that are accessible to a wide variety of businesses, regardless of their size or industry. If you're not sure whether you meet our eligibility criteria, feel free to reach out to our team for a personalized assessment, or explore the rest of our knowledge base for more information on how we can support your business.