When your own money isn’t enough, Delaware’s options mostly work like the federal ones: a lender makes the loan, and a government program backs part of it. The state also runs a competitive grant.
What’s different in Delaware
- One SBA district office covers the whole state, in Wilmington.
- State loan programs work through lenders. The Division of Small Business runs the Delaware Loan Participation Program and the Delaware Capital Access Program for businesses that have trouble getting a traditional bank loan. You meet a Business Manager, then apply with a participating bank, credit union or community lender.
- EDGE is a grant, but a competitive one. It goes to a limited number of winners, and awards are matched, three dollars from the state for every dollar from the business. Be wary of anyone selling access to a guaranteed grant.
Do this
- Write down what you need and what it’s for. Equipment, inventory and rent are different asks, and programs are sorted by use.
- Talk to a free advisor first. A Division of Small Business Business Manager reviews the state programs with you. The SBA’s Delaware District Office offers counseling and connects you to partner organizations that help with loan applications.
- Understand who lends. SBA loans come from participating lenders, not the SBA. The SBA loans guide explains who makes each kind.
- Ask about Delaware’s loan programs by name: the Delaware Loan Participation Program and the Delaware Capital Access Program. The Business Manager gives you the list of participating lenders, and you apply with one of them.
- Check whether you fit EDGE. The EDGE grant competition is for businesses majority located in Delaware, in business less than 7 years, with 15 or fewer full-time employees and less than $700,000 in assets. You pitch to a panel, and the money goes to specific uses such as equipment, advertising or a website.
What you get back
A loan offer from a lender, with rate, term and collateral. Any state share of the loan is between the lender and the Division of Small Business; your paperwork is with the lender. An EDGE award comes with its own agreement and match.
Common questions
Can I get an SBA loan directly from the SBA in Delaware?
Not for its regular small business loans, such as 7(a) loans. You apply and work with a participating lender. SBA disaster loans are the exception; the SBA makes those directly. The SBA's Delaware District Office in Wilmington serves the whole state, answers questions and connects you to lenders.
Does Delaware give grants to small businesses?
The Division of Small Business runs EDGE, a competition for grant funding. Awards are matched, three dollars from the state for every dollar from the business, and applicants must be in business less than 7 years with 15 or fewer full-time employees. Check the EDGE page for whether applications are open.
Where can I get free help with a business plan or loan application in Delaware?
Start with a Business Manager at the Division of Small Business or the SBA's Delaware District Office. The Division works with the Delaware Small Business Development Center to help business owners get ready for a loan at no cost.