There’s nothing small about small business. It takes big vision, big ideas, and big leaps. Minnesota is home to more than 500,000 small businesses doing big things. That’s 99.5 percent of businesses in the state and 45.8 percent of the workforce. Small business owners are the backbone of our communities. And they need committed financial partners to thrive.

Small business isn’t simply a market that Bridgewater Bank serves. It’s part of how the bank was built. “We were founded by entrepreneurs, and we’re still run by entrepreneurs to this day,” says Meghan Hormann, senior vice president of commercial banking. That experience gives its bankers an instinct for what business owners are navigating, and what it takes to turn an idea into growth.

What to Bring to the Table

Before approaching a lender, know that the numbers are only part of the conversation. Lenders consider your experience, your plan, how much capital you need, and how you expect that investment to translate into growth. For startups, there’s another factor at play: the founder. “The majority of the decision in a startup is the human,” Hormann says. In other words, lenders aren’t just evaluating the idea; they’re evaluating the person expected to pull it off.

What you’ll need depends on where your business stands.

For a startup:

• Your background and experience relevant to the business
• Your personal credit and savings
• Your detailed business plan
• Your short- and long-term financial projections
• The amount of personal capital you’re prepared to invest

For an existing business:

• Your detailed expansion or growth plan
• Up-to-date business financials
• Recent personal and business tax returns
• Your short- and long-term financial projections
• The amount of capital you’re prepared to contribute

No matter the stage, be ready to answer three fundamental questions: How much capital do you need? Where will it go? And how will that investment help the business succeed?

SBA Expertise at Work

Small Business Administration (SBA) loans are backed by a federal guarantee, reducing lender risk and potentially allowing longer repayment periods and lower down payments. As an SBA-preferred lender, Bridgewater can make certain credit decisions in-house without an additional SBA review. “Our job is to know the 500-page SBA policy backwards and forwards,” says Hormann. That can mean clearer upfront guidance and faster approvals.

Several SBA programs may apply, depending on financing needs:

• 7(a) Program: The SBA’s most common loan program, offering up to $5 million to start or acquire a business or fund working capital, equipment, or real estate.
• SBA Express: A streamlined 7(a) option up to $500,000, available as a term loan or line of credit, with revolving terms up to 10 years.
• 504 Program: Long-term, fixed-rate financing up to $5.5 million for major fixed assets, such as real estate, buildings, or heavy equipment.

Opening Day and Beyond

Even modest capital can mean opening the doors, adding employees, buying equipment, or taking a long-planned next step.

“We actually see lives change,” Hormann says. “My favorite day is the grand opening, when I get to walk in and feel like we played a part in bringing an amazing new business or expansion to life.”

Capital may help get an idea off the ground, but entrepreneurs often need more than financing.

“They’re looking for a banking partner who truly cares; one who understands the realities of growing a business and is there to support them throughout their entrepreneurial journey,” Hormann says.

Responsiveness and nimbleness matter, too.

“Having a banker who will pick up the phone and can move quickly as opportunities arise can make all the difference as your business grows,” she points out. “As a local, relationship-based bank, we are dedicated to being that true partner in success.”

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