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Insurance Agency Startup Loans

by Nelson Bou • 2020-03-16

Starting an insurance agency can be a long and strenuous process. However, once you become qualified as an official insurance agent, there are many options to help you find financing for an insurance agency startup.

Insurance Agency Startup Loans Overview

First you should create an insurance agency startup business plan. If you are figuring out how to start an independent insurance agency then you definitely need to know how to find insurance agency startup financing as well.

Insurance agencies such as Allstate require agents to have at least $100,000 in capital to open an agency. If you are low on initial capital available for investment, you should start off by reading our article on financing for startup companies. Nontheless, here is an overview of the financing options available for insurance agency startup businesses:

Documents needed to apply:

- Bank Statements

- Tax Returns

- A Business Plan

- Insurance Book of Business

Types of Startup Insurance Agency Expenses that Can be Financed

- Agency acquisition

- Setting up a call center

- Renovations

- Overhead costs

- Hiring new staff

- Buying a new store

- Perpetuation planning

SBA Loans for Insurance Agencies

It can be simple to get 7a funding for startup insurance agencies depending on the circumstances. The sba 7a program offers a variety of financing options for startup insurance agencies. In addition, the sba 7a program offers low interest rates and very good loan terms that are very beneficial to small businesses.

The sba 7a program is available to both captive insurance agencies such as Allstate or State Farm, as well as independent insurance agencies. The terms and uses of an sba loan for startup insurance agencies include but are not limited to:

- Purchase of another agency or book of business

- Build a new insurance agency

- Refinance insurance agency debt

- Renovate an insurance agency

- Working capital

The sba offers many choices for insurance agency financing. The process can become complex if you are trying to obtain financing to purchase another agency. However, the low rates provided by the sba are well worth it. If you are considering an sba startup loan then you should visit the sba website to read more about sba insurance loans.A large and well known provider of sba insurance agency loans is Live Oak Bank. You should definitely visit their website or give them a call.

Commercial Real Estate Startup Insurance Agency Loans

SBA 7a loans can also be used for renovations and property improvements for insurance agencies. 7a loans are a good choice for most insurance agencies when it comes to specifically funding commercial real estate projects.

Allstate Bank Agency Lending

There are many allstate agency loans available. Allstate has a subsidiary known as Allstate Financing Company that helps provide financing and funding solutions for allstate insurance agencies as well as other purposes. Allstate also has a resources page that can specifically help allstate agencies find financing elsewhere if that is more beneficial. Another lender that provides insurance agency loans specific to Allstate is McQue Capital.

State Farm agency lending

State Farm insurance agency startup loans are not as abundant as they are for Allstate agencies. However lenders such as Live Oak Bank, mentioned above, still offer financing for State Farm agency startups. You can learn more about insurance agency startup financing from Financing Solutions Now.

Farmers agency lending

There are many funding and financing options for Farmers startup insurance agencies. Some of these include Oak Street Funding, Farmers Insurance Federal Credit Union, and Insurance Journal.

The Bottom Line

There are many options for captive and independent insurance agency startup businesses. You can read more about insurance agency loans at Finder. However, if you are still unsure about which direction to take in your search for financing, you should apply online and Abundant Funding will point you in the right direction.

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