You’ve done hours of online research, compared dozens of options, and finally, you’ve found it—the perfect loan for your small business. But then, as you finally go to apply, there is a problem. As it turns out, your perfect lender isn’t licensed to fund businesses in your state! Seriously?

As it turns out, different states have different lender regulations, meaning that your business’s location may significantly affect your loan options. What’s even more frustrating is that as borrowers shop for business loans online, these geographic limitations aren’t always immediately apparent in search results.

To avoid the hassle of considering loan options that aren’t actually available where you live, read on to learn more about how the location of your business may impact your choices.

Doing business in these states? Your choices may be more limited.

Nearly every state in the union holds licensing requirements or regulations that will disqualify one or a few lenders. That said, these five states, in particular, are known throughout the small business financing industry for their tough standards and limited lender options:

  • North and South Dakota: A combination of burdensome regulations and a small population has deterred many lenders from doing business in the Dakotas. Meeting the requirements for licensing in these states requires an annual investment that many see as not quite worth the return.
  • Nevada: Reacting to the predatory lending prices and high rates that contributed to last decade’s housing bubble, Nevada regulatory agencies have placed strict requirements on both lenders and loan brokers doing business in the state. While a large number of businesses in Nevada means that more lenders are hoping to move into the state, it remains out of bounds for a good portion of the business loan market.
  • Rhode Island: With just over 1 million residents in total, our nation’s smallest state simply doesn’t have a huge number of entrepreneurs seeking small business loans. As a result, a good number of lenders haven’t bothered to jump through the hoops of becoming licensed in The Ocean State.
  • Vermont: As surprisingly one of the most limited states in our lender marketplace, The Green Mountain State suffers from a challenging combination of all the above lender deterrents. A relatively small state population, strict regulations, and post-recession predatory rate limits have made a significant number of lenders ineligible to do business in Vermont.

Though these five states are the most significantly limited in lender options, there are a few other places throughout the United States that some lenders can’t work. It really does vary by lender.

These lenders work in all 50 states.

While the location of your business can affect your ability to work with certain lenders, it will by no means dictate your ability to obtain the funding you need. These lenders are licensed to fund business loans in all 50 states.

  • Direct Capital: Specializing in short term loans of $10,000-$150,000, Direct Capital works with borrowers in every state and of every entity type. If you need cash in hand quickly, Direct Capital’s lighting fast funding time—averaging three days or less—will certainly be appealing.
  • SmartBiz: If you’re interested in a longer term option, look to SmartBiz for SBA term loans of up to 10 years for $30,000-$350,000. The funding process can be a bit longer—between 5 and 90 days on average—but with affordable interest rates, SmartBiz is a smart option for borrowers in any state.

Ask any lender before you apply.

The lenders above are accessible options no matter where you live. Even so, you don’t really need a lender who works in every state—you just need the right fit for your business. As you’re exploring your options, always ask a lender or do research before applying. You don’t want to waste time working on an application that’s going to get denied based on location alone!