In Kent County, Delaware, 59.6 percent of 4,971 employer establishments had fewer than five employees in 2023 (Census CBP). Aspenwater Credit, a small-business funding broker in Dover, Delaware, explains how such firms can fund the next step, from a first hire to a second location, and which structures fit each. Lending partners decide and set terms.
The numbers behind 'six in ten'
Kent County, Delaware had 4,971 employer establishments in 2023, and 2,964 of them, 59.6 percent, had fewer than five employees (U.S. Census Bureau, County Business Patterns 2023). The next size bands were much smaller: 758 establishments with five to nine employees, 606 with ten to nineteen and 438 with twenty to forty-nine. Beyond those, 19,146 businesses in the county had no employees at all in 2024 (U.S. Census Bureau, Nonemployer Statistics 2024).
Put simply, most local firms are one or two steps from the size they want to be, and each step tends to cost money before it earns any.
Step one: from owner-operator to employer
The first hire changes the cash cycle immediately. Wages and payroll taxes go out every pay period, while the extra revenue the new person makes possible arrives later. If the gap is predictable and short, working capital financing can carry it. Before borrowing, write down how many weeks it will take for the new employee to cover their own cost.
Step two: more space or a second location
A second site, a larger unit or a fit-out is a one-time cost with a long payoff, which is the job a business term loan is designed for. Partners will look for a track record at the first location, the lease or purchase terms for the second, and a realistic budget. Zoning and permits come first; inside the city, see the City of Dover, DE checklist.
Step three: a bigger machine or more stock
For a contractor or a practice, expansion often means equipment, which can usually be financed against the equipment itself. For a store or wholesaler it means more inventory. Both are narrower than a general loan and keep other assets out of the agreement.
How partners look at an expansion request
- A history of results at the current size: bank statements and tax returns
- A clear budget for the step, with quotes
- How the business will cover payments before the new revenue arrives
- Existing debt and whether the new payment fits alongside it
- The owners' credit, since most requests involve a personal guarantee
No broker or lender can promise approval before a review. What helps most is a request sized to one step, with the money to repay it already visible in the plan.
Sizing one step at a time
A common mistake is funding two steps at once: a new location and a new hire and new equipment, all in one request. If any part is slower than planned, the whole payment is at risk. Fund the step that unlocks the next one, then use its results to support the following request.
Sequencing also protects the business if a partner declines. A smaller, well-documented request for one step is easier to place, and a second request a year later arrives with a year of results behind it.
Self-employment is part of the same picture. An estimated 7.6 percent (±0.8) of employed Kent County residents were self-employed (American Community Survey 2020-2024 5-year estimates), and many of those owners are deciding whether to take on their first employee.
Where to go next
For the statewide preparation steps, read how to get a business loan in Delaware. County figures in more depth are on the Dover, DE business profile, and more articles on the blog.
By Aspenwater Credit · Updated