| Businesses need money to operate. Whether it is | | | | that do not qualify with a bank. The loan will usually be |
| money for starting the business, money to finance an | | | | structured differently, and the interest rates are |
| expansion, or money for working capital during a | | | | typically higher, but there is money available. |
| period of economic difficulties, your ability to find a | | | | One way to increase the likelihood of qualifying for a |
| small business loan can make or break your business. | | | | small business loan is to work with the Small Business |
| Fortunately, finding lenders that make small business | | | | Administration (SBA). One service the SBA offers is |
| loans is not very difficult to do. There are not only | | | | to provide loan guarantees for businesses that qualify. |
| banks, but other lenders that specialize in working with | | | | What this means is that the SBA will secure a certain |
| small businesses to help them qualify for financing. | | | | portion of the amount you borrow. This SBA backing |
| Depending on the amount that your business needs, | | | | assures the bank that even if your business fails, they |
| the requirements may not be that difficult. If your | | | | will get their money back. This guarantee makes it |
| business has been established and has a solid credit | | | | much more likely that you will get the small business |
| history, most lenders would be happy to work with | | | | loan you need. These SBA Guarantee loans can be |
| you. For loans of less than $100,000, many times there | | | | used for anything from business startup to working |
| is very little in the way of financial documents that will | | | | capital to the purchase fixed assets. They are |
| be required. As the amount needed increases, the | | | | designed to meet any number of business needs that |
| requirements for supporting information will also | | | | may arise.. Contact your local SBA, or schedule an |
| increase. You will need to check with your bank for | | | | appointment with a SCORE (Service Corps of Retired |
| what the requirements are, not only do the | | | | Executives) volunteer to find out what it takes to |
| requirements change from bank to bank, but banks | | | | qualify for one of these guaranteed loans, and to get |
| make periodic updates to the requirements, so what | | | | the process started. |
| was true last year may have changed this year. | | | | Very few small businesses make it through their |
| If your business has not been in existence for very | | | | existence without the need for a small business loan. It |
| long, or if you have had financial and credit difficulties in | | | | is not an indication of a business in trouble, or of poor |
| the past, it gets much more difficult to qualify for a | | | | management. It is sometimes a necessary step to |
| loan. Your businesses credit score may be too low to | | | | ensure the future growth and profitability of a good |
| qualify for a small business loan through a bank or | | | | business that may need a little extra cash. Small |
| other conventional lender. The good news is, there are | | | | business loans can be the safety net your business |
| lenders that specialize in lending money to businesses | | | | needs to increase the chances for its survival. |