Given your business plan and your collateral situation, you might look for special loans funded by government development agencies.
If you are in the U.S., then you are probably looking for Small Business Administration (SBA) loans. The SBA is a federal government agency that guarantees bank loans to small business. The SBA has many different programs, including a micro-loan program with less paperwork than normal for smaller loans, some special programs for women and minorities, and a loan guarantee program for small businesses.
You apply for an SBA loan at a local bank, not with the SBA. The SBA guarantees the loan but the local bank processes and funds it. Many people misunderstand the process.
If you aren’t in the U.S., then look to your local sources for investment financing and government-sponsored development agencies. In Mexico, for example, Nacional Financiera offers development funding. Many economies have similar facilities for stimulating small business and economic development.
Additional information
- Go straight to the source at the SBA website. This is one of the most useful government websites around, a wealth of information.
- Independent community banks.
- Radio talk show discussions of the SBA at the Small Business Advocate website.
Tim Berry is the founder and chairman of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry.
