Small Business Loans

Small Business Loans

Government agencies generally do not make loans directly to business owners. The government provides a guaranty to banks and lenders for money lent to small businesses. This guaranty is a promise to pay a portion of the loan back to the bank in case a business owner defaults on the loan. A guaranty reduces the lender's risk, which allows the lender to make loans to business owners who do not qualify for traditional loans.

So, the first place to start looking for a loan is with your local commercial bank or lending institution. The lender will have all the forms you'll need to apply for a government-backed loan, and will work with the government on the application process.

You should also look to your state and local government agencies and local non-profits. Some of these organizations make ...