Small Loan
Small loan: Increase your chances
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December 07, 2001

By: Bev Dodd

Small loan: Increase your chances

Are you looking for a small loan? Loans financed in participation with the Small Business Administration are available to start a new business, to purchase or expand an existing business, to acquire real estate and equipment, and more. For advice on how to apply for a small loan to start your business, read on. We'll discuss this more below.

Keep in mind that to stay in business banks need to make loans. Do not be afraid to ask for a small loan. That is what the loan officer wants you to do. To increase your chances of getting a loan, look for a bank that is familiar with your industry and who has done business with companies like yours. Seek out banks that are active in small business financing. Some banks lend on a conventional basis (lending money without government support), while some banks participate in government programs (in the form of government participations involving direct government funds or loan guarantees). However, be aware that banks often demand stiff collateral requirements for start-ups.

The SBA Express was launched last fall in yet another effort to lessen the paperwork hassles attached to applying for a Small Business Administration-backed loan. Bank-qualified business owners can borrow up to $150,000 without going through the standard SBA application process and are guaranteed a small loan decision within 36 hours. Since the loans are guaranteed by the government agency only at 50% of their face value, many of the 500 or so eligible "preferred" lenders (which include commercial banks and other financing institutions with good track records on their other SBA loans) have yet to sign on. To track down active lenders in your area, contact your SBA district office, or visit the agency's website.

The financier's opinion of your capability and trustworthiness will be a major factor in the bank's loan decision. So dress conservatively. Appear relaxed and confident about your small loan business prospects. If you are seeking funding for a relatively new business, include a resume of your previous accomplishments in your presentation package.

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About The Author:

Bev Dodd is a successful author and publisher of  Many have commented that her website offers the best recommendations, links and information on loans, mortgages and financing.

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