Small Business Loans

Small Business Loans

Generallly, government agencies 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 commerical bank or lending institution. The lender will have all the forms you'll need to apply for a goverment-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 loans directly to businesses, which means you won't need to go through a bank.

To learn about loan programs for which you might qualify, visit our Loans and Grants Search Tool or visit these resources:

Loan programs for women and minory owned businesses are generally provided by non-profits and state agencies. Use the Loans and Grants Search Tool to find information on loan programs for businesses in your area.