Small Business Loans

There comes a time in the life of every small business - new or established - when financing is required. When this need arises, realization soon dawns that finding a lender who caters for small business loans could be a frustrating affair.

TV and glossy magazine ads are definitely not the best places for identifying lenders that take an interest in small businesses - never mind small business loans! Those lenders with the fanciest advertising campaigns are mostly also those who uphold the most stringent of credit qualification criteria, meaning that applications for small business loans are very likely to be met with a polite rejection.

Then how do you find a lender interested in small business loans? The very best place to start the search is at your local Small Business Administration (SBA) district office. They have information about local lenders, particularly those participating in their small business loans program. The SBA usually has data on the total loans made by specific lenders. From this you should be able get an idea of which lenders are truly committed to the SBA program.

A second aspect to consider is the size of small business loans in relation to the size of the bank. For instance, if you compare a $1 billion bank that offered $10 million's worth of SBA loans against a $100 million bank that offered $10 million's worth, you immediately know which of the two has a greater interest in the small business loans market.

It may be good idea to verify the attitude of your local lenders towards small business loans by speaking to their respective loan officers. It is better to submit loan applications only to those lenders who would seriously consider your request. A rejection is never easy - so you might as well make sure from the outset that your application will be sincerely entertained.