May 6, 2020
Small business loans can be used for most business purposes according to Melvin Feller MA
For many small businesses, obtaining a business loan can mean the difference between success or failure. So where do you find the right small business loan and how do you get approved?
Finding different types of small business loans and their associated funding sources is the easy part. You can select a funding type from the table below and read more about these types of business loans, or you can click on the search link to match your business to more than 4,000 funding sources for business loans.
Getting approved requires attention to detail. Each small business loan provider will have slightly different criteria for what they require to approve your small business loan. You can use our free search service to match business lenders, but before you apply make sure you ask each lender about their approval criteria and then make sure your business (and you) meet the criteria before you authorize the lender to do their checks.
For example, business loan approvals may require that your business has good business credit scores, so ask. And then check your business credit scores before you apply. A business loan provider might require that everyone who owns 20 percent or more in the business have above 680 personal credit scores. So ask and the check your scores before they do.
Your primary task then is to ask each lender what all the approval points are and then check yours before you let the business loan lender check. The reason for that is, once 3 or more business lenders have run personal and business credit checks, then any lenders you go to after that will most likely not approve your business loan simply because three other lenders have checked before them.
Once you get your business loan approved the proceeds can be used for things such as:
- The purchase of real estate to house the business
- Construction, renovation or leasehold improvements
- To purchase furniture, fixtures, machinery, or equipment
- For the flooring of inventory and for working capital.
Micro Loan $5,000 to $35,000 small business loans that can be used for any business purpose.
SBA Loans to small businesses from private-sector lenders (banks, etc.) which are guaranteed by the SBA. The SBA has no funds for direct lending.
Franchise financing reserved for the franchisees of recognized, typically nationally known, franchises.
Development Financing is for small businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. CDC’s work with the SBA and private-sector lenders to provide the financing.
Import/Export financing of U.S. goods and services through a variety of loan, guarantee, and insurance programs. (Import-Export Bank Programs)
