Traditional Loans

Micro loans
Micro loans are smaller loans, made to eligible borrowers in amounts that range from $100 to a maximum of $25,000. They were created because traditional lending institutions have typically not made such small loans. Additionally, the lending criteria for a micro loan may not be as stringent as those established by commercial lending sources. This has made it possible for funds to be available to women, low-income and minority entrepreneurs, small business owners, and other individuals possessing the capability to operate successful businesses but lacking in areas such as perfect credit or personal assets. Loan proceeds can be used for working capital, equipment, furniture and fixtures, inventory, and leasehold improvements. The proceeds cannot be used to refinance existing debts.

Contact your local SBDC for assistance in determining if a micro loan is right for your business venture.

Commercial Bank Loans
The kind of financing most entrepreneurs seek through commercial lenders is debt financing. When shopping for a loan, keep in mind that banks vary substantially in their lending practices. While one bank may decline your loan application, another may be willing to take a higher risk or be interested in lending. It is advisable to understand a bank’s lending guidelines before applying for a loan.

We generally suggest that you first talk with the bank where you have business and/or personal bank accounts. Also, keep in mind that submitting your loan package to more than one lender simultaneously can affect your overall credit score. Please feel free to contact your local SBDC to get answers or receive further information on the loan application process.