Getting a loan is just one of the many ways you can fund your business. Luckily, there are many different options at your disposal.
Revolving Loan Funds
Iowa has many revolving loan programs available for small businesses. These programs typically provide loans to businesses located in specific communities or regions and are offered through many different agencies. When looking at applying for a revolving loan, it’s important to know that you will also be working with your local bank or other lending agency for the primary source of the money you need, with the revolving loan providing the additional funds to make up the ‘gap’ between what the primary lender will provide and what you need for your total project.
If you’ve found that you are not able to obtain a bank loan for your business, you may find success through a microloan program. Microloan programs usually offer small business loans from $5,000 to $50,000, and can also provide technical assistance to help you with your business. Two organizations in Iowa that provide microloans are IowaMicroLoan and the Targeted Small Business Program.
Commercial Bank Loans
Don't require entrepreneurs to turn over equity or company control. In general, banks prefer to make loans of more than $10,000. Banks like to see good credit, a solid business plan, ability to repay the loan, and collateral.
Small Business Administration Guaranteed Loans (SBA)
Many banks work with the SBA to provide small business loans. The SBA doesn’t loan money directly to businesses, but instead works with local banks to provide a loan guarantee. This decreases the level of risk for your bank, which then makes it easier for your bank to provide your loan. There are several types of SBA loan guarantee programs that may work for you and your banker. Click for a summary of these loan products.
Option Five: SBA and Bank Loans