This is where one can consider a loan from Small Business Administration or SBA.

Started in the year 1953, SBA is an independent agency under the US federal government providing financial assistance to business startups and small business firms and helps them to grow big. However, the SBA never provides any direct loans to the customer. Since loans provided to business start-ups and small business firms are considered highly risky, lenders are apprehensive about such customers. The SBA takes care of this risk by providing guarantee up to 85 percent of the entire loan amount.

There are different types of loans offered by the SBA depending on the needs of the borrowers. Most prominent among these is the 7(a) loan guaranty program. Other loan types include a 504 Loan Program that provides loans to small businesses so that they can acquire land, equipment or any machinery required to start or expand the business; Microloan Program aimed to provide initial financial support to start-ups; The Patriot Express Pilot Loan Initiative aimed at assisting veterans; and Disaster Assistance Programs that provide financial help to borrowers so that they can recover from disasters.

Eligibility criteria required to qualify for a SBA loan vary with the loan types. However, in any case the borrower has to show that he/she has the capability to repay the loan. For this, one is required to provide the lender a properly designed business proposal. Apart from this, one must invest the loan amount in a business started in the United States or its territories.