During my search for business funding, I came across the term SBA loans. These are loans that are guaranteed by the Small Business Finance Administration (SBA). The SBA is not a lender, they just guarantee the loan. Very similar to how the FHA (Federal Housing Administration) works when they guarantee a home loan.
There are certain qualifications that need to be met when trying to get an SBA loan. Personal credit is always a must and even though some say 600 is acceptable, I believe that you need to be more around the 640+ range to even get looked at.
Having a percentage to put down on the loan is always best. Lenders want to see that you have 'skin in the game' and are taking some risk. You can't very well expect for the lender to cover the loan 100%. They won't because they do not have an recourse. This is why business funding needs to have a down-payment as collateral. They are usually looking for about 20-35%.
One of the main things about getting these kinds of loans-you need to have some kind of experience and/or knowledge about the business you are running in order to get approved. If you don't know how to cook or have never worked in a restaurant before, you are probably not going to get approved for a loan to open up a local diner. Just saying....
An SBA loan can be achieved, you just have to know what it take to get it before you think that you are going to just get this money. Remember, it always takes something in order to get something.
Here is a great article about SBA loans: http://bfs.ag/887642/6690.
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