Know Where to Look for Small Biz Funding

The recent news that banks are curtailing their small business lending should give any entrepreneur pause. With home refinancing all but off the table (a heretofore popular method of funding a start-up or expansion), the idea is quite unpleasant that normal small business bank loans are now also going to be harder to get.

But all is not lost, and it may not even be as bad as advertised.

Sure, large small business lending institutions like Bank of America (BAC Quote) and Citibank (C Quote) are going to be more conservative with their lending practices. Heck, everyone is. But that does not mean that they are not lending. They are.

For instance, Small Business Administration guaranteed loans are still a viable option for many small businesses. In fact, SBA loan guarantees may be more valuable than ever. With lenders nervous about lending, getting an SBA loan means that you are making it less risky for the bank to lend you money -- and one thing banks like these days is less risk.

The other thing to realize is that there are many different SBA loan programs to choose from, so finding one to fit your situation is also very doable. For instance, you might want to check out these:

The lowdoc loan: These loans are supposed to be fairly quick (a few days from application to funding), and can go as high as $150,000.

The 7(a) loan guaranty program: This is the granddaddy of SBA loans. Like other SBA-backed loans, the purpose of the 7(a) program is to help get funding to folks and businesses that otherwise may not qualify.

The 504 program is for businesses who want to invest in upgrading fixed assets, like machinery and real estate.