Small-Business Loans: Still on Offer

By Sharon McLoone

Small businesses, the backbone of the U.S. economy, have found it difficult to get a bank loan these days. But it's not impossible.

Gone are the days when just about any business could get a loan for under $100,000 with simply a strong credit score, says Jordan Peterson, a senior vice president at PNC Bank in Pittsburgh. While credit scores are still king, today you need more to prove you're a sustainable, viable business. Banks will review an applicant's tax returns for the past few years and want to know industry trends.

"Banks have always underwritten on cash flow, but even more they're looking at sustainable cash flow and if it's going to be sufficient to pay back the loan," says Peterson. ...