If you're looking for capital to expand or start up a business, you should consider the U.S. Small Business Administration. You may qualify for an SBA loan if your business has a good chance of succeeding but you are unable to obtain private financing on reasonable terms.

You must have an independently owned and operated business that is not dominant in its field.
Some loan purposes that qualify are:

• To expand or modernize facilities
• To purchase machinery, equipment, fixtures, and leasehold improvements
• To finance existing debt provided the lender is not in a position to take a loss
• To provide seasonal lines of credit

You will need to be well prepared before you apply for an SBA loan. The application is more detailed than most bank applications because the SBA has no prior relationship with borrowers. You should have a statement of what the loan will be used for, a listing of the business financial statements for three years, a schedule of term debts, and several other important documents.

Many types of loans are available, including:

• Low Doc (one-page application for loans of $100,000 or less)
• Green line (meets short-term, cyclical, working-capital needs of small businesses)
• Vietnam-Era and Disabled Veterans Loan Program (direct loans are available)
• Handicapped Assistance Loans (encourages the employment of the disabled)
• Women/Minority Prequalification Loan Program (streamlined, quick processing)