In order to be eligible for an Small Business Administration Loan, you must have applied and been turned down for a conventional loan by a commercial lender. By law, the SBA may not guarantee a loan if a business can obtain funds on reasonable terms from a bank or other private source. A borrower therefore must first seek private financing.
After being turned down for conventional or private financing, you may then go forward and apply for financing for your business under one of the SBA loan programs. The next step is to determine which type of SBA Loan Program is best for your business.
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