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If you are in San Diego, no credit history, unsecured small business loans probably don’t sound all that realistic. The economy has brought a number of challenges to the credit market, and California, with its exceptionally shaky economy, is no exception. There are, however, a number of very reasonable alternatives in which you can look, and a savvy entrepreneur can always sniff out a deal.
First and foremost, you should be advised to avoid the large banks. Large banks tend to be overwhelmingly bureaucratic and will not provide the level of leniency that you probably need. If you want to speak with someone directly who is reasonably involved in the decision-making process, you would be far better off consulting a smaller bank or a credit union. These organizations are more low credit friendly for a number of reasons: in addition to being more competitive and more willing to listen to your needs, they also tend to offer lower interest rates, which make them a much better deal overall if you are running a start-up business in San Diego.
No credit history, unsecured small business loans, however, may still be a tall order for the banks. For this reason, it may be wise to consider an SBA loan. The SBA is a federal branch that backs loans for women, minorities, the disadvantaged, and veterans. The SBA also offers a number of programs for basic start-up businesses, many of which are available as unsecured loans. The recent federal stimulus package has helped the SBA extend Microloans to a number of cities from Philadelphia to Austin, and does offer aid in the state of California. If you are looking for a good start-up loan, most experienced entrepreneurs will tell you that that is a good place to start.