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Most start-up businesses will need a business loan to get off the ground. Getting a business loan today, though more challenging than in the mid-2000’s, is still a very realistic venture, as long as you know what your options are.

First, it would be wise to avoid large banks. Wachovia, Bank of America, Citibank and Wells Fargo tend to be less friendly to start-up businesses than local, small bank branches and credit unions do. They will also probably not give you a chance to make your pitch, since if you don’t comply with their regulations, their system will prevent it from going any further. Small banks and credit unions will leave you much more likely to have someone higher up in the decision-making process hear your pitch. They will also probably give you a better rate; these organizations tend to require less overhead, and can pass the savings on to their lenders.

Another option is the SBA (Small Business Administration). The SBA is a government agency that is currently the largest guarantor of loans in the United States. It has programs that help minorities, women, veterans and start up businesses that need a business loan. While the program does back the loans, it does not offer them. SBA loans are typically offered through your local bank chapters.

Another very classic route to take is the aid of friends and family. Though a little antiquated, this is still a common practice and luckily is very easy to set up in a civilized fashion. Check out if you need a business loan in this fashion; it gives entrepreneurs the legal and business resources they need to do a loan in a professional manner.

This Business article was written by Mark Karavan on 12/7/2009