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One of the most unconventional places to look for a business loan is through P2P lending sites such as, and They are excellent places to go to for finding people that will personally guarantee a business loan. Bankruptcy (or the risk thereof), in these situations, is assumed entirely on the part of an individual, rather than a bank or credit union.

P2P lending is experiencing a revival due to the information age, but in the earlier portions of this nation’s history, it was the predominant form of business financing. Business lending typically took place in the form of borrowing from, as the old adage goes, the three F’s: friends, family and fools. Because banks weren’t able to offer the same excellent credit deals as they do today, this was often an entrepreneur’s only option. What has changed greatly in the world of P2P lending is the availability of business and legal resources. is an excellent example of this; with virgin money, entrepreneurs can make connections with their friends, family and associates and use the provided legal documentation to conduct their loans in a professional manner. This is an excellent opportunity for new businesses that are having difficulty finding a bank or credit union that will personally guarantee a business loan.

Bankruptcy will leave an unhealthy stain on your credit record, and sometimes bad credit can make even the most remotely of desirable loans out of reach; perhaps even those that you can find through your own personal networks. In these cases, you may need some government assistance, and luckily, there are resources for that as well. Entrepreneurs in need of small ($35,000 or less) loans can usually find a program through the SBA (Small Business Administration). The SBA is a division of the chamber of commerce that offers assistance to women, minorities, veterans, and struggling start-up entrepreneurs in getting the financing they need. They are the single largest guarantor of business loans in the country, with a portfolio of $45 billion, when they personally guarantee a business loan, bankruptcy is not something that you have to worry about. The SBA has been helping needy Americans since 1953, and remains a staple in the world of small businesses.

This Business article was written by Mark Karavan on 12/13/2009