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When you are starting your first enterprise, you are going to want to know where you can get the lowest small business loan rates. Being able to do this requires a good bit of research, but knowing what all of your options are will ensure that you are able to get the best financing for your small business.

Loan rates are often highest at the big banks, which is ironic, because this is where most people think to start. Large lending institutions such as Bank of America, Wachovia, Citigroup and others tend to have incredibly large expenditures; multiple locations, advertising campaigns, many employees…not to mention very rigid lending regulations that make things difficult for both themselves and their prospective customers. Smaller banks and credit unions are often much better choices for new business people, as they not only have lower interest rates, but are also much more flexible. Interestingly enough, they are also much more responsible than their larger counterparts, and are much less prone to fiscally irresponsible behavior; much less was lost in the smaller bank and credit union sectors than with the big banks in the recent economic crisis.

Another excellent place to find low small business loan rates is with the Small Business Administration. The SBA has been an excellent lending agency for a very long time now, and has provided loans to minorities, veterans, the disadvantaged, women and other demographics reliably for a long time. The rates of the SBA have always been low, yet stable and responsible as well. This is one of the best places to start your search as well.

There are a number of other options that you may want to consider such as P2P lending, cash advances, and other federal loans, all of which offer excellent opportunities for low business rates. Be sure to check out all your options before you go with a rate that is higher than you deserve.

This Business article was written by Mark Karavan on 2/1/2010