Traditional Financing

Conventional Loans

Small businesses and franchises of any development stage can apply for conventional loans. However, because these loans are not guaranteed by the federal government, banks prefer to lend to companies that demonstrate a strong ability to service the debt and have significant collateral to cover the loan if the company ultimately cannot pay back the loan. In addition, business owners seeking these loans are usually required to have exceptional FICO scores, a reasonable debt to worth ratio and provide a solid business plan and projections.

For more information on conventional loans please visit our Access to Capital Database in the Learning Center. 

    SBA Loan Programs

    SBA loan programs lend to small businesses unable to secure financing on reasonable terms through normal lending channels. The loan programs are operated through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA. The Agency has no funds for direct lending or grants. Most private lenders are familiar with SBA loan programs so interested applicants should contact their local lender for further information and assistance in the SBA loan application process.

    USDA Rural Development Business Programs

    Promoting a dynamic business environment in rural America is the goal of Rural Development, Business and Cooperative Programs (BCP), Business Programs (BP). BP works in partnership with the private sector and community-based organizations to provide financial assistance and business planning. BP helps fund projects that create or preserve quality jobs and/or promote a clean rural environment. BP often leverages financial resources with those of other public and private credit source lenders to meet business and credit needs in under-served areas. Recipients of these programs may include individuals, corporations, partnerships, cooperatives, public bodies, nonprofit corporations, Indian tribes, and private companies. Rural Development field staff administer all USDA Rural Development mission area programs, including Business Programs.