 TITLE: How to Make a Business Plan for a Loan CONTENT: Where to Get a Business Loan\n----------------------------\nWhere can you get a business loan? Here are some of the best places to look.\n*   **Your current bank or credit union**: It's always smart to start with the financial institution you already use for personal or business banking. If you have a business bank account, that bank has a record of your business's financials that can help them make decisions. Even if your bank can't lend you the full amount you need, they might be able to provide a smaller loan or a business line of credit to help.\n*   **Business-focused banks**: If you don't yet have a business bank, talk to other local entrepreneurs or search online to get recommendations for banks catering to small business owners.\n*   **SBA guaranteed lenders**: The Small Business Administration is not a lender itself; instead, it guarantees a percentage of small business loans made through approved banks and credit unions. The SBA guarantee reduces risk for the lender, which can make it easier for small business owners to get loans. The SBA's Lender Match program can match you with SBA guaranteed lenders in your area.\n*   **Microlenders**: Are you seeking a small amount of money ($50,000 or less) to start a business? Microlenders are typically nonprofit organizations that make small loans to new business owners. They often focus on underserved communities or individuals and may even provide consulting services to help improve your odds of success. Accion and Grameen America are two of the best-known national microlenders; the SBA also has its own microloan program.\n*   **Online lenders**: If you apply for a loan with an online or alternative lender, you probably won't be asked for a business plan. Most online lenders simply use your business bank statements or accounting records to assess your business's financial stability. Although these loans can be easier to get than loans from traditional sources, they often charge higher interest rates and have shorter loan terms, which can make them more challenging to repay.\nHow can you find the best business loan for you? Start by determining exactly how much money you need, what you need it for (some loans restrict what the money can be used for), and the loan payments you can afford. This will help you narrow the field to lenders that offer the amounts and terms you need.\nNext, shop around. There are lots of business lenders out there, and the more options you investigate, the more likely you are to find a good match. When assessing lenders, compare the loan amount, loan term, annual percentage rate (APR), fees, penalties and total cost of the loan. Last but not least, make sure the monthly payment is manageable—otherwise, you may have trouble paying off the loan.\nKeep in mind that you don't have to get all your financing from one place. Particularly when launching a business, it's common to get money from several sources, such as friends, family members, individual investors, loans and a business line of credit.\nHaving trouble finding a business loan with the terms you want? You might improve your odds by putting up some collateral, such as business equipment, receivables or inventory. (Pledging personal assets, such as your home, as collateral for a business loan can be risky; if you can't repay the loan, both your business and your personal finances could suffer.) END