The SBA's requirements mimic those of banks, and in fact the SBA only guarantees loans that ultimately are offered by the bank anyway. The SBA may give helpful start-up advice, however. Once start-up owners know where not to find help, they can brainstorm where they can find it. Or they can apply for several credit cards with lower credit limits. More lending institutions recently are offering credit cards to people with slightly poorer credit histories than those of traditional borrowers.
Credit is exchanged for high interest rates.
Borrowers who take this route should be extremely cautious about spending this money. Entrepreneurs can also look to family and friends for financing. McAtee asks clients planning to start an enterprise in an industry they know well whether there's anyone in the field who might lend them money. For somewhat established businesses, he suggests going to a vendor. Vendors are very good sources.