A clean credit record for both the company and the principals of the company is mandatory, no late payments, bankruptcies or foreclosures. Most start-up companies do not quality for traditional bank financing unless the founder has the personal net worth and income to guarantee the loan. The loan then is a really a personal loan to the founder rather than a business loan. Special and development fund loans. These loans are offered to encourage growth in depressed areas, sometimes referred to as enterprise zones or to increase employment.
Loans are available for minority, ethnic, handicapped and women.
Check with special interest groups, women's organizations, and black or Hispanic chambers of commerce. Qualifying for theses funds vary widely as they are controlled by the state, city, or special interest group. Call your city's development or small business assistance office and your state's department of commerce or development. The Small Business Administration, SBA, guarantees the payment of the loan to the lending entity. The agency has no funds for direct lending or grants.