Guide to Your Next Steps When the Bank Says No

Tap government-backed loan sources

The U.S. Small Business Association (SBA) has four loan programs to help small businesses. The SBA guarantees loans made by private institutions, thus reducing their risk.

I recommend: Go to SBA.gov to find out how to pre-qualify, then see banks that offer SBA loans, including Chase.com and Bank of America. Check out Grants.gov to find more than 1,000 Federal grant programs worth more than $400 billion.

Look into micro loans

Check out nonprofits that lend money to small business owners. Economic Development Agencies (EDAs) and Community Development Corporations (CDCs) offer small loans of $35,000 or less to micro-enterprises with five or less employees.

I recommend: Find out about financing in your state at The Association for Enterprise Opportunity. If you need $500 to $25,000, apply on-line at this award-winning nonprofit Accion USA.

Soar with the angels

Angel investors are individuals or small groups of investors who are willing to put up their own money to help start-ups.

I recommend: Gathering of Angels introduces entrepreneurs to angels in forums nationwide.

Try the factoring factor

If you have large invoices, try factoring. You sell accounts receivables to a "factor" for a cash advance - usually between 50 and 80 percent of the invoice. You'll get cash within 48 hours - but you'll pay for it at prime rate plus 2 percent, plus fees between 1 and 3 percent of the amount you're borrowing.

I recommend: Try CIT,the nation's oldest and biggest factoring company. Another is Evergreen Funding Corp. which can process your application in two business days.