In the USA, a business is said to be small if the number of employees is less than 100. If you are a person who want to start or widen a small business and does not have enough money to do so, then you can apply for the loans for small businesses. The growth of small businesses is important to every nations economy and so loans for such small businesses are usually encouraged by governments. Small business loans are usually awarded to all kinds of businesses to help them begin and succeed in their trading. Loans for small businesses can be of two types – secured and unsecured. One should have a solid credit history for qualifying for loans for small businesses. There is no constraint in handling small business loans. They can be utilized both for meeting start up business expenses as well as clearing outstanding bills, purchasing tools, furniture, and labor. Before approaching a bank for loans, one must have all the key documents in order, starting from business plan. One should also have recent financial statements, projection for the business, repayment plan and collateral. Collateral may be Real estate Stocks and bonds Hard goods such as equipment, gold Personal guarantees Personal assets Usually a lender would want to know if you are making your own investment in the business. There is a chance for easy approval of the loan if the bank is convinced that the owners are investing a good percentage of the necessary startup capital for the business. Usually lenders would want to get satisfactory answers for the following questions before approving a loan How the money will be used How the business will operate and make money How the borrower plans to repay the loan within the time period Whether the borrower is a responsible person and whether he/she can manage the business Whether the borrower is willing to take financial risks in the business Previous experience in the field. If you are already in the business, then your average gross income in the recent quarter or financial year In the USA, the government offers a wide variety of low-interest loans for small business entrepreneurs to start and grow their business. U.S Small Business Administration (SBA) is the largest single financial backer for small businesses with business loans, loan guarantees and disaster loans. SBA is a guarantor of loans made by privately owned banks and other financial institutions that agree to follow SBA’s guidelines. Federal and state agencies award a limited number of grants for highly specialized business activities such as scientific research and development. SBAs loans for small businesses help small business firms to raise cash up to $1 million. Fast small business loans are a preferred option for small business owners, as they have no long-term obligation or fixed payment schedule. Usually the period of repayment of such fast loans is six months. Several lenders provide small business loans, from the conventional banking fraternity to independent private lenders.