Your local bank is the first place you should go when you need a loan. Your community banker knows the local market and can help you determine if your venture is eligible for a loan based on your credit score, collateral and business plan. Your banker can also determine if your circumstances qualify you for a participation program loan, which can make the terms more attractive.
Most community bankers are knowledgeable about SBA loans and other loan guarantees such as those offered by USDA RD. Banks that specialize in these types of loans are called Preferred Lenders by the entity that makes the guarantee. If you believe you qualify for an SBA or USDA loan, ask your banker if she is an SBA or USDA Preferred Lender or is knowledgeable about SBA and USDA loans.
The New Mexico Finance Authority, in collaboration with the New Mexico Economic Development Department, administers several loan programs designed to assist small businesses. The Collateral Support Participation program helps creditworthy small businesses by lowering a loan’s overall interest rate and making the terms easier. Business owners apply through a bank, which works with NMFA on behalf of the business.
Read more about the Collateral Support Participation Program:
Before you approach your bank or any lending institution, you should be prepared. Read these articles to learn more about the information your banker will request and the criteria a loan committee uses when evaluating a potential loan.
- Credit Score: Important in Good Times and Bad
- Preparing to Ask for a Loan
- Character Matters When Looking for a Loan
- Simple Ratios Offer Symptoms of Financial Health or Malaise
- Clear Business Plan is Key to Getting a Loan
- Money is Tight But it’s There for the Lending
- Obtaining Credit Even When Lenders Are Leery
- Line of Credit Can Smooth Out Cash Flow Extremes
Read more about available bank programs:
- Bank Programs Tailor Credit to Specific Business Needs
- Community Banks Essential to Business Success
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