There are still some sources of credit available to small businesses, though they may be hard to find, according to a new report.
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To qualify, small-business borrowers still face close scrutiny of their assets, liabilities and business plans. As in the old days, businesses with collateral and positive cash flow have a better chance of getting a loan.
Borrowers must adjust and lower their expectations back to the years before the credit boom, wrote Steve King and Carolyn Ockels of Emergent Research, which prepared the report with Intuit. They need to think more strategically about assets and cash-flow projections when speaking to lenders.
The SBA has recently introduced a new loan program known as the American Recovery Capital loan in response to the credit crunch (see