However, one very good option remains: the U.S. Small Business Administration. . In 2022 the agency approved about 57,000 loans totaling $35 billion, with about $1 billion specifically in Illinois and the numbers are already increasing so far in 2023.
The most popular choice has been the Section 7 loan. Under this program businesses can borrow up to $5 million for working capital, inventory, property, equipment and real estate. The SBA will guarantee 85 percent for loans up to $150,000 and 75 percent for loans greater than $150,000 and collateral may include personal assets.
There's also a"504" loan program that can be used for the purchase or construction of existing buildings or land, new facilities, long-term machinery and equipment or modernization of infrastructure around a business. The 504 loans are offered through Certified Development Companies. That means having a strong business plan that includes projections.
"A gas station owner, for example, can get traffic counts from the Illinois Department of Transportation and estimate a percent that will stop for gas and spend in their convenience store," he says."Those are the kind of assumptions we're looking for." If you're not sure how to come up with a business plan with projections, Lasiewicz recommends relying on your accountant or getting free help from SCORE, a service provided by the SBA that offers free consulting services provided by mostly retired business people.