How do I get a small business loan to start a wood-working shop.?

Well you would have to contact the small business administration but first you need to draw up a prospectus on your business plan and strategies. Show exactly what you intend to do with the money and how you intend to make profit in order to repay the loan. Also if you can present a program that will create jobs for others it might appear more attractive. Be sure to cover all the bases needed to launch your business so you can start it off on a solid platform. Get as much money as you can. Hopefully you can have some customers lined up to have immediate income at the start. Good Luck!!

Do a business plan indicating how big your business will be, who your clientel will be etc. Then call the small business adm for an appt. You didn't ask but hire a CPA to take care of the financial end they will also do your taxes and will know what has depreciated (become worth less over time). You might want to do the CPA call first and use it in your SBA meeting. There are people there who will help you if you are serious.

Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000. For example, Wachovia's has various business lines of credits http://www.wachovia.com/small_biz/page/0... Their business line of credit can even be approved overnight

Go to your favorite bank and ask them about their small business loan packages.

Or try government guaranteed loans from the Small Business Administration. Go to http://www.sba.gov/financing and read eligibility requirements in order to get an SBA guaranteed small business loan

However, if you're applying for a loan and if it is a big amount, banks and even the SBA may consider other factors aside from your business credit:

- A business plan explaining what the business is

- Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program http://www.sba.gov/financing/sbaloan/mic...