The Small Business Administration was established in 1953 to assist small businesses. However, after the credit crisis it is been very difficult for these companies to get funding without services such as the SBA. In recent years, stimulus funds have been used in order to pay for a special lending program that protects banks and other lenders in the event that borrowers default on these loans. Although stimulus funds have helped out, the program suffers from lack of funding. All funding is handled on a first-come, first-served basis annually.
As such, the SBA loan programs have seen a drop-off in recent months. There is hope that the banks will fill the gap between the loans that are guaranteed by the government and those that are still necessary, yet not guaranteed. However, this still remains to be seen. Many of the self-employed and small business owners are stuck waiting for funding in the meantime.
So, if you are unable to get funded, you should check to see if there are nontraditional lenders that can assist you. These lenders will have higher interest rates than traditional banks. They certainly have higher rates than the loans guaranteed by the SBA.
However, funding is much looser from these institutions. This means you should have less difficulty getting approved, especially as a new company. You will want to weigh the costs of these loans versus the potential benefit you will gain from the funds. Do this in order to make an informed decision as to whether to pursue this option.