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BUSINESS SIDE If you decide to seek an SBA loan, your best bet is to work through a certified or preferred lender. The SBA's guaranteed loan process is rather complex, so you want a lender who has experience working with them. To find certified or preferred lenders, visit the SBA website or call your local SBA office for guidance. The SBA has local and regional offices in every state. You'll find their phone number in the federal government section of your local phone directory. Or, for detailed information on all SBA programs, visit www.sba.gov. SMALL BUSINESS INVESTORS Small business investment companies (SBICs) are private investment firms licensed by the SBA to provide investment financing and long-term loans to small businesses. Some SBICs make only equity loans, others provide debt loans, and some provide both. As a rule, SBICs will require the same level of collateral and credit ratings as banks. For information on how to contact an SBIC, check with your local SBA office or go to www.sba.gov/inv. LOCAL ORGANIZATIONS "Your local chamber of commerce or other business group may have some revolving loan funds available to businesses specific to your community," Holmes says. "Generally, these funds come from a variety of local resources and have specific guidelines for their use." Holmes recommends you begin by contacting the director of your local chamber of commerce to see what help might be available for the specific purpose you have in mind. ANGEL INVESTORS When conventional financing options seem out of reach, many small business owners have had success seeking out individuals or commercial lenders willing to invest in a business expansion, either with debt financing or by taking an equity position in the business. When you find an "angel" investor, you'll probably find that this option is more flexible than a bank loan or government program. If you don't know anyone with the economic firepower to fund your financing needs, don't give up. There is an entire industry of professional investors looking for opportunities to invest in growing small businesses. For more information on how to match up with an investor who might be interested in your situation, or go to www.entrepreneur.com/money/ howtoguide/article52742.html. Be advised, though, that unless you're willing to give up an equity position in your practice, working with a professional investor is not for you. WHEN ALL ELSE FAILS Depending on the size and economic health of your practice, the only source of expansion money available to you may be what you can dig up on your own. Be advised, though, that each of these money sources carries special risks. FRIENDS AND FAMILY MEMBERS If you have a friend or family member able to help with financing, you may find this to be the easiest type of loan to obtain. Use caution, however. Most financial experts agree that mixing business and personal relationships can lead to destructive problems in visit massageandbodywork.com to access your digital magazine 27 both your business and personal life, especially if you aren't aware of the pitfalls. If you do take a loan from a friend or family member, make sure that all details are carefully spelled out in a written contract. HOME EQUITY FINANCING If you have enough equity in your home, a second mortgage may provide all the money you need. While the interest rate on this type of loan may be among the most favorable, keep in mind that it also puts you at risk of losing your home if your business falters. CREDIT CARD FINANCING You may have credit cards with lines of credit substantial enough to fund all or part of your expansion plans. While it can be tempting to simply charge everything, this is arguably the riskiest and least desirable of all financing methods, especially in today's volatile economy. The burdensome interest rates charged by credit card issuers can become impossible to meet if your practice hits even a minor bump in the road. The result could be a severely damaged credit rating—or even the loss of your business. When you need to raise money for your business, say most experts, a thorough and detailed business plan is the key to the safest and most desirable types of financing. While other conventional sources of money may seem the easiest to find, they are seldom the wisest choice. consultant and corporate executive who writes on business and financial topics for a number of consumer and trade publications. His latest book, Money: How to Make the Most of What You've Got (AuthorHouse, 2000), is available through bookstores. You can reach Lynott at wlynott@cs.com or through his website www.blynott.com. William J. Lynott is a former management