The single most important thing you can do before you apply for a business loan is to get to know the local resources available to help you. In the United States, there are a wealth of Federal, state and local resources such as the Small Business Development Center (SBDC), SCORE, and economic development agencies that exist specifically to help small businesses grow.

Since cash is so necessary for growth and survival, the people in these local government offices usually know exactly which banks do business with small businesses. They also may be able to suggest ways to combine lending programs to come up with the money you need. They also may offer training courses and other types of help you need.

The same is true of trade associations and small business associations. Active associations will attract the leaders in your business community. They will attract your competitors and they will attract people you want to do business with. They are also magnates for investment bankers, attorneys, accounting firms, and investors.

Locate these groups and become involved. Get to be a familiar face. And keep notes on the backs of business cards you collect about who does what and who they might know. Even if you never get any new business directly from your participation in these groups, you gain new insights about the ways to do business in your community and beyond.

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