A lot of business owners will put their own capital into a business. Owners will work night and day to make sales and refine their product or service, but there may come a time when you need a business loan. 

Your first choice may be to walk into Chase Bank, or any major bank that you bank with. The problem is that 82% of 10,000 business applicants were denied a loan from their bank.

There's a good chance that you'll be denied, too.

Banks need to minimize their risks, and they also answer to stockholders that would rather the bank lend to a larger business than a small startup. 

If you don't want to fall into the 82% of declined applicants, you can choose to seek loans from:

Microlenders

A microlender is always a great choice when applying for a loan. These lenders, often nonprofits, will be able to loan you up to $35,000. Short-term, these loans have a higher APR than a bank loan, and they may require:

• Financial statements

• Business plan

When you have limited operating history to show a bank or have already been declined from your bank, a microlender is a great choice.

Opportunity Fund is a top microlender that may work with your small business.

Credit Unions

Your local credit union is a better choice than a large bank when seeking a loan. When the financial crisis hit and large banks shut their doors to small businesses, credit union loans soared over 130%.

Local bank loans contracted at this time.

When you apply for a loan at a credit union, you will have to provide financial statements, a business plan and maintain a good credit history, too.

You may have to provide collateral to be approved for a loan.

The good thing about credit unions is that they know the local market very well. If you're a local business that is in a market that's rapidly expanding, the localization of the credit union will understand this market better than a national bank.

Community Investment Funds

Communities want to encourage growth, and smaller communities are a great option when seeking community investment funds. These funds will be provided to small businesses that cannot obtain a loan going the normal route.

These funds are non-profit, and they can also help people with bad credit repair their credit to get a loan.

Funds may have government support, or the fund may have money from:

• Local businesses

• Churches

• Service groups

When starting a business, a community fund may be your best choice. Ask around your community or go to your local chamber of commerce to inquire about the funds that may be available for small business.

My local community's seventh street, once a thriving section of town now rather desolate, encourages small businesses to open up their stores with assistance. You may be able to leverage these same community initiatives in your own city.

Large banks may have better terms, but for a small business or startup with little credit history, you have other options which are easier to obtain a loan with.