Loans that are backed by the United States Small Business Administration offer many features that entrepreneurs in Ohio may find very attractive. There are a wide selection of loan options, smaller down payments, competitive rates and terms, longer repayment periods and guardrails for going through the loan process. However, it is important that small business owners do their research and understand exactly how SBA loans work.
Entrepreneurs in Ohio and around the country sometimes turn to angel investors after trying unsuccessfully to obtain funding from traditional lenders. Angel investors, like venture capitalists, tend to take a more liberal approach to risk assessment, but they generally expect the loans they make to be repaid within five years. While the interest rates charged on loans not obtained from conventional sources are usually high, angel investors and venture capitalists often provide business owners with valuable advice and coaching in addition to financing.