A loan for small businesses can be difficult to obtain if you have a credit score below 300, according to a new report.
The U.S. Small Business Administration (SBA) says you must have at least 3.5% down on your business loans to qualify for a small-business loan.
The report, from the Center for American Progress, says that if you can’t qualify for the loan, you need the help of a credit counseling firm.
This can include getting a credit monitoring service, or having a credit counselor help you find a loan from a bank or other lender.
The SBA said it was not immediately clear how many small business loans are currently available.
But the report says that the total number of small business loan applications submitted by small businesses nationwide rose by more than 300% between 2013 and 2017, from 1.4 million to 2.1 million.
It says that small business lenders have also received more loan applications than they have applications in the past five years.
That could mean lenders are more willing to lend, which could mean they may not be able to meet the requirements to apply for a loan.
“Small businesses have been struggling for years to get loans,” said Andrea DeBaca, the director of policy studies at CAP, in a statement.
“Unfortunately, many lenders are failing to understand that the small business borrower is a consumer in need of assistance and that borrowers with good credit and no other credit issues should be eligible for loans.”
The report also says that credit counseling firms are less willing to provide loan assistance to people who have low credit scores, since that could potentially impact your ability to pay off your loan.
If you’re struggling to pay your small business rent, your lender may not have the ability to help you, the report said.
“If you need loan assistance, a good credit counseling agency can provide you with assistance in getting credit to help pay for rent,” said DeBoca.
“The SBEA’s small business community, as well as state and local loan and credit counselors, can also help you get a loan that is acceptable to you and your business.”
For more information on how to get a small loan, check out CAP’s Small Business Loan Guide.