While small-business lending is rising, many entrepreneurs remain ineligible for bank loans and government-guaranteed programs. Still, there are alternatives available for businesses to get money.
But 50 percent of small businesses didn't receive any financing they applied for in the first half of 2014, according to the most recent Small Business Credit Survey by several Federal Reserve banks. This is up from 47 percent in the first half of 2013. (Tweet This).
For business wiling to look beyond traditional sources, crowdsourcing offers another potential capital source.
"Although small businesses make up a vital part of the economy, access to small-business loans has been restricted since 2008," said Sean O'Malley, president and co-founder of SmartBiz, in an August interview. Banks often refuse to issue smaller loans to entrepreneurs, he added.
The average government-guaranteed loan in 2012 was nearly $338,000, but most small businesses seek loans of less than $100,000, according to the SBA.