Securing a business loan can be the ultimate Catch-22. You need money to get your business off the ground, but can't get the money because your plans haven't yet been realized. It can be a truly frustrating process, especially if your application has been repeatedly rejected for what appears to be "no good reason."

Banks are generally hesitant to grant you a loan if you don't yet have a proven track record in running a successful business. Fortunately, there are excellent organizations that offer free assistance to help you obtain money through a regular bank, a private institution, or the government.

Your best lifeline is your local U.S. Small Business Administration (SBA) office. In addition to helping you with jargon and paperwork, the SBA, which is the nation's largest single financial backer of small businesses, offers financial assistance through loans and venture capital investments.

The SBA's Web site, www.sba.gov, can also recommend organizations that assist special interest groups such as minorities and residents of low-income neighborhoods.

And check out the SBA's Microloan Program, which is geared toward businesses seeking funds of $25,000 or less. Under this program, the SBA makes funds available to nonprofit intermediaries, who in turn make loans to eligible borrowers. The program is especially helpful if you're just starting out and have never borrowed before because certain lending requirements are a bit more relaxed than the ones you'd find from a conventional commercial bank.

If you require more, however, improving your chances of getting that money could be as simple as reviewing your business plan or cash flow projections. Both are crucial components of the loan process that can make or break your chances.

You can approach your lawyer or accountant for suggestions in strengthening your business plan, but this could be costly. So instead, give the Service Corps of Retired Executives (SCORE) a try.

SCORE, a resource partner of the SBA, is a group of working and retired executives and business owners who donate their time and expertise to provide free, confidential counseling and mentoring. He or she can offer you invaluable tips for becoming a more desirable loan applicant.

The other crucial factor is your cash flow projection statement, which gives the lender an idea of how quickly the loan will be repaid. Any lender is going to require a cash flow projection for each month for the next year and probably annually for the next few years. To prepare a cash flow statement, talk to suppliers, trade associations, or people in the same business to gather realistic estimates that you can use in your projections.

But don't approach several banks at the same time since each request shows up on your credit report. Like a lover, banks like to think they are "the only one." Plus, too many applications make you look desperate, and therefore, a "high risk."

So whether it's a matter of reviewing your business plan or exploring alternative loan options, stay persistent. Chances are there's a solution just waiting to be discovered.

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