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How to Choose the Best Small Business Loan for Your Needs Starting a business can be expensive, and so can expanding one. No matter where you are in your business’s life cycle, from startup to growth, a business loan can help get you started or address specific needs along the way. A 2019 survey by a group of Federal Reserve banks explored the state of small business credit, finding that 43 percent of small business seek external funds and seven in 10 small employer firms carry outstanding debt.