In the US it's very difficult to get a bank loan for a new small business, unless you have strong collateral to put behind it. Banks gradually became not-so-gre

In the US it's very difficult to get a bank loan for a new small business, unless you have strong collateral to put behind it. Banks gradually became not-so-great sources for small business lending in the post WW2 era; essentially as bank lending fully switched from being personal, with some influence for community relationships and reputation, to being almost strictly based on formula. As an alternative, the US has many types of government small business loan programs (meant to stimulate industry), along with private sector versions, for just about every business type and scenario. Some are easy to get (typically smaller), most require that you go through annoying and drawn-out processes to get. You have to deal with the bureaucracy basically. The US has an agency called the Small Business Administration, which works with lenders and provides loan backing. One of their requirements in their loan programs is that you demonstrate an inability to get lending from any other financial lender. Then there are small business grants that federal and state government provide, again to stimulate industry. I suspect most developed economies have versions of these types of programs.