Is a line of credit necessary to get a small business loan from the government?
A line of credit, be it good or bad, can be used as a measurement tool to evaluate an applicant’s money management skills when they are seeking a government small business loan. But this is not always the case because small business loan programs all have different conditions of eligibility. These qualifying conditions include far more than just the standing of the applicant’s loan of credit, including those of an entirely non-financial nature, like the loan’s intended purpose.
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