So your existing product is a success, and now you're thinking of expanding your brand to accommodate a new line of SKUs. This can be perceived as "a little bit risky" by banks; just because your previous product sold well doesn't mean your new one is going to perform on the same level.
Government guaranteed loans are ideal in these situations, says Gary Groff, VP of Commercial Banking at New Resource Bank. And there are several different kinds: "There are state guarantee programs, as well as federal (FDA) guarantees, and some neat ones from the Department of Agriculture which most banks don't pay any attention to at all. A lot of organic companies we work with qualify under these DOA loans where the guarantees are up to 80%."