If your proposal to borrow money does not fit into the standard parameters of the lending institution, you may be eligible for special loan programs, sometimes referred to as microloans. The Small Business Administration, a federal agency that backs most small business loans anyway, guarantees specialized loans. Many state and local municipalities also have programs to back bank loans. Instances where these “outside the box” loans come into play include cases where an owner cannot come up with a required down payment, or perhaps does not have enough assets to offer as collateral to back a loan. Sometimes needing a small loan, say under $25,000, actually draws a red flag and triggers an alternative program. Another reason for a special loan may be because the business is just getting off the ground and has no credit history.