Although the economic downturn has forced many financial institutions to revisit their lending practices, it is still possible for small-business owners to secure funding to improve or expand their enterprises.

So says Catherine Corley, vice president in Membership and Marketing at Sam’s Club, who recently contributed to a white paper titled “The Big Picture: Small-Business Loans in Today’s Economy.” Sam’s Club, a division of Wal-Mart Stores Inc., has developed a series of educational articles to help entrepreneurs find success.

The current paper, which can be downloaded free, speaks specifically to small-business owners, offering tips on how to get the loans they need.

Nearly 20 types of loans are outlined in the six-page paper, from accounts-receivable financing to working-capital loans. Each contains a brief description, which helps loan seekers identify which option would work best for their business. For example, a bridge loan is short-term funding that is typically used to finance a business project. This type of lending usually isn't acquired from a bank, but rather from a private lender or funding company. With a home-equity loan, an entrepreneur’s personal property is used as collateral to obtain the business loan.

In the paper, Corley says more entrepreneurs are emerging, thereby requiring funding to get their enterprises started, because they recognize it is becoming more difficult to secure positions within large corporations.

“Small businesses are appearing more attractive to this generation due to limited opportunities with big businesses and the low costs and risks of starting their own companies,” she explains.

Sam’s Club recommends that small-business owners ask themselves several key questions before requesting a loan. A few are:

• Do I need more capital or can I manage existing cash flow more effectively?”
• How do I define my need? Do I need money to expand or use as a cushion against risk?”
• What is the state of my industry?”
• How does my need for financing mesh with my business plan?”

Corley says “depressed, stable or growth conditions require different approaches to money needs and sources.”

If a particular business prospers in an industry while similar ones decline, that business will likely receive
 better funding terms.

She also encourages small-business owners to write a business plan, if they haven’t done so already, before seeking a loan.

“All capital sources will want to see your business plan for the start-up and growth of your business,” she says. Once the self/business assessment is complete, small-business owners must determine which loan is right for them and then prepare a written loan proposal. The proposal is a detailed, multi-sectioned outline that describes the business and the owner’s management experience. It also includes personal and business financial statements; projections; franchise, purchase and partnership agreements; and a list of collateral.

Owners seeking financing should also be prepared to answer specific questions from the lender about their businesses, including terms of repayment, how the business collects and pays its bills, sales and expenses and the future of the industry.

The article also covers government assistance, such as the 2009 Recovery Act, and tax credits. Corley says the information is provided to help small-business owners succeed.

“Getting a business loan in today’s economic climate might seem like an impossible task. The truth is that while credit guidelines are tightening, there are still options for operators who qualify to find the funding that they need,” she says.

To download the free white paper, visit samsclub.com/smallbusiness. To obtain more information about small businesses or Sam’s Club, visit the Web site or call 800-726-7258.