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A: A bankruptcy will definitely be counted against you for your business loans, especially a recent one. A bankruptcy may stay in your credit report up to 10 years. Nevertheless, it is still possible for you to get a business loan, if you are willing to pay higher interest rates and have tangible assets as collateral.
SBA has no specific policy to prevent guaranteeing loans for companies that have declared bankruptcy. "Whether a person who has declared bankruptcy receives an SBA guaranty on a particular loan application would depend on the terms of the proposed loan and the loan officer's determination of the ability of the applicant to handle the debt service," says Jim Hammersley, director of the SBA’s Office of Business loans.
For the new equipment, the loan can be secured with tangible assets, like new equipment. Therefore, it should not be a problem whether you have filed a bankruptcy or not.
For intangibles like advertising fees, it is probably harder to get a loan. An unsecured loan may be an option for you. If you have a hard time getting a loan from the bank, ask your friends or family. You may want to consider forming a joint venture to bring in partner without a bankruptcy record to make a fresh start.
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