For good "characters", business loans just got a bit easier.

Cherie Ketchen is the owner of My Sisters Closet, a lady's clothing boutique on Shamrock Boulevard in Venice, and is also employed full time as a nurse.

As such, she says there aren't enough hours left over to churn out all the exhibits needed to apply for a small-business loan.

"The process seems so long and intimidating for such a small amount", she said.

What's more, most local banks won't consider amounts under $100,000 because they make more money doing larger loans that require as much effort.

Bankers also want substantial collateral and meaningful investments of your own cash, unless you've already established a solid track record of increasing profitability over several years.

Additionally, a few dings on your credit report can easily stand in the way of your getting the money you need to pursue your entrepreneurial aspirations.

Even if you can overcome these obstacles, lenders require business plans, income and expense projections, and considerable documentation to accompany your application.

Because of these deterrents, the U.S. Small Business Administration decided to change all that for under-served borrowers by offering a new loan guaranty program based upon "character".

The approval process is less complicated.

"After the initial application was submitted, it was only a week to 10 days that I was approved", Ketchen said about the SBA Community Express loan she received through BLX, a lender based in Panama City.  "The loan process was so smooth".

BLX and Innovative Bank of Oakland, Calif., are the only lenders making these loans.  They told me that they are eager to do more in Southwest Florida.

Both lenders will consider loans as low as $5,000.  Innovative Bank goes up to $25,000, while BLX recently increased its maximum loan amount to $50,000.

They don't require business plans, collateral or filling out lengthy forms.  Approval is based on credit scoring, and a few blemishes in previous years won't necessarily disqualify you.

Even though the two banks don't require business plans, their outsourced "technical assistants" will ask you to write one.

Technical assistants provide free business counseling and help you fill out the application.  Meeting with one is a requirement of the program.

All Small Business Development Centers and many SCORE chapters are approved to perform the assistants' function.

After she requested business counseling from SCORE's Manasota chapter, "I had a call from Jim Martin, who became my SCORE mentor.  He led me step by step through the business process", Ketchen said.

"I left her with the Retail Start Up Business Plan (outline) and encouraged her to go through it in detail to nail down expected costs and anticipated revenue", Martin said.

Growing up with four sisters at home, Ketchen was used to sharing her clothing with them.  It was as if they all shopped in her closet.  Hence, she named her new business, "My Sisters Closet".  The store sells "gently worn, name brand and designer women's clothing and accessories", she said.

You can read more details about the loan program, get a list of technical assistants and download loan application forms from the BLX and Innovative Bank Web sites, www.blxonline.com/community_express.cfm and www.innovativebank.com/site/loan_soho.html respectively.  Or call them toll-free at (888) 211-2911 and (888) 960-0700, respectively.