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Credit card debt got you down? If only you could get an SBA-backed loan . . .

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This story appears in the July 2002 issue of Entrepreneur. Subscribe »

Converting business-related credit card debt to a more affordable SBA loan sounds like a good deal for your business. It also sounds good to National Small Business United (NSBU), a Washington, DC, advocacy group pushing for new rules allowing just that.

Under current rules, an SBA 7(a) loan can be used to refinance business-related credit card debt only when it benefits the business and if credit card debt is not a result of bad fiscal management. Satisfying a banker of such conditions can be impossible. "Most banks won't mess with this at all," says Alice Magos, an analyst with CCH Inc., a Deerfield, Illinois, provider of business law and finance information and software.

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