Small businesses are critical to the American economy. For small companies to survive and generate new jobs, they need credit on affordable terms. If you've considered starting a small business, have you thought about how to fund it? Borrowing money is one of the most common sources of funding a small business. Before you approach your lender for a loan, it is a good idea to understand as much as you can about the factors the bank will evaluate when they consider your application.

The Federal Deposit Insurance Corp. (FDIC) offers the following tips to help improve your chances of getting a good loan.

Prepare or update a business plan.
This summary of the company's goals, needs and financial projections will be crucial to your success, whether you're just starting out or you've been in business for years.

The U.S. Small Business Administration (SBA) offers the following tips for writing a solid business plan:

• Begin with a statement of purpose. You should be able to explain your business in 25 words or less.
• Illustrate how your business will work and why it will be successful. List the owners.
• Describe the company's products or services, the customers, the market and the competition. List the managers and their credentials.
• Supply three years of projected financial statements. Include income, loss and cash-flow projections.
• Provide supporting documents, such as references from creditors and potential clients and suppliers, and evidence of insurance.

Understand the risks and costs of different kinds of loans.
Your best option may be a bank loan guaranteed by the SBA. Under this program, the SBA backs a certain portion of the loan -- as much as 90 percent -- which enables a small business owner to qualify for attractive interest rates and financing.

Credit cards may appear to be an easy source of money, but they can be an expensive way to finance a small business. Don't make the mistake of using high-cost credit, such as personal loans or credit cards, to fund business operations when you can get a better rate on a business loan from your bank.

Home equity lines of credit also may be a source of funding, but you may not want to risk your family home to launch your business venture. Before going this route, carefully consider the risks involved. Likewise, think carefully before co-signing or guaranteeing a business loan for a friend or relative.

Know your options.
There are generally three types of business loans: short-term loans to be repaid within approximately three years (including lines of credit used to help finance ongoing expenses), intermediate-term loans typically paid back in five to seven years (often used to purchase machinery, furniture or fixtures or to finance renovations and expansion), and long-term financing that can be available for 20 years or more (typically for commercial mortgages for buildings or major equipment purchases).

Don't overlook state, county and city governments when you're looking for financing. Many economic development offices have lending programs for qualified small firms that may offer special terms.

Learn from other professionals.
The SBA provides loan guarantees, referrals to local free or low-cost counseling and training, tips on how to write a business plan, and other support for small businesses. For more information, call the SBA at (800) 827-5722, go to www.sba.gov or contact the SBA District Office in your area.

The FDIC also offers a toll-free hotline at (855) FDIC-BIZ (or (855) 334-2249), which responds to questions or concerns about credit availability for small businesses. At www.fdic.gov/smallbusiness, you will find useful information and an online form to ask the FDIC a question or register a concern.

Your banker also may be able to provide advice on how to expand your business or refer you to other local sources of assistance.

After the holiday celebrations, many people end up with more debt than they would like. January is a good time to think about ways to manage debt and make resolutions to achieve financial stability.

1. Develop a budget. The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. Start by listing your income from all sources. Then, list your fixed expenses -- those that are the same each month -- such mortgage payments or rent, car payments and insurance premiums. Next, list the expenses that vary -- such as entertainment, recreation and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance and education.

2. Assess your debt. After you've established your budget, you'll be prepared to start paying down your existing debt. When reducing your debt, always continue to make your payments on time. Try to pay more than the minimum due. Generally, it is a good idea to pay off debt with highest interest rates first.

3. Contact your creditors. Contact your creditors immediately if you're having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you.

4. Find free fun. Use the month of January to get your budget back on track. Plan to only spend money on necessities, and then commit to finding opportunities for free family fun. Plan a family game night, or check out books and movies from your local library. Your family might also enjoy preparing dinner together or volunteering for a local charity. If you enjoy outdoor fun, winter provides plenty of opportunities for sledding or building a snowman. Use your imagination, and the savings will add up!

5. Open a holiday savings account. Saving a little money each month will help you avoid facing the same spending crunch in December 2012. Many banks offer a Christmas Club or holiday savings account program to help customers save for holiday expenses throughout the year.

As you're considering your New Year's resolutions for 2012, don't forget to think about your money. The New Year is a great time to assess your finances, gain control and stick to a new budget or saving plan. Taking control of your personal finances will allow you to save and prepare for unexpected expenses. Here are some tips to help you get started:

Get organized. Start 2012 by organizing your financial records and creating a plan to keep your bills and financial statements organized throughout the year.

• Consider treating yourself to a post-holiday gift of a financial organization system. Alphabetized file folders or filing systems specifically for financial organization are available in January as you begin to prepare for tax season.
• While you're getting organized, consider buying a shredder to keep your personal information safe from identity theft.

Create a budget. Track your income and expenses to see how much money you have coming in and how much you spend. If you have debt, establishing a budget will help you to pay down your debt while saving.

• Identify how you spend your money.
• Set realistic goals, especially if you plan to cut some of your expenses.
• Use computer software programs or basic budgeting worksheets to help create your budget. Include as much information as you can.
• Track your spending and review your budget often.

Lower your debt. Establish a plan to pay off debts while you save. By paying off -- or at least paying down -- high-interest credit cards, you'll save on interest charges that add up quickly over time.

• Make payments on time and, if possible, pay more than the minimum due.
• Pay off debt with higher interest rates first.
• Transfer high-rate debt to credit cards or other loan options with a lower interest rate. Talk with your banker about your options.

Save for the unexpected and beyond. Pay yourself first. Saving is important; it will likely help to ensure a comfortable future that can endure financial surprises.

• If you receive direct deposit at work, ask your employer to send a specific amount to your savings account. Because the money is put into an account before you have a chance to spend it, automatic savings plans are an easy and convenient way to save. If your employer doesn't offer direct deposit, many banks allow for automatic transfers from checking to savings accounts.
• Save at least 10 percent of your income for retirement. Enroll in a retirement plan or consider optimizing an established retirement plan. Contribute at least the maximum amount that your employer will match. Contributions made to these types of plans are tax deductible. If your employer does not offer a retirement savings plan, many banks offer Individual Retirement Accounts. IRAs offer tax-deferred growth, meaning you pay taxes on your investment gains when you make withdrawals.
• Financial advisors often recommend keeping about three months salary in a savings account in case of financial emergencies such as hospital bills or loss of job.

It's easy to get focused on spending rather than saving and investing during the holiday season. However, some of the best gifts you can give children and young adults are tools that set them up for future financial success. Use the following list, beginning with the youngest person on your shopping list, to help inspire a prosperous New Year.

1. A piggy bank. A simple place to store money, a piggy bank is a great teaching tool and the beginning step to help a child understand how to put money away toward a goal. When shopping for a piggy bank, experts recommend choosing a transparent model, ideally one the child can build and customize. It's helpful for the child to see the money grow over time as it gets closer to the top of the piggy bank.

2. A savings account. Help a child open his or her first savings account. Opening a savings account is one of life's financial milestones and can help a child begin to learn about the banking system, the benefit of earning interest and the importance of saving.

3. A prepaid gift card. As a child gets older and begins saving for games and other items, consider giving him or her a gift card that can be used anywhere without affecting credit. As a child enters the teens, he or she may face peer pressure to carry plastic, and a gift card can serve as a safe option: When there is no money left on the card, it can no longer be used. Although a prepaid card doesn't necessarily help a child prepare for a credit card because it doesn't involve payments, interest or a credit score, it can help him or her learn how to spend wisely and make his or her money count.

4. A checking account. A checking account provides a young person with crucial hands-on financial training. When opening an account for a young person, be sure to explain the importance of tracking your spending and balancing your account. Many banks offer teen checking accounts with the option of making the parent co-owner with full access to the account, much like a joint account.

5. Automatic transfer. Once a young person masters the mechanics of savings and checking account management, it may be time to introduce him or her to the gift of automatic transfer. Automatic transfer allows him or her to move money online from checking into savings, a money market account, CDs and individual retirement accounts on a scheduled basis. Automatic transfer gets young people into the habit of paying themselves first and setting long- and short-term goals. Even though today's young adults grew up online, making the mechanics of online banking largely instinctual, they still need guidance on how and why to save.

6. A credit card. Once a young person has demonstrated a responsible use of his or her savings and checking accounts and prepaid gift cards, he or she may be ready for a credit card. Teach your child the importance of good credit and the danger of taking on too much debt. If a child doesn't qualify for a credit card on his or her own, parents may co-sign for a card, making them equally responsible for the charges on the account, or they may add their child as an authorized user under their own credit card account, allowing their child access to their preset limits. Parents know their own child best; if you're not sure he or she is ready for plastic, tread carefully. You don't want to set your child up for credit score failure by giving him or her a card he or she can't manage effectively too early.

7. A 529 investment plan for college. Given the rapidly rising costs of a college education, the College Savings Iowa 529 Plan offers a convenient, tax-advantaged way to help a child afford college. Anyone -- parents, grandparents, friends and relatives -- can invest in College Savings Iowa on behalf of a child. You can give a child a jumpstart to pay for his or her college education while reaping tax advantages for yourself. To learn more about the program, visit www.collegesavingsiowa.com. Talk to your tax advisor for details on the program's tax benefits.

8. Stocks. Helping a young person invest small sums in companies he or she knows is a good way to show the ups and downs of how the stock market works. Consider scheduling a meeting with your financial planner to help your child begin purchasing stocks.

9. A retirement plan. It's never too early to start saving for retirement. Experts recommend that a young person should begin saving for retirement as soon as he or she has earned income. Consider opening a U.S. savings bond, CD or IRA in the young person's name, and explain the long-term benefit of beginning to save for retirement early. Talk about the advantages of participating in an employer's retirement savings plan -- especially if the employer offers to match a portion of the dollars he or she contributes.

10. An emergency fund. Starting an emergency fund is a perfect gift for young adults starting out on their own. Experts recommend saving enough cash to cover six to eight months of living expenses in case of the unexpected -- a job loss, illness or major auto repairs. Starting such a fund for a young adult on your list and explaining the importance of having money set aside for the unexpected will go a long way in preparing him or her for the future.