Small businesses take out loans every day to help them cover the myriad costs of operating a company. It's been estimated that 16% of loans taken out in the U.S. are solely for business use, and it seems that small businesses are major players in that 16%. Small businesses, defined by the SBA as businesses employing fewer than 500 employees, are home-based more than half of the time, cutting down on costs. Still, 63% of small businesses taking out loans needed them for cash flow purposes and 49% of small business owners also use personal credit to finance their companies. There are a number of options in terms of short term loans for small businesses. The trick is finding the right one for your company.