Even when credit is flowing, it's still tough for small business owners to get a loan. As a result, they often will look for financing from friends and family (known as a private loans). Some of the world's greatest businesses got their start from this approach. For example, Walmart's (WMT) Sam Walton got a $20,000 loan from his father-in-law.

Of course, there are many risks when putting together a loan from friends and family. After all, if the principal and interest cannot be paid back, there could be family discord or a lost friend.

At many banks, there is a freeze on new loans to small businesses. True, with the recent governmental measures, things should loosen up. But it's going to take time.

Unfortunately, many businesses need money now.

So, what are some alternatives? Well, one idea is to visit your local credit union.

A credit union is a not-for-profit financial institution which is owned and managed by its members (that is, the depositors and borrowers). There are roughly 8,300 credit unions across the nation with more than 90 million members.

Credit unions tend to be managed fairly conservatively, with little exposure to complicated investments like derivatives and subprime loans.

Okay, so how do you become a member? Basically, each credit union has its own criteria, which may be based on occupation, geography, association and so on. Keep in mind that many credit unions allow family members to join. Thus, if your mother is a member, you'll probably be allowed to join. (You can click here for a credit union finder).