Alarmed that the profits of bailed-out banks are soaring even as credit for small businesses remains stuck near recessionary levels, small businesses are turning to unconventional sources of capital, sometimes at great cost.

"I think it particularly galling when you put the profit these banks are posting next to the kinds of sums of money our members are seeking," Phil McCabe, a spokesman for the U.K. small-business lobby Forum of Private Business told the British blog The Engineer.

Lloyds Banking Group reported Wednesday that it earned £1.6 billion for the first half of the year. HSBC—which didn't take government funds—earned £7 billion. Big banks are doing well in the United States too.

The complaints directed at big banks aren't doing much good, though. The lack of affordable financing for small businesses—which drive the majority of jobs growth in the U.S.—is high on the agenda for President Obama and for state and local political candidates. But efforts to pass a $30 billion fund that would boost capital for smaller businesses are stuck in the Senate.

That means small companies must fend for themselves. Here's a look at how they are coping, for better and for worse.

Microfinance—Pioneered in the 1970s by the Grameen Bank in Bangladesh, the practice of making small loans to poor people who don't qualify for traditional financing is now picking up in segments of the United States, particularly in California, according to SFGate.

The website—the online arm of the San Francisco Chronicle—tells the story of Loretta Nguyen, a 33-year-old Bay Area woman who used advice from a microfinance company to shift her business selling silk-screened T-shirts and hoodies at street fairs and a website to a storefront in Oakland. The company, 5733, now includes her boyfriend and two part-time employees who handle sales and sewing. She took classes in entrepreneurship from the Women's Initiative for Self-Employment, which is part of the umbrella California Association for Micro Enterprise Opportunity.

Don't live in California? Try Accionusa, Kiva, the Opportunity Fund, or Grameen, which are expanding into new areas, including the U.S. Microfinance is a great way to go for many startups that are looking for loans of a few thousand dollars, or perhaps something in the low-five-figure range. They are often provided by nonprofit groups, so the rates tend to be cheap.

The Community—Some clever entrepreneurs are raising capital from the community that they serve. The Farmers Diner, which has two locations in Vermont and specializes in locally produced food, is looking to expand into New York. It is allowing members of the New York community to invest in its new operation.

This is another great option for small businesses that are looking to raise money, but want to avoid the often onerous terms that more conventional lenders may charge.

Government-backed loans—This is an ideal, cheap source of capital if you can find it. The main source of such funding, the Small Business Administration, all but dried up after May as stimulus funds ran out. In some cases, state governments are picking up the slack, although not many can afford to be so generous. Iowa, for example, has a state-backed loan program that allows small companies to borrow up to $50,000 for equipment, as long as they hire workers at the same time.

Angel investors—Everyone needs to start somewhere. Entrepreneurs, especially in the tech sector, often raise their first rounds of financing from angel investors, early-stage venture capitalists who are willing to take a leap of faith. Angel investors are increasingly working with smaller entrepreneurs, sometimes wading into the area of microfinance. There are a number of ways to connect with these potential backers, including the website Funding Universe. The site connects entrepreneurs and investors online, and also includes information on meetings where people in the funding food chain can meet face to face.

Another resource: Inc. magazine has compiled a database of angel-investor networks.

Angel investors often can provide substantial amounts of capital—the mid-six-figure range is not out of the ordinary for a company that gets funding. They usually take equity in exchange for making loans, in which case interest payments aren't a worry. Just be careful that you don't give away too much of your company.

Home equity—One of the few benefits of a slow economy is that interest rates remain relatively low. For some entrepreneurs, it might make sense to finance a business using a home-equity loan or a home-equity line of credit. The rates on these products vary, depending upon the borrower's credit rating. They aren't as cheap as first mortgages, which have dropped into the 4 percent range. But they are still affordable, with rates in the 5 to 7 percent range for many borrowers. To find a good rate, call around from bank to bank, contact a broker, or look at websites such as HSH.com.

Friends and family—The overall level of wealth may have fallen, but there are still plenty of wealthy or well-off individuals who are willing to finance a friend or family's business. Don't be afraid to ask. Just be prepared to defend your business plan as you would to any investor. And you should put the agreement in writing, even if you are borrowing the funds from a relative.

The upside is that friends and family are often willing to make loans when others are not. The downside is that there is plenty of opportunity for awkwardness and conflict if the business runs into trouble or if it comes time to split profits.

Community banks and credit unions—In theory, community banks should be the small business' best friend. But many lenders are still recovering from the shock of the financial crisis and are less than eager to take on business loans when the economy is slow. But if the Senate ever passes the Obama administration's small-business relief plan, community banks will have an additional $30 billion to lend out to small companies.

The advantage is that rates should be fairly reasonable and driven by the market. You might not find a bargain, but you should be able to avoid getting ripped off. And the lending standards at the bank should protect the borrower as well as the lender. It's not a bad idea to have someone else looking over your shoulder to make sure you can handle your debt load.

To find a community bank, take a look at the database at the Independent Community Bankers of America.

Big banks—Most big banks have community-development arms. Big lenders are under political pressure to make capital available to small businesses too. Just be careful that the lenders offer you term loans or revolving credit facilities, not just credit cards with a fancy imprint—and a high rate of interest.

Credit cards—History is full of examples of companies that have been funded by credit card. But running up a credit-card balance is a business risk. The Kauffman Foundation says that the odds of a business failing increase 2.2 percent for every $1,000 that it takes on in credit-card debt. But if you simply must: Cardratings offers some tips on how to find the best card for you. It suggests identifying what the card will be used for. If you and your employees will be doing a lot of traveling, find a card that offers bonus miles. Next, look for the lowest balance-transfer rate.

Private loans and hard money—When all else fails, some businesses that need to raise a lot of cash quickly turn to hard-money lenders, which use the business or equipment as collateral and often charge a high premium. The rates on these loans can be as much as 36 percent, according to the Los Angeles Times.

The Times tells the story of several businesses that went the hard-money route, including this one:

When a note came due on the trucking business that Thelma Standart owns with her husband in Wilmington, California, the couple needed more than $1 million dollars—right away. A bank loan fell through. "We were forced to get a hard-money loan," said Standart, who now pays $14,000 a month on a loan that would probably have cost less than half that at a bank. "It's bleeding our working capital."

This obviously shouldn't be your first choice. Sometimes, it's simply better to close a business than it is to try and maintain it at all costs. But if you think you can handle the debt, you can find hard-money lenders at the American Association of Private Lenders. One bit of advice: Try to have a third party such as a lawyer or accountant review the loan to make sure the terms are reasonable and that you aren't getting in over your head.

Come to think of it, you might want someone looking over your shoulder, regardless of where the capital comes from.

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Steve Rosenbush is the blogs/industry editor for Portfolio.com.