I would definitely say try to be positive - it's not impossible to get into a renowned business school if you have graduated from a local university. In fact, we have actually helped a graduate of a local, private university gain acceptance in one of the top business school in the US, that is ranked within the top 5. Basically, it's more about your 'story' - what is your raison d'etre for going to business school and what do you want to achieve with the degree.

Do PM me if you'd like to discuss this a little more!