> I have been trying to get infromation on getting a loan
>through the SBA. I am trying to get the money to get my fees
>for a franchise.
>However when looking through the information on the SBA
>website I can not understand how people get loans through them
>to start with.
>
> It states on there that you do not always have to have
>collateral but you do have to have 20% or more of your start
>up cost. Not everyone has 20% of start up cost. I own my
>home, well I still owe
>about $62,000 the house is worth about $140,000 maybe a little
>more.
>
> So how do you open a business if you do not have any money
>saved up at all. The business I am looking at just to get
>started I would need at least $50,000. And I do not have any
>family or friends that I could get money from. I noticed on
>the SBA website they tell you to get your money from family
>and friends, I do not know anyone who could just hand over
>money like that.
>
> Does anyone out there have any suggestions. Should I just
>give it up. Thanks for any advice.
>
>Sincerely,
>
>Lanell

I'm a firm believer in never giving up. With that being said I can tell you that lots of people have started their own business with little or no money. I like the basic story someone wrote about how you buy something, sell it and then buy two, sell them and then buy 4...etc.,

You haven't mentioned what kind of franchise it is but knowing that would help us better to help you.

I am aware of many grant funding programs but am not familar with one that will offer funding for one to buy into a franchise. Most of the funding programs that I know about and are involved with deal with people starting their own business.

I don't believe that you should give up but if getting the money is the problem have you considered starting smaller and then working your way up - having saved the money - to buy into the franchise?