Well if the home is the only collateral you have, you may just want to use the equity in it to finance your business if you feel the success rate is high. But if its questionable, I wouldnt risk it. Starting a business, even a franchise, is a risk and of course most small businesses fail due to under financing and bad marketing/business planning. How much research have you done to ensure that your business, if acquired and started will be moderately successful?

By no means should you just give up (if its something you are passionate about doing) but if you want to get this going, you may need to use some alternative methods of financing (and Im not talking about family or friends...I always laugh when I see someone suggest that)

If you would like information on some alternative financing options, feel free to email me.

Highest Regards

> 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