I have been in commericial lending for 14 year, starting out in SBA lending. For a start up, the SBA is the best and in most cases the only loan out there.
But as my Chief Credit officer told me, It is a LOAN not a Grant. Meaning we underwrite to have the client pay us back. Remember, banking is a dumb business we get non of the up side if the business takes off just the spread on the loan and we take 100% of the downside if it fails. And a food business fails a lot.
If you have equity in the house that is the cheapest loan for business there is, use it.
An SBA loan will require you to pledge you house anyway. However, if the equity is not sufficient for the dollar amount you are looking for then go the SBA route.
Go prepared, get a business plan together, with projections on a month to month basis, for at least the first year. Good detail is important, but I full blown powerpoint slide show is overboard.
In many cities there are free or low cost help to get small business open, look for SCORE (Service Corp of Retired Execs) to help with business plans and help you do a reality check on the viability of the plan.
Most of all, good luck. I give anyone credit that ventures off to start their own business.
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