Getting a small business loan

[moonmagick]

I am currently a stay at home mom. But I have a couple of small business ideas. How hard is it to get a small business loan if you have filed bankruptcy? Is it still even an option?

[randomthoughts1875]

I'm not sure how difficult it would be. How long ago was your bankruptcy? Have you built your credit score up since then? I would contact your banker for advice and also check with the SBA. Here's a link to about.com's article on recieving grants/loans from the government. HTH

For Small Business Grants Look to the States

[moonmagick]

Thank you for the link. I definately plan on checking into it. My bankruptcy has only been discharged for a handful of months, so I am guessing that it will be quite difficult for me to get one.

[mamab]

Before I jumped into a small business loan, you need to make sure that the proposed business will be profitable so that you can pay back the loan. If at all possible, try to do it without the loan, it'll be better in the long run. And if you DO go for a loan, get the absolute MINIMUM that you need. Don't take out a loan for more than you really need. Take it from someone that's made the mistakes.

[Melizzy]

You can forget about a loan if your bankruptcy was just a few months ago. And any loan you could get, would be at such a high interest rate, you couldn't afford it. Your best bet is to start a side fund even if it's just a few dollars a month, and see if you have any family and friends who might invest.

[cinzia59]

With a small business loan, does anyone know if you have to have collateral? Will they use the business and it's assets as collateral, providing you have that type of set up?

[Tangent210]

If your bankruptcy was that little ago then don't bother with the loan, you'll either be denied or the interest rate will be too high to afford. Try rebuilding your credit and doing well financialy for awhile and then take a look at it. Possibly get friends involved and do things as cheaply as possible. When you open a business you can't afford to have extra expenses and this is where people who take out loans get in trouble. They take out more than they need and they think "Hey we can afford that new $5,000 printer/copier because we still have 12,000 left on our loan" When in actuality they should buy a small printer and have never taken out the extra $11,700 in the first place.

[SageMother]

What about people seen as disadvantaged, like Afro-American female entreprenurs. Are there place other than the SBA to get seed money?

[Melizzy]

Quote:

Originally Posted by SageMother

What about people seen as disadvantaged, like Afro-American female entreprenurs. Are there place other than the SBA to get seed money?

Yep. Contact your local NAACP chapter and inquire. There are also loans specifically for women, young people (like school aged), etc. Also, look for grants.

[SageMother]

Grants would be ideal, especially since predictcng any market is difficult these days. My only concern is that such grants would be beased on your provideing employment for others and I intend avoid having employes if possilbe. All the cocst that come with that just make my head swim.