Samuel Comer ⋅ Fayetteville, WV U.S. Army, Sergeant First Class ⋅ 20 years served

Thank all of you for your input, all of your advice has been extremely helpful
Best Wishes,
Sam

Dali Rivera ⋅ Abingdon, MD U.S. Army, Staff Sergeant ⋅ 10 years served

The other option is the Patriot Loan. I have spoken to one of the founders of it and she tells me that they will lend up to $10K without collateral. They do want to see a good strong business plan with good financial sheets and their rates for veterans as lower than most banks. If you need more money, they will lend it to you but it's more challenging.

The Voc Rehab Program that Doug Dare mentioned is great because what they help with is to purchase items that would help you start your business such as machinery, printers, supplies needed to make your product. They will NOT purchase property or land of course, but if you are starting a sign making business, then you can get the big printers. The policy does not state a fund limit, but I know for a fact you can get up to 75K because a colleague of mine used it for his television movie production company. He got all of his equipment with this program.

I hope this info helps.

Dali Rivera

Doug Dare ⋅ Cypress, CA U.S. Marine Corps, Corporal ⋅ 3 years served

Not many banks will offer start-up loans and those that do are going to require 680+ FICO, 20-30% capital injection, and available collateral offered. The hardest part for most folks is demonstrating your ability to repay the loan. You'll also need to break down where the money is going. Bootstrapping is the name of the game for a start up. Contact your local Small Business Development Center and attend some of their workshops, they can help you get bank ready. SBA microloans tend to have interest rates in the 8-12% neighborhood, you might check out places like OnDeck Capital or Superior Financial Group that focus on smaller loan sizes (OnDeck funds loans in the $5000-$150,000 range, Superior $25,000 or less). Chase bank is one of the few big banks that will do small loans, so they might be worth checking out too (esp. if you already have a relationship with them). If you're Voc-Rehab eligible, see if you can get approved for the self-employment option as I understand VA can pay for some of your start-up expenses.

James Mingey ⋅ Oregon City, OR Veterans Business Services ⋅ 25 years experience

I would assume capitalization for a home based business could be well under $100k. So, cash from savings of course ---don't borrow if you don't have to. If you can sell yourself on your own plan (i.e. you'd put your mothers money in the deal), even though bank market loans are tough ---I do hear credit scores under 700 might be doeable over the next 12 months with SBA loan products. Check out 9google)SBA microlenders in PA for under 35K.

Most investors (other than family and friends) won't be interested in a home based business.

Charles McGrue ⋅ U.S. Army Reserve, Captain ⋅ 21 years served

First thing you should do is check with the Small Business Bureau. There are several loan options they have. If you're lucky, you'll get to speak with a knowledgeable one that works there who will be a lot of help. Also, make sure you're credit it good. Being a veteran in the military, you should be eligible for upwards to a $500,000 loan from any banks that is part of the SBA programs. As long as you keep your costs low, upwards to $500K should get you on your way. However, some banks want you to have established some time with them; which could range upwards to 3 - 5 years - as they want to see some stability.

Other funding options are: yourself, family (which I wouldn't recommend as it can get messy), personal loan, apply for grant (not the easiest option but an option), and/or angel investor. An angel investor will tend to have a high interest rate and different terms than a bank would have; so look at all of your options first and make a determination as to which one you think works best for you.

Regards... Charles