What is the best way to get a new business financed ?

Question

My wife and I are wanting to open a womens fitness center in our small town. We live in a small town of about 5,000 people. We are centrally located between two of the largest cities in texas. The only gym in town is located in the back room of a dry cleaners and is usually occupied by 16-18 boys from the high school. We have a historic building located in the downtown district which is approx. 7500sq.ft, with a asking price of $ 150,000. We would like to borrow $ 250,000. to buy the building, equipment and to remodel for our purposes. Traditional financing seems out of the question because this will be a new business.

What can we do ? Has anyone had any experience with SBA loans for women owned business ? Are there any investor's who would be interested in a loan of this size using the building and equipment as collateral ? Any help would be greatly appreciated.

Thanks !!!!!!

Answer 1

Best Answer - Chosen by Voters

Government Small Business Loans

If you are individual, who has an entrepreneurial spirit, you can easily get a loan offered by the federal government. This loan allows you to start a small business. The department of Small Business Administration (SBA) acts as a guarantor for these loans. These loans are provided by banks or financial institutions. Very rarely, the SBA provides the loan directly.

Along with the SBA, certain other government agencies provide financing to small businesses through loans and grants. To avail of this loan, you have to submit the business plan that you have chalked out along with your abilities to indicate that you can handle the business properly. Your credit score should be high to get the loan. The lending authorities check your credit ratings before approving your loan.

The SBA has various types of small business loans. The Basic Loan Guaranty program is designed for those small businesses who will not get the loans from the lenders. These loans are disbursed by the commercial lenders with SBA acting as a guarantor. The Certified Development Company (CDC) Loan Program is ideal if you want to buy a property or machinery to expand or modernize your existing operations. This is a long-term loan with a fixed-rate of interest.

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