Hello all, i've been reading posts for a while and havent had much to contribute. I've finally come up w/a concrete idea for my business and i think i've found a space for rent. now I'm not sure what to do next. I have not worked for 6+ years, as i have young children, and have no savings. I will only be able to start this business w/ a loan. wondering if anyone has had any success obtaining a loan or if anyone has any suggestions as to where to look. thanks!
Good luck. I had a difficult time. Turned down twice due to lack of collateral.
I know the feeling - it is hard. I was also looking into a loan to do a cake business. But these banks are crazy desperate now. Keep trying, do not give up. I finally had someone build me something. It cost about 2500. and it is mine. Also it is attached to house so it is an investment as well. I had to make a sacrifice. With this economy things just aren't the same. Try SBA I know dthey do not give grants, but, they have a loan program that guarantees you will get the loan. Look into it.
Hope I helped
Unfortunately, I even heard someone in finance say that food related loans were not possible for him to do at this time.
There used to be government grants available for small businesses and woman-owned businesses a while ago. However, with the economy today, I don't know if they still have them.
You can try researching government grants. I know you have to present a proposal and writing them is a feat in itself.
Good luck to you.
Grants for the food industry are almost non-existent so don't put your eggs in that basket.
I was turned down twice but the 3rd bank took the plunge and had faith in me!!
You need a GOOD business plan first. It can take weeks/months to put one together, but you really need to have one.
All 3 banks told me that a food-industry loan requires 3 years in business. Yeah .... Catch-22: I can't get a loan to start a business until I've been in business for 3 years, which I can't do until I get a loan to start a business!
Fortunately, I had been keeping "books" and reporting my income for a few years so I had a 3-year track record to show them. And that's pretty much why they have the 3-year requirement. Food industry businesses are considered high risk (even tho' I had to keep reminding them "I'm NOT a restaurant! I dont' have the same overhead as a restaursant!" .... but they didn't care ... I was Food Industry and that's all they looked at.)
I would recommend you make an appt with the local SBA office .... they will be more than happy to help you get started with paperwork, seminars and workshops, etc. My understanding is you don't get a loan from the SBA ... you get the loan from the bank, under the bank's loan guidelines and rules, and the SBA just underwrites or guarantees it.