by Edwin Ivanauskas | Tags: Personal Finance, Loans

You have decided to become your own boss. You want the American dream. You have spent months making a business plan and deciding what you need to do. Now you just need the money to do it. Where will you go? In today's economy who will give it to you? Is your business idea going to be big enough and profitable enough? You already know that your business plan has to be at its best. Think of it as your resume for that dream job that you are trying to get. Now let's look at the loans that you can apply for and make your dream a reality.

Traditional Loans

It used to be that if you needed a loan, you would have to go to your local bank and provide them with your business plan and hope that they would like your idea enough to fund you the money to start your business. Banks would have a set interest rate that you would have to accept or your dreams would die. Now we have several options. Banks require a lot of documentation proving that you can pay back the loan. Most start up businesses do not hold the capital that banks want in order to take a risk and give you the money that you need.

Refinance or Mortgage Your Home

One way that entrepreneurs are starting up their businesses is to refinance their homes for the equity that they have in it. This is giving them the capital that they need at a better interest rate and providing the leverage that you want and need with a bank or other loan company.

Grants

Several grants have become available for someone wanting to start their own business. These are government grants that you never have to pay back again. Most colleges even have business start up grants made especially for women and African Americans to take advantage of. All you have to do is look around.

SBA Loans

You may also qualify for a SBA loan through the government. Unlike grants, these loans are backed by the government in part and you will have to pay it back. The great thing is that your interest rate will be better and you will have more help for the leverage you need wherever you decide to get your loan from. The government loan for small businesses will help you achieve this.

Investors

Many people are turning to family and friends to come up with the starting costs of a small business. They are the silent partners whom either want to make a profit or just want their investment paid back with a bit of interest.

Whomever you decide to take a small business loans with, make sure that you do thorough research of that investment group or person who is loaning you the money. This is the company that will be funding your future and their resume' is as important as yours. Always have your attorney check over any contract that you sign and explain the pro's and con's of it so that you are not surprised by any fine print down the road. Your business depends on knowing what small business loans you are getting and how it will affect you in the future.

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