Question

What is the best way to get a small business grant or loan?

Me and my wife and daughter are moving to Pennslyvania in march and I will work for my father in law running a warehouse for his shop for a while, but what i want to do is start up a pilot car / interstate escort service ( you know the cars that lead the "oversized' and "wide load" trucks down the interstates). Anyway I will nead a loan or grant to purchase a good truck and the lights, signs, and other equpiment for the company. What is the best way to get a loan or grant to help cover my expenses till I get up and running good with my company?

7 years ago - 20 answers

Best Answer

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Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000.

For example, Wachovia's has various business lines of credits www.wachovia.com/small_biz/page/0,,... Their business line of credit can even be approved overnight,

Or you can try to get a government guaranteed small business loan at SBA www.sba.gov/financing -- read their eligibility requirements

However, if you're applying for a loan and if it is a big amount, banks and even the SBA may consider other factors aside from your business credit:

- A business plan explaining what the business is

- Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program www.sba.gov/financing/sbaloan/micro...

It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business. And yes, grants mean PAPERWORK - lots and lots of it, that is why a cottage industry of grant writers was born.

Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) www.cfda.gov and Grants.gov www.grants.gov - these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.


Even SBA does NOT give out grants. From the SBA website www.sba.gov/mostrequesteditems/CON_...

"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."

Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business -- THERE'S NONE.
12.46.245.173/pls/portal30/CATALOG....

I suggest you read the following books to get ideas of how to finance your business:

Financing Your Small Business www.amazon.com/exec/obidos/ASIN/157...
Small Business Financing: How and Where To Get It www.amazon.com/exec/obidos/ASIN/080...
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing www.amazon.com/exec/obidos/ASIN/158...
The SBA Loan Book www.amazon.com/exec/obidos/ASIN/158...
Angel Capital : How to Raise Early-Stage Private Equity Financing www.amazon.com/exec/obidos/ASIN/047...
Financing Your Small Business (Barron's Business Library Series) www.amazon.com/exec/obidos/ASIN/076...

Source(s):

7 years ago

Other Answers

Hi you will need a sound business plan - I would recommend that you use a professional company to help you with this. They will discuss your business ideas with you and help you design your company. www.bizguru.us

My article: Entrepreneurs - Want To Start A Business With The Best Possible Chance Of Success? May help

www.articleshut.com/index.php?page=...

Any company that provides you with a loan will expect you to have some money of your own invested in the company. Most look at lending a maximum of 60%.

Good Luck

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by Biz Guru - 7 years ago

No such thing as a grant for that type of business. Grants are for non profits and cutting edge technology research etc. Not worth all the trouble for an SBA loan. For the small amount of money you need try a local bank, or go online to find a commercial lease company who will finance the truck and equipment. As for start up expenses, unless you can qualify for a small operating line of credit, I'm afraid these will be out of pocket. You should start saving now. Despite what you may read on the internet there is NO FREE LUNCH FOR SMALL BUSINESS.

by questionable reality - 7 years ago

Get in contact with your Small Business Developement Center in your area. They will help you get the forms together and the places to apply for this type of thing. These new small business loans are the most difficult type of loan to get, because of the business failure rate. You might have to get a personal loan.

The SBDC has free help, classes, and seminars. That is a grea place to start and they can guide you through the whole thing.

Links to these places are below.

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by jeep_girl_tx_24 - 7 years ago

I think one shop around for business help and two i don't know if you have ever seen this comerical. There is this crazy old getleman on t.v. who wears a suit with question marks on it. He markets a book that tells you about the government giving away money. His name is Mathew Lesko.www.matthew-lesko.com/ . This website should help you.

by lillie_g2002 - 7 years ago

The easiest or probably more reliable way is most likely thru close relatives or friends.

Other than that, you will need to create a very good business plan and go over it with a loan officer at the bank.

by Brisbane Roo - 7 years ago

I tried to look into getting a small business loan & found out it really is not for a new business getting started. They want you to have been in business for something like two years to qualify. You will probably have to buy your equipment with credit or a loan from a family member. Work on getting excellent credit before you try to start, it will really hurt you if your credit is bad.

by Bay C - 7 years ago

Mortgage some property

by coolguyy - 7 years ago

, Grants are the best way to Start a Business or go to College! As well as Foundations they also offer mney at no cost ' For interest the Univeracity of North Carolina has Grant Money availabe in their Arts program.!!
As for loans they might have a small interest rate at the beginning',Then the bank can raise the interest rate , fees,and so on.
If for reason your business may go bankrupted, Make sure that your business is Incorporated/.
Which will separate business from personal fiances.The Bank can't get personal assets ll when you've Incorporated your business!..
Make sure you get that Grant!! It's free money!
There is allot of money that know one remembers about , Katrina, Rita, Homeland Security, Helping are Soldiers by making something new or old What they need to fight or to relax! Our soliers are getting tired , To many tours in Iraq Make somethIng usefull to relax these guys and women..
Or make someting for our wouded > Go to Waler Reed and see what they need to be a productive citizen again!!!.
Education, the Arts The university of North Carlina as a lot of money in their art foundation please check all Foundation's they are also free money!!
Go to your local library they have many reference books on all the Foundations , Plus Grants Or any web sites
which or Rep or Senator's there's a link to every Government program . Just have a lot of paitences when going through those programs.The forms are in the library .
If you Can get a Grant you"ll never have to pay back.
. A loan is a loan.!
I know you may disl[ke an attorney however you'll need the best corparate lawyer in your State. He'll make sure you no every rule to follow ,taxes etc.
RaeAnn

by fairknightness - 7 years ago

i heard of a sucessfull business man doing it with his american express card.

by Lucy Lu - 7 years ago

I to have been thinking of this choise in life i see some good answers here and thank you for asking the ?. also we share a comunallity, i drive a rig. i,m looking at the broker end of the gig. if you haven,t been checking out oversizied carriers and makers of things in your area i would do that. see what the market is. make some relationships with these folks. the car, radio,poles and other equipment is nominal compared to knowelge of the land around you. GOD BLESS. and if you want to bouce some thoughts i am at kneelingwolf2@yahoo.com

by david o - 7 years ago

>> what i want to do is start up a pilot car / interstate escort service ( you know the cars that lead the "oversized' and "wide load" trucks down the interstates).

Why....do you do that now? I'm asking because why would anyone fund a business that you're not an expert in? Have a business plan?

by stonerosedesigndotcom - 7 years ago

Go to the bank with a business plan. Prepare the groundwork and they'll know your serious. Otherwise get a good lawyer first and take the other choice, but hey who said anything about sticking up a bank?

by crazy_fridayman - 7 years ago

Do your Homework Well b4 you apply...Investigate all the pro's and con's of the business you want to start so that you have all the answers ready when it comes to the loan aplication.....make sure you have plugged all the possible holes that might pop up...just to be on the safe side...get your ideas ect ...all on paper ready to present if need be....

by Andy - 7 years ago

Put together a business plan detailing your costs and how the pay out will be returned and take it to your Bank.

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by collinbarnette - 7 years ago

have a good bank and good standing with them with good credit and when you open your company dont loose your cool when it gets hard i helped on guy with a pizza place and he threw phones and anything that wasnt nailed own just cause a pizza delivery driver's car broke down while on assignment just take it easy and dont go off on your employees when something goes wrong also dont expect to make millions in your first year your going to make a little bit before you climb thats always how it works good luck with your escort truck service i wish you the best

by pikago5001 - 7 years ago

The best way is to get it from the bank. Natwest bank is the best
they will give you loan and you will started paying back after six months.

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by sainfa - 7 years ago

You'll need to have white skin.

by theangel1025 - 7 years ago

First you have to ask yourself would this work? Does the interstate in PA, need an escort service? Research how many of them exist now and check to see if they are doing ok. If they are and there really is a market for more business, then I would work with a grant writer and write up a business plan, show how it could help the area you are moving to, then you would have to apply for the grant, and/or apply for the business loan at the bank, they will want to see your finances, your background if you would be able to handle such a venture will determine if they would finance it. It also depends on how much you would need to start up. You could actually put out the word you are starting the business and looking for potential clients, if you have a list of potential clients, that looks good too.

Source(s)

by Tina - 7 years ago

I am Ray Brandon from Florida, US. I was in need of loan to get a new agricultural truck and to settle my mortgage debt, I got access to the contact of a God sent lender (Dawn Corris) through some testimony of someone he had successfully processed loan for, So I decided to contact him, he processed the loan and I receive my loan amount of $25,000, If there anyone out there still seeking financial help, I advice that you contact him directly via his email: d.c.natafirm@gmail.com

by John - 4 months ago