• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

No capital; loan for a loan???

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

S

Seekingbusiness

Guest
Hello,
My partner and I are planning to start a small business in a local mall. I am currently in the process of composing a full business plan to serve as both a loan proposal and feasibility study.
My question is simply this: Since we have close to nothing to invest to put into starting this business, we were planning on applying for $15,000.00 signature loans for each principal from our respective credit unions, totaling a $30,000.00 first investment. Then, we want to use this amount to approach an SBA-certified lender, and applying for an SBA-guaranteed business loan amounting to approximately $120,000.00. The full balance sheet in the business plan will explain the need for this amount.
I basically want to know if this is even possible, to obtain a loan for the purpose of obtaining a larger loan. The positive points of this business we are planning, is that it is lucrative and we anticipate it to be very successful. Both my partner and I have Bachelor's degrees in non-Business/Commerce-related fields, but we have had our share of working in the high-tech industry, and have decided to work for ourselves. Thank you folks in advance for your response.
 



Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top