Bank loans question...I might open a business!!!?

It is a sunday and I cannot reach my bank but what would a typical bank(lets say your bank) charge as an interest rate for a 30,000 loan?

Also is there any conditions the bank may have for this kind of loan?

I am thinking of opening a business by borrowing 30,000.



So please state the bank and an approximate interest rate for the loan. Also any conditions?

Unfortunately most banks aren't giving business loans these days, and when they do, it's to established businesses with proven records of profitability. If this is your first time in business, it's very unlikely that you'll be able to get a loan at any percentage rate of interest.

If you want to try anyway, you should put together a portfolio, clearly stating how you would use the loan. For instance, you will be buying a franchise for the "Lucky Hot Dog" company, and you would be using the money for the franchise, to purchase hot dog equipment, and for the first six months of rent at a location you've identified on Main Street in your town that has a large number of people passing each day. The proposal should look professional, be in detail, and show how you expect to be able to repay the loan. In short, you need to have a lot of preparation for a bank to even consider loaning you money for a new business. You can't just go to the bank and say "Please loan me $30,000 so that I can open a business in my garage."

But, good luck!

Most banks will not give loans to new small businesses without loan guarantees from the Small Business Administration (SBA). Usually small business loans are recourse loans meaning your personal assets are backing the loan.

Getting a SBA backed loan is not something that will occur overnight. Expect a large amount of paperwork and a significant time to get the loan approved.

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