Why would anyone choose an SBA loan when they tie up your collateral and you could use that same collateral for a home equity line of credit?
2007-03-28 05:54:38 · 3 answers · asked by Steenskees 2 in Business & Finance ➔ Small Business
With home equity line of credit, you get to deduct interest from your income tax. Also you get spread the HELOC payment over longer period of time.
2007-03-28 05:58:37 · answer #1 · answered by heavyd 1 · 0⤊ 1⤋
You choose an SBA loan because it correctly ties up business assets rather than having personal assets tied up. If the business fails with a HELOC you loose your business AND your home. If the business fails with an SBA loan, you loose your business.
Further, the loan is guaranteed by the SBA so that you may be able to avoid personal guarantees.
If at all possible, NEVER fund a business by pledging personal assets.
Good Luck,
Dana B.
2007-03-28 20:42:26 · answer #2 · answered by planningresult 4 · 1⤊ 0⤋
choose according to u r budged
2007-03-28 13:01:02 · answer #3 · answered by Anonymous · 0⤊ 2⤋