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  • Writer's pictureAmi Kassar

AmiSight 3/2: What Would You Do: Sell Equity? Or Bet the House?

Updated: Apr 10, 2023

It is possible to get an SBA loan for a projection-based startup. To do this, you need to prepare a carefully thought-out business plan that shows a reasonably clear path to being cash flow positive. And then, you have to prepare to kiss many frogs before you find your lender. Unless you are fortunate, you can expect this to be a six- to nine-month process.

Do you have any equity in your house? Should they find one willing to say yes, any SBA lender will be required to take a lien on their houses. If you choose the debt option, it will be much

faster and cheaper to get home equity loans. If they pursue home equity loans rather than an SBA loan, they could likely be funded in as little as 30 to 45 days. 

Learn more about these trade-offs in my 21Hats column today.

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