How To Get Capital For Your First Biz
Question: I am a green card holder and have tackled the retail and restaurant business in India. I have experience with management of parties and events, including conferences. At present I am living in Madison with my son, but I want to create an independent business and take advantage of my 34 years of experience in this business. What finances are available to help me? – Kailash Chand Sethi, Madison, Ala.
Answer: According to Philip Levin, a San Francisco immigration lawyer who specializes in small businesses: “Anyone with a green card is treated like a citizen as far as their ability to open, develop and direct a business.”
Green card holders are eligible for the same kinds of bank and credit loans as U.S. citizens, although Levin noted that different lenders have different criteria and are within their legal bounds to require borrowers to be U.S. citizens. However, he said he’s never heard of any actually doing so.All things being equal, getting a loan for a small business is difficult for any first-time business owner unless he or she has valuable collateral to borrow against, said Doug Williams, president of small-business consulting firm Doug Williams and Associates.
“If somebody has a house they can take a loan against, like a second mortgage, it’s possible,” he said. “But banks do not loan against a brand new business. They won’t take that risk.”
Williams said the best place for any first-time business owner to get funding is to ask friends and family for it. Going this route is easier in many ways than going with some kind of loan agency, because you already have trust relationships established with these people and they are more likely to help fund your venture if they believe in your idea, he said.
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