Frequently Asked Questions

34. Is it possible to get 100% financing for my business?

No, it is extremely rare to see a small business obtain 100% financing from a bank. Banks don't issue 100% financing for businesses because it places the entire burden of the risk on the bank. They prefer if the owner shares some of the risk, thus most banks will require the individual to cover at least 20% of the financing cost to start their business. Some banks will require an even larger owner equity injection depending on the industry or type of business.

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Start Your Own Business | Obtaining Small Business Financing

The Arkansas Small Business Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran’s status, or disability.