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How to Save Cash to Start a Business

By: Eric Giltner, Senior Area Manager
Grand Forks Area Office
North Dakota District Office

Every week small business counselors visit with clients who have a great opportunity to go into business but do not have enough money saved for the required “start-up equity” injection. Start-up equity is defined as the total value of cash and assets brought into a new venture by the principal owner. Lenders generally require a 30% start-up equity position, although this value can change either up or down given other situational factors. A significant start-up equity injection shows a high level of commitment by the client to pursue the opportunity during good times and bad. This makes it easier for a lender to act favorably on a loan request. Significant start-up