Thinking of starting a business?

BUFFALO, N.Y. (WIVB) - A new program is being talked about to help small business owners.

Thinking of starting a business? Well finding credit for a new businesses is almost impossible. President Obama wants to use bailout money to create a new lending program to help small business owners get loans. Here's what you should do before you go to the bank to apply for a loan:

Create a business plan. This includes what you want to do, how you're going to do it, what your expenses will be, your marketing plan, your suppliers.

Start up cash. If you need to borrow less than $35,000, you'll need 10% of that amount. Over $35,000? you'll need 25-30% as a deposit.

Good personal credit. In some cases, you'll need a credit score of 700 and above.

Previous experience in the industry. This can be a deal breaker.

100% collateral. In a nutshell, that means putting your house on the line, so that if your business doesn't make it, the bank will have a place to get the money from.

When its time to go shopping for a loan, go to a bank where you have a personal relationship or credit unions because their interest rates are typically lower. The local score chapter of the SBA can advise you as well.

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