Interested in opening a small business or franchise? How much do you know about your funding options? Take our quiz and find out!
1. What is typically not a funding option available to you to start a business?
- SBA loan
- Investing your retirement funds
- Traditional bank loan
- Securities-backed line of credit
- All the above
2. What does ROBS stand for?
- Resources or Backing for Startups
- Rollover for Business Startups
- None of the above
3. I can’t use my 401(k) or IRA to buy a business without paying taxes or penalties.
True or False
4. An SBA (Small Business Administration) loan is:
- A loan made directly from the SBA to an entrepreneur looking to start or grow a business.
- A loan provided by a bank or lender to an entrepreneur that is guaranteed by the SBA.
- A loan that your friend gives you that must be approved by the SBA.
Answers: 1) e; 2) b; 3) False (A ROBS plan allows entrepreneurs to do this); 4) b.
How did you do? Are you ready to start a franchise, but have more questions about funding? Ask the experts at Benetrends Financial!