Financing a New Business?

I wish to start up a new restaurant in my local area, and I need to get funding for it. I've heard there are goverment grants to help start up a new business. The only collateral I have is my car, I've already spoken to the Small Business Administration, they don't have any grants available. Small business loan would be fine, if the payments are low, however due to health problems I filed chapter 7 bankruptsy on a house about 18 months ago.

You've already talked to thte SBA and they told you there are NO GRANTS -- so believe them that there are indeed no grants for starting a business

From the SBA website http://www.sba.gov/mostrequesteditems/CO...

"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."

Ignore what you "heard" that there are government grants for starting a business. Those are LIES perpetuated by scammers hoping to prey on gullible people like you who DESPERATELY wants to believe that there are grant monies available.

You may want to read the warnings FTC has issued against these "grant" companies:

http://www.ftc.gov/opa/2004/03/grantreso...
http://www.ftc.gov/bcp/edu/pubs/consumer...

Here is also one of the warnings issued by the Better Business Bureau http://www.concord.bbb.org/tips_timeshar...

Forget about grants. Unless you want to be SCAMMED.

Unfortunately, your credit history seems to be poor if you have just filed bankruptcy and your chances in getting a loan (even a government guaranteed loan is next to nothing.

I suggest you read the following books to get ideas of how to finance your business:

Financing Your Small Business http://www.amazon.com/exec/obidos/ASIN/1...
Small Business Financing: How and Where To Get It http://www.amazon.com/exec/obidos/ASIN/0...
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing http://www.amazon.com/exec/obidos/ASIN/1...
The SBA Loan Book http://www.amazon.com/exec/obidos/ASIN/1...
Angel Capital : How to Raise Early-Stage Private Equity Financing http://www.amazon.com/exec/obidos/ASIN/0...
Financing Your Small Business (Barron's Business Library Series) http://www.amazon.com/exec/obidos/ASIN/0...

Otherwise, wait for your credit situation to improve and learn more about running a restaurant before you embark on your desire to start your dream business. Right now, your only chance is to find an investor who will bankroll your restaurant -- and that is not easy to find.

Not going to happen. I am putting this nicely. Restaurants have about a 98 percent failure rate. Also, you have filed for bankruptcy. If you can not manage you own funds there is no way you can manage the finances for a business. They are much more complicated then personal accounts. My last business loan was for 173,000 dollars and I have to pay the bank back 5000 dollars per month for the next four years. I have nearly perfect credit and prior business ownership experience. I have sucessfully sold off three companies. To open a restaurant you really need about 100,000 dollars to start up and seven months of operating expenses on reserve. Right now you need to start saving money. Possibly take a second job and work for a restaurant so you have a model when you start your own business. You are not ready for this right now. To do a large bank loan at minimum you need a 700 credit score and probally more likely over 780 to get more than 50,000.