Maggie:
I would like to start up a coffee shop in a growing area that demands more commerce. Is it impossible to get a loan for someone who isn't already in business?It is not impossible, but it certainly is harder to get a loan if there isn’t a track record of successful operations. You asked for feedback so here it is:
Business Plan Start by preparing a business plan. The first draft does not even have to be formal. It will help you get some structure to your idea and help you identify the possible obstacles to implementation. Trust me, even if you can’t put the final one together, going through the process will help.
How difficult is it to get a loan for a startup? The lender will be looking at many things including your credit history, your experience, your business plan, your personal resources, the location of the business, the industry, the demographics of the neighborhood etc. It is not impossible, but usually only those that have spent the time preparing a good request {not only one that is well prepared, but that actually makes sense risk-wise from the perspective of a lender} will succeed.
My advice: Start working on the business plan and try to get some assistance from an local chapter of
http://www.score.org Frankly speaking to someone face to face is much more effective since there can be an effective back and forth of questions and information. An SBA loan is something you might want to consider.
Hope this helps.