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If you are planning to start your own business and need financial support, what will you do? You can go to venture capitalists, apply for a Small Business Association loan (SBA loan), or take out a home equity loan. The requirements for one type of loan are different from another. If you are planning to start a small business in a non-IT field, then venture capitalists are not a loan source for you.

If you are considering a SBA loan, you’ll need to have some money (at least 2.75% of the required loan amount) to give as a guarantee to the lending company, and the interest rate on this is not very attractive. So, if you are sure of your business and have owned your home for more than two years, a home equity loan is probably your best bet. A home equity loan gives you the option of borrowing the equity you’ve built in your home, and the good news is that the current rates are quite favorable. Getting a home equity loan is easier than other kinds of loans, which is a huge plus if you are looking to get your business running quickly.

If you want to start a small business in Phoenix, you’ll be happy to learn that the home equity loan rates in Arizona are quite comparable to the national average. According to Yahoo Real Estate portal, the home equity loan rates in Arizona are as follows: