If you want to start your own horse business, you need to treat it like all other small businesses. That being said, if you need outside financing for your start-up or initial operating costs, there are some loans horse businesses qualify for that the majority of other small businesses don't. These loans can be both direct or guaranteed. A direct loan means the loan is coming from the provider, while a guaranteed loan means the provider has received a guaranty from another organization that the other organization will cover part or all of your loan's cost should you fail to repay the loan.
Farm Loan Programs
The Farm Service Agency (FSA) of the United States Department of Agriculture offers several loan Programs. These loans include the Beginning Farmers and Ranchers loan and the Socially Disadvantaged Farmers and Ranchers loan, as well as direct and guaranteed loan options. FSA loans are especially good for people who can't obtain loans from more traditional sources, such as banks. There is also a Rural Development program for those who are wanting to start horse businesses in rural areas.
Farm Credit Services
Farm credit providers such as AgSouth are also willing to offer loans to horse businesses. These loan providers can offer specialized loans in the areas of equipment, livestock and farm improvement, as well as mortgages for purchasing real estate. With these loan providers, unlike a traditional bank, you may be able to work with your loan provider to set up payments when you are expecting income. For example, if you prepare 2-year-old racehorses for auction, you can set up payments to occur in the fall after the sale season.
Small Business Administration
The federal Small Business Administration does not actually offer loans directly to horse businesses, but does offer guarantees on loans provided by other loan providers. If it seems you won't be able to get a loan from a bank, working with the SBA can be a way to make the loan work, as long as you can prove to the SBA that your business will be capable of making the payments on the loan.