It depends on the business, but for most small businesses, your parents won't be able to afford that kind of loan. A small business is extremely expensive; there are a lot of start-up costs you probably haven't figured in. If you take your business plan to a loan officer he may point out to you how much you've missed. If you don't know how to write a business plan, you need to before you start, or your business is in jeopardy before you start.

Getting involved with relatives is a dicey proposition. I don't mean to scare you off, but the statistics for small businesses are not good. Many fail, and if your parents can't afford to lose their investment, then they must not be making it. A bank hedges its bets with many loans; your parents probably can't.

Under certain circumstances, like a fairly small loan that a bank wouldn't be interested in, your parents may be a good alternative resource. But in general, your parents aren't the business experts a bank is, and the bank is better qualified to tell you whether your business is worth investing in.

Good luck with your idea.

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