Home Equity: Funding Business

first_img Related Articles Demand Propels Home Prices Upward 2 days ago HELOC Home Equity Minorities women 2017-08-09 Brianna Gilpin Tagged with: HELOC Home Equity Minorities women About Author: Brianna Gilpin Home Equity: Funding Business Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] August 9, 2017 1,106 Views Share Save Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agocenter_img Having a business idea and not knowing how to fund it can be a daunting task, but there may be one option that entrepreneurs are forgetting about—drawing from home equity. According to a recent report by the National Association of Homebuilders (NAHB) citing new data from the U.S. Census Bureau, home equity has been used to start 284,618 or 7.3 percent of all businesses in the U.S.The Annual Survey of Entrepreneurs (ASE) collects economic and demographic data on different aspects of business ownership in major U.S. industries for three years beginning in 2015. What they found is that six industries in particular use home equity at higher rates than others.Accommodation and food services (10.3 percent), other services with the omission of public administration (9.8 percent), retail trade (9.7 percent), and manufacturing (9.3 percent), however also experience lower rates of profitability and average $50,000 to $99,000 worth of funding as startup capital. Also on the list, real estate and rental and leasing came in with 4.9 percent of business pulling from home equity and construction at 6.9 percent.The survey also took into account demographic data when looking at funding from home equity. Women owned businesses (60,200 firms) were slightly more likely to use home equity than men (162,086 firms), coming in at 7.8 percent and 6.6 percent respectively. Of those that had equal ownership (61,311), 10.8 percent used home equity.Breaking the data down by race, Pacific Islander or Hawaiian business owners (371 firms) used home equity 10 percent of the time. American Indian or Alaskan Native (1,769 firms) had 9.1 percent use home equity, Asian (30,794 firms) at 9.0 percent, Black or African-American (5,485 firms) at 7.8 percent, and White (241,574 firms) at 7.3 percent.According to NAHB, home equity plays a substantial role in U.S. business, but for women and racial minorities it’s even more imperative, particularly with African-American. Though the Census Bureau’s Housing Vacancy Survey shows African-American’s having below average rates of homeownership, home equity is allowing them to have a slightly above average showing in funding entrepreneurship. Home / Daily Dose / Home Equity: Funding Business The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News Previous: HUD: Enough is Enough Next: Are NPL and RPL Markets the Key to Investor Growth?  Print This Post Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Sign up for DS News Daily last_img read more