| Author |
Message |
Jim Schad (Jim_schad)
Intermediate Member
Username: Jim_schad
Post Number: 1902
Registered: 7-2002
| | Posted on Monday, September 29, 2003 - 10:22 am: | |
oh, thinking of buying some hair care franchises, an auto care franchise or some car washes. Just tire kicking right now as I am poor. |
Jim Schad (Jim_schad)
Intermediate Member
Username: Jim_schad
Post Number: 1901
Registered: 7-2002
| | Posted on Monday, September 29, 2003 - 10:21 am: | |
I called my credit union and they do the tradtional loans I thought BoA still did. BoA just had some bad loans and the gov't tightened their req's.
$50K to $1MM with 20% to 30% down, 7years etc.
BoA has basically stopped lending to "new" bizs, franchises etc. They will still lend on something I have already owned for 2 years. |
James Dunne (Audiguy)
Member
Username: Audiguy
Post Number: 298
Registered: 6-2003
| | Posted on Monday, September 29, 2003 - 10:07 am: | |
Jim,
I have checked into beginning the SBA process and have received good input from the director of the Economic Development Corp where I am looking. I was referred to a man at the University of Houston School of Business. They help entrepreneurs and small business developers get where they want to be. I believe it must be a policy of each SBA lender as to what their lending maximums are.
If it is in Texas, you can also check into the Capitol Fund for any grants that are available for business development. If it is going into what they would classify as an economically depressed area, the business could qualify for up to 50% participation with a maximum of $750,000. Payback would not begin until three years after the business opened. You would also need to maintain a certain level of employment to qualify for this grant (0% loans).
I am told there is also a contact at the University of Texas in Arlington in their business school who does this same thing. It is a free thing unless you take some of the seminars they offer. They will help develop a business plan that is SBA qualified and make sure all the SBA stuff is correctly done. I am also told that they will help in the application process to make sure it has the best possibility of being approved.
I will attempt to find the name of the man in Arlington and get it to you. I am just beginning the grant process so I cannot report to you yet any progress or what roadblocks I might hit. I will keep you informed. |
Jim E (Jimpo1)
Advanced Member
Username: Jimpo1
Post Number: 2636
Registered: 7-2001
| | Posted on Monday, September 29, 2003 - 9:40 am: | |
My brother recently looked into an SBA loan and was given the same '2 years of operations' speech. He was later told by someone else that a 'training class' would sometimes suffice.
What are you doing now? |
Jim Schad (Jim_schad)
Intermediate Member
Username: Jim_schad
Post Number: 1900
Registered: 7-2002
| | Posted on Monday, September 29, 2003 - 9:18 am: | |
Just called Bank of America and they will only loan up to $10K on an SBA loan now! And that is with 2 years of operation under your belt on the existing biz. In the past you could buy a new franchise that cost say $150K total to build out....you cough up about $30K to $50K and you could finance the rest via SBA. They don't do that anymore.
He wouldn't comment on any other lenders. Before I call every bank in the world does anyone have any recent knowledge on this?
The only other option he mentioned was home equity loans. Is lending that hard now? I figured with the low rates (to engourgage borrowing) they would be giving money away. |