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Re: Loan logistics for start-up Company

NoBullFunding — Mon, 16 Feb 2009 22:30:11 GMT

Hi and welcome!

1) The size of the loan is not an issue. In fact, it might be small for some lenders. Your larger issue is that your business is a startup with no track record. Even the largest SBA lenders are not shying away from startup due to the rising number of delinquincies.

2) It depends on whether you have other collateral, but in general the minimum is 10%, but in today's enviroment 20%-30% in not uncommon. The number of startups I've seen recently that have failed inside of 12 months due to undercapitalizion is pretty scary.

3) No, no need to incorporate. You can do it if you get approved and save youself a few hundred bucks.

Re: Loan logistics for start-up Company

LUCKIEST — Mon, 16 Feb 2009 22:29:29 GMT

Who are YOU?? Go to Members page and share some info

Re: Loan logistics for start-up Company

LUCKIEST — Mon, 16 Feb 2009 22:26:50 GMT

Loan for start-up Company, Welcome

Who are you??

Tell us more about YOU and then I will answer your questions

Loan logistics for start-up Company

flawlessjm1 — Mon, 16 Feb 2009 19:23:39 GMT

I am starting a micro-brewery in the state of Massachusetts and need approx. $150,000 for start up costs. The majority of this money will be put towards equiptment purchases, rent/lease of commercial space, and licensing. The space we are looking to aquire is an existing food/restaraunt business with proven monthly income and a built-in client base. The company will consiste of myself and 2 partners. We have good credit, but minimal assets and $$ to show for upfront.
Questions:
1) How realistic is it, in todays economic environment, to expect to be given an SBA loan of this size?
2) What is the minimum the bank would require us to contribute of our own capital?
3) Is it necessary for us to incorporate the business before applying for a loan?