We are currently about to apply for a 504 type SBA loan. We are trying to get our numbers together but not sure about this suggestion given to us by a friend that owns several restraunts. They said to pad your expense numbers. It will help cover the rise in prices during the application-closing periods. That I can deffinatly see as necessary. If you dont end up using the funds can you keep it for capital or put it towards making up the money you had to round up for your down? Maybe pay back some invetors? They did it to the point where it covered about 3/4 of thier down payment.
Is this a common thing to do? It is hard as heII to come up with 70K, like we could end up needing when your just a common person just trying to get a start in business. I dont see to much difference between this and using a silent investor the bank doesnt know about. Little easier to swallow a little higher payment when your not paying as high of interest to an investor.
Ok that aside, Once the loan is done, how do they divide the funds? Like were buying a building, the existing business, pluss adding another business to the building that will require many different suppliers, contractors, ect. to be paid. Do they give you the money up front or do you have to give them your reciepts or what?
