Hi Everyone,
I am opening a coffee shop in my neighborhood, but I cannot seem to find a lender (even a local community bank) that is willing to lend to me. To give you an idea of our circumstances, the shop is located in an historic commercial district that has deteriorated over the last 50 years. Our local government has injected money into the neighborhood in order to revive the area and promote economic development, and my project is exactly what they are looking for. They don't offer loans, though.
Next year a county library is opening two doors down from the space I've leased, and the city is sprucing up the main street I'm on by widening the sidewalks and putting in planters and lampposts. A few other shops have gone in, but it is still not what it should be. The demographic has changed drastically over the last ten years, with many middle class families replacing the blue-collar residents that used to live here. The mayor-elect lives three blocks away, and the city sees me as the pioneer for the neighborhood and my business proposal the future of our district.
Unfortunately, banks are freezing their lending, and the SBA is strict with their 3 years of management experience in the business you are opening. I have retail experience, but not coffee. I have a master's degree, and previously worked in finance, but the SBA seems only concerned with my industry experience. My husband and I have another business we started from the ground up five years ago, and that business (being run by my husband solely now), has doubled its profits every year for the last 3 years.
My feeling is that I know the economy is bad, and that is putting
everyone in a lending freeze - but the only way we ever get out of
these bad times is if someone decides to take a risk and start moving
forward again. I'm willing to take that risk and move forward; I'm
willing to give local, unemployed folks jobs; I'm willing to put in the
sweat and tears to develop this neighborhood into what it should be - I just need someone who is ready to jump on board with me...
Does anyone have any ideas? We have equity in our home, we have excellent credit (700+), experience starting and running a small business, and lots of education and community support... we even have another business loan from our first business that will be paid off next year.
Any ideas or recommendations would be greatly appreciated.
I am opening a coffee shop in my neighborhood, but I cannot seem to find a lender (even a local community bank) that is willing to lend to me. To give you an idea of our circumstances, the shop is located in an historic commercial district that has deteriorated over the last 50 years. Our local government has injected money into the neighborhood in order to revive the area and promote economic development, and my project is exactly what they are looking for. They don't offer loans, though.
Next year a county library is opening two doors down from the space I've leased, and the city is sprucing up the main street I'm on by widening the sidewalks and putting in planters and lampposts. A few other shops have gone in, but it is still not what it should be. The demographic has changed drastically over the last ten years, with many middle class families replacing the blue-collar residents that used to live here. The mayor-elect lives three blocks away, and the city sees me as the pioneer for the neighborhood and my business proposal the future of our district.
Unfortunately, banks are freezing their lending, and the SBA is strict with their 3 years of management experience in the business you are opening. I have retail experience, but not coffee. I have a master's degree, and previously worked in finance, but the SBA seems only concerned with my industry experience. My husband and I have another business we started from the ground up five years ago, and that business (being run by my husband solely now), has doubled its profits every year for the last 3 years.
My feeling is that I know the economy is bad, and that is putting
everyone in a lending freeze - but the only way we ever get out of
these bad times is if someone decides to take a risk and start moving
forward again. I'm willing to take that risk and move forward; I'm
willing to give local, unemployed folks jobs; I'm willing to put in the
sweat and tears to develop this neighborhood into what it should be - I just need someone who is ready to jump on board with me...
Does anyone have any ideas? We have equity in our home, we have excellent credit (700+), experience starting and running a small business, and lots of education and community support... we even have another business loan from our first business that will be paid off next year.
Any ideas or recommendations would be greatly appreciated.
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