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    7 Replies Latest reply on Dec 7, 2007 12:31 AM by CorpCons08

    SBA loan concerns

    raree63 Newbie
      I have been pursuing a SBA loan without success. I managed to get a $5,000 loan from my bank that I am paying to try and build credit. My credit score is 583. I am frustrated because I have an enormous opportunity to make money through manufacturing and production of industrial electric components. I have all my tools already as I work in this field already. I need to aquire a building and materials. I have even shown a contract that General Electric has submitted for my review. I have shown a GE contract to loan officers and am still declined. Are there other sources? Any advice on what I can do? I don't want any investors really, just a loan. I am looking for $40,000 or more. I have tried small amounts from several lenders and that has proved ineffective as well.

      Thank You
        • Re: SBA loan concerns
          LUCKIEST Guide
          Raree, The first thing you need to do is STOP BEING frustrated. It tdoes not help.
          You did manage to get a bank loan , That is a start.
          Have you talked to SCORE either in person or on line. SCORE helps people FOR FREE
          who are going into business. SCORE can help you create a Business and Marketing Plan.
          They can also talk about cash flow. SCORE CAN NOT give you money, but they know bankers.
          Good luck, LUCKIEST
          1 of 1 people found this helpful
          • Re: SBA loan concerns
            CorpCons08 Ranger
            Do you have any cash that you could secure a loan by? Do you own your own home?
            Is there any other business partners in this venture?

            CorpCons08
            1 of 1 people found this helpful
            • Re: SBA loan concerns
              Lighthouse24 Ranger

              Is it possible to break the $40K total you need into separate categories and pursue funding for each individually (as though that portion was the only funding you needed)? For example, if you need $5K for materials from three different suppliers, you might be able to get terms from each for those purchases. (You're also more likely to be able to leverage your GE contract will someone like that rather than the bank.) Depending on the type of building you are trying to acquire and the improvements you intend to make, there are several ways to handle just the facility portion of the investment. Same with any equipment (all of which can be security, unless it already has a lein on it). The point is, finding one entity to loan you $40K for a new operation they don't understand is difficult -- it may be much easier to find eight different entities that will each spot you $5K for the part of the operation they do understand. Best of luck.