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    7 Replies Latest reply on Mar 28, 2008 11:26 PM by pomgrs

    SBA help??? Please?

    jencharlib Newbie
      This is my first business. I am looking to purchase a well-established preschool. While I do have the degrees and credentials in the educational field (BA, MA in Ed), I do not have the experience in owning or running a similar type business. Help! How can I qualify for a SBA loan without having to put out my life-savings due to "lack of experience".

      I would appreciate any and all feedback. I currently have 10% down, which is for the business and property.

      Any suggestions?

      Thanks,
      JB
        • Re: SBA help??? Please?
          LUCKIEST Guide
          Welcome to this web site, and good luck.
          Questions??, Who are you and where are you.
          How soon do you plan to purchase this well-established preschool.
          Do you have an Accountant?? A Lawyer and an Insurance Agent??
          Do you know about SCORE?? SCORE is FREE and can help you,
          especially qualify for a SBA loan.
          LUCKIEST
            • Re: SBA help??? Please?
              jencharlib Newbie
              A little more info:

              Location of the business is in Redding, CA
              We have at least 10% down, 790 credit scores and plenty of assets.
              We do have a lawyer, as well as an accountant - but always open to new.
              I dont know what SCORE is, and I woudl be willing to hear more about it.
              The problem with the 10% down is that I haven't ever run this type of business, therefore, from what I understand, we will need more down to make this transaction work.

              Any suggestions?
              Thanks,
              Jennifer.
            • Re: SBA help??? Please?
              dublincpa Scout
              http://smallbusinessonlinecommunity.banko
              famerica.com/thread/4248?tstart=15

              To avoid rehashing, I have posted another recent thread from this board with some info that may be useful.

              As stated in his offer, LUCKIEST should also be a good resource for SBA qualification.

              The more details you provide the more we can help.

              Good luck.
              • Re: SBA help??? Please?
                Lighthouse24 Ranger

                Welcome to the community. If you move forward and then discover that lack of experience at running a business is, in fact, the main obstacle to getting the financing you need, you might consider "partnering" with someone who has that experience. He/she could potentially help you qualify for funding, provide business management training or mentoring to help get you started, and/or may be willing to invest in the business (if you have a promising business plan).

                If you don't want (or can't find) a suitable partner, you might "hire" or contract with someone who has the expertise that would give you the necessary boost in credibility, but defer paying them by using a form of convertible debt. You can read my suggestion for how that might work in this thread:
                http://smallbusinessonlinecommunity.banko
                famerica.com/thread/4193?tstart=0

                Hope this helps. Best wishes.
                  • Re: SBA help??? Please?
                    dublincpa Scout

                    Keep in mind that if you choose the popular S Corp election convertible debt is not permitted. In the original thread, the enitity was an LLC, presumably not making an S Corp election. Your original post is silent as to form of organization. Just a caveat not to go S Corp route if you want to utilize this strategy.
                  • Re: SBA help??? Please?
                    mlebovits Newbie
                    JB,

                    With a 790 FICO score, 10% down and plenty of assets to collateralize the loan, there is likely an SBA lender that will overlook the lack of direct experience.

                    Let me know if you need any assistance.

                    Marshall Lebovits
                    310-371-4011
                    www.Funding911.com
                      • Re: SBA help??? Please?
                        pomgrs Wayfarer
                        At those credit scores you may even be able to secure funding outside of the SBA - or I should say you should be able to as you are willing to collateralize the loan. Standards have changed even for business lending but with those scores, and some assets I'd explore all your options and shop for the lowest rate. Just keep in mind if you go ahead and apply with many different outfits you may hurt your score as the inquiries add up. IE, pull your FICOs from myfico.com and go to various lending sources with those scores and instructions not to pull your report. Find out what someone in your shoes would roughly qualify for and at what rates, when you've narrowed it to one or two places then go ahead and do the entire application.