SBA 7a loans

ElementalUnityElementalUnity Posts: 3subscriber
edited June 2009 in Startup Funding
I was wondering if someone could explain this to me.  I read that they guarantee 90% of the loan for this year.  I am in a bad position though I do not have very good credit, when I say not good credit, I mean pretty piss poor

Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Not sure what your question is. FYI - the SBA doesn`t make loans. They provide "guarantees" to the lender, which is supposed to make the lender more willing to lend to small businesses. Among the recent actions taken by the US government was to raise the guarantee percentage to 90%- which was intended to "encourage" lenders to make loans to small businesses.
    For both past and present - the personal credit history of the principals is a very important factor in getting any SBA loan. With your poor credit rating, you may have to look for other funding strategies.
    Hope this helps. If you`d like to discuss your specific situation (in confidence) send me a PM or contact me directly.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Sky,
    I can`t speak about your source, but I doubt it. Most lenders look at performance over time -s not just the age of existence of the company.
    I`d ask - who provides the line of credit.
    If you want to discuss your specific situation in confidence, contact me directly
     
  • StartUpSmartStartUpSmart Posts: 0subscriber
    Hi,
     
    We have worked with many clients with that same issue. Reaching out for another parnter with good credit is a fine idea but you must be sure that all the partners are in alignment. This means that you need to be sure that the business model, the strategy, the equity position, and the exit are all clearly communicated. Additionally, get crystal clear on the roles that each partner will play in the business.
     
    Don`t hesitate to connect with me directly if you have other questions.
  • LOBITELOBITE Posts: 0subscriber
    HI GUYS
    I AM BUYING A NEW QUIZNOS FRANCHISE, AND I AM IN NEED OF GREAT IDAES AS TO HOW TO BRAKTHROUGH IN THIS  FRANCHISE BUSINESS.
    PLEASE HELP ME WITH  ADVERTISEMENT PLANS AND HOW TO INCREASE FOOT TRAFFIC IN THE SHOP. DO YOU  THINK MOUNTING A CABLE TV IN THE SHOP IS A GOOD IDEA?
    PLEASE HELP.
    JOHN
     
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member

    HI GUYS
    I AM BUYING A NEW QUIZNOS FRANCHISE, AND I AM IN NEED OF GREAT IDAES AS TO HOW TO BRAKTHROUGH IN THIS  FRANCHISE BUSINESS.
    PLEASE HELP ME WITH  ADVERTISEMENT PLANS AND HOW TO INCREASE FOOT TRAFFIC IN THE SHOP. DO YOU  THINK MOUNTING A CABLE TV IN THE SHOP IS A GOOD IDEA?
    PLEASE HELP.
    JOHN
     

    John,
    I`m not sure how your question relates to the topic of SBA loans.
    Generally, the franchiser provides all this type of information along with the training to support their "program"
    If they aren`t helping you prepare your advertising & promotion plan - or at least providing you with some guidance - why do you want to buy this one?
     
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