WE'VE MOVED!
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Options
SBA Lending Guidelines?
FAPB73
subscriber Posts: 2
Hello all,
I posted a while back for advice on finding cash to show injection into an SBA loan and received some great advice. I am happy to report that we have been able to secure 30% injection, and thanks for the advice!
We are attempting to start a franchise. The franchisor is assisting us with financing. We meet all lending requirements to secure our loan except one: We have great credit, we have low debt to income ratio, we have 30% injection. What we do not have is collateral. We have researched and exhausted our options - we just don`t have it.
The franchisor`s finance department has informed us that without sufficient collateral, we will not be approved by a lender for an SBA loan.
However, I just heard elsewhere that an SBA lender cannot turn one down for a loan based solely on lack of collateral. I verified this information in SBA`s lending guidelines.
Anyone know what gives?
I posted a while back for advice on finding cash to show injection into an SBA loan and received some great advice. I am happy to report that we have been able to secure 30% injection, and thanks for the advice!
We are attempting to start a franchise. The franchisor is assisting us with financing. We meet all lending requirements to secure our loan except one: We have great credit, we have low debt to income ratio, we have 30% injection. What we do not have is collateral. We have researched and exhausted our options - we just don`t have it.
The franchisor`s finance department has informed us that without sufficient collateral, we will not be approved by a lender for an SBA loan.
However, I just heard elsewhere that an SBA lender cannot turn one down for a loan based solely on lack of collateral. I verified this information in SBA`s lending guidelines.
Anyone know what gives?
Sign In or Register to comment.
Comments
I found the article "Why Are SBA Loans Drying Up" very informative and helpful.
After reading through your blogs, I`d like to know your thoughts on our specific situation.
Our restaurant equipment will serve as *some* collateral, but it is our understanding from the franchisor that we are short and will need to come up with more.
I can give you more specific details if you need them. Thank you.
Faye Brainard