SBA Lending Guidelines?

FAPB73FAPB73 Posts: 2subscriber
edited May 2008 in Startup Funding
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?


  • FAPB73FAPB73 Posts: 2subscriber
    Mr. Lebovits,

    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
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