Anyone Wish To Share Their Experience W/ Sba Or Other Route?
Business By SusanaDalia Updated 22 Feb 2009 , 11:11pm by SusanaDalia
I would love to have my own bakery one day, so I thought I would start a thread where people could give me a rundown of how it went for them going through the SBA or other routes. Any tips or suggestions would be appreciated. Some of the information that would be helpful would be how long did it take from the time you started the process, how much do they generally want you to have to get started (probably depenedent on location, I live in DFW, Texas.)
Hi my cake peeps,
I have a current SBA loan on my cake studio. It is for $25,000 and the terms are for 7 years at prime rate plus 2%.
The process starts with a well thought out business plan that includes projections, your demographics, your sales projections for two years, your backround in the field, your acheivements, community involvement etc.
It is basically a well thought out road map of why you would be successful to the bank and the SBA.
SBA only guantees the loans to 80% so it is a bank in your town that actually makes the loan to you. They want to see what any other bank might see like debt to assest ratios, some form of equity to put up to back the loan, are you able to carry the payments etc.
As a shop owner I have to come up with $1,300 every first of the month $880 for rent and $425 for the SBA loan.
It is a big chunk that others don't have to worry about from home based business.
It is a big step so please make sure you talk it over with any spouse or kids that may be involved also as it becomes a business and not a fun little hobby at that point where stress plays a huge factor during the slow months and accepting cake orders you might normally take to make the bills etc.
Hope this helps,
Michael
If you are interested in a loan, I would cut to the chase quickly and find out if they are backing ANY loans for your type of business. In recent months, not only has there been a general tightening of lending, but the food industry lending has been drastically reduced. That doesn't mean there isn't money at all, or that there won't be more money in a while, but to get an accurate picture quickly, I would ask that question first. 
If you are interested in a loan, I would cut to the chase quickly and find out if they are backing ANY loans for your type of business. In recent months, not only has there been a general tightening of lending, but the food industry lending has been drastically reduced. That doesn't mean there isn't money at all, or that there won't be more money in a while, but to get an accurate picture quickly, I would ask that question first.
We have run into the same issue. I couldn't even get a 10,000 loan, even with using my house (where I have double that in equity) as colateral. And we have an excellent credit rating...My buisness has also been cash only, I have never charged a thing to buy for it and it is coming up 4 years old. And we had a beautiful business plan WITH profits we had made and the banks will not lend out any money for food business right now.
I am hoping President O will change that for us...
Hi my cake peeps,
I have a current SBA loan on my cake studio. It is for $25,000 and the terms are for 7 years at prime rate plus 2%.
The process starts with a well thought out business plan that includes projections, your demographics, your sales projections for two years, your backround in the field, your acheivements, community involvement etc.
It is basically a well thought out road map of why you would be successful to the bank and the SBA.
SBA only guantees the loans to 80% so it is a bank in your town that actually makes the loan to you. They want to see what any other bank might see like debt to assest ratios, some form of equity to put up to back the loan, are you able to carry the payments etc.
As a shop owner I have to come up with $1,300 every first of the month $880 for rent and $425 for the SBA loan.
It is a big chunk that others don't have to worry about from home based business.
It is a big step so please make sure you talk it over with any spouse or kids that may be involved also as it becomes a business and not a fun little hobby at that point where stress plays a huge factor during the slow months and accepting cake orders you might normally take to make the bills etc.
Hope this helps,
Michael
Thanks so much Machael on the helpful information you posted.
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