bluesun

Yeah just tell them to ask the Government for a grant to buy a tanning salon. I hear the Government gives away millions of dollars that never have to be repaid! I heard it from a cracked up clown on late night TV so it must be true. Or you could place tiny classified ads to generate the revenue to loan them. Or better yet buy houses with zero money down, no credit report, no payments, and then at closing you will get free cash that never has to be paid back.
Ok, here is some helpful info. If your loan is over 35k you have to go through the standard loan process with the SBA. As of Oct 1 they have done away with the low-doc program which had the 72 hour turn around. Now you need to expect 4-6 weeks. Your buyers need to first be turned down by a bank which participates in the SBA programs. That same bank will need to initiate the paper work for the SBA. You will need a b-plan, financials for the previous 3 years, projections by the month for the next two years, personal financial statements, and enough equity in something to cover the loan if you default. The SBA is more expensive than going through a bank (typically and additional 1-3% closing/origination costs, and an additional 1-4% above the banks rates. But they will write loans for 7 maybe even 10 years where most banks will only do 5 years or less. I would have your buyers go to a SBA qualifying bank first and see what they say. The bank may just give it to them and you can forego the SBA route. Also, if they don't have the credit worthiness push them to get a strong co-signer, it'll make things much easier.

Blue

TanningEmporium

Blue that is nice of you...but yes there are grants given to various communes to loan at rates lower than the SBA..and yes you do have to be turned down by a SBA bank to get the SBA loan...

I know I have talked to some of them, they do require Biz plan and other docs that SBA require, but the money is out there, you just have to be willing to go and find it.

toasty bunz

Bottom line is you really won't know anything until you talk to a banker. There may also be other loan programs in your area besides conventional banks and SBA. Get your prospective buyer into the bank, if they can't help you they are the best ones to direct you where to go in your area.

TFranssen

45 minutes for $75k or below. 24 to 48 hours for over that amount with full financial disclosure. This would be for an equipment lease - no other collateral and no tack on your personal credit.

Local banks will take about 6 weeks - SBA the same.

TanningEmporium

Thats great info T...but what about the person who also needs some capital to go with that equipment.

UltraSun1

Good luck they take there time! And Tanning Emporium doesn't look good you sell alot of crap besides
tanning? If you don't have perfect credit, some capital and something to put up in lue of the loan good
luck! Especially in this industy and banks know it!

HBT6872

Terri is amazing and her company is an A+ in lending. Finally a lender that understands the tanning industry.

mr belvedere

Plus, she's a mag model for a major trade pub. Can't wrong there. But yeah, I hear she's really nice and loves tanning salon loans. Good luck.

tropicgirl

"How can I get a grant or loan to start up my business?

There is no federal grant money for individual business owners. Even though many publications and talk shows publicize grants to small businesses, the only grants available are for non-profit women’s business centers that provide training for women who want to start or expand their businesses. The other grant program is for research and development for technology-based products and services for the government. However, the SBA has an excellent financial assistance program, which encourages bankers to help small businesses. This "loan guaranty" program is the agency's priority. Apply for a business loan at your bank. If financing is unavailable on reasonable terms from the lender, ask the bank to submit your loan application to the SBA for consideration. In partnership with your local bank, the SBA may offer a government guaranty of a loan to be made by that lender. SBA programs are especially valuable for new business start-ups and in instances where collateral is weak and/or a longer repayment term is needed. The SBA loan application package can be as simple as a one-page form, and the SBA can approve an application in 1-7 days."

http://appl.sba.gov/faqs/faqindex.cfm?areaID=11


I was told about grants, and I inquired from all types of federal offices when starting my business. I was told no such thing existed. Above is just one of the many goverment sites confirming this. I would be more than happy for someone to re-direct me to a place that contradicts this and says they do. I would love to get one. This was copied and pastied from the government website. I invite all to click and read more.

tropicgirl

Click on #14
(14. How can I get a grant or loan to start up my business?)