What regional banks in Southeast Michigan offer SBA-backed loans for franchise start-ups?
The franchise we are going to buy is on the FRANdata Registry. We are injecting 26% of the start-up capital needed. The total amount to be financed is under $1MM. What banks in Michigan offer (or specialize) in this type of start up loan?
Contact the SBA at http://www.sba.gov/sba-direct
Go to bank manager and explain your situation. He’ll love your solid business plan and good credit.
In order to get SBA loan to buy an established business,What documents do you need to show bank?
I have found this business which I’m very much intersted in. I have never bought/sold any business before.I have more than 4 years of experience in this business. I work for someone else but now I want to own mine.
So please If you have any suggestion or comments, you are most welcome to do so.Please explain in detail.
SBA does not provide direct loans, but rather guarantees loans availed through their partner financial institutions. You will need to satisfy the lender’s requirementsfor the loan, as assessed by the bank, before you can get SBA guarantee. This would mean showing the bank your credit history, business plan, tax forms, financial assets, collateral.
Note however that you need to pass through 3 criteria before you can avail of SBA loans, and these are:
- stake in the business (SBA requires borrower to have invested 25-50%)
- submission of a strong business plan
- good personal credit rating
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