Need some information on a SBA loan or a grant of some sorts. (1 Viewer)

[ktulu909]

My wife is interested in acquiring a dog grooming business from her boss and is looking for options in financing.Just looking for legit info and not the sites that say "send us money and we will send you a package of information".

Anyone have any suggestions?We both have subpar credit and own no home so I'm not sure we will get very far with a typical lender.

 

[superchuck500]

Definitely check with SBA. If you set it up where your wife is the owner, it may qualify as a "woman-owned business" loan with SBA - which typically have favorable terms.

www.sba.gov should give you more info. Also, google "SBA woman-owned business loan". (Or maybe even call SBA).

Good luck!

 

[ktulu909]

Thanks for the link chuck,my wife is really excited about this and I want this for her very badly,I'm just not convinced that we can secure the financing for the sale of the business.The place is very profitable and wife pretty much knows the ins and outs as she has been the book keeper there for a little over a year.

If anyone else has any suggestions or resources to check out,please speak up!!

 

[superchuck500]

Thanks for the link chuck,my wife is really excited about this and I want this for her very badly,I'm just not convinced that we can secure the financing for the sale of the business.The place is very profitable and wife pretty much knows the ins and outs as she has been the book keeper there for a little over a year.

If anyone else has any suggestions or resources to check out,please speak up!!

I'm sure the SBA has counselors to go over the process.

She'll need to prepare a cash flow analysis and a business plan. I don't think that will be all that difficult for that business. I'm sure there are plenty of resources to learn about it.

 

[ktulu909]

If this goes through we plan on creating an LLC.Should the LLC be formed BEFORE she applies for the SBA loan or can we create it after?

 

[superchuck500]

If this goes through we plan on creating an LLC.Should the LLC be formed BEFORE she applies for the SBA loan or can we create it after?

I would imagine that you'd want to have the LLC in place before you apply for the loan, but I'm sure there's someone at SBA that can answer that.

Forming an LLC is relatively easy in Louisiana. There are forms available at http://www.sos.louisiana.gov/tabid/66/Default.aspx

I think it costs about $100 - something like that. Also, the Secretary of State office is generally pretty informative. If you have any questions, just call them.

 

[zenshin]

If this goes through we plan on creating an LLC.Should the LLC be formed BEFORE she applies for the SBA loan or can we create it after?

It may not matter in all honesty. My wife formed hers before applying for a loan, but the loan is still in her name. Without an established business history, she had to put the loan in her name.

Get a business plan together first and foremost. That's one of the initial requests we were tasked with when applying for a loan.

While there are a lot of rumors as far as SBA giving loans to women and minorities, the bottom line is credit score. We found a better rate at a bank than what the SBA offered. Since our credit was good we were offered a pretty decent interest rate from a local bank.

Don't be intimidated by the LLC process. A lot of sites will tell you that they'll help you out, but you don't have to use a lawyer, and for around 80 buck, you can do it yourself. It's especially easy if you are going to open it as a sole proprietorship. It gets a little more complicated if you want to do an S-corp.

Research pays, and you can save yourself a lot of headaches and cash if you take your time and NOT rush the process.

If you need any further help, you can PM me and I'll try to answer your questions as best as I can.

Good luck with everything, and remember, it's a lot of work in the beginning, but it's well worth the effort in the long run.

 

[ktulu909]

It may not matter in all honesty. My wife formed hers before applying for a loan, but the loan is still in her name. Without an established business history, she had to put the loan in her name.

Get a business plan together first and foremost. That's one of the initial requests we were tasked with when applying for a loan.

While there are a lot of rumors as far as SBA giving loans to women and minorities, the bottom line is credit score. We found a better rate at a bank than what the SBA offered. Since our credit was good we were offered a pretty decent interest rate from a local bank.

Don't be intimidated by the LLC process. A lot of sites will tell you that they'll help you out, but you don't have to use a lawyer, and for around 80 buck, you can do it yourself. It's especially easy if you are going to open it as a sole proprietorship. It gets a little more complicated if you want to do an S-corp.

Research pays, and you can save yourself a lot of headaches and cash if you take your time and rush the process.

If you need any further help, you can PM me and I'll try to answer your questions as best as I can.

Good luck with everything, and remember, it's a lot of work in the beginning, but it's well worth the effort in the long run.

PM sent.And thanks also chuck