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Thinking of expanding the business somewhat and looking into a loan through a "SBA Partner Bank" has anyone ever used one, or the SBA at all????? What was your situation with them???
------------------ Troy Haas "Metal_Leg" on mIRC
SAM Signs & RPM Auto Graphix 931 W. Columbia street Evansville,Indiana 47710 812-437-5367 Home of the: "Brush Fire at the Hose House" Letterhead Meet April 27-29th,2001
"Chaos, panic, disorder - my work here is done."
Posts: 1100 | From: Evansville,Indiana, USA | Registered: Nov 1998
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Many moons ago, I was going to get a business loan thru the SBA. Dang......they wanted alot of planning.....lots of paperwork......and the interest wasn't any less than any bank. Maybe they have changed.....don't know. Let us know how it goes........
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What a waste of time and effort. I checked into a loan to buy a coffee kioske in January. I wrote up my business plan and went to the bank. They didn't go for it because it was considered a high risk business, along with restraunts, bars, new businesses and such. I went to the SBA 2 weeks waiting for the appt. Rep shows up late and goes into this speil about the wonderful intercity program that I should qualify for,because of the location of the business. She was amazed that, I had a business plan in hand. She explains that the program lends money at reasonable rates and that their monthly review of applications is due shortly. The program is Gov funded but also generates revenue from the interest on loans. She call the admistrator of the program from the next office. Dig this, The guy comes in and states that the program doesn't have 30 grand to lend. Maybe 5000 at the most right now and no more fed funding until Sept. I'm thinking I was discriminated against, and the rep starts talking about Partner Banks and tries to send me back to the same bank and loan officer that rejected my original loan app to apply for a "LOW DOC" loan. My wife stormed out the office and I only took enough time to get my paperwork.
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Troy, I got a S.B.A. loan before....The trick is find a loaning institute that will fill the papers out for you! They are out there. Most don't want to make small loans, less than $250,000. Every year they look at your books. They want you to say that you will hire 1 person for every $30,000 they loan. Your first projected business plan is what they go by. So if you expect to do 20% more, that is the figure the will go by, to the penny. Its really easy if you let there loan officers do the work, thats what they get paid for. I'm glad not to have the government as a partner any more. Also the main reason for them giving you a loan is to create employment, so make shur you say that in your application. Been there, done that, don't care for that anymore.....John Arnott
------------------ John Arnott El Cajon CA 619 444-SIGN signgraphics1@aol.com
Posts: 1443 | From: El Cajon CA usa | Registered: Dec 1998
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Went through the SBA bs about six years ago now..I went to the bank with a complete business plan, cash flow projections, marketing plan..they said I needed to go to the Small Business Development Center so my business plan and such could be "verified" by a counselor..so I did..after nine months of telling this guy where to go to find information on the sign industry I finally get a package no different then what I had originally given him..(in the meantime a new sign shop was opened near by, ironically by a guy who moved from the same town my counselor came from??). Anyway back to the bank, they reveiwed my plan and noticed that it wasn't any different than what I had given them originally. I was turned down by three banks, one gave me six months and the other two a year before I would be bankrupt..needless to say they didn't loan me any money so I sold my Harley and cashed in my 401 and here I am 6 years later going strong. Now they all want to loan me money.
Dave
------------------ Ace of Signs Selinsgrove, Pa. www.aceofsigns.com
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I have to agree with everyone else here. I did use them 9 years ago and believe me I was never so happy as the day I paid it off. Between the paperwork and extra charges that I had to pay CPA's for reports I spent most of the time keeping them happy. The ridiculous thing was the reports that I had to pay a CPA to do were simple balance sheets, Accounts Rec., etc. Along with that a customer list every 3 mos. They also would not allow me to keep any of the loan money for working capital and I had to summit invoices or purchase orders for the money to be released with a deadline for when I had to spend it. Needless to say I opened this place nine years ago,extremely in debt, no money in the bank, no customers and loan payment along with everything else due in 30 days. I will have to be at my resort before I consider using them again.
------------------ Bob Cook Signs of the Time 977 5th. Ave. New Kensington, PA. 15068 (724) 335-3133
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The SBA doesn't loan money, it guarantees the loans made by partner banks. Like all things, some banks talk about making SBA loans and other banks make SBA loans. Ask around at places like the Chamber to get the buzz on who is good at SBA loans in your area. Somebody will know. The good banks do a lot of hand-holding to help you through the process. You still do all the work.
Those of you who don't like written business plans and people looking over your shoulder need not apply. Vic G
------------------ Victor Georgiou AnchorBlanks.com Jack Wills Clipart CD's Designs Cut to Any Size Serving the Trade Only
Posts: 1746 | From: Danville, CA , USA | Registered: Dec 1998
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