Starting business via SBA loan advice (updated-sorry bout that)

The SBA loan covers property and startup costs. No inventory. But our costs will be approximately 400k but they need 20% down. I just don’t have the 80-100k to put down to get approved

Investor. Don't let the bank talk you in to not doing SBA. If things go south it won't sink you ( bot as bad at least)

I can front you 100k

Let’s talk about points

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And I don’t have 100k lying around.

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What are the options here

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u want a single or multiple investors?

what type of business? where? numbers?

depending on where you live there may be angel investor opportunity via a broker or entrepreneur incubator. Or you could borrow from a family member. Or you could sell all your shite

100k ain’t gonna fall in your lap you’ll have to go find it

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As a banker once said “we believe in your dream , do you” find the money…save make it happen….can you do 50k? If not probably a good sign to take a step back and reevaluate

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This. If you don’t have $100k OP you shouldn’t be loaning $500k for a business. Far and away the biggest killer of small businesses is the lack of operating capital the first year. If you have to borrow close to 100% just to open then staying open is going to be even harder. You need to sell everything you have, save, and work 2 jobs until you can get more capital.

Also, SBA loans can be good but they should also often be looked at as a last resort. The SBA will loan to you when traditional options aren’t available, and that’s usually for a reason. You are likely going too risky.

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BayouBengal23

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since you never returned you just made all that shite up didn't you?

- If you purchase property you can amortize for 20 years instead of 8

- If its not too late, encumber your personal investments/properties to avoid leins/personal guarantees

- Investor(s) are a good idea. With investors, you can open multiple LLCs with no cap on borrowing limits. At least in the 2000-aughts it was like this

- If purchasing an existing property/business, you can use the terms on your purchase agreement to significantly lower your down payment. I/we did this multiple times. We put less than 5% down on a pad in Cheyenne, WY with the seller "gifting" us much of the down payment. I don't recall how it was worded in the purchase agreement, but that's how it worked out.

My/our business plan was to open QSRs (quick serve restaurants) with property w/ 20 year SBA loans for each LLC, which were usually stand-alone pads. Then, sell the QSRs and keep the properties. We got to 9 QSR's and accompanying properties and sold the QSRs. Were were only about half a successful as we anticipated because 2007-08 crash happened. We were very undercapitalized for what we were doing so it was stressful making things work. We had business LOCs with three different banks totaling about $750k and had the good sense to park it in business accounts when the market started going sideways. This bought us the time we needed. Otherwise I might be panhandling under a bridge somewhere. In the end it worked out well.