|LA Restaurant Loan
Running and growing your restaurant requires capital | Are you looking into loans or financing | City Capital Realty offers the best loans for restaurants to support your business
When you need Quick Financing to Grow Your Business Call us! 310-714-5616
City Capital Realty
SBA Loan pre-qualifications
Lets us pre-qualify your clients for purchasing business or commercial real estate property. Tell us about business type, location, years in business, experience, purchase price, down payments, income and expenses, and borrower credit worthiness, Then we will issue a letter of interest.
SBA Loan For Franchise Fast Food Restaurant
SBA Loan up to $5,000,000
SBA Loan Eligibility:
9 Things to Know Before Applying for a Restaurant SBA Loan in Southern California
Loans for restaurant owners are the SBA's largest type of approved business loan. They are more than willing to provide financing for you to start your business. You just need to have all your affairs in order to make it easy for them to want to invest in you. Bring all your important documents with you. Know your key selling points and what makes your restaurant unique. Most importantly, be prepared to talk, talk, talk and answer any and all questions that come up.
1. Prepare Your Financial Documents
Have all financial statements in order and ready to present.
2. Make Sure You Have Relevant Business Experience
The SBA Loan Program requires you to have some business know-how directly related to your industry. If you don't have directly relevant business experience, consider postponing your plans for a few years.
3. Check Your Credit History
In general, your credit score should be above 650 – 670 . Your spouse's credit history will also be checked. To avoid surprises, get a credit report before you get started .
4. Have Cash On Hand
Banks will want you to have 25-35% of the loan amount already in liquid cash. (This can go as high as 40%). The more cash you put up, the greater the loan amount you're eligible to get.
5. Be Prepared to Take Out a Home Mortgage
It's not ideal, but a lot of banks will require you to take out a second mortgage on your home.
6. Have a Business Plan
Your business plan is the most important element of your proposal. Even if it takes a few months longer to open your restaurant, invest the time in making your business plan as comprehensive as it can be.
7. Be Honest
The amount of paperwork required for applying for an SBA loan is phenomenal. It can be easy to skim and just check off boxes systematically . Read everything carefully and You will also be asked about your criminal history - If it's just a misdemeanor or traffic offense, you'll have the chance to explain it in your interview.
8. Make a List of Your Preferred Banks
Even though the SBA loan is ultimately guaranteeing the loan, it's the banks that are putting up the money. Do your research and find local banks with a history of granting loans to restaurants - no need to waste your time approaching bank that don't lend restaurant loans.
9. Back to Basics
When you're appearing for a SBA loan appraisal meeting, presentation is very important. Be on time and look professional.
Expenses to Consider Before you open restaurants
Before you try to convince a lender to go forward with your proposal, be sure to have some numbers in mind. Any personal funds you invest, together with the loan you're applying for will need to cover the following costs:
Loan guarantee fee – Percent of the loan amount guaranteed to be paid to the lender, in order to protect the lender, if the recipient is unable to fully repay the loan. The percentage is about 3% plus appraisal, documentation.
Shawn Rabban 310-714-5616
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