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City Capital Realty
Shawn Rabban

310-714-5616

2355 Westwood Blvd Suite 258 Los Angeles
California 90064 USA

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  • Subway
  • McDonald’s
  • Taco Bell
  • El Pollo Loco
  • Jack in the box
  • Carl’s JR
  • Pizza man
  • Baja Fresh
  • Burger king
  • KFC
  • Quiznos
  • Yoshinoya
  • Domino’s Pizza
  • Little caecars
  • Arbys
  • Pizza Hut
  • Sizzler
  • Panda Express
  • Wendy’s
  • Big Boy
  • Boston Market
  • Carrows

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

  • Loan Amount: $5,000,000 max
  • Down Payment: 25-35%
  • Term: 10 years
  • Rate: Prime rate plus margin
  • DCR: 1.15
  • Pre-pay: None
  • Standard one time SBA guarantee fee

SBA Loan Eligibility:

  • 100% Owner-Occupied
  • Some restrictions may apply
  • Rates fees are subject to change
  • Appraisal
  • Recourse loan
  • Personal guarantee
  • SBA loan qualification requires  owner to be U.S.citizens or permanent resident
  • Franchised restaurants must be listed on the SBA franchise registry

Requirements:

  • Three years tax return on principal owners
  • Personal financial statements
  • Three years business tax returns
  • Business financial statements
  • Evidence of source of down payment
  • Lease Agreement
  • Credit check
  • Loan application
  • Franchise agreement
  • Borrower’s resume
  • Business plan
  • Certified escrow instruction
  • Equipment list - inventory list
  • History of business

9 Things to Know Before Applying for a Restaurant SBA Loan in Southern California

Resturant Loan Check ListLoans 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.
Here are something to know about the SBA loan process:

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

Expensex to consider before opening a resturant businessBefore 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.
Loan repayment plus interest – Money paid at a regular percent rate for the use of money lent; interest rates are typically negotiated between the lender and the loan recipient. The interest rate is based on Wall Street prime rate.
Commercial lease – Cost per month to rent the space in which you plan to open your restaurant plus CAM charges.
Restaurant insurance – Coverage that protects your restaurant from losses that may occur during the normal course of business, including property damage, accidents and injuries, crime, and workers’ compensation.
License fees – Specific licenses and fees will vary depending on your location, but common licenses include Food Service Establishment Permits, Liquor Licenses, and general business licenses.
Staff wages and benefits – Mandatory wages for tipped employees differ throughout the United States (you can find a state-by-state breakdown of tipped employee wage requirements here). Non-tipped employees must be paid at least the state minimum wage, but their wages are ultimately at your discretion as the restaurant owner.
Renovations – Your space may just need a new coat of paint or it may need to be completely outfitted with proper gas, water, and electrical lines. Do your homework to find out what is required of a restaurant in your area and properly budget those costs.
Kitchen equipment – Make kitchen equipment one of the first items negotiated in your meeting to ensure the costs are covered, just in case you are not approved for the amount you originally planned. The cost to outfit a new commercial kitchen is $150,000 to $300,000 or may be more.
Beginning stock and inventory – It’s easy to get caught up in all the money talk and forget that to open a restaurant, you actually need food to serve your customers! In addition to food stock, you’ll need dishes, flatware, serving utensils, furniture and linens
Working capital – You must have some money put back to cover operating costs while your restaurant has more expenses than income. Working capital is the amount of money it takes to keep the restaurant running on a daily basis. Ideally, you will budget 10 – 12 months of operating costs to tide you over until the restaurant becomes profitable
Marketing capital – Much advertising for a new restaurant happens by word of mouth. If you choose, however, to fund a marketing campaign to get the word out, be sure to account for those costs in your total loan request

Shawn Rabban 310-714-5616