Small Business Start up Loan, Loan less than $35K Options

[junrhockey]

I am wanting to open up a small indoor sports complex. It will have some batting cages, 18 hole Miniature golf and an Inline rink. I am only needing to borrow about $30k. My credit score is around a 600. What should I do, were should I start??

[loanuniverse]

The credit score will be a problem as some people will consider a 600 score as being either inadequate or marginal at best.

At this level of borrowing and considering the start up nature of the deal, you are probably going to have to go with some kind of Government guarantee {think SBA} or a local Government program.

The first step would be to put together a business plan. I have a business plan tutorial somewhere in the site, but there are other resources in the internet that are more complete in this area.

Good luck.

[junrhockey]

Thanks L.U.

[Commercial Lender]

Yep! As admin reco-ed, an Sba loan would most likely be the best option.

[Hard-Money-Lenders]

I worked for a company much like what you're talking about and we had a very hard time getting an SBA loan - they are drastically underfunded under the current administration - things may ease up after the new year (depending on who holds office and whether they stick to their promises).

I would consider some other options, like private bank loans, private investor loans & financing on real estate - if you have it.

We ended up funding our own company through growth, but a trip to the local SBA offices in Seattle was very helpful - I would advise you to talk directly to them first - it's free and they'll let you know immediatly if you have any shot at it and if you do, which banks are most likely to help you out!

Best of luck.

[Commercial Lender]

As “Hard-Money-Lenders” points out, getting an SBA loan, although possible is not the easiest thing. You will have to provide financials and perhaps even a business plan. Expansion or growth funds for small business are obtainable (if a personal guarantee is provided of course). BTW one of the most underutilized source of funds are little know economic cooperatives and town/county revitalization programs sponsored by individual states that either funnel federal and or state funds. We have used some of these programs as secondary financing (with them having a 2nd lien) for restaurant and business purchases in NY, CT and FL.

Be sure to check with your local SBA or county executive’s office about ant programs for local businesses.