News / Business
SBA Loan Broker Recently Facilitated a Loan for $1.8 million
Saving a Car Dealership in the Recession
San Diego, CA - Regardless of the recession and the re-building of the car industry in the United States, a deal finds its way to funding thanks to the experience and creativity of veteran SBA Loan Broker, Craig G. Francis.
This project is a good example of what can be accomplished by understanding the needs of both the banks and the entrepreneurs.
Some of the elements that go into a loan like this are:
1. Property: Equity, often to referred to as "Skin in the Game."
2. Cash-Flow and a Plan: Banks are looking for a history of cash-flow that has the ability to improve.
3. Partners with Great Credit: One or more partners must have good if not great credit.
Even with all this in place there still had to be an introduction and review process by the banks in order to approve the deal. After jumping through all those hoops, the benefits for the entrepreneurs regarding an actual SBA loan look like this: Repayment of the $1.8 million over 25 years at a 6% rate. The loan was used to refinance a real estate note due from a local bank as well as an auto flooring line of credit that was being called by the lender. It literally saved the business and its investment in the owner-user property. Those are fairly strong motivations to do the work.
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