Who all has gotten a small business loan?

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dubs chops

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Just curious as to where you went for it and what the interest rates were that was agreed upon, I know all this info fluctuates I am just trying to get a feel for what all is coming my way if I start this process.

Thanks,

BW
 

soonerwings

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Not to "thread jack" but I'd be extremely interested to know if anyone here has gotten one of the "patriot express" small business loans guaranteed by the SBA.

As for the original post, www.score.org has free business plan templates (and other useful info) if you want to go to the bank prepared when you're asking for the loan.
 

JB Books

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I was approved for a good sized one to buy a building. I haven't done it yet, but it works like this, if I remember correctly, I put down 10%, the SBA loans me 50%, and my bank carries the other 40%. The interest rate was good.
 

soonersfan

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I was approved for a good sized one to buy a building. I haven't done it yet, but it works like this, if I remember correctly, I put down 10%, the SBA loans me 50%, and my bank carries the other 40%. The interest rate was good.
JB, I think you are referring to an SBA 504 loan. I assume you were going to run a business out of the building because they are not intended for investment property. 504 loans generally have prepayment penalties but they will allow you to lock the rate for 5 years typically and rates are low now. In five years when you have to adjust, who knows? 504s can also be done on a 20 yr. amm. Banks like these loans because they have the first mortgage. If the business goes south and the assets have to be sold, the bank gets their money before the .gov.

The 7a is another SBA loan. These loans are made totally by the bank but receive a 75% to 90% guarantee by the government. They are generally on no more than a 10 yr amm. There is also more flexibility on what these loans can be used for but still no investment property.

The downside to both loans is there are some fees involved, they will take a lien out on every asset you already own and the process for getting approved can be long and painful. If you can find another alternative with a good rate, take it. However, sba loans are meant for small businesses with no history or that can be viewed as risky. Without the backing of the sba, banks would never make these kinds of loans at reasonable rates. You can learn more about them by searching the web. Last I checked Bancfirst was the number 1 sba lender in the state but there are a bunch of banks out there who make these loans. They are a really good deal for the bank (and the borrower if the business survives).
 
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JB Books

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Yes it was for an office building for my firm. I'm not sure I want to buy a building, and if I did, I'd rather just finance it through the bank. Truth is if I hit the right cases, I am retiring.
 

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