Jump to content

Starting the loan process - our mileage so far


Recommended Posts

Having learned a great deal from this forum, I wanted to share some initial observations as we're in the funding process right now with our distillery. We've one confirmed investor and are pursuing 1-2 additional.

Beyond equity investment and self-funding, we're looking to secure an SBA loan or startup line of credit.

From community banks, here's the heads up to begin discussion on loan qualification:

*Direct Industry Experience.

*Business & Marketing Plan.

*Three years of financial projections with assumptions.

*20% capital contribution to the total project cost.

*Collateralization on a 1:1 basis after discounting.

*Credit score of 700 or better on all principle owners.

Your mileage may vary but I hope this is helpful to those of you who are just beginning the business plan development. These are important baseline assumptions to prove out and best to know upfront what will be required of you.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...