Violetsexoticcandles Posted January 2, 2008 Share Posted January 2, 2008 Does anyone know about dealing with the SBA, especially the financial part? I'm seriously considering opening my own shop and need some advice on where to start, etc. I've been doing this for nearly 2 years but don't know the first thing about going 'official.'Thanks in advance!Violet Quote Link to comment Share on other sites More sharing options...
TxSioux Posted January 2, 2008 Share Posted January 2, 2008 I know a couple women who have gone the SBA route, but the paperwork was a hair-pulling nightmare, from their accounts. If you go to a local bookstore or google, there are step-by-step books to get through the process. From what I've heard, I'd highly recommend it. Seems like most cities have a SBA office to answer questions.Good luck -- Susan. Quote Link to comment Share on other sites More sharing options...
artcwolf Posted January 2, 2008 Share Posted January 2, 2008 I know a couple women who have gone the SBA route, but the paperwork was a hair-pulling nightmare, from their accounts. If you go to a local bookstore or google, there are step-by-step books to get through the process. From what I've heard, I'd highly recommend it. Seems like most cities have a SBA office to answer questions.Good luck -- Susan.DW went with business plan in hand and all kinds of other stuff when we were looking for startup money to open our store and she came home with less hair... Quote Link to comment Share on other sites More sharing options...
Violetsexoticcandles Posted January 2, 2008 Author Share Posted January 2, 2008 Thanks, Susan.Yes, just from browsing the site, it looks like a paperwork nightmare. A book would be helpful. Any recommendations? Quote Link to comment Share on other sites More sharing options...
Violetsexoticcandles Posted January 2, 2008 Author Share Posted January 2, 2008 DW went with business plan in hand and all kinds of other stuff when we were looking for startup money to open our store and she came home with less hair...Did you get help? Was it worth going that route? Quote Link to comment Share on other sites More sharing options...
barncat Posted January 2, 2008 Share Posted January 2, 2008 Check with the town's Chamber of Commerce or Local Economic Group for funding assistance. Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted January 2, 2008 Share Posted January 2, 2008 Here's a link to the SBA site that details some of the paperwork that will be required for the SBA to consider funding. If you look through the site you will find links to banks in your area that participate in the SBA program.http://www.sba.gov/smallbusinessplanner/start/financestartup/serv_basicreq.html Quote Link to comment Share on other sites More sharing options...
LisaW Posted January 2, 2008 Share Posted January 2, 2008 Your best bet is to go to the Service Corp of Retired Executives (SCORE). Their website is www.score.org. They work directly with the SBA. They have free counseling and plenty of courses to keep you on track. They also have a course on writing a business plan and will help you write one. They also have email mentoring and will match you with someone who has been in the same business as you are in. Can't say enough great things about them. It's a great program. (they may advise against getting an SBA loan as you pay higher interest with this type of loan, most people don't know that). Quote Link to comment Share on other sites More sharing options...
Di_in_AZ Posted January 2, 2008 Share Posted January 2, 2008 Most community colleges have the SBDC--Small Business Development Centers. They are part of the SBA and offer counseling and classes most for free, some just to cover costs of materials. I have used them extensively in the past and they are great. I would wholeheartedly recommend them. Quote Link to comment Share on other sites More sharing options...
HeavenScentU Posted January 2, 2008 Share Posted January 2, 2008 The SBA is willing to help but you better have the collateral/assets to back up just incase your business closes. Then they will take your liquid assets. I have filled out the paperwork, went to the banks the sba recommends etc. With excellent credit, no debt just the mortgage. Came home and waited for the call that I didn't get the loan, because I didn't have enough liquid assets. I had $40,000.00 in savings and I was only borrowing $25,000.00 and the banks said it wasn't enough and my business plan went through the ringer big time. They marked it up and asked so many questions I was ready to run away, but everyone kept telling to stick to my guns. I did and stayed on top of it, but the banks all kept saying NO.... The sba will only help you if you exhaust all your options of getting a loan on your own and can't. Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted January 2, 2008 Share Posted January 2, 2008 I'm glad you made your post HeavenScentU. In my previous post I started to say something about having to sign your life away and be willing to use your home as collateral because they don't want to take any chances on having to pay off your loan if you default.I'm not trying to discourage anyone from considering SBA loans, but I think there is a common misconception some people have that all you have to do is sign your name on the dotted line and the SBA will hand out free money.Obviously, it's not impossible to get an SBA loan, but there are conditions that make it very hard, such as not having enough collateral to secure the loan, or having a sketchy credit history.You will probably have an easier time getting a business loan through a credit card company than you will the SBA. They don't require the documentation, and if you're credit is good your signature will do. Of course you will pay higher interest rates, but you won't have to jump through all the hoops.Your best bet will be to attend some of the workshops they have to learn more about the ins and outs before you get started.Also, depending where you are located, there may be special grants and financing available if your business is located in a rural area. Check with your county or city officials about business development in the area to find out what local financing options may be available. Quote Link to comment Share on other sites More sharing options...
HeavenScentU Posted January 2, 2008 Share Posted January 2, 2008 It's not impossible to get an sba loan, but persistence and having a cash flow with good credit are a plus. I only tried 2 banks and looked at another way to start my business. I hear so many people think it is so easy to start a business, if it was then everyone would have their own business on every corner. I know alot of women that start businesses use their hubby's income to supplement their business until it starts to see a profit. I had no idea until I spoke with alot of women that owned and operated their own businesses and were being financed by hubby. I have learned so much from women that were closing their businesses because they had to sell everything and are always willing to talk. Men aren't, must be an ego thing. Quote Link to comment Share on other sites More sharing options...
Violetsexoticcandles Posted January 3, 2008 Author Share Posted January 3, 2008 Thanks guys, you've all given me some things to consider. I am going to do research and see if it's worth the effort. I have no collateral and my credit is 'so-so' (divorce does that, lol). So it may be a better option for me to try and get an online presence and work on advertising than to try to open a shop right now. We'll see.Thanks again! Violet Quote Link to comment Share on other sites More sharing options...
LisaW Posted January 3, 2008 Share Posted January 3, 2008 Hope this will give you a little encouragement. I started almost 5 years ago and did 25k in sales this year. I've NEVER borrowed a penny and have built the business from the ground up with a $500 personal investment. We actually turned a profit this year for the first time. We're starting wholesale shows this year to further build the business. It is possible to build a business without borrowing. It does take longer and more hard work, but way more satisfying and I don't have a loan payment to make. Hope that helps. Quote Link to comment Share on other sites More sharing options...
artcwolf Posted January 3, 2008 Share Posted January 3, 2008 Did you get help? Was it worth going that route?It was and wasn't worth the frustration, They did tear apart the business plan, and said we need demographics, and that at the moment is all we are missing Sadly because we don't have the assests we aren't able to go any farther. Quote Link to comment Share on other sites More sharing options...
barncat Posted January 3, 2008 Share Posted January 3, 2008 I've been turned down for an SBA 6 times now. I had a yes on one, then was told never mind. Got a yes on another one, then banks got bought out, and then turned into a no. I have one now I am working with that says try again in 6 mos, well I am waiting another year. No one wants to loan to anyone right now. Then again, we are asking for 350K. Which sucks is, we have our local EDC willing to loan 1/2, I need to find the other half, but the bank now wants the whole loan. So here I am waiting....Best option is to ask around. I went to my bank..only to learn that they are anti-business, according to several business owners in the area. Defiantely go to some SBA seminars and network..it will get you a lot faster through the door. Quote Link to comment Share on other sites More sharing options...
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