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Old 01-15-2008, 05:50 PM
232 posts, read 1,633,318 times
Reputation: 192


Someone with a little knowledge give me some insight please.

I want to open a service business, particularly a security company. I've written what I believe to be a fairly sound business plan and need to be creative with my financing. The business operation requires a relatively low amount of startup money. I plan to do some of the work myself, but want to know how certain items fit into SBA loans.

1. Salary and Payroll - Can I finance any of this into an sba loan?
2. Startup Expenses - I'm looking at somewhere in the range of 5-10k. Office costs, vehicle expenditures, insurance, marketing. (Will SBA loans even finance these items?)

I've read the SBA website, but does anyone have any experience with borrowing an sba backed loan? Can you please tell me a little bit about your experience?
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Old 05-21-2008, 01:23 PM
Location: Queens, NY
51 posts, read 138,464 times
Reputation: 30
We are considering starting a biz too- so I'd would like to get this post back up to the top of the board.


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Old 05-21-2008, 08:55 PM
Location: Boise, ID
1,356 posts, read 5,661,482 times
Reputation: 914
Since no one else is responding, I'll take a crack at it...

I can't speak to starting a business with an SBA loan or about a service business.

My partner and I purchased a manufacturing company with an SBA loan about 4.5 years ago. We are in the process of building a new custom warehouse and are using SBA for the construction and financing.

One thing about SBA is that they don't lend directly, at least to the best of my knowledge. They loan through local banks. The best thing you can do to get started is to find an SBA Preferred Lender in your area and schedule a time to go in and talk with them. The loan is actually done through the bank but guaranteed by SBA. (SBA is a self-funding government program.) I am pretty sure they allow you to work start-up cash flow and other expenses into the loan.

SBA will want a business plan and will expect you to have some money into the project. In our case we had 25% down on the business acquisition and we will have 10% down on the warehouse. They also are looking for some collateral to secure the loan. It also helps to have some experience or expertise in the area you will be working in.

Hope that helps. Best of luck to you!
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Old 05-23-2008, 11:12 AM
Location: When the people find that they can vote themselves money, that will herald the end of the republic
1,089 posts, read 1,891,767 times
Reputation: 948
When you are ready to get a SBA loan - contact CIT Group -

They are #1 in issuing SBA Loans in USA being the biggest commercial

finance company. Good Luck
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