SBA Loan for a National Franchise Restaurant
by SBAhelpneeded, Window Shopper
- Created: August 10, 2011, 9:53 pm
I'm trying to get a SBA loan for a national fast food restaurant. The bank is asking for 50% cash of total loan up front, and the rest will be a loan, which will require a real estate or cash collateral.I said that's a bit steep because the government is guaranteeing the loan, and I have to put up 50% cash up front and the rest will be tied in personal property/asset. The banker stated that this is standard with restaurants (and sadly, according to the banker, they don't really distinguish the risk between a Joe's Hamburger Shack, and let's say a Burger King-ex of national franchise) because of the risk involved, but then what business doesn't involve risk. Would a used car dealership have less risk than a national franchise restaurant?Is this the standard with most banks to require 50% cash down and 50% loan? Or are there other banks that will require less?Thanks in advance.
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