SBA7a startup loan with 800+ credit and 35k cash in the bank but low income.

 

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SBA7a startup loan with 800+ credit and 35k cash in the bank but low income.

I’m in the process of starting up a drive thru coffee & cronut business. A cronut is a croissant donut that even Paula Dean would say is too much butter and sugar. I’ve been researching SBA loans and have a question about the likelihood of getting approved and the amount I could qualify for.

From what I’ve read the SBA 7a loan is the one that is best suited for me and that the 7a loan requires a 10% equity injection on the part of the loan recipient.

I have zero debt, 800+ credit score, 35k in the bank, minimal bills (rent, utilities, car insurance, cell phone come out to about $800 total), and have two credit cards with available credit of $35k total between the two of them. The only downside is that for the past couple years my income has been low ($15k or so).

Does getting approved for a $150k loan sound feasible with the financial details I have provided about myself?

SBA7a startup loan with 800+ credit and 35k cash in the bank but low income.

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8 Replies to “SBA7a startup loan with 800+ credit and 35k cash in the bank but low income.”

  1. You should be asking this question to a commercial lender, their answer is the only one that matters.

    However, based on my experiences, I’d lean towards “feasible”

  2. You should be asking this question to a commercial lender, their answer is the only one that matters.

    However, based on my experiences, I’d lean towards “feasible”

  3. Apply with many banks. Some specialize in restaurants, some won’t do them at all. Don’t just stick to your own bank. I have applied to as many as 20 to get loans done before and someone has always said yes!

  4. I have a $150k loan over 30-ish years and the monthly payment is $750-ish. Does that sound like you can handle it?

  5. I don’t want to discourage you but loans for brand new businesses are pretty hard to come by from banks or even the Sba. We struggled our first year or two and looked a lot of places for help but we weren’t given any opportunities.

  6. Commercial lender here. Do you own a home and are you comfortable with putting a second mortgage on it?

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