# HELP!! has anyone ever gotton a SBA loan for startup??



## abbey5353 (Nov 21, 2007)

I would like to know if any of the forum persons ever gottona Small Business Loan from the (SBA) to start up your business? my two girlfriends and I are trying to find people who are willing to lend small business startup loans to start our t-shirt line. Any advise will be greatly appreciated. We are in Orlando FL.


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## Comin'OutSwingin (Oct 28, 2005)

abbey5353 said:


> *Any* advise will be greatly appreciated.


Ok, you asked.  

Don't. I don't do debt. No borrowing money. *ESPECIALLY* with other people!

When you consider the fact that most businesses fail within the first year, you're entering a field that you have minimal knowledge about, AND you would be borrowing money with other people, this sounds like a disaster in the making.

Like I said, I don't borrow money. Not for business, not for personal use. Since there's 3 of you, I would suggest doing as much pooling together of resources as possible. If you have "regular" jobs, try for some OT. Maybe an extra part-time job. 

Splitting the costs of everything between the three of you, shouldn't be that bad. It would be a lot easier than trying to cover the debts of others if/when they bail on the business, or the business doesn't make it for some reason.

Focus on learning about the business and what exactly it is you want to accomplish. Write out a business plan to help you stay focused and see what your goals are. It will also help with understanding how much money you need, and what you need it for.

Sorry, may not be what you wanted to hear, but I stay clear of debt in every form and since I stay away from it, I can't advise someone to do it either. 

Someone else may by able to help you on that end, if that's what you decide you want to do.


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## Matto (Sep 28, 2007)

I have to agree with C.O.S. money kills friendships and debt kills profits. Save and pay cash that way if it doesnt work out you dont owe anything to anyone and can recoup something in the equipment. I have done the business loan thing in the past and it was only after the business was already up and going and making money. We used it for supply capitol not new equipment so the money was always replennished and available for payback if needed.


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## Shuffy (Sep 3, 2005)

a year go this pass Sept --- 1/3 of the market I have my shop burnt down --- my shop was about 200 feet from the firewall . . 
the fire didn't hurt my inventory BUT it did hurt me economically . . the SBA in Floida offered small Biz loans w/ 3% interet rate . . I was able to get the loan then due to the fire . . . and I was going too . . . BUT . . when it came to the paperwork . . . HOLY MOLY!! . . . forget it . . . they wanted to know to much of my personal business . . . right down to who is the father of my 1st born . . . 
so I filed the paperwork . . uuummm in the trash can after it was shred'd

now over a year later . . . it's just not the market place where I have my shop . . every small business is economically hurting . . . 
and I believe this year even WallyWorld is hurting . . . .

coming home from the shop yesterday -- the mall parking lot and Wally World's parking lot barely had any vehicle there . . . not many shoppers are out and about . . ;o(


Diane


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## charles95405 (Feb 1, 2007)

I would agree with the others..Avoid going into debt at this time and the way the economy is. I also am not a fan of partnerships with friends. Over the years I have seen too many friendships go down the drain.

If you really want to try this busines ( and it is not a sure fire way to get rich) save your money and start out with a computer printer and a heat press. Out source your images or do on your printer. You can be in business for less than $1000. Take your time to grow and that will let you sleep well at night


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## badalou (Mar 19, 2006)

You borrow, you pay. No business you still pay. This is the wrong road. I know people that have a desire to go into business.. and what does that mean (soon to be in my book) Sit down with your friends and outline what the business is you want to get into is.. and if you say the tee shirt business I will scream.. LOL.. What I mean by this.. there are so many ways to be in the tee shirt business. All of us here areat least 95% are in the "Industry" is some way. I do plastisol transfer printing, ink jet printing, stock transfer printing, Apparel vinyl printing. I do not have a store. I have several websites but they are more of information sites for my clients. Do you want to open a brick and mortar store? Do you want a website store? Do you have designs? Do you have equipment. Do you have software? I am sure some of my friends here will add to this list.. I hate to see people go about getting into any business and borrow money, especially with "Partners" and I could tell you my horror story on that.. Best friends.. not when it comes to money. Do you have a business background.. Do you have retail background? You see a lot of questions.. and guess what the people that will loan you money will be asking the same questions.. You can get a lot of answers here.. you may need to ask specif questions.. A t-shirt line? Do you know how many here are doing that.. and many started small.. and never borrowed a dime.. Understand this Erica.. I want to see you succeed in your quest. I love owning my own businesses and I have 4. I never borrowed a dime.. me I made tote bags and sold them on ebay.. but that was a long time ago.. but it got me started.. Find another road.. you will be happier in the end.. Lou


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## abbey5353 (Nov 21, 2007)

Thanks everyone for the advise, I think my friends and I will save up and put our own money in, or we might start with a new business start up kit and go from there. Thanks again.


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## mothertongues (Aug 8, 2005)

In my previous life I worked for a small engineering consulting firm. We did way over $1 million a year (between 6 of us, plus a few consultants), but never got a SBA loan, even with numerous tries. Lots of paperwork, lots of hassle. I agree with previous posts, just start small and see where it takes you, with no debt.


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## abbey5353 (Nov 21, 2007)

Thank you michelle, that is esactly what we are going to do.


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## billm75 (Feb 15, 2007)

Comin'OutSwingin said:


> Ok, you asked.
> 
> Don't. I don't do debt. No borrowing money. *ESPECIALLY* with other people!
> 
> ...


 
Greg, that's incredibly admirable that you are able to manage without taking out loans. I agree 100% in the startup phases.

HOWEVER, if you get to a point where expansion is needed in a hurry, and you're doing alright financially, then it may come down to taking a loan to help with these necessities.


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## Comin'OutSwingin (Oct 28, 2005)

billm75 said:


> HOWEVER, if you get to a point where expansion is needed in a hurry, and you're doing alright financially, then it may come down to taking a loan to help with these necessities.


For me, there is no "HOWEVER". 

It's all done with no debt, or it's just not done.

Maybe you've heard of Dave Ramsey (or maybe not ), but I use his tactics in my personal life, and in all my business dealings.

Dave doesn't just talk no debt, he lives no debt. I've met him several times, and have been listening to his radio show and using his tacticts for about 12 years now.

What you suggest is what many of Dave's employees has said many times along the way. He's built a multi-million dollar company, starting from nothing, and never borrowed a penny for anything along the way.

Well, I just don't believe debt to be a necessity. So, if debt is the only way to get certain things, then oh well. We'll just have to do without whatever is until we can afford to pay cash for it.

But, the good part about not having any debt, is that it's MUCH easier to save for what you need. Pretty soon, you don't have to save for what you need, you find that you just have it, because you haven't had to pay for DEBT!


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## billm75 (Feb 15, 2007)

No, I agree that what you're saying and living by are perfectly great ways to do business. I won't begrudge you that.

I only mention the HOWEVER portion because there are a small percentage of people whose businesses take off and the ONLY way to expand to meed demand is to take on a biz loan. 

I'm personally willing to risk the debt at THAT point, not starting out, but at the point where my growth depends on it. If the expansion will allow me to pay off that loan in less than a year, then it's MORE than worth the risk.


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## Comin'OutSwingin (Oct 28, 2005)

And I understand what you're saying, as well.

I just don't borrow, NO MATTER THE CIRCUMSTANCES.

I know that my business could be MUCH further along than what it is now, if I borrowed money for certain things. I don't care if I could pay it off in 6 months, or 3 months. There's just no way I do debt.

People have different goals, and that's ok. One of my goals is to make my business extremely successful. Part of being successful for me, is doing it with no debt. So, if I borrow money, I'm letting myself down. Because that's MY goal.

I believe enough in what I'm doing, that I can take things slow, do it without debt, and believe that my company will eventually get to where I want it to be.

Like I said, no problem with your viewpoint, I just see it a little differently. That's all.


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## abbey5353 (Nov 21, 2007)

Greg thanks for the encouragement and the advise, I will surely get a copy of Dave Ramsey book and read it, because my real desire is not to borrow any money but to do it debt free, but my friends and I have really good ideas and sometimes we think that if we delay someone else will come up with the idea, but we will definately try the debt free way. Thanks again. Do you all think that the Business start up kit by Boo-Z Warehouse is a good way to start.


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## badalou (Mar 19, 2006)

This isn't about borrowing money for expansion. If you Had a business and it needed expansion and you did a proforma and it showed that it was worth it then fine. This is about these young ladies borrowing money to starting a business. From Erica's answer above they have now done the first right business decision.


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## TripleT (Apr 29, 2007)

Erica, there's no way to know if the Boo-Z start-up kit will be good for you, unless you give a brief description of what you're planning to do (ie: you're selling 100% cotton t-shirts at discount prices on the Internet vs. you're selling high-end merchandise to boutiques, etc.)


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## karlking85 (Sep 26, 2007)

I agree with everybody else basically. Starting a business is all about taking risks TO SOME PEOPLE, and others, like Greg, have a different way of approaching the same result. I admire Greg's stance on moving forward debt free quite a bit. It does cause alot of turmoil if the business doesn't go as well as you planned. 

I am starting my business very soon as well (actually just down the road from you guys, in Daytona Beach) and I am doing everything with my own money, with the exception of one personal loan that I am renewing to cover personal expenses while I get started. 

i WOULDN'T MESS WITH the SBA for alot of reasons, myself. For starters, the moner doesn't actually come from the SBA, it is only insured by them, you most still apply for a bank loan, and the SBA honestly only protects the bank's interests, not the borrower's. 

But anyways, if this is too personal you don't have to answer, but I promise if you apply for a loan, the banks will ask you.....how much, roughly, do you believe you will need to get started? Beacuase most of us have started out with a couple thousand dollars, and some even less than that, and for three girls working together for the same goal, it shouldn't take too long to draw in that kind of money. 

Well, I hope it all works out for you, and I'm pullin for ya. And if you are ever in the Daytona area, stop by and say hi! 

Good Luck.


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## abbey5353 (Nov 21, 2007)

Anthony thanks for the advise, if we are ever in Daytona Beach we will surely look you up. For now we are just going to try to start with what we have and see where it takes us, we really want to get some of our shirts in baby boutiques so we will see. Thanks again fo the advise.


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## karlking85 (Sep 26, 2007)

Awesome, I think you'll do fine. There's alot of great information on this forum for getting your designs into retail stores, enough to keep you busy for days. I think you are in a pretty good area for your idea, the market in Central Florida sounds excellent, that's why I'm moving away from home to start my business there. 

I just spoke with a man last week who is a friend of my boss, and he owns 17 stores in Orlando, and I learned so much from him just in the few days he was here. 

I had already planned on moving to the area before meeting him, but afterwards, I bumped my plans forward several months. I think Orlando would have an excellent market for youth and toddler designs. Keep us posted on how it goes for ya.


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## Amor365 (Jan 14, 2008)

This is so true in many cases but it doesnt always work as i found out with my first business many years ago which ended up in debt. However, some people dont have a choice but to borrow money to start a business because of one reason or another. And some people are poor with no family support in life and they have to do it the only way they know.

I was talking to my financial adviser a while ago about becoming debt free and he kind of laughed because he said that there was no such thing as debt free. If you have a motgage you are in debt, rent and you are in debt, gas, electricity, telephone, service charges and so on and you are in debt. So in one way you are never free of being in debt. I do understand what you mean though about avoiding it becuase you suffer more in the long run.

Some people like my friend are lucky with wealthy relatives to pump money their way. My friend has his mum give him money on every business venture he takes on but always fails because it is not his own money, but if he had a loan he would work harder to make his business work and not expect to be rich overnight.

So in some cases it can help people when they borrow money. As for me i try to avoid it where possible.


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## Comin'OutSwingin (Oct 28, 2005)

Gas, electricity, phone, etc. are not debts.

And being debt free isn't a myth. There are lots of people that don't have a mortgage, rent, or any other debts.


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## Amor365 (Jan 14, 2008)

I know what you are saying and i know of people who are debt free but in a way, utility bills are debts if you consider that you owe money for a service in arrears.

Anyway, I am not having a pop just (unfortunately) at the over end of the debt free position. However, once i have cleared up my debts i will no longer use credit cards or loans but untill then i sometimes need to borrow to get out of financial trouble. Once you are in this trap it is very hard to not stay in it unless you have a knight in shining armour that can rescue you.

Fingers crossed in 5-6 years time i will be free of this and i only really got into debt becuase of my first business because i was using credit cards and my wages to run it. Found out the hard way that you cant really run a business that way but i guess that you learn and improve from costly mistakes.

Fingers crossed this business plan will prove worthy as i have had 10 years experience in printing and designing + 20 years in sales and management plus the price mark up in this trade is very good. I will read the link you sent me though and hopefully find some good tips on controlling my finances.


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## Comin'OutSwingin (Oct 28, 2005)

Amor365 said:


> I know what you are saying and i know of people who are debt free but in a way, utility bills are debts if you consider that you owe money for a service in arrears.


Not if you pay for a year's worth of those services in advance.

But I get what you're saying, but still really not debt. That's the type of thinking that keeps people in debt. 

Good luck with it, though.


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## Peace2TheRest (Feb 6, 2008)

It is extremely hard to get started without loans in my opinion. I have been researching and forming business plans and financial projections for 6 months now. I have held off and held off developing my business, and finally after some intense saving, selling of my motorcycle, 22in rims off my truck, and my kona mountain bike I am about to get started. 
However being completely debt free I am still going to have a credit line in those intense situations where you have to make a large order or other emergency. Being a 23 year old student I have found that sacrifices have to be made to try and make your dreams possible. However if you believe in yourself and your ideas then I think you can make it work. It really in my experienceless opinion will come down to how hard you will work, and if you can make your own luck. 
Also I remember when my parents paid for my school and I was on scholarships I didnt study, partied a lot more, and got c's in almost all my classes. Whenever I lost the scholarships, parental support and started paying for my own tuition I got almost all a's. I think this comes back to the whole idea that if its your own money then you will appreciate and work harder then if it seems free. 
So I would have to agree, not to use the banks money, and to save up, work hard, sacrifice, and take your time, believe me the t-shirt business is not going anywhere, and if you have an amazing design or catchy slogan then get it outsourced and begin distributing it. This will help gather the much needed cash that you desire to get started, and also gives people a small taste of things to come.


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## signs_n_tees (Jan 18, 2008)

I got into business with a very small amount of money as a sign maker in the fall of 2006. I started with about $2,000 cash and "borrowed" another $2,000 from the _good folks_ at Visa...
That was a very expensive $2,000 to "borrow" and I paid it back in less than a year. There was a lot of temptation to borrow more, but I didn't. This is not my primary income, so at the moment, anything the business "makes" gets reinvested back into the business, as this will hopefully become my part time "retirement job" some 20 years from now.
If I had a huge loan, I'd never have made anything. Since my beginning, my business has been a price war with others on eBay and Google.
What is the point of things like these?
12 Custom Printed T-Shirts - eBay (item 120219455083 end time Feb-11-08 02:48:18 PST)
2' x 8' CUSTOM BANNER Vinyl Sign -ADVERTISING- - eBay (item 290204018016 end time Feb-14-08 07:24:18 PST)

I can't work for less than minimum wage... If your "business plan" was to sell things on eBay, I'd say forget about it. I've been there, done that, got hurt. Now I do a little local business for slightly more than minimum wage, but nothing to be proud of. If I was paying off a loan still, it would be pointless.


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## Peace2TheRest (Feb 6, 2008)

Seriously, It is silly to work for that little money. What is the point in less they have a bait and switch program going on. Personally I would never ever purchase a deal like that off of ebay. 
Best thing you can do in my opinion is to try and provide a service in your area that is niche, or unprovided. Then market to family, friends, local sports teams. Hopefully if you do a really good job you will get referals. Networking is the key to any business and the more you do so, and the better product you produce the more likely you will be to having a solid income come from a part time job. 
Still there is no way that I can compete with 12 shirts for 32.99 I mean wow! They must be .79 cent shirts. And he must be only offering one color.


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## frankiko (Jun 13, 2008)

can anyone actually write here their actual interview with a bank loan officer/manager? like specifics of what the bank requires for a business borrower... aside from the obvious?

my partners and I (3 in the partnership) are going for a $100,000 business startup. commercial printing business. and we're just in the initial preparation right now. doing all our business planning, equipment startup planning, etc.
we have a stage in our planning that'd require meeting with the bank. i just wanted to have a little feel of how it'd look like. thanks.


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## EIPC (Oct 22, 2007)

frankiko said:


> can anyone actually write here their actual interview with a bank loan officer/manager? like specifics of what the bank requires for a business borrower... aside from the obvious?
> 
> my partners and I (3 in the partnership) are going for a $100,000 business startup. commercial printing business. and we're just in the initial preparation right now. doing all our business planning, equipment startup planning, etc.
> we have a stage in our planning that'd require meeting with the bank. i just wanted to have a little feel of how it'd look like. thanks.


If you have a proper business plan and know the details in that plan the interview will be a breeze. the problem is banks aren't writing a whole lot of $100,000 business loans for start ups these days.


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## badalou (Mar 19, 2006)

frankiko said:


> can anyone actually write here their actual interview with a bank loan officer/manager? like specifics of what the bank requires for a business borrower... aside from the obvious?
> 
> my partners and I (3 in the partnership) are going for a $100,000 business startup. commercial printing business. and we're just in the initial preparation right now. doing all our business planning, equipment startup planning, etc.
> we have a stage in our planning that'd require meeting with the bank. i just wanted to have a little feel of how it'd look like. thanks.


The first thing the bank will ask is what you have to back up that 100,000. What do they get if you go under. What you don't want to say is the equipment you buy because at liquidation that would be worth cents on the dollar. If this is a new business it will be harder to get loan. if you are buying an exhisting business that shows cash flow it is a little better but not much. With all the problems with banks these days I wish you luck.


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## rrc62 (Jun 2, 2007)

badalou said:


> The first thing the bank will ask is what you have to back up that 100,000.


Exactly. If you can't produce assets to cover the loan value, getting a loan will probably be about impossible. Even loaning to a well established business right now is considered risky.


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## Lanstars.com (Dec 20, 2008)

frankiko said:


> can anyone actually write here their actual interview with a bank loan officer/manager? like specifics of what the bank requires for a business borrower... aside from the obvious?
> 
> my partners and I (3 in the partnership) are going for a $100,000 business startup. commercial printing business. and we're just in the initial preparation right now. doing all our business planning, equipment startup planning, etc.
> we have a stage in our planning that'd require meeting with the bank. i just wanted to have a little feel of how it'd look like. thanks.


Forgive the timing of this response, as I am new to these forums, and this is my first post.

I have just visited three major banks looking to secure funding for my business, and all three pretty much had the same requirements.

For any sort of loan or line of credit for a start up, they require at least the following:

A business history of no less than two years.
Copies of the certificate of incorporation or business formation.
A detailed business plan projecting 12 months of cash flow projections.
Personal finances of each officer/owner projected out no less than 3 months.
Personal tax returns for each officer/owner for the previous 3 years. 
Obviously, credit and backround checks on all officers/owners.
One bank requested business resumes for both myself and my partner. 

For equipment purchases, the bank will require copies of the bids for each piece of machinery.

In addition, as stated on previous posts, every bank will requires collateral to secure the loan (i.e. real estate, personal finances). All the SBA loans will do is help offset any potential risk by the lender, it does nothing to help protect any risk by the borrower. 

Needless to say, my partner and I have decided to fund our business ourselves, and will no longer be looking for outside funding.


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