Originally Posted by PBCulinarian
I have a question. Has anyone been able to apply for and receive SBA loans or grants to start or expand their field?
I had a SBA loan in the past... it was actually for my scuba business, not paintball, and the loan officer that originally did the loan was just in my paintball shop about 3 weeks ago playing paintball with a small group.
He said things are a bit tighter than they were 7 years ago when I got my loan. Don't plan on a SBA loan to start... but maybe for an expansion, and then, according to what they told me then (and recently) only if you are getting a loan for hard assets, and you have a proven track record in the industry. So in other words, if you are looking to buy more land, wrap in a new compressor system, and more guns, you had better be able to show that you have 5 years plus of growing business, and be able to show that the adding of these assets will easily increase business enough to cover the debt payments.
The reason SBA was good is that they only required 5% down instead of 20%, so when I went to buy my first building, which was 500,000 and I needed to wrap in some finish out money as well. I outlined my experience and all the numbers here: http://www.scubatoys.com/paintball/s.../financing.asp
But I believe they have raised their requirements a bit now, and fewer banks are doing SBA loans, but it's worth a shot if you want to try.