All Forum Posts by: Scott Snow

Spencer,

I work in SBA lending. Most franchise deals that are new locations go through SBA programs. If you are going to build your own strip mall you would have to occupy 51% for it to qualify for SBA financing. Many lenders like franchise deals because of the franchisor backup in all aspects of business. If you are going to own the building I could possibly help you out as my bank lends nationwide on commercial real estate in the SBA lending world. Feel free to reach out to me with more questions.

Scott

Justin,

I work in SBA lending and have some experience with car washes. I also live in the Salt Lake City, UT market but can lend nationwide on commercial owner occupied real estate and properties like car wash, hotels, self storage, and others. One major thing besides the issues you ran into is lenders want to see that you have experience managing a car wash yourself. Car washes do tend to have the magical I didn't report all my income issue among other things. I see this all the time when a business owner reduces his taxable income to nothing and then they are ready to sell but their financials show nothing what they claim. Business acquisition deals are the toughest transactions with all the many variables involved.

If you are still looking at other deals like this please reach out to me and we can talk through the SBA factors of the deal.

Scott

Rion,

I work in SBA lending and like all lending there are many caveats. Another one to mention is, SBA loans are for owner occupied commercial real estate only. This means the building must be occupied at least 51% by the borrowing business to qualify for SBA lending. My bank lends nationwide on CRE with SBA loans and I could help you more with any questions you have. Feel free to reach out to me.

Scott

John,

I work in SBA lending and your request would be difficult to do. It would be hard for a bank to want to fund a commercial office for you on your residential property because in the event of default things would get messy and an office space on someone else's residential property is not really something a bank wants to take back or for that matter anyone lending. SBA loans have been done for commercial use houses for various businesses but to keep your own house and build an office would be interesting.

As mentioned earlier the permitting would have to be right which you say you have. Tell me more about your office proposal and I will see if I can help or if not steer you in the right direction

Scott Snow