SBA as an Advisor/Money Source

Discussion in 'Starting a Lawn Care Business' started by echeandia, Jan 23, 2007.

  1. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    I am have just completed a first draft of my business plan. I have an appointment with a SCORE counselor next week to go over the plan. My objective it to get an SBA backed loan from a bank. What has your experience been with the SBA and their loan process. Where the advisers helpful? What was the loan paperwork like? Did you get the loan amount you were looking for?
  2. JGroverCU

    JGroverCU LawnSite Member
    Posts: 25

    I think you may want to look into it a little more on their website. SBA's do not give loans. Banks do. If a bank rejects your loan application, the SBA will then step in and "back" you if they feel you have a good chance of repaying the loan. They are almost like a supporter for you to get a loan. They only way they will step in is if you are rejected by the bank.
  3. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    I said that. :) I should have come up with a better title.

    Grover, did you use the SBA at all?
  4. grassnazi1

    grassnazi1 LawnSite Member
    Posts: 73

    I have done thousands of business plans and have worked a lot with SCORE. I would not reccomend using them right off the bat, especially for a small loan amount. How much funding are you looking for? How detailed out is your business plan? As far as SCORE goes, you have to remember who they are...... They are old retired business owners that opened a business 65 years ago and are donating there time now to do something other then bingo. I have never met a SCORE advisor I liked or made sense. If this was 1973 then yes, go see a SCORE advsior! But its not and although its a one on one contact to guide you, I think your wasting your time with SCORE and trying to get an SBA loan, look for other government programs to assist you. Uncel Sam has loan/grant/sudsidy programs in every state and financing doesnt require you to get turned down by a bank first. If you would like someone to review your business plan, then shoot me off an email and i can help you.
  5. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    I tried the SBA, and they bluntly stated that I was not a Native American, Black, Minority, Woman, Non- US Citizen, and that without being one of these I would not have a chance at any backing what-so-ever.

    Personally, I would not waste my time, nor feed the socialistic, discriminating tendencies of the current governmental and type organizations of the day.

    Keep it as private or personal as possible. Get someone to Co-Sign if you can.

  6. CNYScapes

    CNYScapes LawnSite Senior Member
    Posts: 916

    What is the money for?

    If you need a truck? the dealer will finance you
    IF you need a mower? the dealer will finance you
    If you need a skid steer? the dealer will finance you
    If you need some handheld equipment? Get a credit card

    All with no closing costs, like the junk fees SBA will charge you

    If your credit is good enough for the sba/bank than the dealers should be able to get you financed
  7. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    My credit score is excellent. I do not have a salary, so getting new credit is not possible. However, I can get a loan to start a business, which is the reason for going the SBA route.
  8. Prestige-Lawncare

    Prestige-Lawncare LawnSite Senior Member
    Posts: 753

    The above statement is your real answer.
  9. General Landscaping

    General Landscaping LawnSite Senior Member
    Posts: 802

    I'm a little confused here... Your score is excellent, yet you have no available credit to buy stuff with? Most people with excellnet credit can buy at least one full setup on cards already open. (truck excluded)
    Pay on time until you get a 0% offer from another company, then jump ship and pay until the introductory offer runs out, then repeat. I throw away 0% offers all the time.... why?.... because everything is already riding on a introductory offer for at least another 8 months. Just watch out for transfer fees... made that mistake, once. Don't be late paying or they jack your rate to normal.

    What kind of operation are you planning on starting?
    Do you have experience?

    In order to get a loan ... first you must prove you don't need it.
  10. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    General, Currently my only debt is the mortgage on my home. I do not have a car payment or any credit card debt. I have one visa card with over $50K of available credit (I was a well paid and used my credit wisely until laid off last year). It has a 9.9% interest rate. I have $20K cash available to startup this business. I think it would be a better use of my resources to get a SBA backed loan for $10K (also establishing business credit for my LLC) and me putting up $10K then to layout the entire sum myself. Don't you agree?:)

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