Are you considering SBA financing for your commercial construction project? In this insightful discussion with Beau, a prominent figure in business ownership coaching, a prospective entrepreneur seeks guidance on securing financing for a boat and RV storage facility. Let's delve into the key points highlighted in the conversation.
The Challenge of Timing
The initial concern revolves around the closing date set for the property, a mere 30 days away. The question arises: Is this timeframe adequate to secure Small Business Administration (SBA) financing? The response emphasizes the crucial concept of being “shovel ready” for SBA financing, requiring a well-prepared plan and groundwork.
Shovel Ready: A Prerequisite for SBA Financing
Beau stresses the importance of having a project that is shovel ready, meaning having bids from contractors, a general contractor (GC) lined up, and permits in place. The speaker suggests that the 30-day window might be insufficient for these preparations, recommending a more realistic timeframe of 60 to 90 days for a shovel-ready project.
Alternatives for Non-Shovel Ready Projects
For projects not meeting the shovel-ready criteria, the discussion explores alternative approaches. If you're in the process of acquiring land and awaiting plan approvals, SBA financing might not be immediately feasible. The speaker suggests the possibility of purchasing the property with cash or a loan, subsequently obtaining SBA financing.
Extension and Strategic Approaches
To accommodate the challenges posed by a tight schedule, the speaker proposes negotiating for a longer escrow period. This allows for plan approvals during the process, facilitating a smoother transition to closing. Alternatively, if the deal demands quick action, closing with cash or a loan is presented as a viable option.
Financial Feasibility and Equity Objection
The conversation touches on the financial feasibility of taking out a land loan with a construction loan, particularly if SBA financing is not ready for immediate closure. The speaker introduces the concept of eligible debt, emphasizing the feasibility of this approach if a loan is due or cash is available, serving as equity objection.
Business Ownership Coach: Your Partner in Success
The transcript seamlessly transitions into a promotion for Beau and his business ownership coaching platform. It highlights the proven methods, personalized guidance, vast business opportunities, holistic approach, and end-to-end support provided by Beau and his team.
Conclusion: Thrive with Business Ownership Coach
In conclusion, navigating the SBA commercial construction loan process requires careful consideration of timing, project readiness, and alternative financing options. Beau and his team at Business Ownership Coach stand ready to guide aspiring entrepreneurs through these challenges, turning dreams into tangible achievements.