The Situation: Corporate Asks Client To Purchase Franchise
Our client, who owns two other pizza franchise restaurant locations in Georgia, is approached by the corporate office to open a third without a bidding process for the franchise.
- Window Of Opportunity
A local business owner operated a successful family-friendly pizza franchise in a midsize town in Georgia until retiring, when the restaurant closed. However, the town still craved more pizza.
- Request From The Top
The corporate office was aware of the strong brand affinity in that community and the appetite for a location to open again. They asked our client, a successful operator of two other franchises, to re-open one in this town to meet demand.
The Solution: $1.5 Million 7(a) SBA Loan For Franchise
First Business Bank’s SBA team, an SBA-designated Preferred Lending Partner, worked to secure a $1.5 million 10-year SBA 7(a) loan build out, equipment, and a working line of capital so this community could once again enjoy its favorite pizza place.
- Loan Amortization
A 10-year SBA 7(a) loan provides clients favorable repayment terms, flexibility, and an improved cash flow position when compared to conventional loans.
- Predictable Cash Flow
SBA 7(a) loans provide a stable, predictable source of funds to start, acquire, or expand a business, and for operational expenses, accounts payment, and purchasing inventory.