The Situation: Start-up Capital For New Nail Salon Location

The co-owner of a successful nail salon in the Washington, DC, area wanted to branch out to open a new location on his own. Experienced in getting a business up and running, this client’s plans were derailed by the onset of the COVID-19 pandemic, which brought all planning and construction to a halt. After the shutdown, although re-opening restrictions began to be lifted, many traditional lenders remained averse to financing start-up projects.

  • Financing Falls Apart
    Another financial institution worked with our client for months before backing out due to a policy change that restricted lending to start-ups.
  • Collateral Shortfall
    The lending package was secured by just equipment and leasehold improvements because there was no commercial real estate in this loan request.
  • Working Capital & Start-up Financing
    A lack of capital for start-up expenses was the biggest challenge to this client’s plan to expand to his own nail salon business.


The Solution: 7(a) SBA Loan From First Business Bank

First Business Bank, an SBA-designated Preferred Lending Partner, provided a 7(a) loan totaling $398,000, which included funds for leasehold improvements, inventory, and furniture, fixtures, and equipment (FF&E.)

  • Reliability
    First Business Bank’s SBA Lending team worked closely with the client and their contractor to achieve a rewarding end-result they were not able to attain with another lender.
  • Dependability
    First Business Bank’s SBA Lending team guided the client through the loan process and provided the financing facility in a timely manner.
  • Functionality
    Using the SBA 7(a) program, First Business Bank’s loan facility was the right loan for this client, allowing him to expand to a business of his own.