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.)
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.
First Business Bank’s SBA Lending team guided the client through the loan process and provided the financing facility in a timely manner.
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.