The Situation: Business Acquisition Of A Small Chain Restaurant
The client wanted to buy an existing sports-themed restaurant from an owner who wanted to retire. She had more than 20 years of industry experience and was the perfect candidate to purchase this business and inject some new life into the concept. A collateral shortfall kept traditional lenders from financing the project.
- Searching for Financing
After trying several lenders to no avail, the client was introduced to First Business Bank’s SBA team by a trusted business partner. Working with the client, we structured a loan to make her dreams a reality.
- Collateral Shortfall
The lending package was secured by inventory, equipment, and intangible assets because there was no commercial real estate in this loan request.
- Working Capital
Additional working capital was needed to refresh the restaurant.
The Solution: 7(a) SBA Loan From First Business Bank
First Business Bank, an SBA-designated Preferred Lending Partner, provided a 7(a) SBA loan totaling $850,000, which included the purchase of the business and working capital for future business growth.
First Business Bank’s closing team worked closely with the client and her CPA firm to achieve a rewarding end result, avoiding a financing fall-through they’d experienced with another lender.
First Business Bank provided the financing facility originally proposed and closed in a timely manner.
Using the SBA 7(a) program, First Business Bank’s loan facility was the right loan for this client, allowing her to realize her dream of becoming a small business owner.