Can I get a DBA loan for a purchase of an existing business?
My wife and I are in our 50’s and a flea market store is going out of business to take care of family. The business has been in operation for 16 years averaging $1k a day, and they are only open on weekends. They are asking for $20 for website, space, shelving, and a year of consultation, and contacts and wholesale sellers list. The inventory would be bought from current owner at wholesale price. Rent for space is $970/mouth. Would the SBA give us a loan if we personally haven’t been in busy? Lookin for about $75k to purchase store, website and inventory.
That’s a great question! SBA lenders typically like to lend money to established businesses because it cuts down on their risk if the same owners will be executing strategies that have been working to this point. However, the SBA routinely gives loans to people to buy existing businesses. You’ll just need to prove to the lender how you’re going to be successful.
I would recommend putting together a sound business plan that the current owner agrees with (in terms of financial projections and marketing/operations). The fact that the current owners are willing to consult for free for 1 year will help you overcome many of these reservations that the lender may have. You may need to bring on an operations employee with industry experience to help you run the business if you don’t have any, but an SBA loan is a great option for you.