Financing an existing business

https://www.sba.gov/funding-programs/loans/microloans

​Steve Benjamin

Professional Business Loans

Irvine, CA 92620

SteveProBiz@gmail.com

https:/probizloans.net/

949-228-1050

This a [rocess that requires someone with experience. You might want to check my website. ​https:/probizloans.net/

An example:

Here's what the broker submitted to his SBA bank:

Covid has had very little impact on our business. During the height of the pandemic, we did some deepsanitizing which was a profit center. Except for the hassles of dealing with contractors getting sick and having to deal with scheduling, operations have remained stable.

We are currently billing 103 different clients. We operate as a contract cleaning company. This simply means that we have contracts and are billing one time per month for services. Cleaning schedules range from 1 service monthly to 365 day per year service.

We are simply looking to consolidate the debt that we currently have. This will give us the flexibility to pursue additional contracts and continue expansion. We are currently bidding 5 different contracts. One

of the contracts will be approximately $2600.00 per Month. Three of the proposals are small accounts that would be $275- $400 per month. If we can come to terms, one of the contracts would total

$22000.00 per month. These are the contracts that I need financial flexibility to pursue. Our largest current contract is about $5900.00 per Month. One as large as $22000, will require me to lay out about $15000 before receiving the first check.

HERE'S WHAT I SUBMITTED: We are seeking $350,000 in SBA 7A financing to: A. Consolidate business debt and reduce debt payments B. Obtain working capital to service current bids that are pending awaiting capitalization. We want to pay off $178,00 in 4 high interest business loans that have a monthly expense of $17,373. A SBA 7A at 6% will reduce this to $1,980 a month = saving us $15,393 a month. Note: We have several vehicles that are required for this industry - debt which is separate on the balance sheet and form 2202. We are in the process of submitting bids for several new clients. We need $150,000 in additional working capital for labor/materials/overhead to service this new business. Client A $275 a month Client B $400 a month Client C $22,000 a month Client D $2,600 a month Client E $300 a month Total new business bids: $25,5475 a month projected increase in revenue We are currently billing 103 different clients operating as a contract cleaning company. Covid has had very little impact on our business. During the height of the pandemic, we were performing deep sanitizing so operations grew in sales and net income. Total revenue for 2021: $1,025,000 Net income: 126,854 Depreciation: 51,500 Net income w/o deprec. 178,354 Total revenue for 2020: $761,109 Net income (437) Depreciation: 138,672 Net income w/o deprec. 138,235 Total revenue for 2019: $461,435 Net income: 12,825 Deprec: 104,591 Net income w/o deprec 117,416 We have two SFR real estate properties and 1 ten acre of land with equity in all to collateralize this loan. Fico is a bit below 660 due to a recent purchase of several trucks and use of company credit card equity to help some employees. File was denied by a bank SBA lender due to DTI issue but the submission combined vehicles with business loans. We received an approval for $350,000 but after underwriting, got final at $250,000. However my lender said after 2 - 3 months of payment history, they would give him another $100,000 for a total of $350,000 under the SBA 7A. Steve BenjaminProfessional Business Loans Irvine, CA 92620 SteveProBiz@gmail.com https://probizloans.net/ 949-228-1050

Hi @Edna Diaz

Happy to be a resource if you have any questions regarding acquisition financing thru the SBA 7a program. It's what I do all day, every day with Huntington Bank!

Feel free to shoot me an email directly and we can schedule at time to chat.

Glenn Giro

glenn.giro@huntington.com

704.609.3191

Hey @Edna Diaz , yea it would be acquisition funding as Steve mention below. Feel free to talk to @Glenn Giro as he does these types of SBA loans. What industry is he in and what type of business is he buying?

You can do business purchase financing through the SBA. 10% down and 10% working capital. You need to have management experience in the same industry.

Reach out if you need help with this as requires experience to get docs review, submit and process. In addition you want to use a non bank sBA lender rather than a bank SBA lender. More flexible underwriting and a non bank lender can use personal assets as collateral where a bank lender will require business assets O/O commercial property.

You can get start up financing with a Micro loan through SBA but the limit is $50,000

You can also get start up business credit card/LOC through lender witha 700+ credit.

Several options - as mentoned - reach out.

​Steve Benjamin

Professional Business Loans

Irvine, CA 92620

SteveProBiz@gmail.com

https:/probizloans.net/ 949-228-1050