Small business loan – how much would I qualify for?

I am currently making 65k per year, 10k in school debt, and about 50k in equity and I am interested in getting a possible 500k sba loan. This may seem a bit ridiculous, however, most of my loan would go towards a purchase of a large motor-coach which would provide the bank collateral. I also have a successful family member in the business that would mentor me through the business. What are the chances of getting a loan of this size, and if not, what amount do you think I would qualify for?

I don’t think you earn enough to qualify for a loan of this size. A motor-coach is a depreciating asset with limited possibility of liquidation should you default. I doubt if you can get a motor coach with a SBA loan. They usually do other types of loans which often involve real estate or other tangible collateral. Questions they will ask is how much you are personally risking in this venture. They will also expect you to have some solid experience and a good business plan with pro forma’s prepared by an accountant for that amount of money. From your post I don’t think you would qualify for a loan anywhere near the amount you listed without additional collateral or money. You will likely need at least 10-20% equity if not more to qualify. The motor coach may require up to 30% of the value to qualify, depending on a number of factors. Your present income would probably not qualify you for that large of a loan. Your credit will also need to be very good. You didn’t mention the type of business or what your motor coach would be used, your personal experience in the type of business you are starting or how much personal capital you will invest. The best way to see what you can qualify for is to contact a lender who does SBA loans. There is no way to tell you how much you can qualify for without having more information.

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One Response to Small business loan – how much would I qualify for?

  1. Flyby says:

    I don’t think you earn enough to qualify for a loan of this size. A motor-coach is a depreciating asset with limited possibility of liquidation should you default. I doubt if you can get a motor coach with a SBA loan. They usually do other types of loans which often involve real estate or other tangible collateral. Questions they will ask is how much you are personally risking in this venture. They will also expect you to have some solid experience and a good business plan with pro forma’s prepared by an accountant for that amount of money. From your post I don’t think you would qualify for a loan anywhere near the amount you listed without additional collateral or money. You will likely need at least 10-20% equity if not more to qualify. The motor coach may require up to 30% of the value to qualify, depending on a number of factors. Your present income would probably not qualify you for that large of a loan. Your credit will also need to be very good. You didn’t mention the type of business or what your motor coach would be used, your personal experience in the type of business you are starting or how much personal capital you will invest. The best way to see what you can qualify for is to contact a lender who does SBA loans. There is no way to tell you how much you can qualify for without having more information.References :

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