How many have tried for a bank Loan?

[owneroper]

This seems to be a common problem MONEY or getting money to buy a bar. Can I ask how many have tried to get money from a traditional bank for a traditional bar/nightclub. I wrote business plans, wrote and re-wrote, jumped thru hoops to be told "its a bar".

Has anybody got a loan for a bar without putting your house up?

[WIDAVE]

I am working on a deal and have gotten bank approval. Smaller type deal less than 500K with $250,000 of real estate included. Have good credit and puting 25% down which they insisted on. Still doing due diligence but should all go thru. Lot's of bars in WI so maybe banks are more open LOL

[bruce]

I wanted to put up my house which was paid for at the time and still could not get a loan from a conventional bank as I do not have a credit score. Corp couldn't get loan because it hadn't been in business long enough[3 year minimum].

[MilwClub]

I have a working relationship with the SBA manager of the bank I use. Their real estate agent actually called me to tell me about the bar. I walked in.. sat down with her.. went over some numbers... filled out some papers... wrote a business plan... and a week later was approved for the loan.

[Emerson]

It is very apparent that F&B locations are marked as high risk, and any loans provided by banks are normally personally guaranteed making it more of a personal loan than a business loan.

The SBA program however does have significant advantages and in some areas local governments are offering tax incentives and funds in an effort to develop an area or prevent local business turnover.

Thanks

Emerson

[owneroper]

Emerson I understand I was just wondering if anybody has ever gotten the loan? Did we all try and get turned down. Bars keep opening we are getting money from somewhere, but is anybody getting it from the bank without your house as collateral?

[DavidTownsend]

I never tried to get a loan from a bank for a new F&B operation because I knew it was futile.

But one time I had two very successful clubs in the Chicago suburbs where we were depositing over $100K a week into the bank for over 6 years running.

When we needed $25K for new carpet and other renovations, we decided to go to the bank for a loan rather than pay for it out of our pockets. They declined us.

After putting a home and a car up for collateral, they approved the loan and we paid it off right on time.

Then we went back to them the next year for another $25K to remodel the bathrooms, and they turned us down.

And that's back when times were good.

These days, I'd say there is NO WAY you're going to get a bank loan for a new bar. I wouldn't waste my time.

Sorry to be the bearer of bad news, but bars fall into the private investment category.

What city are you in? If you have experience, a good business plan and a good location, I may know someone to invest.