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The Most Versatile Commercial Loan Product

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Paul BosleyPaul Bosley

Do you own a fitness center and want to expand your business or open a new location? Do you want to refinance your existing debt to lower your monthly overhead? Are you tired of paying rent to a landlord and would rather own the real estate you operate your business? Do you want to open your first fitness center or personal training studio, but you need financing to do it?

If you answered "yes" to any of these questions, the Small Business Administration (SBA) 7(a) loan may be your answer. This national loan program designed by the Federal Government is offered by many national banks and can be used for a variety of purposes. The SBA offers loan guarantees ranging from 50% up to 90% of the loan amount to reduce the risk of the lender, which makes securing an approval more likely. The following information is being provided in outline form to simplify the features of the variety of uses for this loan program.

The SBA 7(a) Loan Program's Four Main Uses

1. Finance a Start-up Business:

  • Use of funds to finance up to 70% of the total costs which typically includes fitness equipment, non-fitness equipment (signage, entertainment system, flooring, etc.), start-up working capital, build-out, deposit, operating working capital, franchise fees (if any), etc.
  • Owners' Equity injection must be at least 25% of the total costs (cannot be borrowed money).
  • Good resume of practical experience and/or related education.

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