Jane and I have found a bank that's willing to apply for an SBA guaranty on our behalf. Before we can submit the application, we'll probably need to provide the following information:
-Location. We've chosen a space and are in the process of negotiating our occupancy, but securing a building with financing contingencies is tricky business.
-Detailed estimates of construction costs. We're currently using a ballpark dollar per square foot number, but the SBA will likely want to see an itemized list based on a specific location. I recently met with a construction manager and learned that it can be done much faster than I expected.
-Accountant's contact info. I figured we'd retain an accountant when we're ready to select the pub's bookkeeping and point of sale systems, but we may have to do it sooner. I know who I'd like to hire, but I need to make sure that Jane agrees.
-Insurance (physical damage and fire) on loan collateral. Hopefully some of the pub's assets will suffice for collateral. After all, the SBA could provide a guaranty for up to 90% of the loan's value. The potential problem is that the pub won't have any assets until we receive a loan. Will an insurance estimate on future assets suffice? We hope so!
There's a lot more, but we already know most of it. Our past diligence is paying off.
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