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i have 40K of my own money. I am looking to buy a bar for under 200K. Is that enough down to get a SBA loan?

I have approx $40K of my own money. I am looking to buy a bar/tavern in the near future. I don't expect to spend over $200K total. Will 20% down be enough to allow me to qualify for a SBA loan. I am a veteran which i think helps. The assets of the bar would also be used as collateral.

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Answers (1)
Marv White
Bizprofitpro
Hartford County, CT
Premium Broker

20% down is very reasonable. You should be able to do a fair deal with 40K for the size and type business you want. Just be sure to budget reserves for closing cost and the unknowns that will certainly become known after the closing.

Understand the balance sheet and the income statement and you will be in good shape. As long as you are up for the hours and can pay for labor, it's a fine business. Good luck!

Jan 3, 2011

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