Through my dealings with approximately 30 banks in the DFW metroplex and the SBA, I have come to realize that the SBA is pretty much worthless, and here’s why. The SBA guarantees a bank up to 75% of their losses if they go through the SBA, but banks are severely risk adverse and don’t want to lose a penny, so they don’t even enter into loans where they think they have the risk of losing a penny. Banks also don’t value risk, meaning they don’t look at a loan and say, “well company A is more risky than company B, so why don’t we charge company A 2% more interest on their loan compared to Company B”. Either the bank will lend the money at some really low interest rate or they won’t lend it at all.
From talking with the banks it seems they will pretty much lend you 75 cents for every dollar of hard assets you buy, so for us the equipment and kegs. Of course if you anticipate having any type of rent expense, utilities, salaries, etc., you better bring that money to the table. In the end we were able to get a 7 year 5.5% loan from MidFirst Bank without having to deal with the SBA at all, but I’ll get to that later.