[neodad]

Refinancing an SBA loan with CIT financial right now. Our regional rep is elizabeth.pulido@cit.com. She could put you in touch with the loan officer in your area. We've been very satisfied with them.

[Red Badger]

Vanities aren't rare, There must be at least 20 of 'em a day here!.......

[tgambill]

business plan, business plan.....they really get on that. I used Business Plan Pro or Premier whichever is most appropriate. They also provide 500 sample plans that are already done. I got my MBA through the University of Phoenix and they require the purchase of the program through paloalto. If you are interested, I can give you links....

http://www.paloalto.com/ps/bp/features/New_Features_for_2006.cfm

Good program......

Tom

[Jeff Chandler]

I would be concerned with more basic business issues before worrying about loans to open a shop.

Has he done any market research to determine how much demand there is in the area and how much competition he'll have? How much of his own capital does he have to carry him through the first couple years? What are his personal expenses outside of the business?

On a more personal level, is he a self-starter, or does he perform better when given tasks to do by a supervisor? How much experience does he have in the industry, managing a business, etc.? If he has never managed a body shop, I would highly recommend doing so for a while before opening his own.

If he hasn't done so already, he should take a small business course at the local community college.

These are the kind of questions which can make or break a business.

That being said, good luck to him in his endeavor.

[groanup]

SBA lenders make their money by packaging and selling the loans to third party investors. Try to find a non-bank type of lender who may be more aggressive and much more open to coaching your son through the process. In fact, try to find a few of them.

[JerseyHighlander]

First off, congrats to your son.

I suggest trying to contact a CDC or SBIC lender, I don't know where you are located in Indiana, so here is a link of every lender in your state.

http://www.sba.gov/in/financing.html

Go to the link "CERTIFIED DEVELOPMENT COMPANIES" and link " SMALL BUSINESS INVESTMENT COMPANIES" to get the complete list of CDCs and SBICs in your state.

You might have found this website already, but if not, read through this carefully:

http://www.sba.gov/financing/

As stated in a previous response, business plans, 5 year pro forma, 5 year previous (this will be the biggest hurdle for your son), collateral, and company and personal credit histories are key to getting a loan.

Use Business Plan Pro to set up his business plan.

You should have a regional SBA, CDC, or state or county level business resource center somewhere near you, be it in a government building, local community college etc, and they should have all the literature, and a staf on hand to help you get another perspective outside of your lenders. MOST people who get SBA loans do NOT avail themselves of these services, and it's to the borrower's disadvantage.



Here are some quick links i found for you

http://www.emichigancity.com/busdevelop/busresources/

Here's the state of Indiana Economic Development Corp

http://www.in.gov/iedc/starting/

List of CDC's in Indiana:

http://www.buzgate.org/in/bfh_economic.html


Hope it helps. I have a family member who works for 2 CDC's and a SBIC, and has done more &A loans than I know about. If you have any more questions, please ask.

[politicket]

IMHO...21 is way too young to incur that debt load.

I have been self-employed for many years and my advice to anyone who asks is to start small and build your business. This means no loans and working a regular job to make ends meet.

If your son needs to do his startup business during the "normal" workday then he should find a solid job working 2nd or 3rd shift.

He's got lots of time to build a business. He doesn't need to risk a loan default.