Re: What are his chances for a SBA loan?

<[EMAIL PROTECTED]> wrote in message news:[EMAIL PROTECTED]
>
> This is all new to me. I'm hoping someone out there could share their
> wisdom.
>
> My son, 25, has held many automotive-relaled jobs, but none longer
> than a year. He's a hard worker with a clean record but with no
---snip---

The following is a sharing of experiences and not be considered legal advice
in any manner, shape or form.

An SBA loan for your son is impossible at this time. However if the owner of
the business is willing to sell the business on terms, and payments are made
on time every month, and your son learns to run the business as well as fix
cars, then in a year and a half or so he may qualify for a loan through the
SBA. But he should sign up as soon as possible with not the SBA people, but
the Small Business Development Center at a nearby college or office. Then
begin working under tutelage of a small business consultant from that
agency. The SBA people, known as SCORE, come mostly from the giant Fortune
500 and few know the basics for guerilla marketing, checkbook accounting,
local labor laws, etc.

I doubt if his wife being Korean would qualify her as a minority. It may
help if she is majority owner and you are listed as a woman owned
business.... but her record would get in the way and disqualify her.

Best bet is to get the old guy who is retiring to sell on terms and then
make darned sure payments are made every month on time and without a single
hitch with employee taxes and all the other things that go with a small
business.

Total selling price should be somewhere around yearly sales, regardless of
the cost of equipment, land, buildings, etc. If the owner is willing to sell
for just equipment costs, how is the lease arrangement with the building and
land owners. The key here will be in your son's ability to bill enough per
month to pay for the business, all expenses, and put something in his pocket
in the form of PROFIT.

Wayne --
http://www.calmexnet.org/partners/wayne.htm