Re: What are his chances for a SBA loan?

Wayne:

First, thanks for the wisdom.

My son's boss makes a lucrative income from all the other aspects of
his service station. It's just that the towing part of it is a PITA
for him mostly because every driver he gets, ends up crashing a truck
(he has 3 full-lift flatbeds, one brand-new). My son is the only one
he can depend on.

The old guy no longer needs or wants the tow part even though it too
produces a substantial income. He has terminal cancer and isn't
interested in making more money. His family doesn't want anything to
do with "menial" jobs ... besides, they're already on their own and
doing quite well. So my son's boss realizes that when he eventually
dies, everything's just gonna be sold at auction and divied up to
whoever. The business clientel will end up at other competing towing
businesses.

The guy is willing to let my son continue to use the tow section of
the station free. The actual loan would be to puchase the 3 trucks +
employee incidentals + legalities.

It's a wonderful opportunity, but I can see from your advice that it
will take a lot of hard work and stick-to-it-iveness.

I'll pass this info along to him.

Thanks again.

--JES

On 3 Dec 2003 18:18:08 GMT, "Wayne Lundberg"
<[EMAIL PROTECTED]> wrotF:

>
>
><[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