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SBA Express Loans for Bars and Clubs
If your bar or club needs quick financing for working capital, real estate, equipment purchases, and more, an SBA Express loan could be a great option.
According to the American Nightlife Association, a major industry group, bars and clubs across the U.S. generate approximately $26 billion in revenue each year. With 70,000 bars and nightclubs in the U.S. employing nearly 400,000 people, it’s safe to say that the bar and nightclub industry is a major part of the American economy. And, if you’re a bar or nightclub owner in need of a faster form of SBA financing, an SBA Express loan could be the solution you’re looking for.
Bars and Clubs Can Use SBA Express Loans for a Variety of Purposes
Whether you run a brand new nightclub or a neighborhood bar that’s been around for decades, SBA Express financing might be able to help you achieve your goals. Since SBA Express loans and can be used to fund equipment, working capital, and commercial real estate— all which you might need to maintain or grow your business.
Bar and nightclub owners commonly use SBA Express loans to:
Expand or renovate a bar or club: Bars and clubs need to stay modern and trendy to keep up with the competition, and one of the best ways to do that can be to give them a makeover. Fortunately, SBA Express loans can fund all aspects of the renovation and expansion process.
Working capital financing: Much like the restaurant industry, the bar and club industry can be seasonal, so many business owners might need funds to get them through a slow season, or to make sure they have the employees and supplies to prepare for the high season.
Starting a new location: While most bars and clubs (other than restaurant sports bars) don’t have multiple locations, that doesn’t mean that yours shouldn’t— and an SBA Express loan could be a great way to buck the trend.
Building a new bar or club: Building a new bar or club can get expensive, and while SBA Express loans only offer a maximum of $500,000, they can still contribute to the funds you need to take your bar from idea to reality.
Refinancing business debt: High monthly debt payments can be a huge drag on your bar or club’s monthly cash flow, but fortunately, you can often refinance this debt with an SBA Express loan. However, to qualify for SBA refinancing, the debt must have been used or an eligible business purpose, and must currently be offered to you on unreasonable terms.
What are the eligibility requirements for SBA Express Loans for bars and clubs?
To be eligible for an SBA Express loan, you must meet the following requirements:
- You must be a for-profit business
- You must have a good credit history
- You must have a tangible net worth of less than $15 million
- You must have an average net income of less than $5 million over the past two years
- You must have a business that operates primarily within the United States
- You must have a business that is not engaged in illegal activities
For more information, please visit SBA Express Loan Requirements.
What are the advantages of SBA Express Loans for bars and clubs?
SBA Express loans are a great option for bar and club owners who need funding fast, as they can be approved and funded in as little as 30 days. Additionally, they offer loan amounts of up to $350,000, which can be used for a variety of purposes, such as expanding or renovating a bar or club, working capital financing, starting a new location, building a new bar or club, and refinancing business debt.
What are the disadvantages of SBA Express Loans for bars and clubs?
The main disadvantage of SBA Express Loans for bars and clubs is that the maximum loan amount is $350,000, which may not be enough for some businesses. Additionally, the loan terms are shorter than those of a standard SBA 7(a) loan, with a maximum repayment term of 7 years for working capital and 10 years for equipment and real estate. Finally, the interest rates are typically higher than those of a standard SBA 7(a) loan.
How long does it take to get approved for an SBA Express Loan for bars and clubs?
An SBA Express Loan for bars and clubs can be approved and funded in as little as 30 days. According to SBA Express Loans Terms, expect a determination on your application within three days, maximum. And after that, funds will typically be dispersed in as few as 20 days.
What documents are required to apply for an SBA Express Loan for bars and clubs?
In order to apply for an SBA Express Loan for bars and clubs, you will need to provide the following documents:
- Business tax returns for the past three years
- Personal tax returns for the past three years
- Business financial statements
- Personal financial statements
- Business license
- Business lease
- Business plan
- Resumes of all owners
- Personal guaranty from all owners
For more information on SBA Express Loan requirements, please visit https://www.sbaexpress.loans/sba-express-loan-requirements/.
Is an SBA Express Loan the Best Option for My Bar or Club?
That depends. SBA Express loans are a fantastic choice for bar and club owners who want SBA funding fast, as these loans can be approved and funded in as little as 30 days. However, if you need a larger amount of money for your business, the standard SBA 7(a) loan may be better, as it permits loan amounts of up to $5 million. In contrast, if your credit isn’t the best (and you don’t need more than $50,000) an SBA microloan could be the best option for your business.