Restaurants are generally considered to be high-risk business ventures as most of them fail within 1-2 years. Commercial lenders know that and if you are unable to properly collateralize or otherwise secure the loan, most of them will turn you away.
The impression that it’s very difficult to get a loan from the SBA is exactly what the SBA wants to achieve. It’s a filtering process that is designed to weed out thousands of ill-equipped applicants, so they can focus on those that are at least somewhat qualified to build their own business.
Also, please keep in mind that the SBA usually doesn’t provide loans or any other financial products. If you qualify, they will act as a guarantor for your loan, which could put you back in business with most traditional commercial lenders.
So if you have a sound business plan along with $200,000 of your own to invest, you should be able to cruise through the application process.
Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.