SBA 504 Loans for Bars and Clubs
Entertainment is important, and it takes all kinds to make the world go ‘round. Bars and clubs certainly fall into that category. In today’s market nightclubs, dance clubs, and themed bars all have massive appeal. As a result, the nightlife industry has grown at an aggressive 2.5% each year since 20
Bars and Clubs Benefit from SBA 504 Loans
Entertainment is important, and it takes all kinds to make the world go ‘round. Bars and clubs certainly fall into that category. In today’s market nightclubs, dance clubs, and themed bars all have massive appeal. As a result, the nightlife industry has grown at an aggressive 2.5% each year since 2013 and is expected to generate $2 billion in revenue in 2018. That makes it an excellent time for bar and club owners to expand their current businesses, or even open a new location of their establishment. Fortunately, SBA 504 loans can help them do so.
Uses and Restrictions of SBA 504 Loans for Bar and Club Owners
SBA 504 loans are tailored for small business owners, and are designed for specific uses. For instance, bar and club owners can buy real estate and improve it, renovate existing buildings or construct a new building. In many cases, business owners will want to stay at their current location, and may want to use a 504 loan to purchase the property they are currently leasing. Bar and club owners can even use SBA 504 loans to invest in equipment that they’ll need, such as state of the art audio and video systems, lighting, and more.
Despite the benefits of 504 loans, many entrepreneurs may find that they need another type of loan as well. SBA 504 loans cannot be used as working capital, the way SBA 7(a) loans or conventional business loans can, so it may be necessary to carry more than one loan.
We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!
Related Questions
What are the eligibility requirements for an SBA 504 loan for a bar or club?
In order to be eligible for an SBA 504 loan, the bar or club must meet the following criteria:
- The business must be a for-profit, small business as defined by the SBA.
- The business must occupy at least 51% of the project and must use the loan proceeds for the ownership, construction, or renovation of the project.
- The business must have a tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the past two years.
- The business must be able to demonstrate the ability to repay the loan.
For more information on SBA 504 loan eligibility requirements, please visit the SBA website.
What are the benefits of an SBA 504 loan for a bar or club?
SBA 504 loans are tailored for small business owners, and are designed for specific uses. For instance, bar and club owners can buy real estate and improve it, renovate existing buildings or construct a new building. In many cases, business owners will want to stay at their current location, and may want to use a 504 loan to purchase the property they are currently leasing. Bar and club owners can even use SBA 504 loans to invest in equipment that they’ll need, such as state of the art audio and video systems, lighting, and more.
Despite the benefits of 504 loans, many entrepreneurs may find that they need another type of loan as well. SBA 504 loans cannot be used as working capital, the way SBA 7(a) loans or conventional business loans can, so it may be necessary to carry more than one loan.
The benefits of an SBA 504 loan for a bar or club include:
- Purchase real estate and improve it
- Renovate existing buildings or construct a new building
- Purchase the property they are currently leasing
- Invest in equipment such as state of the art audio and video systems, lighting, and more
What are the terms and conditions of an SBA 504 loan for a bar or club?
SBA 504 loans are long-term financing tools specifically designed for small business owners. The terms of an SBA 504 loan for a bar or club are as follows:
- The loan amount can be up to $5 million.
- The loan term is 10, 20, or 25 years.
- The interest rate is fixed for the life of the loan.
- The loan is secured by a first lien on the property.
- The loan is non-recourse, meaning that the borrower is not personally liable for repayment.
- The loan is subject to SBA eligibility requirements.
For more information on SBA 504 loans, please visit https://sba504.loans.
How can I apply for an SBA 504 loan for a bar or club?
You can apply for an SBA 504 loan for a bar or club by filling out the form on sba504.loans. SBA 504 loans are tailored for small business owners, and are designed for specific uses. For instance, bar and club owners can buy real estate and improve it, renovate existing buildings or construct a new building. In many cases, business owners will want to stay at their current location, and may want to use a 504 loan to purchase the property they are currently leasing. Bar and club owners can even use SBA 504 loans to invest in equipment that they’ll need, such as state of the art audio and video systems, lighting, and more.
Despite the benefits of 504 loans, many entrepreneurs may find that they need another type of loan as well. SBA 504 loans cannot be used as working capital, the way SBA 7(a) loans or conventional business loans can, so it may be necessary to carry more than one loan.
For more information on SBA 504 loans, please visit sba504.loans/sba-504-blog/what-is-the-sba-504-loan.
What documents are required to apply for an SBA 504 loan for a bar or club?
In order to apply for an SBA 504 loan for a bar or club, you will need to provide the following documents:
- Business plan
- Personal financial statement
- Business tax returns
- Personal tax returns
- Business financial statements
- Business debt schedule
- Lease agreement (if applicable)
- Appraisal (if applicable)
- Environmental report (if applicable)
For more information, please visit this page.