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.
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