Can SBA 504 Loans Help Fund Liquor Stores?
America is a thirsty nation. National trends show that for the first time in decades, the consumption of liquor has outpaced that of wine and beer, making it a great time to invest in a liquor store. Of course, you can also have the best of all worlds by cashing in on the craft beer, local wine, and crafts spirits trend.
Finding funding for a liquor store can be challenging, but SBA 504 loans may be the perfect solution. These loans are designed for very specific purposes primarily land, buildings, and equipment. This allows you to purchase the land, and improve it with drainage, pavement, parking areas, and more, and then construct your building on that land. You can also purchase an existing building if you prefer.
Non-SBA 504 Loan Options for Liquor Stores
While SBA 504 loans have a lot of benefits, you’ll need to find a conventional loan or take out an SBA 7(a) loan if you need working capital, as 504 loans cannot be used for capital or for leasing. Other SBA loan options that can fund working capital include SBA express loans and SBA microloans. The SBA express loan is a variant of the 7(a) loan that requires less paperwork and a shorter approval process. Express loans are offered in amounts of up to $350,000. In contrast, microloans, which are designed for smaller businesses, are offered in amounts of up to $50,000, and have much more relaxed credit requirements than other kinds of SBA loans.
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