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Lounge Update


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So I'm sure you guys remember the topic I posted a month ago or so about what you'd like to see in a lounge (by the way thanks again for the great input!).

As of now our loan approval is in purgatory, and it's not looking good. Apparently the SBA (a government agency that backs loans for small businesses giving banks more confidence when lending) doesn't back certain ventures, and from what we've run into it's looking like hookah lounges may fall into that category.

We've been working with the bank SBA representative trying to get them on-board, but it's an uphill battle. So we're looking more into private investors, trying to cut our start-up costs even more, and living off beans and rice trying to save up more money ourselves. Basically if the loan doesn't come through it's going to be a lot longer than we had hoped to get it up and running.

I just figured I should let you guys know where we were at with it, in case anyone was wondering :P
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I could have told you that a long time ago, SBA doesnt back food businesses or tobacco businesses. There reasoning is if you default what are they going to reposes and sell as payment for your loan? Hookahs? lol

It sounds like you've got a plan, good luck with everything and if you have any questions you want to ask me go right ahead.
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[quote name='cotsi95' timestamp='1289372073' post='487853']
I could have told you that a long time ago, SBA doesnt back food businesses or tobacco businesses. There reasoning is if you default what are they going to reposes and sell as payment for your loan? Hookahs? lol

It sounds like you've got a plan, good luck with everything and if you have any questions you want to ask me go right ahead.
[/quote]

Well the bullshit thing is that we have 20% of what we're asking for in the loan to put as a down payment, and three business partners to split liability between. We actually may be able to each get a personal loan, but the interest on that would be much higher. Idk, we'll figure something out.
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as stated above don't give up. No matter how much shit gets thrown in your path keep on walking it, it'll end up working out, best thing to do is what it sounds like you have been doing, save up.
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