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Success Story

Funding a New Business with a Franchise Loan

THE SITUATION: FRANCHISE START-UP

Two business partners are starting a family entertainment center, a start-up franchise location, and they have more than 20 years of local industry experience between them. The franchise has a proven business model and a track record of success in a thriving industry.

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Limited Collateral

The owners do not have enough tangible assets to qualify for a conventional business loan. They were rejected by three banks and were losing hope of making the dream a reality.

THE SOLUTION: SPECIALTY FINANCE SBA LOAN

First Business Bank offers a complete toolbox of funding solutions to meet business owners’ unique needs. For this situation, an SBA loan was a perfect fit. Guaranteed by the U.S. Small Business Administration, SBA loans are an alternative to traditional bank loans, designed to help people starting up or growing a business who may not meet traditional lending standards.

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No Collateral Barrier

Many conventional lenders won’t lend to owners in business situations where there’s a lack of assets to recoup if there’s a default on the loan. In this case, the owners invested some equity.
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Start-up Business Bias Removed

A new business with no previous history of profitability is sometimes too risky to qualify for conventional loans. Projected cash flow for this business is adequate for an SBA loan in this case.
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10-Year Full Amortization

This SBA loan features consistent payments over 10 years with no larger-than-typical balloon payment required that’s often necessary with a conventional loan.

"We we’re able to help these business owners by offering a $1.3 million SBA loan featuring a 10-year amortization, which will help keep fixed operating costs low for increased flexibility for years to come.

Marty Ferguson, Managing Director of SBA Lending, First Business Bank

NOTICE

Access to Online Private Banking is intermittently unavailable; users may not be able to access it at this time. We are working to restore access as soon as possible. If you have questions, please contact us at: 855-257-4149.

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NOTICE

Access to Online Business Banking is intermittently unavailable; users may not be able to access it at this time. We are working to restore access as soon as possible. If you have questions, please contact us at:

• Wisconsin Region: 608-232-5938
• Kansas Region: 913-717-6464

NOTICE

We apologize for the inconvenience, but the courier portal is currently down.  If you would like to schedule a courier service, please call:

  1. (608) 232-5938 (Madison)
  2. (262) 792-1400 (Milwaukee)

NOTICE

To protect clients and employees, we temporarily suspended courier service. For other deposit needs, please see your client email sent on 3/16/2020 for instructions regarding deposits at your local First Business Bank office.

To set up Mobile Banking, please contact our Treasury Management Support team at 608-232-5938. We will alert you when courier service is available again. Thank you.