What is a spa540 loan?

Question

I am trying to buy a business and was advised that a spa540 and spa7a loan would be the way to go. I looked unsuccessfully for more information online. Can anyone shed any light on this?

Answer 1

Hi,

Actually, it's a SBA 540 loan. SBA standing for Small business Association. You can find the information for it below.

http://www.edckc.com/edcloan/typesofloans.htm

This is the SBA loan program page.

http://www.sba.gov/services/financialassistance/index.html

Answer 2

Well, you are probably talking about SBA 504 loans and SBA 7(a) loans... Basically, both of these are loan guarantee programs administered by the Small Business Administration. Since you are trying to buy a business, you are most likely ineligible for a 504 loan. You can be eligible for a 7(a) loan, provided that you are buying the business in its entirety (rather than, say, a 40% or 60% equity interest) and are not in an ineligible industry (those include real estate investment, speculative activities, lending, multi-level marketing, and gambling).

Here's additional information straight from the horse's mouth:

7(a) loans:
http://www.sba.gov/services/financialassistance/sbaloantopics/7a/index.html

504 loans:
http://www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html

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Answer 3

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this should assist you

When calculating a spa's financial performance, think, room utilization rate. This is the sepulcher of a spa's income and balance sheets. If a room is used for massages at $65 per hour 50% of time during the launch year the top-line revenue will be X. If a wet-room treatment earns $80 per hour but is occupied 60% of the time during the launch year it will earn Y. The number of rooms, types of treatments offered, equipment, payroll, insurance, and marketing campaign drives bottom-line calculations. Resist the temptation to buy spa equipment before the final design has been completed and the spa menu has been set in stone. I've seen situations where brand new spa equipment sat gathering dust because it didn't fit into the final design and concept!

Another danger with Step 6 is that it can bog down a spa’s progress. If you find yourself grasping at straws or wondering how to calculate financials as the proposed profit center ramps up operations, its worthwhile to call in a spa consultant to review your projections, and point out gaps and inaccuracies. This way your sales pitches to bank loan officers, potential investors, and key vendors will be fool-proof. The more detailed and accurate your spa design, concept, and operation manual, the more simple and accurate calculating financial projections will be. If you feel like you are throwing darts at a board, chances are Steps 2,3, or 4 (and 5) are incomplete.

If your spa is going to require outside financing, this piece of the spa puzzle must impress your toughest critics. Be sure to include best, middle and worst-case scenario plans to assure potential investors of your ability to prosper in the most inhospitable business environments. Make a list of risks that could undermine your business, prioritize them, and write down your solutions to those problems to help you formulate the financial projections. For a bootstrapping start-up, coping with an overwhelming amount of sales can be as taxing on a start-up spa as too few sales. As the old saw goes, cash flow is king.

Answer 4

it is a loan for 540$ FOR UR SPA. lol

Answer 5

it is a loan for $540.00 lol

Answer 6

go to help we are in usa...there lots of finalcial assist...for students