Re: Is it possible to purchase a nightclub/bar with little or nothing down? - Posted by JohnBoy
Posted by JohnBoy on May 26, 1999 at 16:57:58:
Do you still have that packet? I don’t think that is correct. I can’t find anything relating to a business that serves alcohol as not being qualified under SBA.
Here’s what their program states.
Standard 7(a) Eligibility Requirements:
Type of Business
Most types of small businesses are eligible. The following types of businesses, however, are NOT eligible:
(1) Nonprofit, religious, or charitable organizations;
(2) Businesses primarily engaged in lending or investment activities;
(3) Businesses engaged in real estate investment and other speculative activities;
(4) Businesses principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs;
(5) Pyramid sales distribution plans;
(6) Businesses engaged in illegal activities;
(7) Businesses deriving more than one-third of their revenue from legal gambling activities;
(8) Private clubs not open to the general public;
(9) Consumer and marketing cooperatives;
(10) Loan packagers earning 30 percent or more of their revenue from packaging SBA loans;
(11) Businesses engaged in activities of prurient sexual nature; and
(12) Businesses or their Associates that have previously defaulted on a Federally assisted loan.
Unless your talking about opening a strip club or selling moonshine, I’d say selling alcohol legally would qualify under SBA guidelines.