How Do You Get Gym or Fitness Center Financing From The SBA?
The U.S. Small Business Administration has various loan programs that provide gym and fitness center for small businesses. It particularly caters to new and existing small gyms that are unable to secure business loans from lending institutions on their own.
The SBA does not directly provide financing. It works with other lending companies and guarantees that the SBA will pay the loan if the gym defaults on it. This makes the lending company more confident in offering gym loans. Here is some information on these loans.
How to Get a Business Loan for your Gym
The SBA has a standard set of criteria for loan applicants:
1. The gym should be small with at most $7 million in tangible net worth and a net income of $2.5 million or less. Size limits can vary according and are determined by the number of employees and annual income.
2. The gym must be operated for profit. It should be capable to generate cash flow to repay the loan.
3. The gym should be in the United Stat…
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