New Market For Sports

Rural Areas Love Sports and Recreation Too


At this meeting, one of the owners brought up the idea of expanding. Rather than recommending a branch in the big city (or even one of the suburbs), they instead focused on a small rural town in the area. At first, the owners weren’t all on board but the more they researched, the more it looked like a great idea.


Rather than plowing forward, they wanted to look into their options. If the cost was reasonable and they could find the right financing option, they decided, the idea of expanding into smaller markets could be useful. They all worked to gather more information about the potential expansion.


The Cost to Open a New Store


Once costs were nailed down, they came together to talk again. Based on the information the owners found in research, they were fairly sure. They could move forward and open the new location for $400,000. This would take care of the land and building. It would also cover filling it with stock and all the other extras associated with a new business.


Now the new question was whether putting this much into the project was worth it. After the owner who recommended the decision shared a presentation, most of the owners were on board. The next step was to look into what kind of financing would be the right choice.

New Market For Sports

What About Appropriate Financing?


Since opening a whole new store is a major undertaking, the right financing is a must. The owners had an idea of their options. However, they decided to research to make sure they weren’t missing out on an opportunity that would work well for them. A traditional bank loan was an option but they didn’t want to move in that direction without further time to think about it.


In the end, the SBA 7(a) loan turned out to be the best option. It gave them plenty of funding to get the store up and running and came with several extra perks. Once they had an idea of the costs and financing options, they decided to move forward with the expansion.


There’s Nothing Better Than an SBA 7(a) Loan


The company easily met all the requirements for the loan, such as a good FICO score, at least two years in business, and a good annual revenue. They were happy with the decision to go for an SBA 7(a) loan for many reasons, not least of which was the affordability.


SBA loans have a long term length and a lower interest rate, two things that were important to the owners. In addition, it had fixed monthly payments and had funding within a few months of being approved.

How Are Things Today?


After getting the needed funding, the company was able to break ground on the new location. Since then, the store has opened and it has seen huge business from the rural community. The company is paying back the loan now. However, they have already discussed whether they should continue opening branches in smaller towns that may not have as many options.

New Market For Sports

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