Salon Opens New Location
SBA Loan Salon Opens New Location
Author: Valerie Mellema
Date posted: 07.25.23

After flourishing as an upscale hair salon in the Midwest, things were going well for what started as a small business created by someone with big dreams. The salon had expanded and moved locations in the past as the customer base continued to grow. With full schedules again, it seemed like a good time to consider other changes that could be made to allow the salon to continue its expansion efforts.

A Second Salon Could Be the Answer

 

After a successful expansion and some stabilization, the leadership team met to plan for greater success. Additionally, they had considered a second salon in the past but hadn’t confirmed the timing. Furthermore, based on their business’s positive trajectory and growth potential, they decided to explore opening a second salon. Consequently, this was seen as a viable goal to pursue.

 

Financing a New Space

 

One of the initial considerations was determining the amount of financing required to secure a suitable location across town, ensuring greater accessibility for more people and providing current clients with a nearby alternative for their hair needs. Their research into similar situations yielded data indicating that they would need approximately $1.2 million to execute their plans as envisioned.

Salon Opens New Location

What’s the Best Financing Option?

 

To explore financing options, they began their search. With numerous choices available, the leaders aimed to select the most suitable solution for their needs. Traditional loans offered more suitable options, as alternative financing fell short of their requirements. Ultimately, when the time came to make a decision, they opted for an SBA 7(a) loan.

 

Why Select an SBA 7(a) Loan

 

SBA loans are considered the gold standard for small businesses because they can be used for a wide number of business needs. They are unique in that the SBA guarantees a portion of the loan, resulting in lower interest rates compared to similar loans. Although approval takes a while, the perks make it well worth it.

In this case, the salon could secure the funding it needed with a 10-year term length. While funding would take a few months, there was no hurry, as the affordable financing ultimately made it clear that this was the best option to move forward with. This decision led to the salon’s approval and the commencement of the work.

Looking Toward the Future

 

Today, the salon operates two bustling locations, resulting in higher revenue than it could have achieved with just one. Furthermore, in addition to creating job opportunities for numerous community members to staff both salons. It has also fostered a stronger local presence. Currently, the owners attribute the SBA 7(a) loan as the primary factor behind this success.

Salon Opens New Location
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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