Johnny Rockets opens a new location in NYC with SBA 7(a) loan
An entrepreneur having 10 years plus experience in the food franchisee industry approached Biz2Credit to help him fund a start up loan for Johnny Rockets in NYC. The entrepreneur wanted to open the first Johnny Rocket in the country with a sports bar and multi floor facility.
Biz2Credit analyzed the current and past personal tax returns as well as the personal financial statements and experience of the entrepreneur. It concluded that Johnny Rocket being part of SBA approved franchisee registry would best qualify for a SBA 7 (a) start up loan. A major challenge being the tough credit environment coupled with no real estate collateral made the deal tough to fund. In order to execute the deal, Biz2Credit shortlisted and negotiated with couple of local banks for $1.3million loan. Coupled with a $300,000 contribution of the entrepreneur, the largest Johnny Rocket location in the country opened in December 2009. Besides this, Biz2Credit also helped the business to get an initial working capital line to a tune of $300,000.
To increase sales, the entrepreneur was looking to finance new marketing campaigns, while also maintaining excess inventory to service the new business
Biz2Credit helped the business by arranging the best suited finance options. The business got increased working capital line every 6 months down the line.
- Johnny Rockets franchisee was able to raise a 25 year loan at 6%.
- The line of credit was sanctioned at US prime plus 1 (4.25%) for a term of 5 years and no upfront costs.
- The business has been set up for further increases in working credit line every 6 months.
- The business has created 12 new jobs in upper Manhattan.
Johnny Rockets franchisee was able to raise a 25 year loan at 6%.
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