Re: [Coworking] SBA won't fund coworking??

[Randall G. Arnold]

My point was that some have made mixed use work, so it's one of many possibilities.  Certainly not for everyone, but worth mentioning IMO.   Randy   On April 25, 2013 at 5:42 PM Jerome Chang <jer...@blankspaces.com> wrote: Oh, I of course totally agree we aren't just a subleasing businesses but banks and govt policies do not understand us. And we all know to convince those two institutions to update their policies will take forever.    If one were to rewrite their pitch so that membership fees pay for mentorship, then that might fly with the SBA better. But then you need to show expenses to pay for said mentors...   Retail. Again, unless you're selling high dollar products like jewelry or even tech stuff, retail would unlikely generate more revenue than memberships. And please please everyone, do not get into the food service business unless you really know that business. Just getting proper permits for restaurants, etc is hella hard, let alone the typically low margin business model. Yes yes, drinks are higher margin, but then please get an experienced architect to permit your two businesses (food, coworking). Mixed use businesses complicate your process with the govt agencies. I say this because a lot of my architecture practice is designing restaurants.  Jerome www.BLANKSPACES.com On Apr 25, 2013, at 2:48 PM, Alex Hillman < dangerouslyawes...@gmail.com> wrote: I'm just upset that the person i talked to shut me down before i even explained fully what we intend to do.   Welcome to the world of entrepreneurship. If you're not getting shut down once in a while, you're probably not trying hard enough ;)   -Alex     --   /ah indyhall.org coworking in philadelphia On Thu, Apr 25, 2013 at 5:42 PM, Rena Tom <bob...@gmail.com> wrote: good idea, will talk to Mike.    I'm just upset that the person i talked to shut me down before i even explained fully what we intend to do. On Thu, Apr 25, 2013 at 2:38 PM, Alex Hillman <dangerouslyawes...@gmail.com> wrote: That totally makes sense.    FWIW, there's an argument that could be made that coworking helps its members grow their businesses and that when those businesses grow they're likely to hire. If you're describing your business as a desk rental/subscription rental model, it makes sense from Jerome's description that you should get turned down. But if you describe how your business model can be a catalyst for economic development (we talked about this in last friday's Office Hours, video here: http://www.youtube.com/watch?v=roBKm87wc6U), you may have a stronger case.    At any rate, rather than speculate, I would reach out to Mike Maher from Benjamin's Desk  and ask about his SBA application and see how he pitched it. He's a super nice guy and I'm happy to have him as a neighbor here in Philly :)     -Alex     --   /ah indyhall.org coworking in philadelphia On Thu, Apr 25, 2013 at 5:26 PM, Jerome Chang <jer...@blankspaces.com> wrote: Alex, my understanding is that the govt is backing these bank loans. So the govt would want businesses to hire people to run the operations, not a kick-back-and-collect-revenue biz model.    Yes you could sell magazines and stuff, but that would have to amount to a lot of revenue...at least equal to the coworking memberships. 1 desk = $500, vs 100 magazines @ $5 each. Multiply by at least 20 desks. Print magazines are dying so...   Rena, it's possible to convince some loan officer to convince the loan committee and therefore the SBA approval process, but it'd be an exception than the rule.  Jerome www.BLANKSPACES.com On Apr 25, 2013, at 2:15 PM, "Randall G. Arnold" < randall.arn...@texrat.net> wrote: Which would support the idea of hosting a deli and/or magazine and other related sales activities onsite.  Is training considered passive?  After hours rentals?   Randy   On April 25, 2013 at 4:05 PM Jerome Chang < jer...@blankspaces.com> wrote: An inside source once told me that the SBA doesn't finance operations based on passive income. Gyms with passive membership fees get away with it because they have a lot of trainers, retail sales, etc.    So unless you can prove that more than 50% of your business is not passive, you're out of luck.  Jerome www.BLANKSPACES.com On Apr 25, 2013, at 1:58 PM, Rena Tom < bob...@gmail.com> wrote: Help me out, all. I just had a conversation with the NYBDC (New York Business Development Corporation) which works with the SBA on lending. They said the SBA won't fund coworking spaces because it's too much like a landlord/subtenant situation which is not in their charter.   Have any of you taken a SBA loan for your space? This just sounds wonky to me. Rena   -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.         -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.       Randall (Randy) Arnold Developer and Enthusiast Advocate http://texrat.net +18177396806   -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.       -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.       -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.       -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.         -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.       Randall (Randy) Arnold Developer and Enthusiast Advocate http://texrat.net +18177396806 -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/groups/opt_out.