Grants to start a restaurant???

I've spent hours and hours online searching....does anyone have info on how to get grants/financing/etc to start a restaurant???

It's been a dream of mine for a long time!!!

Had to get, but you can try some of the SBA organizations. They have professionals that are retired who can guide you, and may have more answers.

If you tied your restaurant (via a tight business plan) into something (a program) that would benefit a community or some segment of it, you may have a better chance.

First, before anyone gives you anything you must have a reasonable, well thought out business plan. People whant to know what is your intent, and how you plan to get there, and what it will cost.

It takes much more than a dream!

Also, contact the local Restaurant Association in your state and ask them if they know of programs that will help you.

GOOD LUCK!

Look for a Small Business Development Center at a Local College. They will walk you through the SBA loan but be warned - the SBA rates are NOT great and now I am thinking of refinancing the house to try and get a better interest rate.

You could also try SCORE counseling. They have a website with locations throughout the country and the retired folks again. But I have never had much luck finding anyone from the restaurant profession directly, more marketing, accounting etc....

Grants are a myth - they are not out there to start for-profit businesses only non-profits.

I am sure I am not the only one to tell you to work in the kind of place you would like to open - it may change your mind and save you money. It is not that glamourous and trying to compete with chains while paying taxes and fees and licenses etc is hard.

Honestly though, good luck. Noone could have changed my mind and I am approaching the first year in business. I still hope everyday that I can make this happen!

Consider taking the time to put together a solid business plan. If your idea still makes sense, use the plan as a prospectus to get friends, family and neighbors to invest in your business, e.g., shares or LLC member units.

Good luck!

Thanks for your replies!

My husband has two masters degrees in business management and lots of years of experience both setting up and running restaurants and I've had lots of experience in the front of a restaurant, plus experience as the office manager of an advertising agency, so we're putting our skills/talents together.

Plus I've found a potential grant source.

But thank you all for your detailed and encouraging replies!!!!

I just signed up with the forum as I am looking at extending my business into the new field of reataurants also. You said you may have found a potential grant source? Please due tell, using money and credit from one business to start another doesn't make me feel to safe. Infact, thats what I am tring to do is start a second business "restaurant" without using anything from the first and that is looking to be easy!

quote:

Originally posted by !Cafe

Thanks for your replies!

My husband has two masters degrees in business management and lots of years of experience both setting up and running restaurants and I've had lots of experience in the front of a restaurant, plus experience as the office manager of an advertising agency, so we're putting our skills/talents together.

Plus I've found a potential grant source.

But thank you all for your detailed and encouraging replies!!!!

As someone who has worked as a small business consultant for the last twenty years and as a business owner for the last fifteen years, I can tell you that there is no free money. If your husband has two masters degrees in business management, he may have missed classes the day they taught that there is no free money.

Typically, grants can be issued to a municipality or county for the purpose of extending a loan to a for-profit business. The formula used to determine the size of the loan includes the number of jobs to be created and the amount of owner's equity. It would be rare that a restaurant would generate enough jobs to meet the requirements, plus governments are reluctant about loaning money to a business that competes with other local businesses.

If you've found a source for a direct grant to your start-up, I would be very suspicious that it's some kind of scam.

Unless you have a sizable investment that you're willing to risk, chances are institutional lenders will not be interested, no matter what your experience is. On top of that, they will expect personal guaranties backed up by collateral.

First, put your business plan together making sure your financials are reasonable and explainable, and take it to your bank for their review. Once they tear it apart, take it to the SBDC.

When you finally have a business plan that shows a promising business model, find friends and relatives who have faith that you can make it work. Then maybe, you can get started.

"....use the plan as a prospectus to get friends, family and neighbors to invest in your business,"

Then you'll wind up with a bunch of former friends, distant relatives and P.O.-ed neighbors that will hate you, your wife, your kids and all your pets. Never do business with relatives or friends!

quote:

Originally posted by kensandyeggo

"....use the plan as a prospectus to get friends, family and neighbors to invest in your business,"

Then you'll wind up with a bunch of former friends, distant relatives and P.O.-ed neighbors that will hate you, your wife, your kids and all your pets. Never do business with relatives or friends!

Truer words were never spoken. That being said, sometimes when someone has a truly good idea, that may be their only option to get started.

Grants for opening a restaurant? Yup..Buried in Grant's Tomb along with Grant.....

quote:

Originally posted by Baah Ben

Grants for opening a restaurant? Yup..Buried in Grant's Tomb along with Grant.....

No doubt.. Pipe dream to say the least.. It's not going to happen.

There are a bunch of Nigerians, all Royal Family, who give grants like your looking for, of course you have to jump thru a few minor hoops to get one.

If you try the SBA route get on it fast. As I understand it many banks have stopped doing the community express loans (a no collateral loan) due to the bad economy. And it takes a lot of time and effort obtaining one. The banks want a business plan, and let me tell you making a business plan is a monumental task.

Here is a good link for an online interactive business planner.

http://www.canadabusiness.ca/ibp/en/index.cfm

For anyone out there already in business that are using credit processing, Merchant loans are becoming popular. Your credit processor will give you a loan based off your credit transactions (usually a minimum of $3,000 of monthly transactions required) and they will automatically subtract the loan payment from your transactions. But be careful this has become a huge industry with many bad apples, but it could be a better option than losing your home.

Good luck.

Grants are not loans. They are a gift of money with no repayment necessary for an assumed good cause. Grants thus generally go to non-profits, charities, research and the arts. It would be theoretically possible I guess for some organization to grant money to a private business if they think maybe a restaurant would be good and necessary for the community and economy, but that seems a stretch. Those kind of grants have gone to distressed communities and neighborhoods under the guise of economic development.

quote:

For anyone out there already in business that are using credit processing, Merchant loans are becoming popular.

Yeah, I hang up on these leeches about once a week. They're annoying and difficult to get rid of.

^^Me to lol, but there are some legit ones out there, you just have to do some research.