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Article: Brewing a detailed business plan helps tea lounge win backing: lender reads beyond lack of collateral to back venture.(Small Business Development Centers)
- Article from:
- Los Angeles Business Journal
- Article date:
- May 17, 2004
- Author:
CopyrightCOPYRIGHT 2004 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Seventy-four rejections. Lenders weren't just rejecting Jesse Jacobs' loan application for a San Francisco tea lounge.
In 2002, any restaurant venture was considered risky: The triple whammy of reduced tourism, a recession and the dot-com collapse was forcing dozens of Bay Area restaurants to close.
For Jacobs and partners Paul Fullarton and Robert Sandler, the disheartening answers meant one thing: There was still one more bank to call on the list of Small Business Administration lenders their adviser had given them.
That last stop was the source of a $160,000 loan they poured into their dream of a tea lounge in a bustling neighborhood.