[nabentre] financial info

[Daniel Meek]

Legally, you can not use a 401(k) as collateral for a business loan.
401(k)'s are governed by ERISA and regulated by  the Department of
Labor and are exempt from creditors in most cases.

However, a local bank might consider alternative arrangements such as
moving a $500,000 retirement account to their bank and leaving it in
cash or CD's for the first five years of the business loan (basically,
an under the table agreement).  One must also consider the cost of
little to no earnings on the retirement account as part of the
business loan cost in such an arrangement.


On 3/14/12, Brad Dunsé <lists at braddunsemusic.com> wrote:
> The Small Business Administration does loans, but
> there are quite a few hoops to jump through from
> what I understand. I've not applied for one myself.
>
> I will say unless things have changed, generally
> to secure a loan, unless your mom is going to be
> your partner and likely the primary loan holder,
> a financial institution of any kind will likely
> want to see "your own personal assets." The idea
> is your personal investment/sacrifice into the
> endeavor, not your ability to risk someone else's revenue.
>
> You could check with the Foundation Center and do
> some research  to see if there are any
> foundations out there which help in such
> situations, but foundations deal mostly with NFP
> organizations rather than individuals or for
> profit endeavors, but  there are some out there from my understanding.
>
> In either case, they will want to see a business
> plan showing the step by step process, goals,
> perhaps competition in the area, and etc.  so
> that is a great place to start. I believe there
> are resources on SBA's site on how to write one if you've not done so.
>
> Also the Foundation Center, in conjunction with
> what use to be RFB&D. created an audio book on
> grant writing which has a lot of the same
> information as business plans, plus gives you
> insight in the tone and style how to write grant
> applications. It is a pretty hefty read though, downloadable in MP3 format.
>
> I would suggest perhaps checking with BookShare
> and BARD to see if there are any books on
> creative financing for ideas. If the assets are
> low, which is the case with many of us these
> days; it may require a partner or limited
> liability partner, someone who has enough faith
> in your ability who is willing to be a capital
> venturist. Of course payment terms or percentage
> of profits would be worked out and such.
>
> Pizza pizza :)
>
> Brad
>
> On 3/14/2012  01:13 AM gary lemberg said...
>
> Hello everyone My name is gary Lemberg.  I live
> in Maywood NJ.  I am interested in opening a
> Little Caesars Franchise in my area.  My question
> is the initial amount that I need is about
> $200,000 .  I have to have a net worth of
> $150,000 excluding $50,000 in liquid. I was
> wondering if I could use my mom’s 401k for
> collateral for a business loan?  Does anybody
> know of any places that offer loans for business
> to people that are blind or visually impaired?  I
> hope that someone can help answer my questions.
> Sincerely Gary Lemberg
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>
>
>
> Brad Dunsé
>
> "Either make a plan for your life, or settle for
> being part of another's." --American Proverb
>
> http://www.braddunsemusic.com
>
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>
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-- 
Daniel Meek
Investment Advisor

"Determine that the thing can and shall be done, and then we shall find the
way." -  Abraham Lincoln

Synergy Capital Management
Office: (405) 495-0100
Mobile:  (405) 760-7727
Email: dmmeek at gmail.com
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