B-B-Bad To The Loan

Entrepreneur, Feb, 2000 by David R. Evanson

Although the process is never pleasant, Cappello says the resolution should be satisfying to all. "In a good workout," he says, "the borrower gets over the hump, the business gets back on rack and the lender still has a borrower."

Over at Mike's Famous Roadside Rest, Schwartz is pretty comfortable. Projected sales of $12 million for his dealership--a figure presumably upon which the loan was negotiated and approved--turned out to be conservative. Schwartz estimates he'll do nearly $20 million in his first full year. Still, he says, you just never know what the future might bring.

David R. Evanson's newest book about raising capital is called Where to Go When the Bank Says No: Altenatives for Financing Your Business (Bloomberg Press). Art Beroff, a principal of Beroff Associates in Howard Beach, New York, helps companies raise capital and go public and is a member of the National Advisory Committee for the SBA.