Financing Your Hurricane Grill and Wings Investment
Hurricane has created and participates in a variety of financing programs which are intended to help you obtain the funds you need to build and open your Hurricane Grill and Wings Restaurant. These programs are available to new and existing franchisees of the Hurricane Grill and Wings concept. Our goal in creating these programs was to provide you with a variety of financing options which will allow you to select from the program best suited to your individual situations. Each of our programs is explained in greater detail below.
Hurricane has partnered with BoeFly in order to streamline the loan process and expose your financing request to multiple lenders with minimal effort by you. BoeFly is an online marketplace that connects franchisees to hundreds of pre-screened, motivated lenders by only completing one, online application process. Hurricane has provided all of the information the lender requires from our brand in a typical loan application, so you avoid the hassle of requesting and submitting this information on your own. Because your application is exposed to multiple lenders, you have the opportunity to obtain the most competitive rates and can compare proposals from different lenders without having to do the application process for each lender.
How it Works
1. You create an account by registering at our BoeFly page at www.boefly.com/hurricanewings. You select one of the three application plans available depending on the amount of assistance you desire during the application process. The plans range in cost from $79.20 to $399.20 depending on how much help you want from BoeFly.
2. You utilize the BoeFly tools to prepare your loan request. Depending on the level of service you select, you may also have a BoeFly expert assist you.
3. You Review your Matches. You loan is matched with several compatible lenders who will request access to your loan package.
4. With your consent, compatible lenders will be in Contact to review your request and complete the loan process.
Hurricane Guaranteed Loan Pool
Hurricane has established loan program through Mount Pleasant Capital, LLC which provides a pool of up to $10,000,000 available for financing Hurricane Grill and Wings Restaurants. This program is available to new franchisees as well as existing franchisees opening new locations. As explained in greater detail in our Franchise Disclosure Document (FDD), Hurricane has provided a partial guarantee under this loan program. Credit criteria will differ, depending on the amount of business and restaurant experience that you have. Generally, the minimum qualifications and lending criteria are:
1. Minimum FICO score of 700.
2. Loan to Value ratio of approximately 70-75% for new franchise owners.
3. Liquid assets available to cover 30-40% of overall opening costs.
4. No maximum loan amount.
5. Personal Guarantees by individual franchise owners.
6. Lender is granted a security interest in all assets of the franchisee including the franchise agreement which is cross-defaulted with the loan agreement.
How to apply
In order to streamline the process, you submit your application through the BoeFly portal and it will automatically be forwarded to Mount Pleasant Capital for consideration. Please note that Mount Pleasant Capital is an independent business not affiliated with Hurricane and we do not receive any financial benefit or compensation from them.
Small Business Administration (SBA) Financing Programs
There are a variety of financing programs available to qualified business through the SBA. Typically, the application and approval process for these loans is more burdensome than other programs, but the rates and terms are typically more competitive than standard bank loans, because the federal government guarantees the loan. Hurricane Grill and Wings is a qualified franchise under the SBA programs. There are primarily two programs that you would utilize:
The 7a Loan Program is most commonly used to purchase a business, or expand an existing business. Loan amounts range between $100k to $5 million dollars. The loan application process can take 30 to 60 days to process. The maximum rate is 2.75% above prime. The SBA provides the lender with an 85% guarantee for loans up to $150,000 and for loans greater than $150,000 the guarantee is 75%.
The 7a Loan Program:
· Funding Start Up Costs of New Business
· Construction of a New Building
· Refinance of Business Debt
· Working Capital
· Purchase of Commercial Real Estate
· Tenant Improvements
· Equipment Financing
· Strong personal credit
· Industry experience of 2 years
· May need to provide collateral
· Usually 20% to 30% down
· Written Business Plan
· Provide 3 years of tax returns
· Personal financial statement
· A updated personal Resume
The 504 Loan Program offers long-term financing used to acquire real estate or equipment for expansion or modernization. The borrower is expected to come up with 10% and the bank takes a first mortgage of 50%. The remaining 40% is raised by sale of debentures that provide the borrower with a 20 year fixed rate. Most 504 projects are in the $200 k to $5 million plus range.
The 504 Loan Program:
· Start up or expand an existing business
· Funding for franchises
· Purchase real estate
· Equipment financing
· Longer terms for expansion projects, equipment or real estate purchases
Additional details on SBA programs can be found at the SBA’s website at www.sba.gov. There are a variety of organizations that can provide specific assistance with the SBA application process.