When it comes to applying for your SBA loan, you’ll need to put forward what that money will go towards and show how it will benefit your business and increase your profit margins.
If you are opening a new gym and running it as an independent business then you will need to make sure that the gym equipment you have provides the performance for regular use so your members keep coming back and renew their memberships.
Therefore, a lot of gym owners want to ensure that they invest in quality equipment that is going to supply members with the best experience.
In 2017, a study concluded that the gym and health industry generated a total of $80 billion in revenue across the US alone with these figures only increasing.
As health and fitness becomes even more popular, having the right gym equipment is going to be the difference between bringing new members in as well as keeping original memberships. If you own a gym or health club then you may be considering taking out a loan to cover the costs of new gym equipment through the SBA.
Luckily, the SBA do offer loans through some of their programs where you can purchase gym equipment. These programs are the SBA 7(a) loan program and the SBA 7(a) Express Loan program. This makes it a great option for you to consider if you want to improve your gym or health club.
What gym equipment can you buy with the loan?
The gym and health industry only shows signs of growth every year which in turn means that more equipment is being designed to help improve workouts but there are some pieces of equipment that are considered essential for every gym as they are the most popular choices and are regularly used by gym members. The most popular pieces of gym equipment include:
- Barbells and dumbbells
- Cardio machines
- Functional training equipment
- Rowing machines
- Spinning bikes
- TRX equipment
What are the terms and conditions for taking out SBA loans for gym equipment?
The SBA is the most popular loan type for gym owners who want a loan for gym equipment. This is because they have loan programs that cater for the purchase of gym equipment which can help improve the overall performance of your business.
The most popular SBA loan taken out for gym equipment is the SBA 7(a) loan program which can offer loans with ten year terms. When it comes to calculating how much you have to borrow, there are important factors to know before filling out your application.
Taking loans that exceed $25,000 require sufficient collateral meaning that the application process can be quite difficult if you don’t own a space yet for your gym.
The maximum amount that can be taken out from the SBA 7(a) loan program is $5 million; however, it is unlikely that you’ll be able to take out the maximum amount for gym equipment.
On the other hand, if you want to take out a loan to cover the costs of buying commercial real estate for your gym then the SBA 7(a) loan program can cover this so you can add that onto your desired borrowing amount.
How hard is it to get an SBA 7(a) loan?
Qualifying for an SBA 7(a) loan can be extremely hard because it is dependent on a variety of factors that need to be considered before filling in your loan application.
Making sure that you have a clear idea of where your cash flow is as well as ensuring you have a good credit score that is a minimum of 690 as well as sufficient collateral should you need it will help you through the process.
Depending on the lender that you go to, they need to be assured that they are covered should any problems arise meaning that they only pick the best from their applicants and aren’t guaranteed to approve your loan should you be missing or lacking in any important information.
The SBA 7(a) loan program has a longer application process than others whilst also requiring more documentation and has more involvement than any other SBA loan. This is because it is the most popular kind of loan so it can take longer to hear back.
Therefore, it’s important to be patient during the process and to look through your information thoroughly so you don’t have to reapply in the future.
What equipment do I need to start a gym?
We’ve discussed what the most popular gym equipment is earlier in this article but if you have decided to open a gym and are looking for your first investments into gym equipment then here are the pieces of equipment that are a great starting point:
- Barbell Set
- Dumbbell Set
- Fitness Ball
- Kettlebell Set
- Pull-Up Frame and Bar
- Rowing Machine
- Stationary Bicycle
- Training Bench
These pieces of equipment will ensure that there is a wide variety of different exercises that cater for all different types of members.
Whether you have a member who wants to work on building muscle or someone else who wants to lose weight, having these pieces of equipment that ensure that all exercises are accounted for will help to increase your membership count thus increasing your business’ income and generating more revenue.
Also, making sure you have various accessories such as rollout wheels for abs or a wooden bar for upper body stretching are great for resistance and rehabilitation exercises and are ideal for those who want to have lighter exercises.