For almost a year and a half, prospective franchise owners have been finding it quite difficult to get banks to lend them money for their franchise start-ups. There's change in the air…
Meet James Hendergrass, and Ted Clarkson
These former Manhattan banking executives have decided to do something positive with their own massive bonus checks. (They just received them, last month) Here's a couple of facts;
- Hendergrass and Clarkson both worked for banks that we bailed out.
- Henderson and Clarkson both were admitted to an upstate New York drug treatment center for an addiction to sleeping pills.
Friends since college, (Harvard) these gentleman have stuck together through thick and thin. They have been involved in banking since 1965, and are very talented financial executives.
These talented guys have just received approval from the FDICY to start their own niche bank. It is called;
This New York based institution will specialize in small business start-up loans, and will concentrate on the undeserved low-investment market.
The loans they will "arrange" will be in the $15,000-$20,000 range. They were nice enough to share their loan criteria with me. Here it is;
- Must be employed, or at least collecting unemployment
- Will be required to put 40% to 50% down
- Must have a valid drivers license/proof of insurance
- May need a business plan
Well, that's their plan. We'll have to see how it goes.
This could be a step in the right direction. They are helping entrepreneurs, and they are helping themselves. If all goes as planned, they'll finally be able to sleep at night.
I feel better already. Do you?