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Bank Loan Proposal Template

Applicant:
[Sender.FirstName][Sender.LastName]
[Sender.Company]
[Sender.AddressLine1]
[Sender.AddressLine2]
[Sender.PhoneNumber]
[Sender.Email]
Lender:[Lender.Company]
Attn:[Lender.FirstName][Lender.LastName]

Introduction

Dear [Lender.FirstName][Lender.LastName],

I have been in the restaurant industry for more than two decades, holding positions from the front of the house to the back of the house. I’ve worked in several major U.S. markets, including New York City and the San Francisco Bay Area, as well as overseas in South America and Europe.

I first started out in my grandfather’s restaurant, [company name], busing tables and doing dishes. For the past [number] years, I have been the manager of a highly-acclaimed and popular destination restaurant in [city]. I also hold a [degree] in [major] from [university name].

Since those early days in Grandpa’s kitchen, I have wanted to run my own restaurant. I believe my time is now, as I have the necessary experience, industry relationships, and connections to make this happen. With help from those industry connections, I’ve created a sound business plan that borrows from established ventures but takes things a step further.

The following proposal will show [Lender.Company] why I need a loan to launch my restaurant and how the money will be used to complement my existing capital.

Sincerely,

[Sender.FirstName][Sender.LastName]

Company profile

At its core, a restaurant is a gathering place to relax, refuel, and commiserate with others. The world is full of different cultures, but one thing we share is how much we value meals together. I’ve taken this ethos to heart, and it is the driving force behind my concept for a restaurant.

In San Francisco, it’s not enough to serve good food; you are selling an experience as much as a meal. The city is one of the top markets for restaurants in the country. It was one of the first two regions in the U.S. reviewed by Europe’s esteemed Michelin Guide, and it contains the most restaurants per capita of any U.S. city. In essence, San Francisco is a trend-setter in the food world.

My restaurant, [company name], is currently in the buildout phase with an anticipated opening date of six months from now. We have secured a lease in a neighborhood that has steady foot traffic, is popular with tourists and locals, and does not have any similar restaurants. The space will be bright and open, with an exposed kitchen in the rear to show off food production and a 360-degree bar in the center with ample space to wait for a table and have a drink. We are aiming for seating of up to 50 at a time to give patrons a more personal experience.

We envision a younger clientele with plenty of out-of-towners, as the neighborhood is popular with tourists. Our prices will be very competitive in order to attract customers, but I also believe in living wages and benefits for our employees. To this end, all tips generated by the service staff will be pooled together and then dispersed depending on each employee’s job within the restaurant.

Management team

[Company name] is run by the following management team:

  • [CEO.FirstName][CEO.LastName], Chief Executive Officer (CEO).
    [Title][CEO.LastName] is a native of [city],[state], and graduated from [university name] with a [degree] in [major]. [Include further education and work experience and outline how this person brings value to your company].
  • [COO.FirstName][COO.LastName], Chief Operating Officer (COO).
    [Title][COO.LastName] is a native of [city],[state], and graduated from [university name] with a [degree] in [major]. [Include further education and work experience and outline how this person brings value to your company].
  • [CMO.FirstName][CMO.LastName], Chief Marketing Officer (CMO).
    [Title][CMO.LastName] is a native of [city],[state], and graduated from [university name] with a [degree] in [major]. [Include further education and work experience and outline how this person brings value to your company. Connect the CMO’s role with the Marketing Plan section of this bank loan proposal template].

Partner histories

In addition to myself, there are two other investors in my restaurant. Each of us brings something unique to the concept because we have all spent our careers in the restaurant industry.

[Investor1.FirstName][Investor1.LastName] is a veteran in [area of expertise] who [describe what this person does]. [Describe the investor’s involvement in the industry and if they have won any awards].

[Investor2.FirstName][Investor2.LastName] is a seasoned [role] who has worked for [describe work experience that makes this person stand out]. He studied cooking in [country], and [describe further education and experience]. His [work] has been lauded as [quote].

I bring front-of-house experience to the team and will be handling the direct contact with customers and managing the service staff. I have over [number] years of direct restaurant management experience at high-volume locations in [city] and [city].

Marketing plan

Mission Statement

[Company name] is a small, cozy restaurant specializing in Italian-American cuisine. Our pasta dishes combine the nostalgic flavors of my grandparents' Italy with the diverse flavors of an American upbringing. The space that we have leased is located in the heart of downtown San Francisco. We plan to offer a relaxed, open atmosphere that locals and tourists of all ages will find attractive.

Goals

Based on our analysis above, we believe the following marketing strategies will bring a lot of success to [company name]:

Promotional Strategies:

  • Partnering with food delivery apps in the Bay Area
  • Devoting at least [number] hours a day to marketing activities
  • Utilizing a reservation app so customers can book tables in advance
  • Implementing a staff incentive system with monthly bonuses
  • Creating a customer loyalty program

Internet Strategies:

  • Targeting people through the use of social media, which will help promote our brand image and make us stand out from our competitors
  • Collaborating with at least [number] Instagram and YouTube influencers per month who live in [city] and are well-known for trying out unique restaurants
  • Publishing at least [number] blogs a month about our recipes, our struggles in the food business, and funny stories about our staff to make us more relatable

Current Position

Currently, we are doing the following to make [company name] stand out:

  • Updated [company name]'s social media accounts regularly with details about our space and teasers for our grand opening. As of [month][year], we have [number] followers across all of our platforms
  • Hired a photographer, [Photographer.FirstName][Photographer.LastName], to take professional photos of our dishes that were posted onto our website, our Google business profile, and all of our social media platforms
  • Hired a social media and SEO expert to rework our website to rank higher on Google
  • Posted positive press about our restaurant on our website blog and social media profiles, highlighting when we've been mentioned in a magazine or news outlet

In total, we have invested $[amount] in marketing since [month][year].

Loan Request

Amount

Our budget for the restaurant is $[Amount]. Of that, we have raised $[Amount] to launch the restaurant. Our existing investment is being used to pay lease costs on the space while it’s built out and construction expenses to renovate the interior. It’s also going toward city and state permit and licensing costs associated with restaurant and bar operations. We anticipate an opening date of [number] months from now.

The money we are requesting from [Lender.Company] will go toward the following needs:

  • Kitchen equipment, $[Amount]: We believe quality food comes from good products. We need to purchase general cooking utensils, tableware and silverware, a new industrial-size oven with a 10-top burner, and refrigeration equipment.
  • Bar equipment, $[Amount]: Our bar will use only the finest ingredients and spirits available, in addition to a small and well-curated beer and wine list. We have established relationships with beverage industry distributors for these products at competitive rates.
  • Food, $[Amount]: No restaurant is complete without its menu. Through our years of experience and vast connections, we have established relationships with food purveyors around the state of California and elsewhere in the U.S. to supply the restaurant. These products will be the last items ordered before opening.

Loan Repayment

We are asking [Lender.Company] for a loan of $[Amount] to be repaid over [Time Period] at a rate of [Number]% interest, making payments of $[Amount] monthly.

Our estimates for revenue are an average of $[Amount] per day over [Number] operational days per month for a total revenue stream of $[Amount] a month. After factoring in staff costs of $[Amount] per month and operational costs of $[Amount], we are left with enough money to comfortably repay a loan under these terms.

Collateral

Spreadsheets for each partner are attached and show the forms of collateral that we are putting up as security for our loan request. Among them are mutual fund investments, equity from ownership of two separate residential properties, and savings accounts.

Financial statements

Attached to this loan request are personal and business financial statements for each partner.

Projections

Other documentation attached to this request includes income and cash flow projections for the restaurant, as well as alternative operational structures in the event our projections do not materialize.

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