Bank Loan Proposal Template
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, and overseas in South America and Europe.
I first started out in my grandfather’s restaurant busing tables and doing dishes, and for the past 5 years I have been the manager of a highly acclaimed and popular destination restaurant in San Francisco. I also hold a Bachelor’s Degree in Food Business Management from the Culinary Institute of America.
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.
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 all share are 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 just 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, along with New York, in the U.S. reviewed by Europe’s esteemed Michellin 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 is currently in the buildout phase, with an anticipated opening date of six months from now. We have secured a lease in a space in a neighborhood that has steady foot traffic, is popular with tourists and locals, and does not have any similar restaurants already.
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 in order to give patrons a more personal experience.
We envision a younger clientele, with plenty of out-of-towners due to the neighborhood being 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 are pooled together and dispersed equally depending on each employee’s function in the overall operation of the restaurant.
There are two more investors in my restaurant, in addition to myself. We each bring something unique to the concept, all having spent our careers in the restaurant industry.
One investor is a veteran in beer, wine, and spirits who runs a bar consulting business in San Francisco. He has helped open some of the cities most popular and well-respected establishments. He has also won numerous industry awards. His focus is on using fresh ingredients to craft cocktails that pair well with food.
The other investor is a seasoned chef who has worked for some of the finest restaurants in the U.S. for two decades. He studied cooking in France, and held two apprenticeships in Spain. His food has been lauded as “cutting-edge California cuisines.”
I bring to the team the front-of-house experience, handling the direct contact with customers and managing the service staff. I have over 10 years of direct restaurant management experience at high-volume locations in San Francisco and New York.
Our budget for the restaurant is $250,000. Of that, the three investors including myself have raised $125,000, meaning we need another $125,000 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. As stated previously, we anticipate an opening date of six months from now.
The money we are requesting from [Lender.Company] will go toward the following needs:
• Kitchen equipment, $75,000: 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, $25,000: 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, $25,000: 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.
We are asking [Lender.Company] for a loan of $125,000 to be repaid over one year at a rate of 6% interest, making payments of $11,041.67 monthly.
Our estimates for revenue are an average of $6,000 per day over 22 operational days per month for a total revenue stream of $132,000 a month. After factoring in staff costs of $25,000 per month and operational costs of $75,000, we are left with enough money to comfortably repay a loan under those terms.
Spreadsheets for each partner are attached showing various forms of collateral 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.
Attached to this loan request are personal and business financial statements for each partner.
Other documentation attached to this request includes income and cash flow projections for the restaurant, and alternative operational structures in the event our projections do not materialize.