People from all walks of life and lifestyles showed up eager to hear how they could start their dream of their own business or how to expand the one they already have. Young women, older men in business suits, middle-aged men in ball caps and T-shirts, and middle-aged women in business attire all eagerly waited for advice and information. They were divided about 50/50 — about half already had fledgling businesses and the other half wanted to start a business of their own.
Steve Brandon is just starting off on the ground floor in researching what needs to be done to start a business, what’s available for funding, how to apply for funding, and also how to narrow down what type of business he wants to start. Brandon is a military veteran. Special loans discussed at the meeting were specially geared to veterans and their families.
Juanota Cole is a current client of the Tennessee Small Business Development Center at Cleveland State Community College, which sponsored the presentation. Cole is in the middle of developing a business plan, putting together financial projections, etc., for her fledgling business Sunday Kitchen.
“If you think you don’t have a hope,” Cole said, “have a hope.”
E.J. Michaud, president of The Compliance Compass, has been a client of the TSBDC for a while now. He already has his own business up and running helping transportation companies stay in compliance with government regulations. He also gives much of the credit for his success to the TSBDC. He has learned from that program that preparation, such as attending meetings like this one, is crucial to having a successful business.
“A business plan is vital,” Michaud said. Make sure you have all your licenses and documentation required. Take a real hard look at your money needs. Do all your preparation before applying for a business loan. And, of course, work very closely with the TSBDC. “The more prepared you are, the easier it will be.”
Brenda Sheehy, director of the Tennessee Small Business Development Center at Cleveland State Community College, feels it is important to help potential and future business people.
“I know it’s been tough, and the banks have been pretty much closed,” Sheehy said. But she also told the assembled crowd to take heart. She and her organization, along with financial companies like Borrego Springs Bank, are here to help. “There’s a whole lot of pools of money out there.”
Several loan programs are available through Borrego Springs Bank to start up a business or expand an existing business, said Fred Crispin, executive vice president at Borrego Springs Bank.
“Borrego Springs Bank is one of the few lenders in the country (of these loans),” Crispin said. “It is a preferred lender with the Small Business Administration.”
Borrego Springs also is one of the largest Small Business Administration lenders. According to their website, Borrego Springs Bank is a minority-owned (the Native American Vejas Tribe), federally chartered, financial institution dedicated to serving the specialized needs of their customers. They are a proven Small Business Administration lender who strives for customer service excellence in providing businesses with numerous lending options.
Crispin talked extensively about two programs in particular which are geared specifically to helping small businesses develop and grow — Community Express Loans/Small Business Administration 7a Program Loans, and Patriot Express Loans, which are loans for veterans, as well as their spouses, up to $500,000.
“Everyone in this room is capable of getting a SBA 7a Program loan,” Crispin said to the attentive crowd. But this is just one of the varied types of loans available, all with different requirements to obtain these loans. “But the point is, loans are available.”
According to Crispin, about 60 percent of all jobs in the United States are created by small businesses, but not everyone who wants to start a successful business knows how or even where to start.
Different types of programs are available that look at more financial criteria than just credit scores, Crispin said.
“There is no magic credit score number,” Crispin said. A business plan is vital. It doesn’t have to be a 50-page dissertation — a common mistake. Four or five pages is all that is required. Some of the other factors in being considered for a loan might include if you can identify who your customers are, what niche your product can fill, what sort of management background you have, a two-year financial projection, an understanding of your cash cycle, as well as proper accounting and bookkeeping. “That’s how to get a loan approved.”
But, he also recommended, get with Sheehy first.
For more information, call Fred Crispin, executive vice president, toll free at 866-644-0042, or e-mail him at fcrispen@b-s-b.net, or visit the website at www.borregospringsbank.com.
