Wednesday, April 28, 2010

Small Business Loan Workshop Coming Soon!

The How to Apply for an SBA Community Express Loan Workshop will be held at Volunteer State Community College in the Betty Gibson Building on May 12th, 4:00 – 5:30 p.m.

Are you looking for a small business loan for $5K, $10K or $25K?
Apply for a loan at this FREE workshop!

Register at http://www.tsbdc.org/ under the Training tab.

Learn step-by-step how to apply for the SBA Community Express; Patriot Express & Export Express Loans.
Loans are available in following amounts:
· $5,000, $7,500, $10,000, $12,500, $15,000, $20,000 & $25,000
These loans are SBA-guaranteed and payable over 10 years with no prepayment penalty! This is NOT a credit card loan.
SBA Community Express Loan Program Highlights:
· Loans up to $25,000
· No financial statements or collateral required
WHO: Full-time and part-time businesses are eligible.

IMPORTANT NOTES
Bring the following if you wish to apply for a loan:
Photo copy of your driver’s License or official ID,
Social security number or Evidence of LPRA status if not a citizen
Federal Tax ID number (if applicable), and
Your Business Checkbook.

All partners, principals or co-owners of the business must apply together.
Those with a criminal history or anyone who has defaulted on a government loan including student loans is not eligible. Non-profit businesses are not eligible.

Wednesday, April 21, 2010

Time to Dust Off the Business Plan


This is the time of year that a lot of business owners start looking at a vacation from their business. I’m sure that the landscapers think that I am crazy, but for many business owners this is true. And it is understandable too. The kids will be out of school, the weather is nice, and you rationalize that you have the rest of the year to make your revenue goals.

This is also a good time of year to update the business plan that you developed five years ago. It is probably filed away or on a floppy disk somewhere. A business plan should be a work-in-progress. Even successful, growing businesses should maintain a current business plan. It should be a road map for your business to follow. The importance of a business plan is even more significant now, especially in the face of economic uncertainty. A well developed business plan can help you reconnect with your customers, create happier employees, give you Key Performance Indicators (KPIs) to know when things are going well, and most importantly allow you to work on your business, instead of in your business.
I usually hear the argument that an existing business does not need a business plan. Business owners will also give me the example of how they know of a particularly successful business owner that never developed a business plan, so that proves that a business plan is pointless. That is like saying basketball players don’t need any college experience before playing in the NBA, because Kobe Bryant and Kevin Garnett did it, and hey, they’re all-stars. But for every Kobe Bryant and Kevin Garnett there is a C.J. Miles, Ricky Sanchez, James Lang, Korleone Young, Ndudi Ebi, Kwame Brown, Darius Miles, Sebastian Telfair, Jonathan Bender, Leon Smith, and a dozen other kids that we have never heard of that tried the same thing. Chances are you never heard of these guys and if you did it was for the wrong reasons. So the question is, are you a Kobe Bryant or Kevin Garnett of your industry? If not it may be time to dust off the ole business plan.

If you are interested in jump starting your business plan you can use a business plan outline and websites for research on our site, http://www.volstate.edu/TSBDC/Documents/Business%20Plan%20Outline.pdf.
The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Tuesday, April 13, 2010

More on Small Business Loans - The 5 C's of Credit


Below are the 5 C's of credit that lenders use when they consider a loan.

Capacity to repay is the most important of the five C's. The lender will want to know exactly how you intend to repay the loan, while considering your past credit history and cash flow.

Capital is the money that you will personally invest in the business. Lenders usually want at least a 10%-20% investment from you. This indicates to them that you are willing to risk some of your own money.

Collateral or guarantees are forms of security you can provide the lender in case the loan is defaulted on. This means that the remaining 90%-80% of the loan will need to have something to collateralize or guarantee it for you. This is usually real estate or a fixed asset.

Conditions is what the money will be used for. Will the money be used for working capital, additional equipment, or inventory? The lender also will consider the local economic climate and conditions both within your industry and in other industries that could affect your business.

Character is the general impression you make on the lender. This is made up of your experience in running a business, in this industry and the "gut" feeling they have about you.


The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.