How could you negotiate a better deal with vendors and suppliers How can you plan for seasonal ups and downs Is it wise for you to use a credit card to offset cash flow issues Capital Guaranteed Business Loans thru lenders ID: 1007567
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2. Cash Flow Diagram 2How can you increase sales revenue at your business?How could you negotiate a better deal with vendors and suppliers?How can you plan for seasonal ups and downs?Is it wise for you to use a credit card to offset cash flow issues?
3. Capital; Guaranteed Business Loans thru lenders3SBA - Addressing Small Business NeedsFree business CounselingHome & Business Disaster loansFederal Government ContractingUpdated Surety Bond and Community Advantage programs New Community Navigator Pilot ProgramMore Grants through partners COVID Relief Closed May 2022; PPP, EIDL, RRF, SVOG EntrepreneurialTechnology ForwardCustomer CentricEquitablehttps://disasterloanassistance.sba.gov/ela/s/search-declarations E-Tran, EIDL, 1502
4. SBA Loan Programs Comparison4Loan programLoan sizeInterest rateMaturityUse of proceeds7(a) loan$50,000 - $5 millionNegotiated between borrower and lenderUp to 25 years for real estateUp to 10 years for business acquisition, equipment5-7 years for working capitalWeighted average for mixed-use requestsPurchase machinery, equipment, supplies, furniture, fixturesMake lease-hold improvements, expand or renovate facilitiesPurchase permanent working capital, inventoryAcquire a businessStart a businessAcquire land and build a locationRefinance certain existing debtCDC/504 loan$25,000 - $5.5 millionFixed interest20 years for real estate10 years for equipmentPurchase or renovate capital assets (land, buildings, equipment)Refinancing permittedMicroloanMaximum of $50,000Negotiated between borrower and intermediaryNo more than 6 yearsPurchase working capitalPurchase furniture, fixtures, supplies, materials, equipmentCommunity AdvantageMaximum of $350,000Maximum of Prime +6%Up to 25 years for real estateUp to 10 years for business acquisition, equipment5-7 years for working capitalWeighted average for mixed-use requestsPurchase machinery, equipment, supplies, furniture, fixturesMake lease-hold improvements, expand or renovate facilitiesPurchase permanent working capital, inventoryAcquire a businessStart a businessAcquire land and build a locationRefinance certain existing debt
5. Access to Capital – Who’s your Lender?Three key situations for obtaining SBA capitalNew Business – b/c lack track record, < 2 yrsBusinesses needing longer termsTerm: Working capital – 10 years maximumEquipment – 10 yrs (15 yrs if IRS asset class useful life supports it)Real estate – 25 yrs (plus period necessary to complete construction)Refinance – based on collateralWhen collateral is insufficient to fully secure loan5SBA helps businesses unable to obtain conventional financing on reasonable terms; Reducing lender’s risk and enabling them to approve quality loans
6. Run Your “What if” ScenariosWhat if you injected $20K, 50K, 100K, $500K, $2M, or $5M?How much money do you need for equipment or services?What does your credit profile look like? How will you use the money? How will you repay the loan? Does your business have the ability to make the loan payments ?Can you put up any collateral?What banking services do you need?What does your personal and business credit score?What lender offers the support you need?6Gather docs: Personal Background and Financial Statement, Business Certificate/License, Tax Returns, Resumes, Business Overview and History, Business Lease …