Mike o'donnell colorado lending source 2012 04 25

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  • 1. Acquiring Capital forSmall Business Growth COLORADO LENDING SOURCE APRIL 25, 2012
  • 2. Colorado Lending SourceOUR MISSION IS TO FOSTER THE ECONOMIC GROWTHOF DIVERSE SMALL BUSINESS WITHIN THE STATE OF COLORADO • In our history we have helped create or preserve approximately 17,000 jobs within Colorado • Injected $822 Million into the state’s economy • We have achieved this by assisting with SBA and USDA loan programs
  • 3. The 5 C’s of Credit Capacity – amount needed to be borrowed vs. ability to pay back Capital – owner’s equity Collateral – quality of assets pledged Credit – credit score matters Character – integrity of the borrowers
  • 4. What you will need to apply: Business financials – Past year’s tax returns and current statements Personal Financials – Personal tax returns and personal financial statement Business Plan – Overview of business with pertinent facts. Projections with detailed assumptions is vital Proposed Budget - Costs estimates and how the funds will be used by your business Credit – know your score and be able to speak to any derogatory items.
  • 5. Types of SBA LoansGuaranteed / 7(a) 504 Loans Micro-Loans Loans
  • 6. The SBA 7(a) and 504 Loans 7(a) 504 Can be used for any business  Proceeds can be used to purchase purpose; working capital, real estate or long term (10 years) inventory, equipment, tenant equipment finish, and real estate  This is a loan from a bank and a Many variations on the 7(a) loan group like Colorado Lending program depending on guarantor Source and business need  The loan is split with the bank in This is loan from a bank 1st position and Colorado Lending guaranteed by the SBA Source in 2nd position Terms and conditions vary based  Equity from business is on use of proceeds and the type of determined by length of time in program used operation and type of facility purchased. Equity ranges from 10-20%
  • 7. Other Loan Options Micro Lenders Main Street Loan Colorado has several micro Program lenders with loans for small  Loan from Colorado Lending businesses; Colorado Enterprise Source for businesses that have Fund, Accion and Rocky struggled to obtain financing Mountain Micro-finance Institute  Wide variety of business needs can Loans can range from $500- be met with this program $250,000  Targeting loan requests from Requirements for these loans $100,000-$200,000 vary from the different  Business must have been declined institutions by other lending institution
  • 8. Questions? Mike O’Donnell Executive Director Mike@clsloans.org World Headquarters518 17th Street, Suite 1800 Denver, CO 80202