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Slides from Public Resources for Business Development event for Minnesota Cup and CleanTech Open entrepreneurs

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On Monday, August 16, 2010, the MN Department of Employment & Economic Development (DEED), University of Minnesota's Carlson School of Management and Holmes Center for Entrepreneurship, Minnesota......

On Monday, August 16, 2010, the MN Department of Employment & Economic Development (DEED), University of Minnesota's Carlson School of Management and Holmes Center for Entrepreneurship, Minnesota Cup and CleanTech Open hosted an event for Minnesota Cup and CleanTech Open entrepreneurs on public resources for business development and sources of funding.

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  • For those of you new to the committee or not familiar with the AURI AURI is beginning its 20 th year of operation, created at a time of economic downturn by the State Legislature We are seeing greater need than ever – Assistance is needed during times of high and low commodity prices… With low prices, focus is on helping producers add value With higher prices, focus is on helping processors reduce costs and identify additional revenue streams AURI is focused on Stabilizing the rural economy by fostering agricultural innovation - these innovations not only add value to Minnesota Agriculture products, but create jobs and keep infrastructure operating We provide seamless service, working with clients from feasibility IDEAS +IMPLEMENTATION = INNOVATION We are accessible to Minnesota with pilot plant and laboratory facilities located throughout the state. Including: Meat Lab, Marshall Fats & Oils Lab, Marshall Product Development Kitchen, Crookston Microbiology Lab, Crookston Coproducts Lab, Waseca In addition, we have an invaluable network to trusted expertise – if we can’t provide something in our labs, we know where to go to get the knowledge from our partners. - WE are a conduit to the best trusted and unbiased solutions Minnesota offers.
  • Northern Excellence Growers, Williams Alternative Energy Solutions, Altura CVEC Cob Gasification, Benson CMEC Cellulosic Ethanol, Little Falls
  • How does AURI fulfill its responsibilities? Direct Client Services These are the very applied, “here and now” services that bring ideas to implementation AURI teams work with clients to: Provide R&D for MN agriculture and rural processors - Often, these organizations lack capacity to maintain their own R&D efforts, yet, R&D is critical to long-term success Technical feasibility – Just because you think you can do something doesn’t mean you can Analytical testing of processes/products Market feasibility – Just because you can do something doesn’t mean you should Experienced, professional staff Access to laboratory and pilot plant facilities In Greater Minnesota locations where access is most needed Broad Impact Initiatives AURI initiatives, most often partnerships with commodity groups and farm organizations, are forward looking efforts that identify coming trends and help to plan for the future. Identify emerging opportunities with potential to impact large number of producers Findings are public information, generating interest and impact throughout the state Driven by industry stakeholders such as commodity groups and farm organizations Examples include Solubles as fertilizer Biomass ash densification Value-added uses for glycerin DDGS in livestock feed Targeted Network Development As no one organization can have all the expertise necessary in today’s economy, collaborations and networks are vital to bringing solutions to Minnesota Agriculture. AURI teams, often in conjunction with partnership networks: provide hands-on assistance, but also have a targeted network of resources to assist in areas that AURI does not have expertise Urban / Rural Connect – we identify expertise where-ever it is located, then bring it to the client where it is most needed – Renewable Energy Roundtable – established to help make connections, build consensus in the renewable energy industry
  • Minwind Annual Meeting Luverne, MN 2/11/05 Thank you for inviting me to your Minwind annual meeting. It’s a pleasure to be here in a sort of culmination of the years of effort to complete these wind turbine projects – nine projects in all, if my counting is correct. Title IX, Section 9006 of the Farm Security and Rural Investment Act of 2002 (the “2002 Farm Bill”) authorized $23 million per year in grants, loans and loan guarantees for each of 5 years to assist farmers, ranchers and other rural small businesses to purchase renewable energy systems and make energy efficiency improvements.  Rural Development’s mission has been designed to deliver programs in a way that will support 1) increasing economic opportunity and 2) improving the quality of life of rural residents.
  • Any renewable energy or energy efficiency projects, as defined in the Farm Bill, is eligible. We’ll cover these definitions on the next slide. There are a few other requirements in this years program: The project must be located in a rural area. The project must be for a pre-commercial or commercially available and replicable technology. The project must be technically feasible. All projects must be based on satisfactory sources of revenues in an amount sufficient to provide for the operation and maintenance of the system or project . Grant requests must not exceed 25% of the eligible project costs Note that the minimum grant has changed this year. Last year, the minimum was $10,000, so a minimum project size was $40,000. This year, a project total can be as low as $10,000 with a $2,500 grant request. For Renewable Energy: Applications for renewable energy systems must be for a minimum grant request of $2,500, but no more than $500,000. If grant request is over $50,000 (so the project would have to exceed $200,000), the applicant must have a project-specific feasibility study prepared by a qualifies independent consultant For Energy Efficiency: Applications for energy efficiency improvements must be for a minimum grant request of $2,500, but no more than $250,000. For total Project costs over $50,000 (so this is a lower threshold than the RE feasibility study), then the applicant must have a full energy audit conducted by a qualified entity. The applicant must be the owner of the system and control the operation and maintenance of the proposed project. This is for the life of the project. A qualified third-party operator may be used to manage the operation and/or maintenance of the proposed project.
  • Funds R&D, not bricks and mortar, not working capital, not operations
  • Grants are broader topics with higher risk Contracts address a specific need of the funding agency—you must grasp and respond to that need. Contracts may lead to sole source Phase III
  • Feasibility needs to be woven throughout the proposal, it is the main purpose of the proposal
  • This is not a short-term funding opportunity and should not be considered as a sole source of capital or funding
  • Caution: don’t plan to submit similar proposal to other agencies Does not provide sole support for a firm View the agency as a potential customer, not just a funding source Do not write a Phase I proposal unless you have a clear vision of agency expectations and where you want to be in Phase III
  • This process usually takes 3-5 days to complete, but if there are pieces of information missing or problems are encountered, it can take as much as 4 weeks. Allow plenty of time
  • You don’t have to be registered in grants.gov to search for grant opportunities, but since the registration process can take anywhere from 3 days to 4 weeks, I recommend you go ahead and get registered very early in the process.
  • DOE offers a bi-weekly cross agency alerting service through Pacific Northwest National Labs at no charge to users. This service does not customize based on your interests, but it does consolidate funding solicitations and other information from 11 agency websites into an electronic alert that is delivered to your email.
  • Zyn also has a wonderful electronic newsletter, “SBIR Insider”, that I highly recommend you register to receive if you decide to pursue the SBIR or STTR Programs. The site also includes solicitation dates and links to SBIR agencies.
  • Most states provide resources that may include helping you decide if SBIR is right for you, locating solicitations, preparing proposals and commercialization plans, identifying collaborators, etc. Contact your state resources to see how they can help you.

Transcript

  • 1. Agricultural Utilization Research Institute Leading Agricultural Innovation From Idea to Reality Kate Paris August 2010
  • 2. AURI’s Mission
    • To foster long-term economic benefit through increased business and employment opportunities with:
      • Research and development of innovative new uses or value improvements for Minnesota agricultural commodities and products,
      • Implementation of basic and applied research to support innovation, technology and growth of the agricultural industry; and
      • The development of renewable energy and biobased opportunities from Minnesota agricultural commodities and coproducts.
  • 3. AURI Focus Areas
    • Renewable Energy
    • Food Processing
    • Bio-Based Products
    • Coproduct or Waste
    • Product Utilization
  • 4. Renewable Energy
    • Opportunity
      • Liquid Biofuels
      • Biogas
      • Biomass Utilization
    • AURI Services
      • Densification
      • Pellet formulation
      • Gas analysis
    • Examples
      • Northern Excellence Growers
      • Alternative Energy Solutions
  • 5. Food Processing
    • Opportunity
      • Food product development
      • Functional Foods
      • Local Foods
    • AURI Services
      • Recipe Formulation
      • Nutritional Labels
      • Shelf Life Testing
      • Food Safety
    • Example
      • French Meadow Bakery Minneapolis
  • 6. Bio-Based Products
    • Opportunity
      • replace petroleum and other ingredients with ag-based or other natural products
      • Industrial, personal care, consumer products
    • AURI Services
      • Product formulation
      • Analytical testing
    • Example
      • Suntava
  • 7. Coproduct Utilization
    • Opportunity
      • A “second harvest”
      • Offers revenue stream or cost savings
      • Increased efficiency greater
    • AURI Services
      • Densification
      • Pellet formulation
      • Analytical testing
    • Examples
      • Compost-A-Mat
      • Swheat Scoop
  • 8. Services Offered By AURI
    • Direct Client Services
      • Technical and market feasibility, analytical testing of processes and products, etc.
      • Driven by Individual Clients
    • Broad Impact Initiatives
      • Identify emerging opportunities with potential to impact large number of producers, public information
      • Driven by Industry Stakeholders
    • Targeted Network Development
  • 9. AURI Facilities
    • Meat Lab, Marshall
    • Fats & Oils Lab, Marshall
    • Product Development Kitchen, Crookston
    • Microbiology Lab, Crookston
    • Coproducts Lab, Waseca
  • 10. When to Call AURI
    • Working on Renewable Energy, Food, Biobased, or Coproduct product or process development
    • Proof of Concept, Proof of Application, Feasibility Stages
    • Working with an agricultural product
    • Looking for information
  • 11. What To Expect
    • Work with a Project Development Director to identify need, explore resources, and see how AURI can help.
    • Technical Assistance or Product Development Services Programs
    • Getting connected to a variety of resources that will help your business achieve its goals
  • 12. Who To Contact
    • Website www.auri.org
    • Crookston Office (218) 281-7600
    • Marshall Office (507) 537-7440
    • Waseca Office (507) 835-8990
    • Kate Paris
      • [email_address]
      • 651-331-0936
  • 13. Agricultural Utilization Research Institute
    • www.auri.org
  • 14. Rural Business-Cooperative Service
    • Business & Industry Loan Guarantees
    • Rural Business Enterprise Program
    • Rural Business Opportunity Program
    • Intermediary Relending Program
    • Rural Economic Development Loans & Grants
    • Value-Added Producer Grants
    • Rural Cooperative Development Grants
    • Small, Social Disadvantaged Producer Grants
    • Rural Energy for America Program
    • Rural Microenterprise Assistance Program
  • 15.
    • A rural area is other than an urban area of 50,000 or more in population and its adjacent urbanized areas, as determined by the latest federal decennial census. Rural area determinations can be made by accessing the following website: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
    Rural Areas
  • 16.
    • Loan Limits
    • Percent of Guarantee
    • Equity
    • Guarantee Fees
    Business & Industry (B&I)
  • 17.
    • Ineligible Purposes:
    • Housing
    • Most agricultural production
    • Golf courses
    • Lines of credit
    • Charitable, fraternal or church organizations
    Business & Industry (B&I)
  • 18.
    • The Sweet Spot:
    • $500,000 to $7,500,000 loan
    • > 10% tangible balance sheet equity per GAAP
    • Expansion (RE, M&E); working capital; limited refinance
    • Owner has successful track record
    • Realistic projections and assumptions
    • Time enough to do it right
    Business & Industry (B&I)
  • 19. Intermediary Relending Program (IRP) Program Purpose: To finance business facilities and community development projects in rural areas; for innovative projects; for land, building construction or repair, equipment; for working capital, interest, feasibility studies, professional services.
  • 20.
    • Intermediaries:
    • Private nonprofit corporations, any state or local government, Indian group, or cooperative. Intermediary Relending Program money is lent to them, which in turn is re-lent by them to ultimate recipients. The ultimate recipient must not be able to obtain credit elsewhere.
    Intermediary Relending Program (IRP)
  • 21.
    • Intermediaries:
        • 1% Interest for a term of up to 30 years.
        • Defer principal for 3 years.
        • Initial loan limited to $2MM, Subsequent loans limited to $1MM and total debt limited to $15MM.
    • Ultimate Recipients:
        • Interest rate and term established by Intermediary in work plan (Usually 4 - 6% interest with terms of 3 to 10 years depending on loan purpose).
        • Maximum loan of $250,000 or 75% of the project cost whichever is less.
    Intermediary Relending Program (IRP)
  • 22.
    • Microenterprise Development Organization (MDO)
    • Microentrepreneur
    Rural Microentrepreneur Assistance Program (RMAP)
  • 23.
    • Loan – up to $500,000; $50,000 to business
    • Grant – up to 25% of loans or for technical assistance only, up to $130,000
    Rural Microentrepreneur Assistance Program (RMAP)
  • 24.
      • Agricultural Producer
      • Rural Small Business - meets SBA definition of small business (typically 500 or fewer employees and $20 million or less in total annual receipts). Most non-profits, such as schools, are ineligible. Tribal electric utilities are eligible.
    Rural Energy for America Program (REAP)
  • 25.
  • 26.
    • Ineligible Purposes:
    • Non-profits, such as schools
    • Residential Use
    • Vehicles and farm tillage
    • Research and Development
    Rural Energy for America Program (REAP)
  • 27.
      • Maximum guaranteed loan: $25,000,000
      • Grants cannot exceed 25% of eligible project costs, or:
        • $500,000 ($2,500 minimum) -- renewable energy
        • $250,000 ($1,500 minimum) -- energy efficiency
    Rural Energy for America Program (REAP)
  • 28. Further Information
    • General information: www.rurdev.usda.gov/rbs/busp/bpdir.htm
    • Program regulations: rdinit.usda.gov/regs/regs_toc.html
    • Minnesota web site: www.rurdev.usda.gov/mn
    • E-forms: http://rdinit.usda.gov/regs/regs_toc.html
  • 29. SBIR/STTR Basics Becky Aistrup SBIR/STTR Program Director Minnesota Science & Technology Authority www.PositivelyMinnesota.com/SciTech [email_address] (651) 259-7634 North Central Cleantech Open Public Resources Seminar, August 16, 2010
  • 30. Program Descriptions
    • SBIR ( S mall B usiness I nnovation R esearch) :
      • 2.5% set-aside of extramural research budget for small businesses to participate in federal R&D
    • STTR ( S mall Business T echnology Tr ansfer) :
      • 0.3% set-aside program to facilitate cooperative R&D between small businesses and non-profit research institutions
    • Both offer potential for commercialization
  • 31. Three Phase Program
    • Phase I
      • Proof-of-concept/feasibility study
      • SBIR = Up to $150,000 for 6 month project
      • STTR = $100,000 for 12 months
    • Phase II
      • Full Research/R&D effort
      • SBIR = Up to $1 Million for 2 year project
      • STTR = $750,000 for 2 years
    • Phase III
      • Commercialization phase
      • Requires the use of non-SBIR/STTR funds
  • 32. Program Objectives
    • Stimulate technological innovation
    • Strengthen/increase the role of small business in meeting Federal R&D needs
    • Increase private sector commercialization of SBIR R&D
    • Foster participation by socially and economically disadvantaged and women-owned small businesses
  • 33. Comparing SBIR & STTR Programs Applies at the time of award and for the duration of the project SBIR STTR Firm eligibility U.S., for-profit, <500 employees including affiliates Collaboration w/ research institution May subcontract Must collaborate with university/nonprofit research institution PI (Principal Investigator) Must be >50% time employed by firm May be employed by firm or research institution Work breakdown Firm 2/3 or more of work in Phase I Firm 1/2 or more of work in Phase II Firm must perform 40% or more of work and research institution >30% of work (Phase I and Phase II)
  • 34. Participating Agencies $2.5 Billion in FY09 * Grants Contracts Both Grants & Contracts Agency * SBIR funding STTR funding DoD $1.23 Billion $141 Million HHS (NIH, CDC, FDA) $600 Million $72 Million Energy (DOE) $138 Million $17 Million NASA $113.4 Million $13.6 Million NSF $97 Million $13 Million Homeland Security (DHS) $20.5 Million NA Agriculture (USDA) $18.3 Million NA Education $9.9 Million NA Transportation $8 Million NA Commerce $8 Million NA EPA $5 Million NA
  • 35. Agency Differences
    • Many differences among agencies:
      • Funding levels
      • Topic areas
      • Number and timing of solicitations
      • Proposal preparation instructions
      • Submission process
      • Type of award
      • Review process
      • Odds of receiving funding
      • Commercialization assistance
    Read solicitations carefully!
  • 36. Grants vs. Contracts
    • SBIR/STTR programs that award GRANTS :
      • Rarely the Final Customer
      • Will not buy your product/process/software or your intellectual property
      • They do want to see you commercialize your research
    • Programs that award CONTRACTS :
      • Will specify agency needs and request solutions
      • Will likely be a Final Customer
  • 37. Phase I Process
    • Agencies describe R&D topics in solicitations.
    • Firms prepare proposals. Unsolicited proposals are not accepted.
    • Agencies evaluate on technical merit, firm’s qualifications, commercial potential & societal impact.
    • Agencies make Phase I awards.
    Solicitation Topics Proposal Submission Evaluation Phase I Award ~6-9 months
  • 38. Phase II Process
    • Only Phase I winners may apply
    • Phase II applicants at DOD (and select others) must be invited to submit Phase II.
    • Submission timing/deadlines vary –talk to your funding agency
      • 4 to 18 month gap between Phase II submission & award
    ~5 years from Phase I through Phase III Commercialization
  • 39. Your Odds of Winning
    • Phase I SBIR Proposal: About 1 in 8/9
    • Phase I STTR Proposal: About 1 in 5
    • Phase II Proposal: About 40%-70%
      • varies by agency
    • ½ of Phase I proposals go to companies who never won before.
  • 40. Typical Award Winner Profile
    • Proposed solution meets agency need
    • Submitted 2+ proposals before winning
    • Understands current state-of-the-art and can relate it to their innovation
    • Adequately communicates path to market
    • Adequate qualifications & experience for research & commercialization
    • Adequate support staff and equipment
  • 41. Ask before you decide to participate:
    • Does winning enhance your corporate goals?
    • Do you possess the required technical competence?
    • Can you gain access to necessary resources?
    • What agencies should you consider?
    • What agency need/opportunity must you address?
  • 42. Getting Started: Register for Electronic Submission
    • Obtain a DUNS number FIRST
      • Dun & Bradstreet: 1-866-705-5711 or http://fedgov.dnb.com/webform/displayHomePage.do
    • Register in Central Contractor Registry
    • CCR site: http://www.ccr.gov
    Keep a copy of all usernames/passwords!
  • 43.
    • Register your organization on Grants.gov
    Getting Started: Register for Electronic Submission Guide & Checklist Tutorial
  • 44. Assistance with grants.gov http://www.grants.gov/applicants/resources.jsp
  • 45. Find a Topic http://www.grants.gov/applicants/find_grant_opportunities.jsp Register for Opportunity Notifications Multiple browsing & searching options
  • 46. Getting Started: Find a Topic http://www.pnl.gov/edo/opportunities/sbir.stm Cross-agency alerting service
  • 47. Getting Started: Find a Topic http://www.zyn.com/sbir/
  • 48. Find Your Local Resources http://www.sbir.gov/
  • 49. Why You Should Participate
    • No pay-back requirement!
    • No equity lost!
    • Visibility and credibility
    • IP rights maintained by the small business
      • Data rights extend to 4 years after project completion, 5 yrs. for DoD
    • Seed money for high risk R&D projects that may attract strategic partners or future investment
  • 50. More Reasons to Participate
    • Small and isolated companies compete on equal footing
    • Opportunity to establish a sole-source position with federal government
    • Fosters partnerships
    • No penalty for failure, other than time invested
  • 51. Useful Links
    • http://www.sbir.gov/ (Official SBIR portal)
    • http://www.zyn.com/sbir/ (SBIR Gateway)
    • http://www.pnl.gov/edo/opportunities/sbir.stm (SBIR Alert)
    • http://www.ccr.gov (CCR site)
    • http://www.grants.gov (Grants.gov site)
    • http://center.ncet2.org/ (NCET2 courses and resources site)
  • 52. Thanks to colleague Kris Johansen for slide content: Kris Johansen Office of Intellectual Property and Technology Transfer Iowa State University Research Foundation, Inc. [email_address] 515.294.3208 Contact information: Becky Aistrup MN SBIR/STTR Program Director 651.259.7634 [email_address]
  • 53. Small Business Administration www.sba.gov
  • 54. To help small businesses succeed Our Mission
  • 55. Loan Programs SBA Makes Guaranteed Loans Maximum rates : 2 ¼ % to 2 ¾ % above prime Maximum Loan : $2,000,000 Guarantees : 75% to 85% Fees : 2% to 3.5%
  • 56. Loan Programs
    • Programs Eligibility
      • - The business must be defined as small ( defined by either gross revenue or number of employees )
      • -A business must be operated as a “for profit”
      • -Business must be found in good character
      • -Repayment ability
  • 57. Using The Programs
    • SBA programs-
      • 7(a)
      • SBA Express
      • Community Express
      • Patriot Express
      • Export Express
      • Rural Lender Advantage
      • 504’s
      • Caplines
      • Microloans
      • Surety Bonds
  • 58. Using The Programs
    • 2009 Recovery Act
      • ARC loans
      • Dealer Floor Plan Loans
      • *These loans expire at the end of September
  • 59. Resources
    • SCORE
    • Women’s Business Center
    • Small Business Development Center (SBDC)
  • 60. Government Contracting
    • Businesses that want to sell goods to the federal government
    • To sell to the Federal Government then they need to register with the government (CCR)
  • 61. Minority based groups One or more individuals that can demonstrate that they are socially or economically disadvantaged. 8(a) Program 7(j) Program Mentor Protégé Government Contracting
  • 62. Small Business Exporting
    • Exporting Working Capital (EWCL)
      • - Short term Financing for small exporters
      • -Maturity
      • -May be used for Pre- and Post- shipment
      • -One page application
  • 63.
    • International Trade Loan
    • - Long and Short term Financing
    • -Loan usages for businesses that are:
    • -Preparing or engaging in international trade
    • -Adversely affected by import competition
    Small Business Exporting
  • 64. Advocacy
    • To protect, strengthen and effectively represent the nation's small businesses within the federal government's legislative and rule-making processes.
    • To reduce the burdens that federal policies impose on small firms.
  • 65. Thank you! Any Questions…
  • 66. There’s been no better time for an SBA Loan Jeff Kemink District President – Business Banking Minneapolis, MN 2010 © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 67. Why there’s never been a better time for an SBA Loan
    • More companies than ever are eligible
      • Tangible net worth <$8.5MM
      • Net profits <$3MM in each of last two years
    • Transaction costs are at an all time low
    • Interest rates are at all time lows
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 68. Advantages to SBA Loans
    • Lower down payment
      • Up to 90% financing
        • For Purchase of Owner Occupied Real Estate
      • Up to 85% financing
        • For Business Acquisition Transaction
      • Up to 90% financing on Partner Buy Out
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 69. Advantages to SBA Loans
    • Longer amortization
      • Up to 25 year term
        • on owner occupied commercial real estate
      • Up to 10 Year Term
        • For Business Acquisitions, equipment purchase
        • or working capital
      • Means lower monthly payments
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 70. Types of Loans
    • Acquisition of owner-occupied real estate
      • Financing available on projects up to $9MM
      • 7(a) is up to $2MM
        • Can include other expenses including
        • moving expenses, improvements
    • Refinance of existing CRE loans
      • Up to $2MM
      • Must cut payments by 10% or more
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 71. Types of Loans
    • Business acquisition
      • Individual or corporate buyers
      • Partner or Management Buy-Outs
      • Loans up to $1.75MM
    • Start Ups
      • Requires 30% equity
      • Business plan with projections and assumptions
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 72. Five Helpful Hints to Get Started
    • On Obtaining an SBA Loan
    • Get Your Financial House In Order
    • Realistically Define Your Goals
    • Recognize Your Strengths And Weaknesses
    • Start Early
    • Work With An Experienced Lender
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 73. #1: Get Your Financial House in Order
    • A. Obtain a copy of your personal credit report.
      • Check for any inaccuracies or mistakes.
      • Make certain that all accounts are current and there are no outstanding judgments or liens.
      • If there is any derogatory information, be proactive and prepare to explain the problems and why the problem is not likely to occur again.
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 74. #1: Get Your Financial House in Order
    • B. Gather personal and/or business records
      • For the past three years, including:
        • Tax returns, financial statements with schedules and attachments, and interim YTD financial statements.
        • Any other financial documents that might help a lender.
      • Neatly photocopy all of the documents and prepare them for your presentation.
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 75. #2: Realistically Define Your Goals
    • Evaluate your needs and purpose for financing
      • Determine the specific use of the borrowed funds
      • Prepare projected cash flows to determine
      • your estimated future revenues from the project
    • Have a specific loan amount in mind
      • Never ask to borrow as much money as possible.
    • Be realistic about your contribution
      • You will be required to finance a portion of the project costs.
      • Be prepared to have guarantors and possible collateral
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 76. #3: Recognize Your Strengths And Weaknesses
    • Address your strengths and challenges
      • Be realistic & honest
    • Most common weaknesses lenders find are:
      • Inability to demonstrate repayment ability
      • Insufficient collateral
      • Lack of management experience
      • Insufficient cash injection
      • Poor personal credit
    • Address weaknesses with a noteworthy
      • and compensating strength.
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 77. #4: Start Early
    • Be realistic about the timeframe
      • The more you do to prepare, the smoother the process
    • Understand the process for your request
      • Small lines of credit or loans (under $100,000)
        • May be credit scored approvals
      • Commercial transactions (loans over $100,000)
        • Requires complete underwriting process
    • Again, be prepared and reap the benefits
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 78. #5: Work With An Experienced Lender
    • Starts with banker/lender knowledge
      • Bankers and lenders should know their products and process, the credit parameters, and eligibility issues
    • Check your institution
      • Just because your deposit is there does not mean you have to get a loan from the institution
      • If you’re getting an SBA loan
        • Are they a top-ranked SBA lender?
        • Are they a Preferred Lender?
          • Authority to make credit decisions on behalf of the SBA,
          • which means a quicker process
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 79. Why Wells Fargo SBA Lending
    • #1 SBA 7(a) lender in the nation, based on $
    • #1 SBA 7(a) lender in Minnesota
      • For the last 10 years running!!
    • Preferred SBA Lender
    • Experienced lenders and underwriters
    • It’s a marathon not a sprint
      • We don’t sell our loans
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.
  • 80. How to get started
    • Just pick up the phone or email:
    • Meghan Hormann
    • Wells Fargo SBA Lending
    • Tel: 612-667-5031
    • Cell: 507-993-5590
    © 2009 Wells Fargo Bank, N.A. All rights reserved. For public use.