Acquiring Capital forSmall Business Growth COLORADO LENDING SOURCE APRIL 25, 2012
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
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
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.
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%
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
Questions? Mike O’Donnell Executive Director Mike@clsloans.org World Headquarters518 17th Street, Suite 1800 Denver, CO 80202