Milam County Economic Development Summit Jim Pillans www.bvsbdc.org jpillans@uh.edu

Small Business Development Centers Financing

About the BV-SBDC The BV-SBDC was created to help Start-Up and Existing businesses be successful.

Training Programs Low-cost workshops and seminars on a wide range of business topics

Highlighted Workshops / Seminars www.sbdc.uh.edu and www.bvsbdc.org Basic Start-Up Fundamentals Basic Record Keeping Advanced Financial Analysis Sales Tax Compliance QuickBooks Marketing Customer Service

Consulting Services Free one-on-one consulting to help business owners with problems and opportunities they face.

We assist new businesses and existing businesses with… Feasibility of Project Business Plan Complete with financial projections Loan proposal support Prepare viable loan package Identifying funding sources

We also act as a sounding board for small businesses and provide follow-up assistance, again, at NO CHARGE!

Bottom line to our client…. Help determine the feasibility of the project Help understand the loan process Help find funding Expedited loan process Follow-up assistance ALL FOR FREE

Specialized Assistance… Research Library Containing entrepreneurial, economic and demographic materials Industry Information Limited Patent Search

Procurement Technical Assistance Center (PTAC) A program to assist small businesses in winning federal, state and local government contracts. Local advising services available forth Thursday of each month at the BV SBDC office. www.uhptac.sbdcnetwork.net/ptac/default.asp

The International Trade Center is one of the largest and the most successful trade assistance organization in the State of Texas. Established in 1992, it provides businesses with high-value trade consulting services, cutting-edge market research and innovative training programs that deliver results.

SBDC Technology Commercialization Center One-on-one trade advising Market research  Innovative training Global connections through SBDC Global

SBDC Network Directory Access SBDC Network Online: 1 University Of Houston, SBDC 713/752-8400 WWW.SBDC.UH.EDU 2 Angelina College SBDC, Lufkin 936/622-5400 WWW.ANGELINA.CC.TX.US 3 Blinn College SBDC, Brenham 979/830-4137 WWW.BLINNCOL.EDU/SBDC 4 Brazos Valley SBDC, Bryan/ College Station 979/260-5222 WWW.BVSBDC.ORG 5 Brazosport College, SBDC Lake Jackson 979/230-3380 WWW.BRAZOSPORT.CC.TX.US/~SBDC 6 Galveston County SBDC 409/933-1414 WWW.GCSBDC.COM 7 Lamar University SBDC, Beaumont 409/880-2367 HAL.LAMAR.EDU/~SBDC 8 Lamar State College SBDC, Port Arthur 409/984-6531 WWW.PORTARTHUR.COM/SBDC 9 Lee College SBDC, Baytown 281/425-6309 WWW.LEE.EDU 10 University Of Houston Costal Plains SBDC 979/244-8466 11 North Harris Montgomery Community College District SBDC 832/813-6674 WWW.NHMCCD.EDU 12 Sam Houston State Unv. SBDC, Huntsville 936/294-3737 WWW.SHSU.EDU/~SBD_WWW/ 13 San Jacinto College SBDC East Harris and Northern Brazoria Counties 281/485-5214 WWW.SJCD.EDU/SBDC 14 University of Houston Fort Bend SBDC 281/499-9787 15 Prairie View A&M SBDC 936/857-4310 Access SBDC Network Online: www.sbdcnetwork.uh.edu

Find Your Nearest Small Business Development Center http://americassbdc.org/

Resources for Assistance SCORE Veterans Business Outreach Center Women’s Business Center

Types of Financing

Determining Financial Requirement Start-up Costs + Working Capital = Funds Needed Lenders Will Usually Finance 50% to 80% of Total

Where Does the Money Come From to Start a Typical Business? Sources of Financing: Personal Savings Credit Cards Family & Friends Partners Investors Angel Investors Venture Capitalists Crowd Funding Financial Institutions Home Equity Loans

Equity Financing When an individual invests in your company and in return they will own a portion of your business Partners Private Investors Angels Venture Capitalists

Debt Financing When you use someone else’s money to fund your financial needs and the lender expects to get paid back over time Home equity Credit cards Family & Friends Financial institutions Dealer financing

Lenders Want to Know How much do you need? What will you do with it? How much will you personally invest? How and when will you pay it back? What if something goes wrong?

Collateral and/or Guarantees What Lenders Review Capacity Capital Collateral and/or Guarantees How do you intend to repay the loan? Cash flow of business and other sources of repayment Credit history is very important The money you have to personally invest in the business (usually between 10% - 40%) Collateral – what you can offer the bank as additional sources of repayment Both business and personal assets can be used Guarantor – Someone will personally guarantee the loan.

What Lenders Review, cont. Conditions Character Intended purpose of the loan – how will it be used? How much do you need and how long will you need it? What is the general economic climate and the conditions with your industry and our economy? Character is the general impression you make on the lender. What is your past business, management experience and education? Have you had experience within the industry?

U.S. Small Business Administration SBA loans reduce risks and enables easier access to capital Longer term period to repay loan Lender is guaranteed loan up to 90% Because of the guarantee, it is less risk for the lender

SBA Loans Guarantee Loan Program 504 Export Loans Micro Loans Disaster Loans Express Loan Grants – SBIR/STTR SBIC Surety Bonds

Fish where the fish are…

Essential Ingredients of a Successful Business A Good Product or Service Customers Management Skills Money Desire to succeed

Three major Reasons Why Businesses Fail Poor Planning Poor Management Undercapitalization Small Businesses don’t plan to fail, they just fail to plan Don’t let this happen to you!

Contact us: Brazos Valley SBDC 4001 East 29th Street, Suite 175 Bryan, 77802 979-260-5222 www.bvsbdc.org