0. The Art of Business Lending
Presented by Davis Johnston VP Business Lending 

1. Small Businesses in the Local Market
Continuing to see positive trends from a lending perspective
Growth & expansion by small businesses over the past year
Medical field & small businesses tied to construction doing well
The entrepreneurial spirit! & small businesses are vital to our local economy

2. Why Do People Start Their Own Business?
Passionate Creators
Love what they do and believe the passion is crucial to success
Freedom
Value the ability to control their work experiences, schedules, career paths & work environment
Build a Legacy
Started the business to bring something new to the market place
Financial Independence
Probably the biggest reason people start their own business

3. Why Do People Start Their Own Business?
It’s important to truly understand what’s motivating you to start your own business There’s no right or wrong answer but needs to be for the “right reasons”

4. Tips for Obtaining a Business Loan
Put your “best foot forward” & “tell your story”
Have a good handle on your finances & understand how you make money!
A well written business plan will go a long way!

5. Written Business Plan
1. Description of your business
What are you selling?
How do you generate revenue?
2. Target Market
Who will buy your product or service?
Number of potential customers?
3. Marketing
How will you promote your business?
Pricing strategy?

6. Written Business Plan
Competition
Who else does what your doing?
Do you have a competitive advantage?
Financial Projections
How much will you generate in sales on a monthly basis?
How much cash do you need to get started?

7. Importance of a Written Business Plan
Shows if your business idea is viable
Demonstrates YOUR understanding of the business & how it will be successful
Can present it to potential lenders, partners, or investors

8. Applying for a Business Loan - How to Prepare & What to Expect
Items you will need to start the process
Personal Financial Statement A snapshot of all your assets & liabilities used to calculate your “net worth.” Will also need to provide all sources of income
Schedule of All Business Debt You Owe (Financial institution name, loan type, amount owed, monthly payment, # of payments remaining, etc.)
Last 2 to 3 Years of Personal & Business Tax Returns (if already in business)

9. Applying for a Business Loan – How to Prepare & What to Expect
When meeting with a lender be prepared to discuss the following:
What is the purpose of the loan?
What does your business do?
How long have you been in business?
What are your annual sales?
How do you generate revenue?
If you have a written business plan be prepared to discuss it.

10. SBA Microloan Program Loan Programs
Provides loans up to $50,000 to help small businesses
Require some type of collateral & personal guarantee of the business owner

11. SBA Micro Loan Program Continued
Use of proceeds
Working Capital
Inventory or Supplies
Furniture or Fixtures
Machinery of Equipment
Repayment Terms and Interest Rates
Repayment terms can vary but can’t exceed 6 years.
Interest rates will generally be between 8 &13 percent.

12. SBA 7(a) Loan Program No set minimum loan amount ($5 Million Max.)
Be a “small business” (< 500 employees)
Use of proceeds
Provide short or loan-term working capital
Line of credit based on inventory/receivable
Purchase equipment, furniture, fixtures, supplies or materials

13. SBA 7(a) Loan Program
Interest rate & terms will vary SBA will guarantee as much as 85% depending on the loan size

14. 904.443.1900 Resources Small Business Development Center (SBDC) at UNF
U.S. Small Business Administration - Jacksonville

15. Business Services Lending 904.354.8537 • www.CommunityFirstFL.org
Questions
Thank you for your time.
Business Services Lending
We know local business, because we area local business. •