Hardwood Floors April May 2018

Do you own a business or dream to start one? If so, you will likely need a loan now or in the future. The process of securing a loan for your business can feel very intimidating. Regulation looms over today’s lending environment. The good news is that there are many resources out there to help make the process easier to manage. Banks want to lend you money; they just have to do so within their highly regulated environment. Here’s how to navigate that environment. SECURING A LOAN IN TODAY’S LENDING ENVIRONMENT BUSINESS BEST PRACTICES FINANCE

Utilize the Small Business Administration

manageable. Under “Plan your business,” there is a section titled, “Write your business plan.” Having a business plan is a critical piece in the process of securing lending. In the planning section, there is also a section on how to “Fund your business.” is section starts with determining howmuch funding you’ll need, and then lists several potential options you could pursue for your business needs. If your business has been operating for a while and you need more funding, be sure to check out the “Grow your Business” section that includes information on how to get more funding. at portion goes over how to prepare and where to go to get the needed funding. e loan program link (sba.gov/partners/lenders/7a-loan- program/types-7a-loans) directs you to a listing of SBA loans called 7(a) loans. is is the SBA’s primary program for providing nancial assistance to small businesses. e terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loan. Each loan type and its terms are listed in an easy-to-follow format that makes it possible to compare them quickly. Some of the terms include the maximum amount

e Small Business Administration (SBA) is an excellent starting point, and its website, sba.gov, o ers a great deal of information. “I believe the SBA is an exceptional tool for business owners across the country. It makes a lot of sense if the business owner becomes familiar with the resources the SBA o ers. en they can nd an SBA lender and meet with them,” says Eric J. Whitford, a VP of Commercial Services at Midwest BankCentre, in St. Louis. Whitford called a ention to two links in particular. e business guide link (sba.gov/business-guide) breaks down the steps of owning a business from planning to launching, then ongoing management, and nally, how to grow an existing business. e guide is user-friendly, and breaks down each topic so you can focus on one step at a time, making it seemmore

you can borrow under the program, the interest rates, eligibility decisions, SBA turnaround time, forms required, and who makes the credit decision.

sba.gov/business-guide

Pointers from a lender Whitford pointed out several things that would help a business owner when they feel ready to contact a lender: • Have an idea as to howmuch money you will need. » Why that amount?

» How will you pay it back? » If repayment relies on increased revenue, come prepared with projections and data supporting the assumptions.

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