Micro-Lenders

Non-Bank lenders are a special group of organizations that cater to businesses other lenders overlook. Many commercial banks will not make commercial loans under $50,000, and are not willing to risk investing in very small start-up businesses or in loans not fully collateralized.

The Small Business Administration (SBA) developed the Microloan Program in 1992 to increase the availability of very small loans to small business borrowers. This program achieved permanent status in 1997, and uses nonprofit intermediaries to make loans to new and existing borrowers. From 1993 through January 1998, this program accounted for 6,380 loans totaling more than $65 million. Funding can be used for working capital, inventory, supplies, furniture, fixtures, machinery and equipment.

The best candidates for micro-loans are start-up companies with lower capital requirements and limited operating history. Micro-loan borrowers can benefit from the intermediary's expertise in business. Range of funds typically available is $100 to a maximum of $25,000. The industry-average loan size during the past several years was around $10,900, with an average loan maturity of 37 months. Some loans, however, may go as long as six years.

Link to some of Cenla's Non-Bank Lenders:

Accion

Red River Valley Bidco, Inc.

Accion

ACCION, the largest microlender in the U.S. according to its founder, is in the process of opening an office in Alexandria. ACCION offers loans of $500 to $100,000. The average loan size is $12,000.

The local office is being funded through a grant from the Rapides Foundation and matching funds from the City of Alexandria and Red River Bank. The Rapides Foundation grant is $150,000 annually for three years. The city is providing $50,000 toward operating expenses and $200,000 to the loan fund. Red River Bank is providing $25,000 toward operations and $200,000 to the loan fund. Office space is being donated in the Central Louisiana Business Incubator on Wimbledon Drive. Accion Web Site

Local contact: Michael Caffery, Loan Officer Mcaffery@acciontexas.org

cell phone: (318) 529-0173

office phone: (888) 215-2373, ext. 1560

Warning

Please be advised that the website, ACCIONNOW.COM, claims to provide loans and is seeking personal information. This website and its organization have no connection to ACCION USA, despite the illegal use of our ACCION name and mailing address. We have reported this to the authorities but ask that you call us at 866-245-0783 to report any suspicious requests for information.

Red River Valley Bidco, Inc.

The Red River Valley BIDCO, Inc., a for-profit business and industry development corporation, is a financial assistance corporation providing loan funds for business, industry and job creation. The RRV BIDCO supplements private lenders' efforts by either participating with them on special financing projects or by direct loans to borrower who cannot qualify under a private lender's rule. Maximum loan amount is $1 million.

Contact Information:

M. D. LeComte, President and CEO
The Coordinating and Development Corporation
5210 Hollywood Ave.
P. O. Box 37005
Shreveport, LA 71133-7005

Local contact: Layne Weeks

lweeks@cdconline.org

Phone: (318) 632-2022

cell phone: (318) 243-8082

Fax: (318) 632-2099

Red River Valley Bidco, Inc. Website

Small Business Administration Loan Guaranty Programs

Types of Small Business Administration Loan Guaranty Programs

7(A) Program Loans (SBA approves)
SBA Express (Lender approves. Minimal SBA paperwork)
Community Express (Lender approves. Minimal SBA paperwork)
Patriot Express (Lender approves loan. Minimal additional SBA paperwork)
CAP Lines (Short-term/Revolving Lines of Credit; Seasonal Contract, Builders Standard/Small Asset-Based)
International Trade
Export Working Capital Program (1-page application, fast turnaround, may apply for prequalification letter.)
Non-7(a) Loans – Microloans – Loans through non-profit lending organizations; technical assistance also provided)
504 Loans (Provided through Certified Development Companies [CDCs] which are licensed by SBA

WHAT TO TAKE TO THE LENDER (MINIMUM LIST)

Note: Documentation requirements may vary, so be sure to contact your lender for information you must supply.

Common Requirements for SBA Loan are as follows:

Purpose of the loan.
History of the business.
Financial statements for three years (existing businesses)
Schedule of term debts (existing businesses).
Aging of accounts receivable & payable (existing businesses).
Projected opening-day balance sheet (new businesses)
Lease details.
Amount of investment in the business by the owner(s).
Projections of income, expenses and cash flow, as well as the assumptions.
Personal financial statements on the principal owners.
Resume(s) of the principal owners and managers

Reference Links:

Small Business Administration

Small Business Administration (Louisiana)

Central Contractor Registration

Disaster Preparedness

Procurement Technical Assistance Centers

LA-ptac@louisian.gov

337-482-6422

800-206-3545 (toll free)

SBA LA District Office Jo.lawrence3@sba.gov

SCORE

Secretary of State – One Stop Shop Division

Small Business Development Center (Alexandria Office)

Social Security Administration Office

TECH-NET

Training & Counseling Programs

View Solicitations (In Louisiana)

Women’s Business Centers

Angel Capital

Angel Capital Networks exist to identify, fund and develop new investment opportunities in high growth private companies. The Angel Capital Network includes accredited investors from around the world who have entrepreneurial and management experience.

Angel Capital Networks invest in entrepreneurs and companies in a variety of industries and stages of development and look for entrepreneurs who possess:

Proven subject matter expertise, deep knowledge of their target markets, passion and integrity

Products or services with a compelling value proposition, a profitable revenue model, and sustainable competitive advantage

Realistic plans for building a company that can achieve a successful exit via acquisition or IPO

The network uses a review process to screen entrepreneurs for investment opportunities. They then look for fair deal terms that can lead to a successful exit for both investors and entrepreneurs, without creating barriers to follow-on funding. Additionally, the Angel Capital Network also offers entrepreneurs mentoring and development support from their management team and network members who have investment and operational experience in a wide variety of industries.

ANGEL ORGANIZATIONS

The directory of Angel Organizations includes a link to the Web site of each organization so individuals can learn more about each group, including investment preferences and funding processes. Additionally, entrepreneurs searching for funding sources can find valuable educational resources on the Angel Capital Education Foundation website.

Angel regions include:

California New England National / International

Canada New York

Great Lakes Pacific Northwest

Mexico Southeast

Mid-Atlantic Southwest

Midwest/ Great Plains West

Links to the Southeast Area:

Angel Capital Group - Hendersonville, TN

Ariel Savannah Angel Partners - Savannah, GA

Atlanta Technology Angels - Atlanta, GA

Charleston Angel Partners - Charleston, SC

Eastern NC - Investor Network - Greenville, NC

Emergent Growth Fund - Gainesville, FL

Fund for Arkansas' Future- Little Rock, AR

Gulf Coast Venture Forum - Naples, FL

Huntsville Angel Network - Huntsville, AL

Inception Micro Angel Fund - Family of Funds - Winston-Salem, NC

Innovation Valley Angels - Oak Ridge , TN – send email to: robson@tech2020.org

Mississippi Angel Network - Ridgeland, MS

Nashville Capital Network - Nashville, TN

New World Angels - Boca Raton, FL

Piedmont Angel Network - Greensboro, NC

Seraph Group - Atlanta, GA

South Florida Angels- Coral Springs, FL

Springboard Capital - Jacksonville, FL

Triangle Accredited Capital Forum - Wake Forest, NC

Upstate Carolina Angel Network - Greenville, SC

Wilmington Investor Network - Wilmington, NC

Winter Park Angels - Winter Park, FL

Other Resources

Angel Capital Education Foundation

Angel Capital Network

Capital Source & Matching Databases

Chattanooga Technology Council - Chattanooga, TN

European Business Angel Network – EUROPE

Jumpstart Inc - Cleveland, OH

Kansas Technology Enterprise Corporation - Topeka, KS

Microsoft BizSpark Program - Software for Startups

National Angel Capital Organization - Canada

National Association of Seed & Venture Funds - Chicago, IL

North Carolina Biotechnology Center - Research Triangle Park, NC

Northern Ontario Enterprise Gateway - Providence Bay, ON

Pennsylvania Angel Network

Washington Technology Center (WTC Angel Network) - Seattle, WA

Government Grants

We’ve all seen or heard the advertisements for federal grants touting thousands of dollars in free government grants. The good news is that there IS a lot of money being available for government grants as well as grants from foundations and other entities. The bad news is that most of them are not available directly to for-profit businesses.

That being said, there are still ways small businesses can obtain, or at the very least, benefit from grant funding. One way would be to partner with other business, local, state, federal, non-profit or educational entities for a specific grant application.

When done correctly, a grant application process is time-consuming and applicants must be meticulous in completing them and providing supporting documentation. Many state and local agencies already have an employee in place whose sole job is to research and apply for grants. Why not partner with an organization with a grant application specialist already in place?

Grant processes, requests for proposals and grant specifications vary wildly, and businesses need to keep an open mind when surveying them. Instead of targeting grants whose specifications require exactly the product or service your firm offers, why not expand your search for different types of grants that might utilize some of the products or services you provide, or even something that you don’t currently provide but could provide if you had a commitment to purchase?

For instance, if your company is a nursery, you might want to consider working with a local agency that is pursuing a Coastal Restoration project grant. The same idea would work for a firm that leases or sells equipment, communication services, power lines, environmental labs, etc. Restoration work might include a need for vegetation replacement, earth moving projects, water sample testing, communication between workers and the overseeing agency, re-distribution of power lines, etc.

The idea is to look for possibilities where you could collaborate with others for mutual benefit. When you apply this type of thinking toward grant research, additional possibilities open up. Alone, one business may not be able to pursue a grant, but with a collaborative project, the chance of being awarded a grant multiplies exponentially—for everyone involved.

This type of thinking helps to provide social capital for your community. When community leaders know that local businesses are willing to pool resources and work collaboratively for mutual benefit, it gives them the latitude to expand their grant search and their chances for funding to improve their economic viability and the quality of life for its citizens.

Notwithstanding those television ads, government grants don’t look much like free money. They can represent real opportunities, however, if approached realistically, diligently, and with an open mind.

GRANTS.GOV

Grants.gov is a database of grant programs that award billions of dollars annually. Most grants are available only to non-profits, academic institutions, associations, and state and local government agencies. The grant’s purpose and use determines Applicant Eligibility.

The best place to begin a grant search is at the official Government Grant Website, http://grants.gov/. This website is user-friendly and easily navigated. Before you begin your grant search, you might want to check out the “Search Tips” section because it provides details on how grants are classified, website navigation tips, etc. Additionally, once your search results come up, you might want to sort them by their “close date” to ensure that you don’t waste time looking at grants with an expired application deadline.

Ways to search for grants:

1. Basic Search - This type of search allows you to look for grants with specific keywords such as training, restoration, incentives, etc.

2. Browse By Category - This section identifies grants by their respective category (health, education, natural resources, environment, energy, etc.)

3. Browse By Agency - You can search for grants by a specific government agency (Department of Transportation, Homeland Security, EPA, etc.)

4. Advance Search - In this section, you can search for multiple categories (Funding Number, Funding Activity, Eligibility, Funding Agency, etc.)

To apply for a Federal grant, you must register with Grants.gov., and the application process can take up to weeks to complete. Note: the username (business or individual name) you choose is not interchangeable. If you register as an individual and then decide to apply for a grant for your business, you must register again for your company name. Be sure to read the registration process tutorials for tips to help with your registration process.

References / Additional Resources:

Applicant Resources

Community Development Works (CDW) Learning Lab, The Rapides Foundation

Grant e-mail alerts

Grants.gov Blog

Track My Application