Ladies, Grow Your Business
SBA can help with the financing for launch or expansion.
Restaurants, dental offices, funeral homes, personnel staffing agencies, health and beauty spas, clinical testing laboratories – what do they have in common? These Indiana companies are owned by women and they all have received SBA guaranteed business loans from their financial institutions in the past three years. Yes – they received these loans during the Great Recession.
Some of the women used the money to launch a new business. They needed money to lease a building, buy equipment or inventory, and have working capital to pay employees and everyday expenses until their sales turned to cash. Others built assets by purchasing major equipment or constructing a building to expand operations. Some of the money was used to expand sales in the lucrative export market. In the past two years, SBA guaranteed more loans in Indiana for start-up and expansion of restaurants than it has guaranteed in the preceding five years.
SBA guaranteed loans have financed many successful small businesses. In 1995, Denna Fyock received a $417,000 guaranteed loan to construct a facility to be used for weddings, as well as business and community events. Denna proved to her bank that there was substantial demand for a wedding venue in Valparaiso, Indiana, and that she had the experience to deliver the special options and quality service that would cause brides to select her location for their events. While the majority of brides using Aberdeen Manor are from Indiana, Illinois and Michigan, through the years the venue has been selected by brides from across the country. One reason is that Denna continued to build sought after elements to her business that enhanced the bride's prenuptial planning and help reduce the stress on the day of the event. She landscaped the grounds to offer garden weddings and she created an on-site bridal boutique, Affairs, which conveniently sells gifts, decorations, and apparel items brides need for their wedding festivities. In 2007, an authentic replica of an 1800s country church was constructed on the site. This meant that couples who wanted a church wedding could have both their wedding and their reception at the same location. Denna repaid her SBA guaranteed loan and continues her success with beautiful Aberdeen Manor.
Commercial lenders are looking for businesswomen who have guided their companies to produce new products and update existing merchandise to keep their customers buying. They want to see loan proposals and business plans with strong sales prospects, new delivery channels, or contracts with existing customers.
SBA encourages business lending through 90 participating Indiana banks, credit unions, and microloan intermediaries. If you lack collateral or your business is new, it may be difficult for you to get a commercial loan. SBA offers a guarantee of repayment for up to 85% of the loan to financial institutions as a major incentive for them to loan money to creditworthy business owners. The guarantee is for the financial institution. The borrower is responsible for repaying the entire loan amount.
Perhaps you need guidance for developing a business plan to take to your lender. Maybe you need help identifying a new marketing strategy for more customers. SBA has a network of counselors who will provide free guidance for your business. Also, SBA counselors conduct seminars on business financing, business start-up, exporting, selling to the federal government, and other business topics. Get the facts from www.sba.gov/in or call the SBA Indiana District Office at 317/226-7272.
Gail Gesell has served as the U. S. Small Business Administration district director for Indiana since 2003. She manages the delivery of agency programs, financial assistance, and business counseling to small businesses in 92 counties. She oversees administration of a total business loan portfolio that exceeds $917 million; four Microloan Intermediaries; the Indiana Small Business Development Center (SBDC) network, SCORE and the Women's Business Center in Indianapolis.
