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Glennis McClure, Program Manager – Nebraska Enterprise Fund February 12, 2013 Expanding Your Business Finance Options.

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Presentation on theme: "Glennis McClure, Program Manager – Nebraska Enterprise Fund February 12, 2013 Expanding Your Business Finance Options."— Presentation transcript:

1 Glennis McClure, Program Manager – Nebraska Enterprise Fund February 12, 2013 Expanding Your Business Finance Options

2  NEF - a Statewide Intermediary since  Certified by the US Treasury as a Community Development Financial Institution (CDFI) in Making sure that Nebraska micro and small businesses have access to capital, training and technical assistance. NEF’s Mission

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5 NEF Program Partners 9 Programs Statewide All provide business development services 2304 participants last year FY ending : 178 total loans for $3.2M

6 Micro & Small Business Development Services Business training & planning ▫Business plans ▫Marketing plans ▫Accounting ▫Mentors & networking May include one-on-one technical assistance or counseling Financing Micro /small business loans Leverage private financing

7 Business Feasibility - Do benefits of offering your product or service outweigh the costs? Do the positives outweigh the negatives? SWOT Is there sufficient demand for your product or service? Can the product or service be provided profitably?

8 Debt or Equity Financing Debt Financing Bank loans ▫ Lines of credit ▫ Term loans ▫ Guarantees (SBA /USDA) ▫ NEF CD Guarantee Microenterprise Loans Community Development Financing Home-equity loans Credit Cards Equity Financing Family and Friends Personal Funds Angel Investors Venture Capitalists Partnering

9 Loan or Investor Request Amount needed Uses of the fund$ Terms – Type of loan or request Collateral Financial performance measures What are you contributing to the deal? Understand lending /investor policies and requirements

10 The 6 C’s that Lenders /Investors Consider Credit & Financial History Character Capacity – ability to repay Collateral Conditions - future economic trends Capital – time & money

11 Type of Loan Maximum Loan Amount Term + Fee Notes: NEF CD Guarantee / Security Pledge Up to $40,000 or 50% of bank loan, whichever is less. Based on loan needs and bank’s request – prefer 3 years max. A credit enhancement product. Nebraska Enterprise Fund: Certificate of Deposit (CD) Guarantee for Bank Loans

12 Type of Loan Loan Limits Term Notes: Micro Loans $5,000 - $50,000 No more than 6 years. NEF micro loans are focused on areas where there may be current gaps in micro lending in Nebraska. Small Business Loans Above $50,000 to $150,000 May go up to 15 years, based on security /collateral and loan purpose. May be used for multiple purposes including real estate or building purchase uses. Generally, real estate collateral is required on larger loan levels. Direct Loans for Micro /Small Businesses

13 NEF Direct Financing Assistance

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