1. Milam County Economic Development Summit
Jim Pillans

2. Small Business Development Centers
Financing

3. About the BV-SBDC
The BV-SBDC was created to help Start-Up and Existing businesses be successful.

4. Training Programs
Low-cost workshops and seminars on a wide range of business topics

5. Highlighted Workshops / Seminars
and
Basic Start-Up Fundamentals
Basic Record Keeping
Advanced Financial Analysis
Sales Tax Compliance
QuickBooks
Marketing
Customer Service

6. Consulting Services
Free one-on-one consulting to help business owners with problems and opportunities they face.

7. We assist new businesses and existing businesses with…
Feasibility of Project
Business Plan
Complete with financial projections
Loan proposal support
Prepare viable loan package
Identifying funding sources

8. We also act as a sounding board for small businesses and provide follow-up assistance, again, at NO CHARGE!

10. Bottom line to our client….
Help determine the feasibility of the project
Help understand the loan process
Help find funding
Expedited loan process
Follow-up assistance
ALL FOR FREE

11. Specialized Assistance… Research Library
Containing entrepreneurial, economic and demographic materials
Industry Information
Limited Patent Search

12. Procurement Technical Assistance Center (PTAC)
A program to assist small businesses in winning federal, state and local government contracts.
Local advising services available forth Thursday of each month at the BV SBDC office.

13. The International Trade Center is one of the largest and the most successful trade assistance organization in the State of Texas. Established in 1992, it provides businesses with high-value trade consulting services, cutting-edge market research and innovative training programs that deliver results.

14. SBDC Technology Commercialization Center
One-on-one trade advising
Market research 
Innovative training
Global connections through SBDC Global

15. SBDC Network Directory Access SBDC Network Online:
1 University Of Houston, SBDC
713/
2 Angelina College SBDC, Lufkin
936/
3 Blinn College SBDC, Brenham
979/
4 Brazos Valley SBDC, Bryan/
College Station
979/
5 Brazosport College, SBDC
Lake Jackson
979/
6 Galveston County SBDC
409/
7 Lamar University SBDC, Beaumont
409/
HAL.LAMAR.EDU/~SBDC
8 Lamar State College SBDC,
Port Arthur
409/
9 Lee College SBDC, Baytown
281/
10 University Of Houston Costal
Plains SBDC
979/
11 North Harris Montgomery
Community College District SBDC
832/
12 Sam Houston State Unv. SBDC, Huntsville
936/
13 San Jacinto College SBDC
East Harris and Northern
Brazoria Counties
281/
14 University of Houston
Fort Bend SBDC
281/
15 Prairie View A&M SBDC
936/
Access SBDC Network Online:

16. Find Your Nearest Small Business
Development Center

17. Resources for Assistance
SCORE
Veterans Business Outreach Center
Women’s Business Center

18. Types of Financing

19. Determining Financial Requirement
Start-up Costs + Working Capital
= Funds Needed
Lenders Will Usually Finance 50% to
80% of Total

20. Where Does the Money Come From to Start a Typical Business?
Sources of Financing:
Personal Savings
Credit Cards
Family & Friends
Partners
Investors
Angel Investors
Venture Capitalists
Crowd Funding
Financial Institutions
Home Equity Loans

21. Equity Financing
When an individual invests in your company and in return they will own a portion of your business
Partners
Private Investors
Angels
Venture Capitalists

22. Debt Financing
When you use someone else’s money to fund your financial needs and the lender expects to get paid back over time
Home equity
Credit cards
Family & Friends
Financial institutions
Dealer financing

23. Lenders Want to Know How much do you need? What will you do with it?
How much will you personally invest?
How and when will you pay it back?
What if something goes wrong?

24. Collateral and/or Guarantees
What Lenders Review
Capacity
Capital
Collateral and/or Guarantees
How do you intend to repay the loan?
Cash flow of business and other sources of repayment
Credit history is very important
The money you have to personally invest in the business (usually between 10% - 40%)
Collateral – what you can offer the bank as additional sources of repayment
Both business and personal assets can be used
Guarantor – Someone will personally guarantee the loan.

25. What Lenders Review, cont.
Conditions
Character
Intended purpose of the loan – how will it be used?
How much do you need and how long will you need it?
What is the general economic climate and the conditions with your industry and our economy?
Character is the general impression you make on the lender.
What is your past business, management experience and education?
Have you had experience within the industry?

26. U.S. Small Business Administration
SBA loans reduce risks and enables easier access to capital
Longer term period to repay loan
Lender is guaranteed loan up to 90%
Because of the guarantee, it is less risk for the lender

27. SBA Loans Guarantee Loan Program
504
Export Loans
Micro Loans
Disaster Loans
Express Loan
Grants – SBIR/STTR
SBIC
Surety Bonds

28. Fish where the fish are…

29. Essential Ingredients of a Successful Business
A Good Product or Service
Customers
Management Skills
Money
Desire to succeed

30. Three major Reasons Why Businesses Fail
Poor Planning
Poor Management
Undercapitalization
Small Businesses don’t plan to fail, they just fail to plan Don’t let this happen to you!

31. Contact us:
Brazos Valley SBDC
4001 East 29th Street,
Suite 175
Bryan, 77802