COLORADO LENDING SOURCE

APRIL 25, 2012

Acquiring Capital for Small Business

Growth

OUR MISSION IS TO FOSTER THE ECONOMIC GROWTH OF DIVERSE SMALL BUSINESS WITHIN

THE STATE OF COLORADO

Colorado Lending Source

• In our history we have helped create or preserve approximately 17,000 jobs within Colorado

• Injected $822 Million into the state’s economy

• We have achieved this by assisting with SBA and USDA loan programs

The 5 C’s of Credit

Capacity – amount needed to be borrowed vs. ability to pay back

Capital – owner’s equity

Collateral – quality of assets pledged

Credit – credit score matters

Character – integrity of the borrowers

What you will need to apply:

Business financials – Past year’s tax returns and current statements

Personal Financials – Personal tax returns and personal financial statement

Business Plan – Overview of business with pertinent facts. Projections with detailed assumptions is vital

Proposed Budget - Costs estimates and how the funds will be used by your business

Credit – know your score and be able to speak to any derogatory items.

Types of SBA Loans

Guaranteed / 7(a) Loans

504 Loans Micro-Loans

The SBA 7(a) and 504 Loans

7(a) Can be used for any business

purpose; working capital, inventory, equipment, tenant finish, and real estate

Many variations on the 7(a) loan program depending on guarantor and business need

This is loan from a bank guaranteed by the SBA

Terms and conditions vary based on use of proceeds and the type of program used

504 Proceeds can be used to

purchase real estate or long term (10 years) equipment

This is a loan from a bank and a group like Colorado Lending Source

The loan is split with the bank in 1st position and Colorado Lending Source in 2nd position

Equity from business is determined by length of time in operation and type of facility purchased. Equity ranges from 10-20%

Other Loan Options

Micro Lenders Colorado has several micro

lenders with loans for small businesses; Colorado Enterprise Fund, Accion and Rocky Mountain Micro-finance Institute

Loans can range from $500- $250,000

Requirements for these loans vary from the different institutions

Main Street Loan Program

Loan from Colorado Lending Source for businesses that have struggled to obtain financing

Wide variety of business needs can be met with this program

Targeting loan requests from $100,000-$200,000

Business must have been declined by other lending institution

Questions?

Mike O’Donnell Executive DirectorMike@clsloans.org

World Headquarters518 17th Street, Suite 1800

Denver, CO 80202