Monthly news & updates
January 2020
5 Steps to Financing Your Growth
If you are planning to finance your growth, either by purchasing a building or new equipment, obtaining a line of credit, completing tenant improvements or acquiring a new business, make sure to include the key steps below in your planning.

Step 1: Consult with your CPA  to ensure that your financial statements are completed in a timely and accurate manner. Too many deductions resulting in a negative net income could hurt your chances of getting a loan.

Step 2: Consult with legal counsel  on the best structure for your business. This consultation is also important for you personally should your financing involve acquiring real estate.

Step 3: Do your homework.  This is critical so you can clearly articulate the amounts of funds needed, the use of funds, and why this use of funds would be good for your business.

Step 4: Establish a relationship with your bank  or ask a trusted colleague for a recommendation. Get to know what industries and lending limits are most comfortable at the bank of your choice.

Step 5: Know your 5 Cs of credit --credit, capacity, conditions, collateral and capital.
  • Credit. What is your credit score and your credit history? If there are derogatories, be upfront and be prepared to explain them in writing.
  • Capacity. What is your business and personal ability to repay the loan, as well as your existing personal and business debt?
  • Conditions. Are the market conditions conducive to an expansion or new venture of the nature you are pursuing?
  • Collateral. Is there ample collateral to cover the loan by a 1:1 ratio?
  • Capital. Is there capital available to inject a down payment or other form of equity into the transaction? The SBA minimum is 10% of the project amount.

SBA loans are a great option for financing expansions. For fixed asset improvements, the borrower down payment is as little as 10% and rates are fixed for 20 years. As a non-profit CDC, AmPac works with a number of lenders, CPAs and attorneys and is happy to make referrals.
SBA CORNER
Jovita Carranza Sworn in as 26th SBA Administrator
Pledges to Create More Opportunities for Women, Underserved, and Veteran Entrepreneurs
WASHINGTON – Jovita Carranza now serves as the 26th Administrator of the U.S. Small Business Administration. Administrator Carranza will lead the only federal agency exclusively dedicated to assisting small business owners and entrepreneurs in starting, growing, and expanding their businesses. Additionally, the SBA provides targeted recovery support in the event of a declared disaster. This is Administrator Carranza’s second tenure at the SBA. She served in the George W. Bush Administration as Deputy Administrator, from 2006-2009. The President nominated Administrator Carranza to lead the SBA while she was serving as the 44th Treasurer of the United States. She was confirmed by the U.S. Senate in a strong bipartisan vote of 88-5.

“I want to thank the President for his confidence in me to be an advocate in the Cabinet for our country’s 30 million small businesses, and I want to express my sincere gratitude to the U.S. Senate for confirming me in a bipartisan fashion,” Administrator Carranza said. “I look forward to helping elevate female entrepreneurs and our military veterans, expanding access to SBA resources among entrepreneurs in disadvantaged communities, and continuing to prioritize disaster relief.”
Recently Approved Deal: Santa Barbara Wholesale Company Buys Property
UPCOMING EVENTS
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February 6
RMA-IE: Credit Perspectives 2020
11:30 a.m.-1:30 p.m.
Ontario, CA
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February 12
CREW-IE: Professional Development Series- Top 10 Secrets of Success in Commercial Real Estate
11:00 a.m.-1:00 p.m.
Ontario, CA
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February 29
Business 2020: Starting, Growing and Expanding a Small Business
8:30 a.m.-12:00 p.m.
Ontario, CA
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