MESSAGE FROM THE PRESIDENT |
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Equity Fluent Leaders
We have been presented with an unparalleled call to use our power to change business systems, cultures, processes, and teams. We have a chance to build a better America — more pointedly, a better Corporate America for not just Women Owned Businesses but all diverse businesses. And this is the work that we continue to strive for at NAWBO - to advance and advocate for the diversity our businesses offer for corporate America.
For instance, one of the virtual programs earlier this month, which was hosted by NAWBO Inland Empire, focused on why as a Woman Business Owner you need to be certified and how you can utilize the certification to increase your company’s visibility and bid with the local, state and federal government purchasing agencies, whom are considered some of the largest buyers of goods and services. Such contracts can result in continuous and reliable sources of income while at the same time creating more diversity in the overall spectrum of corporate America. And be sure to add March 23, 2021 to your calendar for the NAWBO SFBA Chapter virtual B Corp Panel Discussion, where you will hear from certified B Corp leaders and connect with like-minded entrepreneurs considering certification.
Yours truly,
Nooshin Behroyan
Founder/CEO of Paxon Energy & Infrastructure Services
NAWBO-SFBA Chapter President 2020-2021
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NAWBO-SFBA VIRTUAL PROGRAMMING
To Connect and Support You Locally
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B Corp Panel Discussion
Tuesday, March 23, 2021
11:45 a.m.- 1:15 p.m. PST
Why is there so much interest and growing demand for purpose-driven companies and B Corporations? Hear first-hand from our panelists whose companies are focused on the Triple Bottom Line.
Participants:
Moderators:
Hear the stories of leaders from certified B Corps and what led them to become certified, what impact certification has had on their businesses, and advice they will share with other businesses that have a commitment to supporting their teams, the community and the environment.
Don't miss this opportunity to explore the most well recognized standard for businesses that stand behind their values and support a more just society for all.
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GUEST BLOG: TMC FINANCING |
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Own the business? Own the Building. Own your Future.
A building purchase allows you take control of your future – and the SBA 504 Program helps you do it affordably
When a small business owns their building, their occupancy costs are stable, they build equity, enjoy tax savings, and most importantly, have peace of mind knowing that the future of their business is more secure. Owning your space is the optimal way for a small business owner to take control of their future and not be at the mercy of a landlord.
While many businesses do not think they can afford to purchase real estate, the Small Business Administration (SBA) 504 Loan Program makes it affordable. The program is designed specifically for small and mid-sized businesses that want to own rather than lease. SBA 504 financing is a good fit for businesses that want to control their operating costs and retain working capital to grow their businesses.
What is the SBA 504 Program?
10 percent down payment
SBA 504 loans enable a business owner to purchase, renovate, construct or refinance commercial real estate with only a 10 percent down payment. With the low down payment of the 504 loan, businesses can retain precious working capital so that the company can continue to grow. Renovations, equipment, closing costs and soft costs can be financed as part of the total project cost, and the down payment is only 10 percent of that total.
There are certain circumstances in which a down payment of 15 percent is required, such as when the loan is being used to purchase a special use property or if the business has been in operation for less than two years. This is significantly less than the down payment required with conventional commercial real estate financing, which is typically 30 – 35% percent for multi-purpose properties and as high as 50% for special purpose properties such as hotels.
Below market, fixed interest rate
The SBA 504 loan is a second mortgage loan backed by the SBA. The first mortgage is provided by a conventional lender, representing approximately 50 percent of the total project cost. The SBA 504 second mortgage, representing generally 40 percent of the total project cost, has a long-term, up to 25 years, and fixed interest rate, fully amortized for the life of the loan. Monthly payments are fixed, providing small business owners with affordable payments that enable them to control overhead costs for the long term. Today’s SBA 504 interest rate is a remarkably low 2.75 percent fixed for 25 years.
The Certified Development Company (CDC)
The SBA 504 second mortgage is provided by a Certified Development Company (CDC) such as TMC Financing. CDCs are nonprofit organizations that administer the 504 loan on behalf of the SBA. There are about 200 CDCs in the U.S., all regulated by the SBA and charge the same fees.
Since all CDCs offer the same loan product, it is important to research what sets the CDC apart from others. Number of years of experience, annual number of loans approved, and client testimonials are all great factors to help choose the best CDC. Establishing a relationship with the right CDC is essential as they will be the small business owner’s advocate for the life of the loan.
Once a local CDC is identified, the next step is to get prequalified. The prequalification can be completed by the CDC at no cost or obligation, with just a few documents from the business owner. The prequalification process helps the business owner understand the company’s borrowing capacity and provides information about the required down payment and monthly payments. When the right purchase opportunity presents itself, a prequalification letter can give the seller the confidence of knowing that the business is capable of financing the purchase.
SBA 504 Eligibility
Program eligibility is based on the net worth of the business and net profit after tax on average for the last two years. Based on these size standards, most for-profit privately-owned businesses qualify.
The business must meet occupancy requirements. To finance the purchase of an existing building, the business must occupy at least 51 percent of the rentable space. For ground-up new construction projects, the business must occupy at least 60 percent of the building.
Getting Started
For business owners interested in owning their building, the SBA 504 Loan is the optimal solution and the best way to get started is to contact your local CDC.
TMC Financing has nearly 40 years of experience and has helped 6,000 businesses throughout California, Nevada and Arizona obtain financing to grow their business. Contact a TMC loan expert to find out more about the SBA 504 Program loans and how to get started with a prequalification.
Byline:
Barbara Morrison: Founder and President of TMC Financing, the #1 SBA 504 lender in the West and TMC Community Capital, fintech microlender for underserved business owners. TMC has helped over 6,000 businesses secure financing to grow their business.
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UPCOMING NAWBO VIRTUAL PROGRAMMING
To Connect and Support You Nationally
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Tuesday, March 2, 2021
9:00 a.m. PST
I Am the Leader and I Swear I'm Perfect
presented by Tijuana “TJ” Everhart of NAWBO Alabama
Emotional Intelligence (EQ), especially when it comes to self-awareness, is so important. Too many times leaders are focused on being right instead of efficient. A mature leader with a high EQ can bring out the best in her team when she understands her own weaknesses and allows team members to hold themselves accountable.
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Tuesday, March 9, 2021
9:00 a.m. PST
Stress Reduction Break
presented by Naama O. Pozniak of NAWBO-LA
The “Stress-Reduction Break,” designed by Naama O. Pozniak, was born during this stay-home period to inspire positive, peaceful, and meaningful moments in daily routines. Through short conversation and guided meditation, this session is designed around the current energy of the world at large – mind, body, and spirit at a time where people need it the most. The goal is to introduce the idea of the importance of healing during such a stressful time period in our lives. In silence, we can find answers to many of our questions and doubts. Naama’s session is intended to teach the audience how to lower their stress, and tap into these precious moments of stillness through scientific research.
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UPCOMING EVENTS IN THE BAY AREA
AND BEYOND
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Tuesday, March 9, 2021 | 4:00 p.m. - 5:30 p.m. PST
Join NAWBO California and members of all 11 California chapters for the second California Member Mixer via Zoom.
Make connections with Golden State NAWBO members from San Diego to Sacramento and everywhere in between! We will have a trivia game celebrating International Women's Day and the winning members will receive some prizes!
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THANK YOU TO OUR SPONSORS |
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