July 2016

News From The Louisville SBDC
10 Things You'll Need If You're Going for a Business Loan!

To start or grow any business, you'll need funding and most businesses are funded through three sources: personal savings, loans from friends & family and commercial loans from banks.

If you've already tapped through the personal savings and the friends and family, it' time to get ready for that first commercial loan.  And like any project, preparation is half the battle.

While every loan program is slightly different and will have different forms required for application, you will likely need to submit much of the same information for  any loan application so it's best to begin to compile everything right from the  start.

According to the Small Business Administration (SBA), these are the typical documents you should have ready for your first visit with a banker:

1.      Personal Background - Either on the loan document or separately, you'll
be asked to provide personal background info such as previous addresses, educational background, maiden name, etc.

2.      Resume - some lenders require some business experience as part of the application
especially in startups or acquisitions.

3.      Business Plan - all loan programs require a solid business plan that includes
a complete set of financial statements and market data

4.      Personal Credit Report - It's wise to get a copy of your personal credit
 report from a free credit report site before you make application.  This gives you the opportunity to fix errors or be prepared to explain negative entries.  The lender will order their own copy as you make application

5.      Business Credit Report -  If you are already in business, you may be required
to submit a credit report for your business.  As with your personal report, it is wise to know what is on it before making application

6.      Personal Financial Statements - Most lenders will require you to state your
personal financial holdings with this form.  Any partner owning more than 20% of  the business will usually be required to submit similar statements and sign the  guarantee.

7.       Income Tax Returns - Almost all lenders will require at least 3 years of
both personal and business tax returns.   Have them ready

8.      Business Financial Statements - In addition to the business tax returns,
 lender usually will require monthly financial statements for the interim months  between year end

9.      Bank Statements - Often lenders require 6 months to a year of bank statements
to verify income.

10.    Legal Documents - There may be some variation here but a lender may require
one or more of the following legal documents:

i.     Business Licenses or registrations
ii.     Articles of Incorporation or Articles of Organization
iii.     Shareholder or Operating Agreements
iv.     Contracts with third parties
v.     Franchise agreements
vi.     Commercial leases

Lenders appreciate entrepreneurs and business owners that are prepared and know what to expect.  Gather all these forms first and make your first visit to the bank a pleasant one.

    Understanding that these steps can be confusing , I’m here to help as you walk the journey of  entrepreneurship. I have a simple checklist of questions for potential entrepreneurs that I’m happy to share with you. Please shoot me an email or give me a call and we’ll set up a time to get started! Contact David Oetken, Center Director at the Louisville SBDC,  (502) 625-0123or email me at david.oetken@uky.edu
    Louisville SBDC, you've just been awarded the Sutton Landry State Star; what's next?
                                                                                 We're Going to Disney World!
                                                                                                        (well, not exactly)

    In early July the Kentucky Small Business Development Center announced that the staff of the Louisville office would be the recipient of the 2016 Sutton Landry State Star for Kentucky.
     
    Our staff will be recognized at a private reception during the America's Small Business Development Center conference in Orlando in September. The America's SBDC honors a star from each state's SBDC annually.  The award is normally presented to an individual; for Kentucky this will mark the first time an entire office has been chosen.  Selection is based upon who is considered an example of excellence, makes a significant contribution to their center's program and exhibits dedication to assisting small businesses.

    "The Sutton Landry State Star is an honor recognizing outstanding performance and commitment in serving Kentucky's small businesses and the KSBDC network. The Louisville SBDC is a shining example of success, commitment and innovation. The center's staff works incredibly hard for their clients; they make us very proud," said Becky Naugle, state director.

    Aww...go us!

    Struggling with your Business Plan?
    Being prepared is a key success factor when searching for a business loan and knowing what to take to the bank is important.   Having a solid business plan takes time and preparation.  If you need help with your business plan, that is what we do.   We can help you build a solid business plan complete with detailed financial statements and up to date market research.  We work with you every step of the way until the plan is ready and more importantly, you have a well-planned business.  Most importantly, all our services are free.
     
    Whether you're first stop is the bank or a wealthy uncle, they'll want to know that you've done the research and planning necessary that will make your venture a success. Schedule an appointment with one of our consultants today. Press the Get Started Now button below:

    #scenesfromthesbdc

    Vallorie Henderson presented at the City's Power Up event earlier this month.
    Great turn out!
    Toni Sears at Louisville Free Public Library's recent Entrepreneur Fair. Mayor Fischer kicked off the event.  Various regional agencies were on hand to provide information to budding entrepreneurs.
    August Workshops
    More Info

    Create a Successful Online Business
    August 13th
    8:00am-3:00pm

    Business Plan Boot Camp
    August 22nd-24th
    6:00pm-9:00pm

    Accounting Basics for Startups
    August 30th
    9:00am-11:00am

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