glennis mcclure, program manager – nebraska enterprise fund february 12, 2013
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Expanding Your Business Finance Options. Glennis McClure, Program Manager – Nebraska Enterprise Fund February 12, 2013. NEF - a Statewide Intermediary since 1994. Certified by the US Treasury as a Community Development Financial Institution (CDFI) in 1998. - PowerPoint PPT PresentationTRANSCRIPT
Glennis McClure, Program Manager –Nebraska Enterprise Fund
February 12, 2013
Expanding Your Business Finance Options
NEF - a Statewide Intermediary since 1994.
Certified by the US Treasury as a Community Development
Financial Institution (CDFI) in 1998.
Making sure that Nebraska micro and small businesses have access to capital, training and technical assistance. NEF’s Mission
NEF Program Partners have helped provide “Opportunity Financing” to various businesses and entrepreneurs, all across Nebraska.
NEF Program Partners•9 Programs Statewide •All provide business development services • 2304 participants last year•FY ending 6-31-12: 178 total loans for
$3.2M
Micro & Small Business Development Services
Business training & planning
▫ Business plans▫ Marketing plans▫ Accounting▫ Mentors & networking
May include one-on-one technical assistance or counseling
Financing Micro /small business loans Leverage private financing
Business Feasibility -
Do benefits of offering your product or service outweigh the costs?
Do the positives outweigh the negatives? SWOT
Is there sufficient demand for your product or service?
Can the product or service be provided profitably?
Debt or Equity FinancingDebt Financing
• Bank loans▫ Lines of credit▫ Term loans▫ Guarantees (SBA
/USDA)▫ NEF CD Guarantee
• Microenterprise Loans• Community
Development Financing• Home-equity loans• Credit Cards
Equity Financing
• Family and Friends• Personal Funds• Angel Investors• Venture Capitalists• Partnering
Loan or Investor Request•Amount needed•Uses of the fund$•Terms – Type of loan or request•Collateral•Financial performance measures•What are you contributing to the deal?
Understand lending /investor policies and requirements
The 6 C’s that Lenders /Investors Consider
Credit & Financial History Character Capacity – ability to repay Collateral Conditions - future economic
trends Capital – time & money
Type of Loan
MaximumLoan
Amount
Term + Fee
Notes:
NEF CD Guarantee / Security Pledge
Up to $40,000 or 50% of bank loan, whichever is less.
Based on loan needs and bank’s request – prefer 3 years max.
A credit enhancement product.
Nebraska Enterprise Fund: Certificate of Deposit (CD) Guarantee for Bank Loans
Type of
Loan
Loan Limits
Term
Notes:
Micro Loans
$5,000 - $50,000
No more than 6 years.
NEF micro loans are focused on areas where there may be current gaps in micro lending in Nebraska.
Small Business Loans
Above $50,000 to $150,000
May go up to 15 years, based on security /collateral and loan purpose.
May be used for multiple purposes including real estate or building purchase uses. Generally, real estate collateral is required on larger loan levels.
Direct Loans for Micro /Small Businesses
NEF Direct Financing Assistance
www.nebbiz.org402.685.5500