WHAT THEY DON’T TELL YOU…

A COMPREHENSIVE LOOK AT BUSINESS LEND ABILITY AND BUSINESS FINANCIAL WELLNESS

AGENDA

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BUSINESS DOCUMENTATION:

– Legal Structure:• LLC, Partnership, Sole Proprietor, Corporation, Organization, Non-Profit Organization

vs. Non-Profit Corporation

– EIN

– Articles of Incorporation/Organization

– Status on MN Sec of State

– Letters from Board

– Tax Advisor

– Beneficial Ownership: 25%+, Controller

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BUSINESS DISCOVERY

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BUSINESS DISCOVERY

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PERSONAL CREDIT VS “BUSINESS CREDIT”

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PERSONAL CREDIT RESOURCE

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WHAT IS “BUSINESS CREDIT”?

• Credit: Number of trade lines/loans, balances outstanding, payment habits, credit utilization andtrends over time

• Public Records: Age, frequency and dollar amounts associated with liens, judgments orbankruptcies

• Demographic Information: Years on file, Standard Industrial Classification (SIC) code andbusiness size

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WHAT AFFECTS MY BUSINESS CREDIT SCORE?*

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ARE YOU IN A LENDABLE INDUSTRY?

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HIGH RISK INDUSTRIES

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PROHIBITED INDUSTRIES

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WOMEN VENTURE• We help women start and grow profitable and sustainable

businesses. We train entrepreneurs, advise businesses, provideloans, and create jobs.

• Training - We offer comprehensive classes and workshops to help you determineyour entrepreneurial readiness, develop/refine your business plan, and enhance orgrow your business.

• Loans - Whether you’re just getting started or already in business, we can provideloans up to $50,000 to qualified borrowers. We offer a fixed interest rate andcomplimentary post-loan support.

• Business Resources - We provide business consulting services in the community,as well as online resources, that can help you start, enhance or grow yourbusiness.

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AFRICAN DEVELOPMENT CENTER• The Mission of the African Development Center is to grow

businesses, build wealth, and increase reinvestment in the Africancommunities of Minnesota.

• Improve Your Credit - You will find that improved credit makes you feel like youhave just lost weight. Don’t seek a quick fix – we can help you establish and/ormanage your credit responsibly over time.

• Buy a Home - Training that helps you understand how to establish a strongfinancial base; counseling that enables you to prepare for home ownership and tostart or expand a business; and financing that suits your cultural needs.

• Start a Business - You can start or expand a business with the confidence that youhave the knowledge for success and an effective community advocate.

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LATINO ECONOMIC DEVELOPMENT CENTER Works to improve technical and leadership skills to strengthen the Latino community.

• Microenterprise Focus – start or expand very small business

• Community Real Estate Development Opportunity – purchase or improvement of real estate by growing businesses

• Cooperative – start or expand a cooperative enterprise

• Co-op Member Share Loan – finance the purchase of a share in a co-op

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COMMUNITY REINVESTMENT FUND - USA• To empower people to improve their lives and strengthen their

communities through innovative financial solutions.

• Small Business Loans - Financing for those “near miss” projects. We can help you revitalize your community by supporting projects that create jobs and provide services, like: Loans to small and disadvantaged businesses; Funding for non-profit organizations, including daycare facilities, charter schools, and community centers

• Contract loan servicing - High-touch, customized servicing specially designed for non-traditional portfolios and mission driven organizations

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NEIGHBORHOOD DEVELOPMENT CENTER• WE BELIEVE IN THE POWER, DRIVE AND DARING OF LOCAL

ENTREPRENEURS TO TRANSFORM THEIR LIVES ANDREVITALIZE THEIR NEIGHBORHOODS.

• Entrepreneur Training - Learn from industry experts, from weekly workshops andcohort-based programs, to creating your first business plan.

• Small Business Loans - Access financing to start or expand your business. NDC’sloans are for those who don’t qualify for traditional financing.

• Business Services - Access wrap around business services—from accounting toweb design—so you can take your business to the next level.

• Incubators & Real Estate - NDC creates spaces for small businesses to grow. Ourservices also include property management and consulting.

MINORITY ENTREPRENEUR DEVELOPMENT AGENCY

• We help minority entrepreneurs succeed.

• Mergers and Acquisitions - Sometimes the best business opportunity is to buy an existing business. Meda can help with valuing the business, structuring the deal and developing the best scenario for a successful acquisition or a merger of two businesses.

• Mentor Relationships - The fastest way to business success is by piggybacking on the counsel of men and women who have already spent years learning how to succeed.

• Business Resources - There are many resources that can help you on your entrepreneurial adventure.

• Business Plan Evaluation - We can evaluate your business plan and make sure you have a solid road map for greater profitability and increased assets.

• Certification Assistance - We provide the information you need to get the certifications that work best for your business.

• Leadership Development - One of the most successful means for improving management and leadership skills is bringing entrepreneurs of color together with corporate executives.

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METROPOLITAN CONSORTIUM OF COMMUNITY DEVELOPERS • An association of nonprofit community development organizations

committed to expanding the wealth and resources ofneighborhoods through housing and economic developmentinitiatives.

• Open to Business - Provide business advice and financing for emergingentrepreneurs

• Open to Business Advising - Promoting entrepreneurism, more than just asounding board, areas of technical assistance, access to capital

• Open to Business Lending - Loan packaging/facilitation, loans for new andemerging businesses, loans for second stage and growing businesses, gapfinancing for real estate, acquisition financing for real estate, transactional financing

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AFRICAN ECONOMIC DEVELOPMENT SOLUTIONS• Our mission is to build wealth within African immigrant

communities. We work throughout the Twin Cities metropolitanarea to create wealth, lift immigrant communities out of poverty,and contribute to and benefit from the region’s vibrant economy.

• Loan Access - Business owners are able to expand their existing businesses andnew business owners have the chance to create the business of their dreams.

• Small Business Consulting - Provides business consulting to existing or aspiringentrepreneurs in the various areas of business need

• Business Development Training - Participants will be exposed to topics on how tobest start a business and successfully grow it with review of consumer and markettrends, effective management, marketing, financial management, business strategy,and other important elements.

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SMALL BUSINESS ADMINISTRATION • The U.S. Small Business Administration has delivered millions of

loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses

• Access to Capital (Business Financing)

• Entrepreneurial Development (Education, Information, Technical Assistance & Training)

• Government Contracting (Federal Procurement)

• Advocacy (Voice for Small Business)

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HMONG AMERICAN PARTNERSHIP • Empower the community to embrace the strengths of our cultures

while achieving our potential.

• Developing a business and savings plan for entrepreneurs.

• Microloan

• 3 year loan terms

• Low-cost loans

• Conventional loans

• Sharia-compliant loans

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CONTACT INFORMATION

Neighborhood Development Center – 663 University Ave W, Ste 200, St. Paul, MN 55104 phone (651) 291-2480

Minority Entrepreneur Development Agency – 250 2nd Ave S, Ste 106, Minneapolis, MN 55401phone (612) 332-6332

WOMEN VENTURE – 202 E Hennepin Ave, Ste 200, Minneapolis, MN 55413 phone (612) 224-9540

African Development Center - 1931 South 5th Street, Minneapolis, MN 55454 –phone (612) 333-4772

Community Reinvestment Fund, USA - 801 Nicollet Mall, Suite 1700, Minneapolis, Minnesota 55402

phone (612) 338-3050

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CONTACT INFORMATION Metropolitan Consortium of Community Developers - 3137 Chicago Ave, Minneapolis, MN

55407

- Phone (612) 789-7337

African Economic Development Solutions - 1821 University Avenue West Suite S-145 St.

Paul, MN 55104

- Phone (651) 646-9411

Small Business Administration - 330 Second Avenue South Suite 430

Minneapolis, MN Phone: (612) 370-2324

• Wisconsin Small Business Development Center ~ UW River Falls 401 South Winter St

River Falls, WI 54022

Hmong American Partnership – 1075 Arcade St, St. Paul, MN 55106

- Phone: (651) 495-1557

Latino Economic Development Center - 1501 East Lake Street, Lower Level Minneapolis MN

55407

Phone: (651) 395-4030

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WHAT WE LOOK FOR:Industry:– Professional Services: Physicians, Dentists, Chiropractors– Manufacturing: heavy equipment that can be used for collateral – Auto Repair Shops: industries in high demand

Years in Business:– 4+ years is ideal– Years working in that industry may qualify– Profit increase YOY

Relationship with Bank:– 5+ years w/ the same bank– 10K + in liquid balances

Credit Score:– 670 minimum (this is a firm requirement for Associated Bank & most banks)

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SMALL BUSINESS ADMINISTRATION: “SBA”

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QUESTIONS?