Knowledge Management: Workshop E - Funding Your Growth, America Is Counting on You, Are You Prepared to Perform?

As you well know, today’s economic environment brings opportunity, as well as uncertainty, to businesses that are serving the needs of the Government.  Working with the right lender that is both financially stable and has a detailed understanding of your opportunities will offer unique advantages to grow your organization.

There are (3) legs to every government contractor’s stool:  1.) Strong relationships with your customer in order to have an opportunity to provide a bid & proposal; 2.) Technical capacity to perform; 3.) Assuming you have 1 & 2, access to capital.

Funding Your Growth

Small Business Development Center

 

Virginia SBDC Network is a partnership between U.S. Small Business Administration George Mason University and premier institutions throughout Virginia

 

The SBDC is a statewide infrastructure that can and should be the resource to deploy job creation initiatives.

 

Small Business Development Center can be very helpful to small business by providing assistance with financial packages, financial statements or even lender meetings.

 

The SBDC can help small business by educating them on both financing options and lender expectations.

 

Small Business Administration

 

Important Note: The SBA does not loan money to businesses (except to help them recover from natural disasters). The SBA guarantees loans offered by other lenders.

 

The SBA process is as follows: Borrower applies to qualified lender; Lender approves “subject to” SBA Guaranty; Lender submits request to SBA; SBA approves request; Lender settles and services loan

 

For a business to be eligible the business must be small, for-profit, legal business, demonstrate the ability to re-pay loan as shown through cash flow or projections and must fall within a SBA-approved industry

 

A business will NOT be eligible if there are any outstanding judgments/liens; previous loss to government; delinquent child support/student loans or an open bankruptcy.

 

The SBA’s CAPLine, is a Line of credit for short-term, working capital needs, advanced against inventory, accounts receivable, or real estate. It has a maximum maturity of 5 years and is for existing businesses with contracts.

 

Traditional Debt/Bank Financing

 

When seeking traditional bank financing, make sure you know your financing sources, your business, your industry and your target bank.

 

Possible financing sources for your business can include, Yourself and Friends, Angel/Equity Investor, Vendor Credit, Commercial Finance, & Subcontractor Credit.

 

Before approaching your bank, make sure you know your corporate goals, Services/Products, Customers, Creditors, most importantly, your financial profile.

 

Ensure you have a clear understanding of the Key Players, Service Providers, and Threats within your market sector.