Stimulating success

Chamber’s ‘Financing Options for Your Business’ program June 9

By Jessica Legge
Times West Virginian

FAIRMONT — The Marion County Chamber of Commerce is helping small businesses learn about financing assistance that could help them succeed.
A chamber event, titled “Financing Options for Your Business,” will take place at 6 p.m. June 9 at the I-79 Technology Park Research Center in Fairmont.
The organization is inviting all of its members to attend this reception, sponsored by Freedom Bank and the West Virginia High Technology Consortium Foundation. The event, which the chamber’s small business committee is organizing, will give attendees the opportunity to discuss financing options that are available.
“The reason we’re doing this now is we feel it’s very timely because of all the stimulus funding that is coming through,” Tina Shaw, president of the chamber, said.
During this panel discussion, several organizations will talk about the financing assistance that small businesses can apply for and the application process, she said. Attendees will be able to find out about the federal government money now available for start-ups, expansion and other business needs.
The panel will include representatives from the Small Business Administration, Washington County Council on Economic Development, West Virginia Economic Development Authority, and U.S. Department of Commerce.
“This is one of the things that our members have told us that they want,” Shaw said. “They want us to host programs that are educational that will help them grow their business (and) showcase products that are out there that could assist them.”
She said there is no cost to attend, and the event will be catered. The chamber is also inviting local financial institutions and other economic-development agencies to provide information to the small businesses.
“They will be there to answer any questions,” Shaw said. “That connection will be right there.”
“We think it’s going to be very beneficial to our small business members.”
To attend, call the Marion County Chamber of Commerce at 304-363-0442 by June 2. While the event is for chamber members, interested persons who aren’t members can call the office to see if seating is available.
On March 16, President Barack Obama announced enhancements to some of the SBA’s programs as part of the American Recovery and Reinvestment Act of 2009. During the upcoming chamber reception, representatives from the SBA will present updates on the new stimulus package and talk about some additional enhancements.
Rick Haney, public affairs officer for the SBA’s West Virginia District Office in Clarksburg, said the focus will be on the agency’s regular loans, which the stimulus package enhances.
The SBA will also discuss some of the qualifications that lenders take into account when it comes to financing and how small businesses can be prepared when they go to the bank. Lenders base much of their decision on a small business’ credit and character, he said.
“Each lender’s different, but they have basically the same type of credit that they look for,” Haney said. “Mostly it’s credit-worthiness. They’re looking for payback — how they’re going to be repaid.”
Small businesses that get any SBA loan this year will incur no fees, he said. The elimination of those costs to get an SBA loan is a big incentive for businesses.
Haney said the 7(a) loan is the SBA’s main financing program, providing funding for any type of business need. The SBA also has a Microloan program, and the 504 loan is a fixed-asset loan program offered through certified development companies and lenders.
He explained that the SBA doesn’t make direct loans, but the funding is available through small business lenders.
“We do work with just about every lender in the state as far as SBA loan programs,” he said.
Around the middle of June, the SBA will offer the America’s Recovery Capital (ARC) loan, which is also tied in with the stimulus program. The details are still being worked out for this new loan, which will provide funding of up to $35,000 for viable small businesses that need help making payments on existing non-SBA loans or debts. The loan is 100 percent guaranteed, has a 0 percent interest rate, and repayment doesn’t start until a year down the road, Haney said.
“They can use that to basically catch up their delinquencies,” he said.
Haney said if small businesses are looking to borrow money from a lender, the chamber event would be an ideal spot for them.
“The SBA looks upon chambers and entities like that as resource partners,” he said. “They’re our eyes and ears. They’re our direct contact with the small business, where we’re the more direct contact with the lenders.”
He said it’s important “to reach out to the small business community and let them know what’s available,” and to get their feedback.
The Washington County Council on Economic Development, another participant in the chamber’s panel discussion, has been around for 20 years. This entity, out of Washington, Pa., is an SBA Microloan lender that does work in Marion, Harrison and Monongalia counties and in four counties in southwestern Pennsylvania, said Ed Nemeth, senior loan officer.
“We specialize in helping entrepreneurs and start-up businesses as well as any small business that’s looking to expand,” he said. “We don’t have the stringent lending criteria that your (banks have). We’re better equipped to help an entrepreneur start up a company.”
Nemeth said the Microloan program offers anywhere from $1,000 to $35,000 to small businesses, and the average loan is around $19,000.
While the Washington County Council on Economic Development has been working in Monongalia County for a while, the organization is trying to get the word out in Marion and Harrison counties about its services.
“We’re trying to expand our presence down into Marion and Harrison,” he said. “Marion and Harrison are newer to us.”
The council is trying to let small businesses know that it’s there to help.
E-mail Jessica Legge at jlegge@timeswv.com.