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uh thank you for joining the small business boot camp this morning we are going to let everybody load into the zoom app and uh we will get started momentarily good morning thank you for joining us today for the uh on this thursday morning december 10th for the aca small business boot camp and resource collective uh i am robert theobald small business ombudsman and vice president of small business services for the arizona commerce authority uh we are grateful to have you today hopefully the rain hasn't impacted you too much but it's great to have some rain outside and get some moisture throughout the state i want to first start by thanking all of our community partners without these community partners we could not have these boot camp sessions they uh the expertise that they provide has been tremendous and their time and effort so we thank them very much the small business boot camp and resource collective is designed to help small businesses work through the copic crisis and returned stronger than ever it is a statewide initiative supported and brought to us by our community partners as i mentioned their expertise is amazing and the bootcamp is going to continue through december so through next week and then we're going to pick it back up in january the first week of january january 5th um so we're going to continue this into 2021 uh and we have a lot of great partners already committed with their content for january so you have a great start to the year the small business bootcamp and resource collective website is is a tremendous tool uh on that site you can sign up for the upcoming sessions or you can go back and review the previous sessions uh at the bottom of that website we have all of our previous sessions archived by week and you can go back and search through those and find sessions that you may have missed that have content that will help you and your business um we've had many community partners also refer people to uh do different sessions uh to review things that will help them it's a it's a great resource and we encourage you to look back through that uh many you know with 105 sessions including today done that we've got a lot of information that can be used for your business also on that website you'll find the link to the resource collective web page and this web page has the tools and resources brought to us by our community partners a lot of great resources available to you on the resource collected page this is a sample list of some of those items you'll find on the resource collective page these are guides and tools available to you for all different industries to help you work through the copic crisis and [Music] return stronger quick updates as well um for restaurants there's a safest outside restaurant assistance program uh we're gonna post the link in the chat box so so all these links on this page uh be available on the recording afterwards but also we will post them in the chat box so you can access them we had a great webinar yesterday on for restaurants on premises extension and we also had ben blink from the governor's office come on and he talked about this assistance program had a great q a um if you're a restaurant and you're interested um and if you've applied for this but you missed the webinar there were a lot of great resources that ben shared about this program and i highly encourage you to go back and watch the recording of it uh yesterday uh to see the information he shared there was a lot of great updates and things that many restaurants may have missed in their application process so i encourage you to go back and look at that additionally um the economic injury disaster loan program uh based on the early sba information the program will be ending for the covid crisis on 1221 uh the eibl is actually a program that goes on for many different disasters depending on what they may be but the cobit portion may be ending on the 21st based on the early information um i will have updates on next week's boot camp i've got some i've reached out to the sba for for clarification just to make sure but the early information the 21st was the deadline with that the e-idea also the economic contingency disaster loan faq is a tremendous resource i was going back through it this morning and there were some updates on there that i hadn't seen but uh one of the great questions is was what if i need an increase on my eidl and there's information on there on how to do that who to contact so if that is something that your business may be looking at um i would highly encourage you to go to that document review the information and reach out to the contacts listed another way to stay informed and update on the information for small for businesses across arizona related to covet 19 is our covet 19 business resources website we have a big link to that on our home page right across the top great resources there we update it constantly just a quick reminder about the aca programs that can help support small businesses we have our small business services uh we provide the boot camp uh work on digital uh small business academy we've got to help navigate through the sba and sbdc so for example today we've got some local bacon contacts on this presentation so we're excited about that some local lending contacts uh our workforce division can help with employ with employers that are looking to hire or upskill their employees and our manufacturing extension partnership arizona mep can work with manufacturers at all different levels to help support them in their growth and dealing with kobe 19. additionally at this time a lot of people are looking to start side gigs or start their own business as well um as we come out of this and the small business checklist is a great tool to help those looking to start their small business it's an online interactive resource and it can help support licensing registration compliance questions business planning development etc you can find that azcommerce.com forward slash small biz v-i-z excuse me so a reminder for the state's token 19 information resource page arizonatogether.org great great resource um additionally our upcoming sessions these are the sessions that will round out the uh 2020 and lead us into a kind of a holiday break for two weeks but we've got our small small business funding opportunities today uh next week we have how to increase your google and yelp the search rankings uh it's gonna be a great session uh we haven't talked about yelp yet so it's gonna be great to to talk about how we can help the yelp rankings for businesses and then we have navigating business loans during covet 19 we've got uh ellen curtin from the pms small business development center to talk a little bit about relationships with your lenders and bankers and the challenges going forward as we work through the lending process so today we've got the great speakers with us so we have amber cordoba from christamos carrie davis from cic and leslie painter from growth partners arizona they're gonna share with us some great information on on alternative lending products that a lot of people don't know about but they're great products uh the small businesses can take advantage of and use and uh so with that we're gonna go in the order of leslie's gonna kick it off and then carrie's gonna share her information and then that was going to help wrap it up and we will have some q a at the end as well for for all three of them if you have questions please use the q a button at the bottom of your screen post your questions there and we will get to those uh either throughout the session or in the q a session but uh leslie will go ahead and i'll stop sharing and turn the time over you to get started great thanks robert and lisa and faith for having us today this is always a good chance to i always like to see amber and carrie and it's a good chance to share great information with all of you um so let me start my slides here there we go um so i'm the executive director of growth partners arizona growth partners arizona is a non-profit organization we are mission based we're also a community development financial institution certified by the u.s treasury leslie you'll need to share your screen we're not seeing it yet i thought i was sharing let's try it again there we go yep okay there we go does that work you're good yes thank you all right thanks for letting me know that um as i mentioned we're a mission-based non-profit organization we're a community loan fund we're certified by the u.s treasury and our mission is to serve nonprofit organizations and small businesses who are underserved in arizona from a financial and lending standpoint we're affiliated with the business development finance corporation which is a large uh statewide sba lender uh and so we partner together and have very complementary loan programs and so if you call them they may refer you to me if you call me i may refer you to them depending on the loan program that best fits your needs i do not do sba lending but my partner organization does so as i mentioned we're we're mission focused and so what exactly does that mean well we know that small businesses and has become particularly acute during the pandemic uh where small businesses were trying to reach out to their banks to get some help uh either for processing ppp requests or just loans in general and and so sometimes that doesn't work out very well banks have traditional banks and i'm a i'm a recovered banker of over 30 years banks sometimes struggle with supporting small loans because it's just not very cost efficient and oftentimes small businesses don't meet the exact criteria that a bank has maybe you don't have enough collateral for your loan or maybe you haven't been in business long enough or maybe your credit scores don't quite fit their minimum requirements and that's where organizations like growth partners arizona can can help out and help get you to the point where you can go to a bank in a few years that's our goal [Music] we have three loan programs the first is our non-profit loan program and frankly that's how we started when growth partners arizona was formed we provided loans only for non-profit organizations nonprofits have their own unique challenges in being able to borrow money if they need to so this is this is really our core uh program and i don't know how many non-profits are on the on the call today so i won't spend a whole lot of time here but you can find out more information about those programs on our website the one i really wanted to talk more about today is our small business success loan we launched this program frankly the week of the pandemic closing everything down in march and we've seen some good success so far in being able to help small businesses across the state uh access capital in smaller loan amounts um we we focus on loan amounts 10 to 75 000 minimum fico score is is less than what many lenders require um and many lenders don't operate in that small loan amount anyway so the um we do not work on work with businesses they're just starting out we don't do startup loans but we can help early stage organizations and there's other programs and other organizations that will help startups i guess one of the recommendations i would make to everybody is no lender is the same as another lender banks all focus on different things even alternative lenders like growth partners arizona and i'm sure amber will talk about it in a little bit too we all have our specialties we all have our areas of focus so if you're out seeking financing make sure you call around and check to make sure that you can find something that fits what you need and and lenders that that work in the areas that you need so that's one key tip for today and then the other program we have is a partnership with with uh community investment corporation and carrie's really going to talk about this in more detail when we get to her part but this is a great opportunity for folks who um are maybe starting up a new business and are looking for loan amounts that are very small fifteen thousand dollars and less and it's a really uh unique program and unique way of obtaining loan funding that's very different from your typical application so i'll let carrie talk about that when we get to her part um but i wanted to talk a little bit about how do you how do you get to the point where you can go ask for some money um and what do you need to do to be best positioned to have success in that and and so you need to think about a few things and and i know that a couple of these questions on this first slide may seem a little silly or obvious but but we often get applications that aren't very clear on these things and sometimes the answers aren't as clear as it might first seem why do you want to borrow the money the answer of i just my checking account is low and i've got to pay expenses is not a really good answer to that question you need to dig a little bit deeper in terms of understanding what has caused the need for you to borrow money ideally it should be for a productive purpose meaning that it's going to help you generate revenue it's going to help you grow your business expand something that's going to create value and create the ability to repay the loan so for example if you need to borrow money because you have to invest in new equipment to grow your business or you need to borrow money because you need to hire some people and you have to or you've got purchase orders that you need to fulfill and you just you have to have an advance of cash to be able to uh fulfill the purchase order to get your revenue those are good productive purposes for borrowing money if the answer is i need to pay my past due utility bills that's not a productive purpose and and you'll need to um and you can certainly talk to somebody like me or anybody on the call today about how you understand that a little bit better about how your cash needs have come up and then you need to think about what collateral you might have to offer to secure the loan some lenders will do unsecured loans my organization does not do unsecured loans to small businesses so so think about what collateral you might have to offer and then make sure your legal organization papers are in order you're going to be asked for those because a lender preparing loan documents is going to need to know exactly how your organization was formed is it an llc is it a corporation who are the owners who within the organization is authorized to in sign documents and make len you know borrowing decisions on behalf of the company it may seem kind of silly if you're a single owner but you still have to have um the legal people papers in order and if you have partners you need to have some clear instruction as to who is authorized to do what on behalf of the organization that's going to you need those sorts of things if you're going to open bank accounts and so same thing for lenders then how do you expect to pay the loan back again might seem like an obvious answer it isn't always obvious but be prepared with an answer for that and then you need to show the financial ability to repay historically granted 2020 is a unique year and it has thrown everybody off and into a tizzy and and so lenders are trying to figure out well how do we assess a current business how are they doing before the pandemic hit so you need to show us um how did the organization look what kind of revenue were you generating and then what's happened this year to your organization and how have you pivoted or adjusted to to prepare to survive and then rebound and come back um projections for what you think 2021 are going to look like because lenders obviously look at historical but we want to know what does your future look like tell the story about your organization what are you doing as a leader of your organization to make sure you can return stronger as you get through this so it's all about the story it's not just about throwing a piece of paper to a lender and saying i need x dollars for a loan you need to help us go on that journey with you for long-term sustainability and for organizations like mine my goal is to help you become stronger financially more sustainable financially long term so that you can go to a bank and get a a loan through those uh resources as well so you need to build the you need to set that in motion now as you're growing your business find a bank you can build a relationship with i'm sure many of you experienced some challenges and maybe not some challenges this year as you applied for ppp and you worked with your bank and some of you may have had great experiences with your bank and some of you may not have and and so it it showed how important it is to have somebody you can work with at your bank organize and maintain your legal records so that they're at your fingertips and and you know where they all are and you can get them at a moment's notice you really need to establish good financial records as well may mean that you need to purchase some accounting software i'm working with some businesses who are still young and haven't grown very much yet and they're doing their financials on excel spreadsheets very common uh and it's not a bad thing but as you're thinking about growing and getting your business um more strong you want to make sure that you can establish some sort of accounting software maybe you need to hire a bookkeeper maybe it's time to do that because you need to be able to at a moment's notice be able to give financial statements and then you need to understand those financial statements and what they're telling you and most of all as you're learning and growing and probably most of you the financial piece of your business is not where your expertise is of course your expertise is in the business that you run our expertise is in the financial piece so seek out people like amber and carrie and me like the resources at the commerce authority like the small business development centers don't be afraid to ask for guidance and help no question is silly this is what we do for a living this is our expertise and so we're here to offer that support and guidance because we want you to be successful uh just like we would come to you for your expertise in your business please rely on us for our expertise and guidance that's what we're here for and that's part of our mission as well so with that um thank you and i'll wait to see if there have any questions at the end and then now i'll let carrie come in and talk about a little bit more about the community-backed uh sources of funding thanks leslie i'll unshare here and share i can get to the unshear peace there you go all right so here we go hey everybody um all right there's always that moment of is this going to work okay so uh thanks for having me today um i am i'm with the community investment corporation but as leslie mentioned i i run a program in partnership with growth partners arizona that i'm going to share with you today but just community investment corporation is a non-profit economic empowerment organization if you haven't heard of them they do a lot of different things but they also do some micro lending they do small business loans um so i would just say you know i'm gonna talk about something very specific today but you can also go to their website and look at some of the other things that they offer um but yeah i'm here today to talk about this concept of community capital and that is really um well i guess to back up i started at cic about a year ago now and the idea was um how can we look at alternative funding models and the real driver behind that is these specific kind of models which are based in community capital meaning people in the community actually contribute to um to loans or um invest in local businesses that they believe in and want to see in their community so i'm going to talk mostly about kiva if i have time i'll touch on another one that we have called we funder that is is um slightly different platform so kiva is um it's been around for a while they haven't been as active in the us um until like the last few years but they were created as a platform for small businesses to um to get the first access to capital and i think leslie was talking about this so the kiva is really the first rung on the capital access ladder for a lot of people because they don't do typical underwriting um they don't do like if you have a low credit score you can still apply for a kiva loan you don't have to submit like a lot of financials it's really just kind of some very basic stuff um but the real way that kiva works is um social underwriting so your community is actually showing that they will invest in you and that's how kiva has kind of evolved from this platform where you can get a loan funded by the ecosystem um and the exciting thing about kiva is that it is zero percent and there are no fees um currently they have a six-month grace period that was created because of covit i don't think that's going to go away anytime soon so that's also a really great thing that they have but i guess generally i would say kiva is with the social underwriting you know it's you you get on the platform and you can get a proof or a loan but you go through two phases and i'll go into a little more detail but the first phase you actually have your network of people contributing to your loan up to a certain number the smallest amount they contribute is 25 and then if you reach that it's like a first threshold you get put on the larger kiva platform where they have two million people that could that could potentially contribute to your loan and we have seen in in tucson people from all over the world are contributing to to campaigns that we've launched here um and yeah i think leslie also mentioned this but the loan amount size ranges from one thousand dollars to fifteen thousand dollars um it really is uh it's sort of up to kiva to determine what amount you get approved for so you can request 15k but they may tell you you know at this point we feel like 10k is really what we can prove you for um but some people do get approved for 15k in their first loan so um it's definitely you know request as much as you need um the i think i've already covered some of this the only thing i would say here is too um once you're applying if you're in cochise county pima county or santa cruz county we will automatically see you kind of come into our portal and my role in all of this is really to help you get through the application process because kiva is it's very much about creating this forward-facing story about who you are who your business is why you're excited about your business what you've done and how connected you are to the community um and how you present yourself really so there's like an image that's very important and those are the things that actually inspire lenders to contribute to your campaign and so my role is really to help you work through that process and make sure that you're um you're telling a story that that is you know is a good narrative and i can help pull information from you to make that better um i'll give you feedback on your photo um some basic stuff like that but also know that you know i'm here to help you um get approved for as much as possible as much as you would like um and we'll you know it is up to kiva in the final save but i'm i'm your resource to to get through the application process um and i think the other thing i would just say here is there's different like brackets of the loan amounts um the terms are different based on the amount of money that you're borrowing so the amount of time that you would have to pay off the loan varies kiva has done a little bit of shuffling with the amount of of lenders you need in private fundraising so these numbers aren't exactly accurate um it's it's almost like uh they're experimenting a little bit so i would say like it can be anybody anywhere between five people and 40 people and when you apply we actually will know how many people that they need for you to contribute to your private funding campaign so that's something that we'll figure out when you're going through the application process um a couple of just a little bit of progress i wanted to share with you we have 23 successfully funded loans that um have we've we started in march of this year um and that's nearly two hundred thousand dollars of funding that's raised and i you know it's kind of just coming out of the ether in a way like the the people in the community have contributed to these loans people all around the world have contributed to this amount of money and i think it's significant because it's something that you know 200 000 against 23 different businesses is is a huge deal and i'm really excited that we will be able to to have this platform here in southern arizona and to provide that funding for people that otherwise wouldn't have been able to get funding um i think the other thing that's that's significant is that 68 of that funding has gone to women owned businesses um kiva is a great platform for again for people who have typically been um you know cut out of the the standard lending process or maybe are more comfortable with this type of lending we just see like there's a huge amount of women that are very successful on this platform um it doesn't mean that men are also not successful but i think it's just an interesting statistic because it's very different statistic when you go to traditional funding platforms and some basic eligibility stuff the business needs to be in the u.s you have to be 18 years old um the debt to income ratio is really one of the main um like financial things that kiva looks at it needs to be lower than 80 percent however um lower than 50 percent is um the target that would i would say you know if you have something closer to the 80 range you may not get approved for very much of a of an amount um so if you're if you're in that range um just be prepared like you may not get a a large amount approved but um we can still work with you um certainly uh you shouldn't be in bankruptcy um not a registered sex offender or terrorist um no violent uh or financial criminal convention convictions in the last five years however you can be formally incarcerated that is also something that i think kiva you know offers for people who again that's that's typically uh makes it more difficult to get access to capital so kiva is an option for their for that um and you have to have a paypal account just because paypal is a partner of kiva that's actually how they are able to provide zero percent zero fee loans um you also if you're if you're borrowing more than fifteen hundred dollars you need to have um business proof that shows you know here's here's my business name and my name and the address of the business on like any kind of document like a permit incorporation documents some kind of registration that you've done with the county or the the state um but that's pretty straightforward and i can help you work through that as well if you're trying to figure out what exactly do i need but then you just i just want to walk you through the application process to show you how simple it is so um we will i will share this presentation after and you can you can go and check out the link in this document if you'd like or leslie if you want to post the link in the chat while i'm chatting that would be great um but basically you go on the site you click on start an application and you really just start answering the questions that are in there though there's a few on financial health of your business but again they're very straightforward you know what's your revenue um what's what's go what's coming in the door what's going out the door um and then uh you know that's that's kind of well that's one part of it and i also mentioned this like this photo for example is a very um is a good one it's you know you can see who the borrower is um with the tagline it's also important to show what your business is this one's cut off a little bit but she actually i i believe is like either a jewelry maker or she's making something but but i can help you with that too like we need to be able to see in the photo what your business is um the oop the other thing you have to do in your kiva application is describe what you're going to use the money for leslie was touching on this too i think in the work she does you know what are you going to do with this money why do you want this loan these are some common ones where you're buying equipment some people during covid have said you know i needed to upgrade my e-commerce site uh i didn't have any of that i needed to change my marketing messaging i need some um working capital right so to sort of get through covet that was a common one that was allowed for kiva you know i need to pay my um i need to pay for my space i'm paying my employees those are those are things that are allowed within a keep alone some things that aren't allowed are like a down payment on another like on on another business that one i've seen that didn't actually work um or like down payment on a building those are things that um kiva has a hard time approving because it's it's like they want to see that your business is sort of already in the works and up and running and that you have the things you need but this is just going to help you get a little further um kiva will will on a case-by-case basis look at new businesses um it is a little more difficult i would say but we you know i have seen plenty of new businesses get kiva loans um they may not be approved for the full 15 000 if that's what you were looking for but um you know i think it's it's certainly an option if that if you're looking for you know you have an idea of what your business is and you need some startup capital there are ways that kiva can support that as well um and then i mentioned this but i just wanted to show you kind of visually so you see like this this borrower has a ten thousand dollar loan um that he's raising he's in his private fundraising phase um and he needed to get 20 people to contribute to his loan so he's almost he's almost to that point where it will go to the public fundraising phase um and then that's when you know everybody in around the world there's lots of like foundations and things that also contribute to kiva loans so there are a lot of people who are um kind of dialed in to contributing to those loans which is really exciting we've seen loans fund pretty quickly um in the ones that we have launched here um and then so now you can see that in his loan he's actually um gone into public fundraising this shows that he has um 24 days left actually to touch on that you have 15 days in the in the private fundraising phase and then you have 45 days in the public fundraising phase to raise the the money um it's always people always ask like how long does it take to get the money it all depends on how quickly you raise it um so if you really blow through like the private fundraising phase quickly um and then you go to to public and you're really promoting your loan to your network continuously you can raise um you know in a week perhaps but some people we've definitely seen that it takes the full 45 days so um certainly i would prepare myself for that being the case so it's like you need money in a week this is not the solution for that but um you know i think just because of the process but certainly there are ways we can help you accelerate your fundraising with you know different tips and techniques that we've seen work um carrie um this is leslie would you talk a little bit about the concept of raising money that that this is this is not asking for a handout from people you're asking people to invest in your business with you and they will get paid back you pay the loan back thank you leslie um yeah so i i really i think before this session i had this idea that i i should create a chart that shows the different crowdfunding platforms because certainly when covet hit i saw a lot of gofundme campaigns launched um kickstarter is another one there are there are lots of platforms where um you're just donating money and you're not going to get that money back gofundme is a is a great example of that like unfortunately a lot of people are using it to fund medical care um it's truly a donation kickstarter is a platform where you know a lot of times if you're contributing to a campaign there you're going to get some kind of product or like t-shirt somethin that's also different from kiva so kiva people who are contributing to your campaign will actually be paid back fully once you pay off the loan and so when you're going um there's there's sometimes i see hesitation and people saying well i don't want to go ask people for money um you're not really asking them for money you're saying do you have 25 of idle capital you can contribute to my campaign that i will pay pay you back like when i get this loan paid off you will get the money back so i think that's a good distinction from for you know for people to keep in mind like it's um it's a lot easier i think for people to contribute when it is alone it's a different kind of mindset um and you're not asking for a handout and i think that's why kiva is such a great platform and i i think i'm at time so i will hand it over to amber and then if there are any questions i think this is the end anyway so are there any questions i can answer them at the end gary i have a quick question i think this we need to plug it in right now is um with growth partners you guys are representing southern arizona but where else in arizona can businesses get a kiva loan anywhere why for a kiva loan if you're in cochi santa cruz or pima i can i can i will be like your contact if you're in phoenix though and you apply and i know about it i can actually ask you to get in i can ask eva to put you in my portal where i can help you get through the process but you're autumn i will automatically be like your contact person in those counties so anybody can apply for a keep alone though okay so it is available throughout the state is an option great thank you and i will stop sharing good morning everybody i'm gonna go ahead and share my screen all right all right can you see me okay all right perfect so good morning everybody my name is amber cordoba and i am the director of business education and consulting services for prestamo cdfi um so we are actually a part of the 51 year old nonprofit organization chicanos por la causa if you've been in arizona for any length of time you've probably driven by a property or heard about us and we provide direct services in five different areas of impact through health and human services housing education advocacy and then economic development which is the pillar that pristamos falls under i know that we have a spanish name but we serve any any everyone and everybody so don't let that be any kind of deterrent we are an sba micro lender and a mission driven lender and we do provide small business lending anywhere from fifteen hundred dollars all the way up to a million dollars and we also provide quality business education and consulting services that we feel is necessary to empower the small business community and create opportunities for economic growth and advancement especially in the state of arizona so in terms of funding opportunities the first two rounds of ppp funding we participated in we did over 925 loans and we did 26 million i wanted to bring this up because there are a lot of talks about a third round coming down it's something that's being talked about in congress right now we're very hopeful that they're pretty close and i did want to mention for anybody that would be looking to get a ppp loan or getting a second ppp loan that there's probably going to be a qualifier that you have at least one month over 2020 that will require you to have a 30 deduction in sales we're not 100 sure how you would show that yet whether it's going to be through profit and loss statements or that would be through bank statements but that's something to be prepared for that you will need to justify a loss in sales right now as robert mentioned at the beginning the idle loan is still open for a couple of weeks that has really favorable terms of 3.75 and up to 30-year repayment um so that is definitely a good program to look into there are other for forgivable loan programs that are city or county based out there i don't know that there's much going on in in phoenix or in arizona right now but keep abreast of that especially as different types of funding comes through as congress passes new different stimulus packages that cities municipalities might get access to some more funding and some of that will go to small businesses um for us in specific at prasamos um as leslie talked about before we're also a community development fiduciary institution a cdfi and an alternative lender so we are able to work with small businesses that may have difficulties in accessing capital through a traditional bank like wells fargo or chase or one of even our state banks here that we have in arizona so we've put together a suite of new micro loan products that i will go into a little more detail about it's up to fifty thousand dollars with flexible underwriting terms um and then after that i'll talk a little bit about uh what you're gonna need to bring to the table which will kind of just be an echo of what leslie and carrie mentioned about their products as well so we just this week actually launched three new products uh the mini the mid and the mega um sorry we couldn't get more creative with the naming structure there but the mini micro loan is 1500 to 5000 and that mid is the 5001 to 15 000 and then the mega is 15 thousand and one to fifty thousand now remember we do do lending up to one million dollars but the sba micro loan program only goes up to fifty thousand um so those would be a little bit different products with different underwriting requirements i'm bringing this up because we've we've decided to even if it's just for a short time relax our underwriting requirements so this mini loan is going to be the most favorable for underwriting it's going to only require one year in business a minimum fico score of 600 with no open collections the interest light rate is going to be as low as 7 percent and this can be an unsecured loan it will require a general ucc filing for your assets so that if you do default on the loan that if you have equipment or other things um you know that would be used to secure it but it won't require a vehicle or it won't require real estate now as you get into those higher brackets the mid micro loan would require collateral and vehicles as long as they're paid off and they are within seven years or less than seven years old or for commercial vehicles under 10 years old and then for that mega micro loan that will require real estate collateral for anything that's over twenty thousand dollars so um each of these loan programs have different terms and the lowest term would be 12 months and then the larger amounts are up to five years um the mid and mega are going to have a couple of months of interest only lending and then the more you take the less the rate is but there is the requirement of that 600 fico score and no open collections no tax liens anything like that we are able to look at situations and look at the full picture but that's kind of the the bottom basement threshold that we're looking for and then for anything over 5000 you will need to be in business for at least three years we are really not doing any startup lending right now unless it's a business that really is catering towards the cater the the coveted pandemic so if for example you have a cleaning company and you already have contracts and you're a brand new company and you need some working capital that might be something that we could consider because it makes sense but if you are a restaurant that's trying to open up in the middle of what's going on right now um it's probably going to be pretty difficult for you to find lending because it's a you know an industry that's struggling right now um so these are our new micro loan products that we're launching this week um yeah so there's that um just to kind of echo what you're gonna need when you apply for a loan you're gonna have to have a completed application so that's gonna be the ownership information for anybody who has ownership in the business typically we like the ownership information for anybody that's 10 or more and then all of your business information so when did you start what's your federal tax id number information about how many employees you have you'll also have to provide collateral information for any loan that's over 5000 so that's going to be a vehicle if you have equipment if you have real estate you'll also be required to provide insurance information on the vehicle or on your real estate and then you'll also have to have a business plan and equivalent 19 pivot plan this is something that that leslie mentioned as well it doesn't have to be a full 20 plus page business plan but an executive summary that talks about how you operate your business and then your pivot plan needs to be that you recognize that clovid19 is here that while we have a vaccine that's on the way it's not going to be something that solves the problem immediately so what are your plans how have you adjusted did you start an e-commerce site have you started curbside delivery are you doing unique things within your store to order you know in order to continue to bring on business so that's what we're going to want to see and then for financial documents if you're doing the 5 000 or under we're only requiring one year of tax returns and then the higher up you go in the funding you'll be required to provide up to three year tax returns and that would be personal and business for small businesses that file a schedule c that's on your personal tax return that's sufficient um you will also need to provide a candidate profit and loss statement and a balance sheet so as leslie mentioned if you don't have any of your financials maybe you only do excuse me maybe you only do them once a year when you go to your tax preparer that's something you really want to be thinking about is getting that done sooner rather than later and getting onto some kind of accounting system where it's a little bit easier for you to get your financial statements on a regular basis any of the funding that's going to come down that could be grants that could be lending you're going to have to provide financial statements and justify that you have the ability to repay your loan as a cdfi we get funding that we actually lend from other banks or other types of businesses that lend us at a particular rate and then we re-lend it to small businesses and we provide technical assistance in conjunction but at the end of the day we have to pay that money back so we're looking to make smart investments in businesses that are also going to be able to pay back their loans as well you will need to do a personal guarantee and you will also have to provide a personal financial statement and if you have outside income then that can also help to be a part of your repayment plan and help with the underwriting process to let us know that if for some reason something happened with the business there is outside income from you or a spouse that would help towards repayment and then there's also a requirement for two years projections and assumptions so what do you plan to happen in the next two years as best as you as you can and what is that assumption based on so are you open 10 hours a day and you generally have 10 customers a day and the average sale is 200 or i'm sorry 20 so that's how you come up with what your projected revenue is going to look like and then you'll also need to provide a debt schedule so if your business has any other kind of debt if you have another sba loan if you have an open ppp loan that hasn't been forgiven if you have other types of loans for your business we're going to want to see that because that will also factor in and then in terms of the qualifications you do need to be a us-based business again a 600 plus credit score with no open collections or a strong plan for how you're repaying open collections for the lower end loans of by up to five thousand as long as you're in business for one year then that's acceptable for a fifty thousand dollar loan we're going to want to see at least three years in in business and then in terms of debt service that might not be a term that a lot of people are familiar with but that's for every dollar that you spend you need to bring in another dollar to break even most lenders like to see something around 1.2 we can go as low for the smaller dollar loans as 1.1 so for every dollar you spend you earn a dollar 10 and have a 10 profit that just shows that you have the capacity to repay the debt um as in terms of the purposes uh as leslie mentioned it does need to be a productive perfect purpose we're not looking to be able to lend to businesses that it's just basically going to keep you afloat for a couple of months and you're not going to be able to to repay we're talking more you need to have an upgrade to a software you i want to add a drive through window you need a new piece of equipment that's going to allow you to produce a new type of product or streamline your efficiencies general working capital maybe you got a new contract and it doesn't pay you back for 90 days but you need to purchase some materials or you need to hire a couple of employees those are those are some some good uses of capital that you would be qualified for right now i do want to mention that it's really important to have technical assistance coupled with access to capital so we provide that as well for any of our micro lending that we do we have sba technical assistance program we have a team of 13 business advisors and subject matter experts that do ongoing coaching and education for our microloan recipients we also have a program through the sba called prime and that's programmed to invest in micro entrepreneurs it's training coaching through webinars workshops one-on-one coaching and it's topics from like what's the best bookkeeping system for me how to actually use and create a profit and loss statement understanding marketing social media general business coaching there's a ton of information on our website about it but both of those programs are no cost and the prime program again does not require a loan you have access to that if you are a small business we are giving preference to businesses that have nine or under employees and um businesses that are in underserved communities or that are disadvantaged and then we also have a social enterprise incubation program that does have a lending component if you are a social enterprise or you specifically are hiring in a hard to hire demographic so perhaps you um specifically hire formerly incarcerated individuals and you have a program that would can be considered a social enterprise as an employer social enterprise and then benefit social enterprise is the business that does social good and that gives back to the community so there is lending through that program specific um it's at a significantly lower rate it's around four percent um and we have incubation services that we do that has ongoing coaching education specifically for social enterprises so it's a program and then i wanted to spotlight one of the clients that we worked with back in the beginning of this pandemic we had a covid19 micro loan that was up to 25 000 but this business was established in 1996 they'd been around in south phoenix for a really long time we were able to give them access to 5000 which may not seem like a lot but for a lot of businesses 5000 is a huge investment for their business they participated in our technical assistance program and we helped them understand financials gave them coaching social media and marketing training and they actually had a better october this year being in retail than they did the prior year a nine percent increase in sales so that's why we say that when you're getting access to capital having that coaching and technical assistance component along with it to help you really make sure you're maximizing those dollars is is really important and it's a great asset and it's a great part of the s program um so if i'll put my agent in the chat and i'll put a link to how to apply for a loan you can reach out to me and then also the prime program if you are interested in getting access to that technical assistance you can apply there as well excellent thank you amber thank you leslie and hank you carrie for your presentations and sharing those uh lending products that a lot of businesses may not have known about um so we very much appreciate that um i don't see any questions in the q a box um at this time now a question i do have you know i mentioned it to carrie about the kiva but amber are your loans available to anyone across the state yes we do small business funding in the state of arizona and in nevada so if somebody had a business location and then later in 2021 we'll be expanding into southern california as well okay leslie what about growth partners growth partners arizona does serve non-profits and small businesses statewide excellent excellent um so again great programs we are getting close on time so we will go ahead and wrap up but uh we're glad that leslie and amber and kerry could join us today and share these products because a lot of people just think they need to go to their bank and get a loan or they put the funding on credit cards with crazy interest rates or they go to not as reputable lenders that charge crazy interest rates that you can never pay off um and so there are loan products available for small businesses um that can help you you know with those those micro loans you know a few thousand dollars here that's all you need or you know some of the larger ones through the sba and these organizations can help out so we're very grateful that they could come on and share the information um this session is being recorded so we will post it back up again if there's something you want to go back and see as well the slides that uh each of them used will be posted on that on our website uh with the recording so you'll have access to all this great information again leslie amber and carrie thank you for joining us today thank you for your expertise and and the time you put into to help share this information on the boot camp with that we will go ahead and wrap up uh we want to invite everybody to join us next tuesday for our next boot camp session and we wish everybody to have a great weekend be safe enjoy the rain but be safe in the rain and uh we will see you on tuesday thanks