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welcome to funding options for your veteran-owned small business today's panelist is my good friend and colleague herb lawrence and herb is a lender relations specialist with the arkansas district office of the u.s small business administration uh better known as the sba take it away herb all right well thank you timothy and uh hope everybody online had a good uh lunch and welcome to a uh day after election day uh at least the sun's out well and i'm going to take a little bit of time uh because this is national veterans week and take a little bit of time and talk about uh funding options that are available through the u.s small business administration uh for helping start or grow uh businesses and let's see a little bit about the u.s small business administration uh we are 67 years old uh created by the eisenhower administration uh to basically levelize the playing field at that time between small entrepreneurial organizations and large corporations and really from that time to now our whole job in life is to help create grow and expand small business success and we do that and and they oops went there basically three ways uh there we call it our three c's uh that is the main mission of the small business administration and has been ever since 1953. uh the first is capital acquisition that is basically what i'm responsible for at the sba district office and obviously it's a major component of our sba mission because for most small businesses or startups if you can't get the funding to help get it off the ground or to grow then it's still a dream and as everybody probably knows sometimes that finding that capital can be a real challenge so that's primarily what we'll look at today however i'll also mention our other two c's briefly the second one is contracting we help small businesses with fed obtain federal government contracting and we'll talk a little bit about that as well toward the end and then finally our third c is a community uh and probably that is best uh example that is uh timothy and his organization the ualr small business and technology development center they provide free confidential consulting to start up in existing businesses and it's a partnership between the sba and the svtdc so we'll touch on those a little bit as well and then but what we really want to talk about is financing uh what kind of programs are available to a startup or an existing business looking to expand uh to help them get the capital they need uh to make that business work and one thing let me kind of tell you a little bit about uh for the arkansas district office uh in our loan programs last fiscal year and we work on a fiscal year so it would then uh 1 october 2018 through 30 september 2019 we're trying to get our end of year fy20 numbers done now but last year we provided we our programs helped provide 330 sba 7a guaranteed loans and i'll explain the 7a guarantee in a moment that were made by over 69 different lenders around the state and it totaled over 150 million dollars now that's our flagship program and let's say we'll talk about it a little bit more later uh one of our other funding programs is called our micro loan program and last year uh our micro lenders uh were able to make 75 of these loans totaling uh over 2.2 million dollars now 2.2 million compared to 156 million doesn't sound like a whole lot but when you realize these are micro loans uh that was a good number and then also one of our third programs is called our 504 guarantee or that excuse me 504 fixed asset loan program and we'll explain how that works in a moment too but in the state there were 10 of those made and they totaled over 5.7 million dollars and finally a program that we have out there on our website that any small business can use is what's called our lender match program you go to our website and that's just www dot s b a dot g o v and there's a drop down for funding options you do the drop down and you'll see lender match you click on the lender match and you are actually able to uh connect online with somewhere in a neighborhood of 880 different lenders around the country where you can apply for a loan and so if you go to our sba dot gov download after you drop down on funding options and look at the lender match you'll explain the process that we go through but in arkansas we last year we had 734 arkansans that went through the lender match program of those 734 590 found at least one lender who contacted them wanting to look at getting involved in their program and actually had a number of those applications that had multiple lenders reach out to them uh to talk about putting their loan programs together the lender match great program to help match up small business needs with lenders and actually all around the country now what are our loan programs what do we do with the sba to help with our funding the first is what's called our seven day loan program now the 7a guarantee loan program is in essence our flagship and for those since we are mainly talking to veterans here it works very much like a va home loan now if you've ever gotten a va home loan you know that the veterans administration does not make the loan instead a commercial bank uh would make that home loan to you but they get a guarantee from the va that helps defray the liability or the risk involved in making that loan well that's what our 7a guarantee program does only it does it for small businesses so under our 7a guarantee loan program a commercial lender whether it's a bank a credit union some other economic development non-profit organization can make a loan to that small business and then the sba can provide a guarantee to that lender and that guarantee is like insurance so it mitigates the risk that the lender has and makes them much more interested in helping that small business to make that loan so that's our seven day guarantee program uh our 504 fixed asset program that i'd mentioned it's one that is aimed strictly at fixed assets you need to acquire land you need to do construction you need to buy a heavy equipment this is a perfect program because it matches up the sba with lenders and under the 504 program a bank would come in and do 50 of the loans let's just say the project cost on 504 is a million dollars a bank would come in and do 50 percent of that or 500 000 no guarantee but the bank gets a 100 percent first on 100 of the collateral so even though they're only doing half the loan they're getting a first on 100 of the collateral and because most of the collateral is real estate uh buildings and heavy equipment uh they're in a very good position that's their own loan and then a certified development company the sba partner comes in and does up to 40 of the deal they're subordinated to the bank so the bank's still got a first but for that 40 that the certified development company makes to the borrower we will give up to a 25-year fixed rate and at the moment that's under three percent and so when you blend the banks uh half that they're doing with a reduced interest rate long term under the cdc for up to 40 percent uh that's a very attractive looking loan uh and then of course in that the borrower must put 10 percent equity in on their own now in addition to our 504 i had mentioned the micro loan program under the micro loan program these are not banks these are economic development non-profit lenders here in the state of arkansas who specialize in micro loans what is a micro loan a micro loan is a loan a commercial loan under fifty thousand dollars and the one of the challenges that a lot of small business especially startups have is the fact that they don't need five hundred thousand dollars they don't need a million dollars they may not even really need a hundred thousand dollars they need thirty thousand dollars to get their food truck up and running or whatever it may be and often a bank will have issue challenges in trying to do a loan for a small dollar amount like that well that's what our micro program is is there to do our micro lenders will come in work with that borrower and they can make those loans up to a maximum of fifty thousand now we also push in our exporting uh we are always trying to encourage small businesses to get involved in export trade uh because let's face it the majority of the consuming world is outside of the bounds of the united states and being able to sell your product or service abroad can be a great option unfortunately for a lot of lenders having to try to fund a export-related loan that's kind of a challenge for them and so we can provide a 7-a loan program in our exporting that can actually give that uh lender a 90 guarantee so that that lender's risk is only 10 percent and if we also have our disaster loan programs anytime there is a natural disaster a physical disaster sba and fema can come in and help the community get back on their feet and from the sba standpoint it is through uh our disaster loans so you have a we hope not but you have a tornado come through uh pulaski county and pulaski county is declared a federal disaster area then the sba can provide uh loans to help get those businesses back in operation they're very low interest rate loans long term and then the one that i'm sure most of you all are interested in we have something called our veterans advantage program and it is part of the 7a program i'll mention a little more in passing in with detail under a couple more slides but that is the key program that is available to veteran-owned businesses and excuse me whether you are it can be for veterans it can be for spouses of veterans anybody who's a valid veteran uh that can be eligible for that program and we'll explain that here momentarily so for our sba loans whether it's 7a micro 504 what is expected well a few things that we have in place and the first is you must be a for-profit entity we cannot make loans to non-profits nothing wrong with nonprofits we cannot make loans to non-profits it must be a for-profit entity it must be independently owned and operated by a small business person so it cannot be part of a larger corporate entity we look to see that the borrower has or is putting in a reasonable amount of equity so that they've got some some dog in the fight typically we require 10 equity injection on a project cost if it is a startup business or if it is the acquisition of an existing business by a totally new owner in either case startup or acquisition the borrower puts in 10 of the total project costs now if you're an existing veteran to own business and you're wanting to get money to expand or maybe help job consolidate some business debt then that does not necessarily mean additional equity needs to be put in as long as you've got a realistic positive equity position on your business balance sheet that is acceptable to us and then you must be a us citizen or a legal permanent resident to be eligible for our programs and then finally we do have side standards we are the small business administration however let me tell you 98 of all businesses in arkansas will meet our size standards and as an example uh i have over on the side say it's a wholesale trade in that case it's determined by the number of employees and 100 employees or less makes it a small business the retail trade example uh is based on gross revenues if you're and for most retail trade if the annual receipts are 7 million or under you're a small business however they're broken out by the n a i c s code north american industrial classification code and we have some real variances within it so while average for a retail is 7 million if you're a convenience store and you're in aics code then you could actually have gross revenues of up to 32 million and still be considered small questions about what makes you a small business you feel free to contact me at the arkansas district office or speak with one of our consultants at the sbtdc they can help you with that as well so couple things we cannot do and remember the sba is a federal government agency so our actions are mandated by congress uh so these aren't just things that we came up with there are a few types of businesses we cannot do uh as far as ineligible one we cannot make loans for lending activities so obviously we could not make an sba loan to a bank or a credit union we also could not make a loan to any other lender so a bail bonds company which is basically lending money it would be ineligible it's possible for pawn shops uh they're kind of on the line if for a pawn shop 51 or more of its revenues comes from sale of merchandise the pawn shop is eligible but if 51 or more come from loans then it's not uh so we have some grey areas there i've already mentioned non-profit we cannot do loans for real estate investment now we can use our use of proceeds to buy real estate for you to build a building or to buy or renovate an existing one but we cannot use sba guaranteed funds to buy a piece of dirt and then hold on to it for a couple of years hoping that they're going to come in and put a a mall in that at that place and you're going to make a million dollars that's an investment we should do it but we cannot use sba money for that we cannot do pyramid sales plan there is nothing wrong with maricay there's nothing wrong with ammo or any of those others but they are a pyramid and sba says we cannot make loans for pyramid sales related businesses and uh obviously we cannot do illegal activities and that has become a gray area and i understand uh some of the information from yesterday's uh that we were getting from the elections was that a number of states have uh have voted uh more favorably on marijuana related issues and of course arkansas is a medical marijuana related state that's fine that's wonderful but it is still illegal federally this is a federal loan program and so we cannot make sba guarantee loans to help fund a medical marijuana clinic or any of those others and then if the small business person is on probation parole or pending criminal charges they are ineligible until if they come off of probation or parole uh so how does this whole thing work with our 7a program well remember we work with a lender so your first step is to go talk to your bank your credit union about getting an sba guaranteed loan and so you apply directly to that bank or credit union you do not apply to us the bank however looks at the pro your application and if they feel they want to fund it then they notify the sba we review it and if we agree then we provide a guarantee to the bank so we reduce their risk by giving them that guarantee and they're able to move forward to make that loan to you now i really want you to understand this button on the far right sba does not provide grants to individuals to help start or grow a business there is no free money from the small business administration so uh just don't call me uh and go gee herb can i come by and pick up my fifty thousand dollars of free money tomorrow uh because we don't have a check for that it's gotta be loans couple things that we do look at uh when we want our lenders to look at when they are looking at a loan request and it's really nothing different than those lenders look at every day with all of their loans it's really the five c's financing the lenders are going to look at uh your character not that you are a character but uh your personal history personal business credit history do you demonstrate a willingness to historically meet your debt obligations uh what's your background your education your experience we look for collateral however one of the main reasons a bank would use the sba is where there is a collateral issue because most banks have a what they call a dtl or debt to loan ratio and if it's below that ratio they can't do the loan sba tells that bank take all collateral that is reasonably available but if there's a shortfall that will not prohibit the sba from approving the guarantee so that's probably one of the reasons that a lot of banks will use the sba they'd love to make the loan to you but the collateral that's available is not sufficient to meet the bank's needs without some help and so we provide that help where the collateral is weak uh obviously on the part as far as capacity uh how are you going to repay this when you're talk ng to your lender what are you showing them is to show your ability to meet your monthly debt service obligations if you're a start-up business have you got realistic projections that you've made available as an existing business going to expand bring this your tax returns bring your uh income statement your balance sheet let that lender analyze that data because we want to see that you have the ability to repay now on the capacity especially for startups this is very important there are banks that have policies that say we cannot make loans on cash flow based on projections if we don't have historical data we can't do the loan well that cuts out a lot of startup businesses that don't have that sba will tell the bank we will accept projections as long as they are realistic how do we know they're realistic you work with the sbtdc consultants who for free will help you put those projections together uh to determine whether or not they'll be able to pay for those loans uh capital we've kind of covered on that uh basically again we want to see what you have or are investing into this business are you taking some of the risk uh as well as asking the bank and the sba uh to do that yourself and then finally conditions uh what are the terms of the loan going to be what's the purpose of the loan going to be but and something we always like to know how much you have how much are you needing and of course what will the length of the loan be uh and other information so you know be thinking about this as your because i can as you're putting your loan package together uh because these are the items that your banker your lender will be looking at because we will expect that lender him or her to address those issues in a credit memo when they send this to the sba are we jumping okay and now my next one i want to go over very quickly is our disaster loan program uh when a tornado comes through and your small business has been blown away we've not obviously then we want you know how do you recover from that uh under the sba's program uh when a when an area is declared a federal disaster we can actually come in and provide funding for rebuilding that small business for economic injury that that business may be suffering to help them get through and we can actually help make those loans of up to 30 years at reduced interest rate on a fixed rate with no prepayment for no prepayment issues for those small businesses when they come through but that is one of our main programs now one of the bottom uh e-i-d-l coven 19. you know we've been in the sba office of disaster assistance we were used to disaster loans that affected a county because of a tornado or maybe that affected a significant piece of estate because of a hurricane that came in when coveted 19 hit that was a disaster but it wasn't a disaster just for a county or an area or a state it was nationwide and so we had to come up with a way to provide funding assistance to help small businesses get through the events that were affecting them because of this pandemic and so under the sba's disaster program we have what's called e-i-d-l economic injury disaster loan program where you apply directly to the small business administration there is no bank we can provide funding of up to one hundred and fifty thousand dollars up to thirty years to repay three point seven five percent fixed rate and that is aimed at helping with uh operating expenses uh that have come up uh during the period and if you get the eidl loan you get a deferment on making payments of 12 months before that starts you can apply for the eidl loan as a existing business through our website www.sba under drop down on and you'll see coronavirus and the eidl program and you applied directly online uh to them through that program and i'm looking to see when i think i've missed a few there excuse me a second apparently there are a couple of slides that i had on there that didn't make it through i want to talk a minute about uh our 7a program before i get into contracting and i had mentioned uh one of the 7a loan programs is a called our express loan program this is a loan program for a bank that is deli has a delegated authority they could and typically they can make loans of up to three hundred and fifty thousand dollars to a startup or an existing business uh where the bank receives uh uses all their own paperwork they don't have to use sba documentation they use strictly their own paperwork we give them a 50 percent guarantee but we allow them to do their own loans so they're not sending it to sba for permission they can move these very very quickly to get them done they can be either a revolving line of credit or they can be a term loan or a combination and like i said normally that program uh is a maximum of 350 thousand dollars however under the cares act until december 31st of 2020 we have extended that maximum dollar amount out to 1 million dollars so a very quick way to get very large amounts of money and our veteran advantage program is part of the express loan program under our veterans advantage program we have charged zero fees to the qualified veteran or the spouses of a qualified veteran normally with a 7a loan uh and or express there is a borrower fee involved once the loan is closed and dispersed uh because the borrower has to make some payments uh it can be a lot of times it's around three percent of the guaranteed portion loan now under an sba express let's say a veteran uh gets a million dollar express loan remember there are 50 guarantees and the guaranteed fee for non-veterans would be 3.5 of the guaranteed portion so a million dollars fifty percent guarantee three point five percent that's fifteen thousand dollars that a non-veteran would have to pay as part of their borrowers fee we waive that fifteen thousand dollars to the veteran there are no veterans fees so it provides uh money back in the pocket for lack of a better word as part of our veterans advantage program so now on all of these programs 7a or the express what can we use it for really a very wide range real estate construction buying existing businesses equipment furniture fixtures inventory even working capital we can provide that funding for business debt refinance so an existing business it has a whole lot of debt out there from a number of different lenders we can usually help consolidate that and decrease their expense quite a bit and obviously as well for acquisition of existing businesses that's important uh use of the sba because while a bank might have no problem in a business purchase with providing funding for hard assets where they've got collateral a lot of times when a business sells there's goodwill involved maybe the value of the fixed assets furniture fixtures equipment inventory is thirty thousand dollars but the seller uh feels that because of his name uh the sales price of the business should be fifty thousand well that's a twenty thousand dollar goodwill you'll have a hard time finding a bank that wants to do twenty thousand dollars of goodwill because there's no collateral however with an sba guarantee the bank can make that loan with that good will included as long as it can be substantiated those are the use of proceeds and again we typically will take working capital and inventory out seven years uh equipment furniture and fixtures out ten years for the useful life of the asset so if the irs has a useful life of 15. we can use that and we can take out real estate building construction out 25 years so we get much longer terms on repayment than what you would normally be able to get in with the bank without the guarantee and so that's where we come in and take to providing assistance to them so that's a main part about our capital access with the emphasis for veterans obviously any of those programs are there for a veteran we can't if the bank will as an sba express lender and not all banks are we've got about 15 express lenders around the state if you'd like a list of those we can certainly provide those offline at no with no emphasis but if you work with an express lender and they want to do the loan as an express then as a veteran you they will not charge any borrower guarantee fee under our economic injury disaster loan program obviously the covid is available however non-covered we also have an economic injury disaster loan option that we use quite a bit for back when a lot of national guard and reservists were being called up and had to go spend uh a year in iraq or afghanistan uh and a lot of them were business owners small business owners now it's one thing if you're in the national guard to have to take a weekend a month off or maybe two weeks in the summer that you probably could survive uh your business being closed what happens when you've got to be out uh what happens when you've got to be gone for a year well as a vet a reservist or a national guards person that had an active business the eidl program can provide working capital uh at those low interest rates uh to keep them afloat while they're serving now the last thing we'll get now contracting uh with the federal government that's a big area that we have tried to get away from me yeah there we go so what do we do in contracting mainly of course these are federal contracts that are available but congress has been now you got to remember and as a veteran i'm sure you understand that uh congress has you know the federal government spends billions of dollars they have to have everything from paper clips to m1a1 tanks uh everything in the middle software for uh all kinds of assistance money and so they have to get it through a contract and congress congress has mandated that 23 of all federal contracts must go to a small business and so one of our jobs at the sba is to help small businesses that want to get involved in federal contracting because that can be a very good resource to access that excuse me and in addition well 23 percent must go to small businesses they've also mandated that five percent must go to women-owned businesses five percent to small disadvantages business pardon me got something in my throat and three percent must go to service disabled veteran business owners so uh we can provide you know if you want to learn more about federal contracting we can provide you with that information and that assistance at our district office and in here where can you get started on sba.gov walks you through the basics of federal government contracting requirements and we have several of our staff that specialize in working with our small businesses and that just walks you through the rest of it i want to be finished up the last c is community so we are the sba is a very small agency i've been told there are more federal employees at the mcclellan va hospital in little rock than in the entire sba nationwide and i would believe that because our district office only has five of us to cover the whole state so while as much as i would love to sit down and talk to you individually as a small business person to look at your business plan to look at your financials it's not economically feasible for us to do that so what we have done is we have started we have created what are called sba resource partners and those partners provide free consulting and often free sometimes low-cost training and they can do it on everything from business planning to loan packaging marketing business expansion internet you name it those consultants can help you get your business up and running or help it grow uh and so if you have not taken advantage of them you need to do so uh as far as okay yeah so we also at the sba uh have online training and you can just go to rs website wwe backslash training and you can then sit down and do training modules at any time that you may wish to and in addition to where'd that go ran away didn't it are we losing ourselves here you looks like you open the browser uh click on your powerpoint icon again bring it closer okay there we go all right uh so and i mentioned the arkansas small business technology development center they're one of our major partners and they're located in seven universities around the state uh so they are available everywhere to help you with all of those programs in addition we have an organization called score now score used to count for so-called stand for service corps of retired executives however one thing we have found is that many volunteer score members are still actively working so we just got rid of the service corps retired and kept scores the acronym and these people can work with you as a mentor one of our score counselors in in little rock uh 20 years ago started an extremely successful and franchised barbecue restaurant chain still operates it he volunteers as a score member specifically to consult counsel anybody who is looking at starting or expanding a restaurant now who would be a better mentor for you if you're wanting to start a restaurant than somebody who 20 years ago started and is still running it today he can tell you everything he did wrong he can do everything he did right and help guide you along that way so score is a wonderful organization that provides very intense mentoring that you should take advantage of in addition we have our arkansas women's business center it is located in el dorado arkansas and in the winrock office in little rock they now they specialize in working with women minority rural veteran-owned businesses they'll work with anybody but they understand some of the unique challenges uh that women minorities veterans face when trying to operate businesses and specialize in that area so uh there's more login information about the women's business center there finally our veterans business outreach center uh is run uh the nearest one is our university of texas arlington that we work with uh these vbox specifically do consulting and training again no charge for veterans who are looking at starting or growing a business or their spouses and the contact information on the vbac is there if you are interested in exporting we have a link to our export assistance centers that can also provide us and finally contracting now said that the sba district office can help you if you're looking at federal contracting and certainly we can however there is a resource partner of ours called the arkansas procurement assistance center statewide and they work specifically with small businesses that want to get involved in contracting and not just federal contracting but state contracting county local they work free of charge in their counseling to help walk you through that contracting process so that is and so these are our resource partners strongly encourage you to reach out to them see what assistance they have you've got information about our arkansas district office here you can follow us at on twitter if you are a twitter person sba underscore arkansas or you can go to our district website and that's just http sba.gov backslash ar for more information on our district office here in little rock and with that here is my contact information my phone number also the first car first slide had my email address and that email address is just herbert h e r b e r t dot lawrence l a w r e n c e at s b a dot g o v and i would be more than happy uh to talk with you uh look at your you know talk about what you want to do what your meetings are whether it's funding whether it's contracting whether it's finding the right resource partner and see what we can do to be of assistance to you with that if i we have a few more minutes left all right thanks herb good job as always we do have two questions that are waiting in the queue so while we're uh queuing those up i want to remind everybody you do have a question panel there at the bottom of your control panel and in that you can enter any sort of question for her keep in mind you've got herb he's a veteran uh he's online right now can answer questions specific to what you're thinking about maybe starting up because you're here on this this conference probably because you're thinking about starting a business and want to know about how to finance that all right so our first question was from larry uh unfortunately he had to leave but this seems like something that other folks might want to know so he was asking about the e-i-d-l he says if you have an eidl through sba can a veteran owned business get a veterans advantage express loan as well absolutely great question uh and absolutely now uh eidl is a direct loan from the federal government from the sba for very specific purposes uh only 150 000 maximum and it's really to help keep uh the business operating during the pandemic it era to keep them afloat the 7a guarantee loan program whether it's through our regular 7a or the express with a veteran's advantage has nothing to do with it that's what the only thing that you would need to do if you receive an eidl uh loan is and then you go and talk to a bank about getting a sba express loan is that you tell them hey i also have an eidl loan uh here's how much i'm paying per month because they would need to be able to calculate your ability to make global payments uh on all that information but there is nothing that prohibits a small business owner especially a veteran from having an eidl loan and from applying for and receiving a regular bank 7a guarantee loan whether it's through the regular 7a program or through our express program there's also nothing that would stop them from applying for a micro loan if they need less than fifty thousand dollars uh so no those that is not uh mutually exclusive okay and uh james want to know about terms would the terms be broken out of a total loan by the lender or would the borrower need to make multiple loans for equipment construction etc okay when you're talking about the terms loan uh you know one of the challenges when you work with a small bank i mean assuming a bank directly so the bank is looking at doing a loan in house not using a federal agency like sba or usda is a bank likes to get repaid as quickly as feasible i don't blame them uh and so while this could vary from bank to bank a good rule of thumb is that a bank may not want to go more than three years on say inventory or working capital assuming the bank will do working capital they really don't like to go out more than five years on equipment furniture or fixtures and a lot of banks don't want to go more than 15 years on real estate understand that if i'm doing this loan in-house i want to get repaid as quickly as feasible because the deal might have looked great uh in october of 2019 because nobody had a way to look up and go what here's what's going to hit the country in february march of 2020 that could totally destroy the business plan uh and so you know banks want to get repaid as quickly as feasible however that's one place that the sba guarantee program helps because we let that bank actually take those loans out further though we will tell a bank you may go seven years on inventory and working capital instead of say three you can go out ten years of the useful life of the asset for ffa m e as opposed to five and you can go 25 years on commercial real estate and construction versus 15 in-house what that means for you as the borrower is that your monthly debt service the amount of money you must write a check for each month to that bank is going to be significantly less that gives you as a startup business that means more money in your pocket to grow your business instead of paying the bank and that becomes critical and as long as the loan is under 15 years we do not allow the bank to have prepayment penalties so you take advantage of the lower monthly debt service for the first few critical years when you're growing your business and then once you become successful you've got money coming in double up triple up heck pay it all off in five years if you want the bank may not penalize you for doing that now if your loan is 15 years or more there is a prepayment penalty for the first year of five percent second year of three percent third year of one percent and the fourth year it goes away so uh you know that is one issue but basically yeah what we do is allow you to have longer terms for repayment for those use of proceeds if it's a straight business acquisition without any real estate we can go 10 and uh then if it is refinanced depending on what it was you bought uh with that refinance i hope that answered that question all right we got uh four about four or five minutes left we had four new ones come in uh abraham wants to know do ammunition and firearms businesses qualify for assistance yes next question yes i mean it's you're illegal you are legal uh you are a manufacturing operation uh there is no reason that you would be ineligible uh because of your industry yep as long as it's legal all right so uh next uh preston want to know what kind of a loan would a roadside uh commercial service repair business name he's talking tires brakes etc huh uh well it all kind of depends first on how much what are you gonna use how much do you need what are you going to use the money for i'm assuming roadside is going to be for vehicles and equipment working capital i don't know some inventory and again depending on the amount because if you need 50 000 or less you may really want to talk to one of our two micro lenders here in the state and our two micro lenders one is called forge f o r g e and the other is called communities unlimited and uh any of our consultants at the sbtdc can get you their contact information or heck call me email me i'll get that for you but if you need less than 50 000 they might be the perfect uh resource because that's what they're there for they're not a bank they are an economic development organization there to help small businesses grow so they're going to be much more open in their process now if you need over 50 000 uh again it goes back to uh what are the use of proceeds going to be for uh but overall uh you know it just depends on which direction the biggest thing to do is because remember if you use our guarantee loan program through the 7a or the express program it's a guarantee which means a bank must want to do the deal subject to getting an sba guarantee so your first question is visit with your banker and see if your banker can spell sba now any bank in arkansas any credit union in arkansas can do sba guaranteed loans some are just more active than others some of them are very active some just don't use it so your first step would be to talk to a uh your commercial link commercial lender at your bank not your home mortgage lender not a consumer lender uh but the commercial lender and see what their interest is and if you talk depending on where you are located if you meet with our folks at the sbtdc they know the banks in their area that are active they won't uh advance one over another but they've got a list of those that would be seven eight guarantee lenders and if one of those fits your banker then great if not you'd have somebody you could talk to all right and richard want to know are there any advantages to being a veteran when applying for an sba loan there for a regular loan no there is no advantage and certainly no disadvantage uh because obviously we can't you know the program is not allowed to differentiate the what we have available for veterans and their spouses is if they use the sba express program then uh they're the borrower fees are waived there are no borrower fees uh so that is about the only thing that we have uh as far as those advantages obviously again though uh if you are a national guardsman or reservist and you are called to active duty you can apply for our eidl and then finally of course uh as a veteran-owned business uh talking to our contracting folks because uh veteran-owned businesses will receive uh favorable consideration when they're applying with contracts all right finally uh we've got reginald put in two things here he says first of all i need to get my company of building and funding and then i followed up that with if i'm helping veterans how do i get the right funding direct funding the right funding for the right yeah okay so the right funding is really a question of well i'll go back because not knowing enough about what you want to do that's kind of dangerous on my part you need to contact one of our resource partners that is nearest to you whether it is our sbtdc network whether it is score whether it is the women's business center sit down with one of those counselors they will work with you on your use of proceeds what you need how much you need how you're going to use it and they should be able to guide you as far as the correct program for your needs and of course uh feel free to give us a call or send me an email i'll try to give you some answers to that as well uh individually all right i want to thank everybody for being with us and thanking our painless herb for taking time out this afternoon uh thank you since this is related to startups i just want to pass on we do have a bunch of startup related programs coming up they're going to be on thursdays at 10 a.m this month so the first one's tomorrow at 10 a.m and i won't be able to get you a link to this and i have to go to asbtc.org but we have meet the lenders so we're actually going to have bankers on and you can actually come on board and meet some actual lenders ask some questions just as you're doing with herb here so asking about your business so like the the roadside service you could meet some lenders and you'll give an idea of what how much you need and what you need it for and maybe get some feedback before you even apply uh the following week next week on the 12th at uh 10 a.m on thursday we have introduction to business model canvas this is a simple one-page business plan so like if you're doing a food truck or something this may be all the business plan you need to to work with a micro lender or somebody so we're going to show you how to do a simple business model canvas and then uh thursday before thanksgiving because the last thursday's thanksgiving this month uh we're on the 19th at 10 a.m we're gonna do pivot which is uh key legal issues consider when starting uh a business for the first time uh so that's a good we one of the things we're not allowed to do is give legal advice and i believe we have a lawyer for that so that'll be uh kind of handy that you can learn about some of the legal pitfalls that you want to avoid as always i want to remind you you can visit us on the web at asbtdc.org you can call us at in the 683-7700 area code we have 24 7 answering service on that during the pandemic so they will take your information and funnel it into us and we will get a consultant to call you back uh that's able to help you we're also monitoring facebook and twitter so if you want to reach out with a message or a dm on twitter one of our information center staff monitors that and we will get you assistance and as i mentioned this is being recorded it should be on youtube about five o'clock tonight you'll get a follow-up email tomorrow about two i've got a whole list of things to put on there like links to score and apac forge community is unlimited um if we have a list of express lenders i'll send that out and everything as well as herb mentioned the sbtdc here is a partnership with the u.s small business administration uh the ua little rock college of business health and humanity how's the contract for arkansas and uh we in turn subcontract with six additional universities those are the seven that uh herb mentioned in his presentation and between our agencies we field actually eight physical offices which unfortunately we're only doing virtual work right now and uh but we will uh bend over backwards to work with you and help you get that uh however you want to try try uh one last little question james asked here is the program linked via sba.gov sure that what was that question again is the score program linked to via sba gov yes it is score is one of our resource partners and you can go to uh either obviously there's a link on that powerpoint uh that will take you to their score homepage you can also find it at the sba's website www.s and it will provide not only information about the score program but the local score chapters and one of the other things that's important is score can often work across the country they may have a specialist in international trade law well that specialist in international trade law may be in chicago but they will work virtually with any small business that is uh through the score program that needs to know information about how to deal with that law so uh even though we have great resources locally uh in certain cases you can actually have a mentor that is halfway across the country all right thank you and that finishes up all our questions and i believe that finishes up our program for today