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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Sept. 26, 2001)
Page CIO September 26, 2001 MINORITY BUSINESS ' V * s p e c ia l e d ilt o n Portland i (Dborrurr I Financing Your Business Start-Up One key to a successful busi ness start-up and expansion is your ability to obtain and secure appro priate financing. Raising capital is the most basic of all business ac tivities. But, as many new entrepreneurs quickly discover, raising capital may not be easy; in fact, it can be a complex and frustrating process. However, if you are informed and have planned effectively, raising money for your business doesn’t have to be a painful experience. This information summary focuses on ways a business can raise money and explains how to pre pare a loan proposal. If you have the energy and ambition to run a business like you own it, Wells Fargo can help | you take your career to the next stage Our success is based on fast response to customer needs, with personalized, re sponsive service and innovative products. We’re also quick to encourage entrepreneurial thinking and decision making among our employees. Community Banking Job Opportunities ■ ■ Tellers Customer Service ■ ■ Personal Bankers Business Bankers Finding the Money You Need There are several sources to consider when looking for financ ing. It is important to explore all of your options before making a deci sion. The primary source o f capital for most new businesses comes from personal savings and other forms ofpersonal resources. While credit cards are often used to fi nance business needs, there may be better options available, even for very small loans. Many entrepreneurs look to pri vate sources such as friends and family when starting out in a busi ness venture. Often, money is loaned interest free or at a low rate, which can be beneficial when get- For more information about positions available, call our job hotline at (503) 340-8887. W ELLS FARGO Call our job hotline at 503-340-8887 Come v is it us on the web at www.portlandobserver.com ting started. The most common source of funding, banks and credit unions, will provide a loan if you can show that your business proposal is sound. Venture capital companies help expanding companies grow in exchange for equity or partial owner ship. Be sure to visit ACE- NET, SBA ’s Angel Capital E le c tr o n ic N e tw o rk . ACE-Net gives new options to both small com panies looking for investors and inves tors looking for promising op portunities. Borrowing Money It is often said that small busi ness people have a difficult time borrowing money. This is not nec essarily true. Banks make money by lending money. However, the inexperience o f many small busi ness owners in financial matters often prompts banks to deny loan requests. Requesting a loan when you are not properly pre pared sends a signal to your lender. That message is: High Risk! To be successful in ob taining a loan, you must be prepared and organized. You must know exactly how much money you need, why you need it, and how you will pay it back. You must be able to convince your lender that you are a good credit risk. SBA Loan Maturities SBA loan programs are generally intended to encourage longer term small busi ness financ ing, but ac tual loan maturities are based on the ability to repay, the purpose o f thp loan proceeds, and the useful life of the assets financed.However, maxi mum loan maturities have been es tablished: twenty-five years for real estate; up to 10 years for equip ment (depending on the use ful life o f the equip ment); and gener ally up to seven years for work ing capital. S h o rt-.te .rm loans backed by the SBA are also available to help small busi nesses meet their short term and cy clical working capital needs. Types of Business Loans Terms o f loans may vary fawn lender to lender, but there are fwo basic types of loans: short-term and long-term. Generally, short-term loans have a maturity o f up to a year. These include working-capital loans, accounts-receivable loans and lines of credit. Long-term loans have maturities greater than one year but usually less than seven years. Real estate and equipment loans may ha ve maturities of up to 25 years. Long-term loans are used for major business ex penses such as purchasing real estate and facili ties, co n stru c tion, durable equipment, furni ture and fixtures, vehicles, etc.' Formoreinfor- mation on alt o f , SBA's programs far small businesses, go online to www.sba.gov. >< >< J BUILDING THE r A SUPPORTS i of Portland minority & women business enterprises Teamwork • Involvement • Commitment and is COM M ITTED to equal employment opportunity and affirmative action A:\MMAA m Z ZWZ Î*lÆTNO»^ For information regarding MBE/WBE/ESB contracting opportunities in new construction, remodeling & other service contracts call 503.735.4209 The Housing A uthority of Portland provides housing solutions to individuals and families w h o cannot find affordable & adequate housing due to income or special need In partnership w ith public, private and nonprofit agencies, HAP develops and manages a continuum of affordable housing options from special needs housing to large apartm ent communities. HAP also provides rent assistance to households w h o prefer to find their ow n apartments and offers programs & opportunities for . .......-------------- . -------------ieve scif^ufticii------ w w w .h a p d x.o rg The Port of Portland is working with minority enterprises to develop sources which create opportunities for DBE participation. We’re working with the construction industry, the: : professional services industry, material supply companies, minority agencies, the Small Business. ? Administration, financial/bonding organizations, other public agencies and private enterprises. We want to understand the needs of the DBE community, and meet these needs. For information about business or contract opportunities, call 503/731-7593. For employment opportunities with the Port of Portland, call 503/731-7480 or visit the Port’s web site at www. portofportlandor. com & I « I • ♦ * » * * » « » PORT OF PORTLAND • • I i
