Page CIO
September 26, 2001
MINORITY
BUSINESS
' V
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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
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Tellers
Customer Service
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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.
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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
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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
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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
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