chamber best practices: access to capital and microloan programs georgette “gigi” dixon, wells...
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CHAMBER BEST PRACTICES: Access to Capital and Microloan Programs Georgette “Gigi” Dixon, Wells Fargo SVP/Director of Strategic Partnerships
Luis O DeLaHoz, Statewide Hispanic Chamber of Commerce of New Jersey
Larry Holman, Beaufort County Black Chamber of Commerce (BCBCC)
Natalie Rojas – National Gay & Lesbian Chamber of Commerce (NGLCC)
© 2015 Wells Fargo Bank, N.A. All rights reserved.
Good VS Bad.
Car Payment: $230.00 $320.00
Car Insurance: $150.00 $200.00
Cellphone line: $0.00 $2000.00 = $166.67/mo. Apartment: Gets Apartment Doesn’t
Job Position: Gets hired Doesn’t
Ralph “Good Credit” Winter Bad Credit Alejandrrrra
Total Payments: $380.00 $686.67
Difference in Payments: - $306.76/mo = $3680.04/year
vs
Fundamentals for Good Credit.
• Pay on time.
• 2-3 trade-lines.
• Don’t spend more than 30% of spending limit.
…… $250,000.00
What is the Problem?
People with good credit:
-Best loan terms -Best interest rates -Best offers
People with bad credit:
-Bad loan terms/get declined - Higher interest rates - Worst offers/no offers- Hidden fees
Credit Builder!
Trade-lines
-Personal loan $200.00 -Line of Credit $200.00
- Secured CC $200.00
Month 1
Month2
Month3
Month4
Month5
Month…
Month12
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓
Spending Limit $ 2000.00
Access$ 600.00
Who is a Great Referral?
• No Credit• Bankruptcy• Small Tax Liens• Small Judgments• Biz Owners• Homebuyer• Credit Repair• 1 existing trade-
line
Have a client in mind?
Alejandra GirónLoan Officer
THE INTERSECT FUND59 Lincoln Park, Newark, NJ 07102
Ph: 201.245.0950E-mail: [email protected]
Hablo Español
LOAN APPLICATION GUIDELINES
LOAN APPLICATION
BUSINESS PLAN – less than 3 years of operations and financials
SUMMARY OF OPERATIONS AND EXPANSION PLAN – businesses with 3 years of operations with positive cash flow
MICRO LOAN PROCESS Submit completed application and supporting documents along with $500
non-refundable application/origination fee.
Attend an 8 week loan orientation, includes companies with negative cash flow.
Review process conducted by loan officer/underwriter; review of application and credit worthiness, verification of references and collateral, and site visit.
Loan package is sent to Loan Review Committee for review and decision; BCBCC President/CEO has final decision.
If loan is approved, the loan package and amortization schedule is sent to closing attorney’s office. The borrower is responsible for all closing costs.
LOAN TERMS Loan amounts are $5,000 to
$100,000
Loans must be secured – guarantees and/or co-signer
Up to 10 years to repay loan
$500 non-refundable fee
7 ¾ to 9 ¾ Interest Rate –
(dependent on credit score)
Monthly payment schedule
Default or collection fees will
be paid by the borrower
LOAN REQUIREMENTS
Must be a business located in Beaufort or surrounding counties
Must submit quarterly and annual financial statements
Must provide federal income tax filings for each year the account is open
REQUIRED DOCUMENTS
Completed Loan Application
Non-refundable fee $500
Business Plan
2 yrs. Personal Tax Returns (W-2, 1099, etc.)
Interim Financial Statements (less than 90 days old)
2 yrs. Financial Projections
Personal Resume
Certificate of Insurance or quote
Lease Agreement (does not have to be signed
Detailed use of loan proceeds
DBA, Articles of Incorporation and/or partnership agreement, LLC, Bylaws, operating agreement
Description of present or pending lawsuit(s) or bankruptcy
Franchise Agreement Additional information that
will enhance loan proposal
ADDITIONAL DOCUMENTION
NEEDED 2 Most recent consecutive paystubs
Business Expansion Plan
2 yrs. Business Tax Returns
Property tax bill or printout from the county
Description of present or pending lawsuit(s) or bankruptcy
2 most recent bank statements for all accounts
Micro Loan Summary
Loan amounts from $5,000 to $100,000
Security is determined on a case by case basis
From 3 to 10 years repayment terms
Loan payments will be made monthly via debit transaction
Must complete loan orientation program
Must have approved business plan
Must live in Beaufort or surrounding counties
Must provide financial information from previous 2 yrs.
For further information, please contact:
The Beaufort County Black Chamber of Commerce funds 75% of a given project.
843-986-1102
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• 56 local and regional LGBT chamber affiliates in the U.S. and internationally
UNDERSTANDING COMMUNITY
NGLCCNY•250+ members•25+ corporate partners•Half of them fortune 500•Median 5-10 employees
Indy Rainbow•6 years old•Less than 50 members•Local corporate partners•Small and start-up businesses
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BEST PRACTICES
• How can chambers best educate stakeholders on what it means to be bank ready?
• Utilizing corporate partners as subject matter experts• Sourcing financial services as corporate partners for
education• SBA preferred lenders with expertise on navigating federal
lending products• Exploring 504 and 7A to help business owners build assets
and grow sustainably
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AGLCC UNIVERSITY
Presented by top-level executives from AGLCC corporate partners and industry subject matter experts, AGLCC University gives business owners first-hand knowledge of the skills that Atlanta’s employers are looking for in their employees, vendors, and community partners.
Practical Contracts 101•Frequently used contracts in small and medium sized businesses•Identifying terms that are most critical•Risky terms contained in commercial contracts•Terms that can protect or undervalue your core assets
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CHALLENGES
Our national base of LGBT Business Enterprises have significant growth needs to compete with national corporate partners
We rely on our local chambers with their unique knowledge to educate business owners and offer those doors to growth strategies and taking the next step
Many local corporate partners are spread thin in resources to give to local chambers•Utilizing their knowledge is an undervalued resource
Success Story: Miami LGBTBELGBT Business Builder