salute to small business

2 | SALUTE TO SMALL BUSINESS | Friday | June 24, 2011

By David M. FitzpatrickBANGOR DAILY NEWS

It seems that anyone who knowsJim McCurdy and Jim Lynch, own-ers of Maine Commercial Tire,isn’t surprised that they won theSBA’s Small Business Person of theYear award for Maine. It’s McCur-dy and Lynch who were a bitstunned.

“I was excited that we just gotnominated — that really wouldhave been enough for me,” saidLynch. “Then we actually won it,so that was fantastic. It was a realgood slap on the back after every-thing that we’d all been through.”

“When we got the award, myfirst reaction was, ‘Okay, who elsegot an award?’” said McCurdy.“They said … ‘You got the awardfor the whole state.’ And I’m think-ing, ‘That can’t be right — we’re inthe tire business.’”

McCurdy said retreading isabout quality control, and while hecan’t speak for his competition, hesaid MCT’s work is top-notch,

thanks in part to using Bandagequipment and rubber. It’s alsothanks to the top-shelf employeeswho have made the company astory for the annals of Maine’sbusiness history.

Old Town native McCurdy gotinto the retreading business in1972 working for Noyes Tire Com-pany in Portland. He began in theproduction shop and worked hisway up to sales, and along the wayobserved and learned — and knewwhat mistakes he wouldn’t make ifthe business were his.

In 1985 McCurdy was recruitedby Reilly Tire of Vermont to man-age its C.E. Noyes Tire division inBangor. Lynch had been workingat C.E. Noyes since 1979 and thetwo became fast friends.

In 1990, there were rumors thatReilly Tire was going under, andMcCurdy and Lynch began plan-ning their next move. When Reilly

abruptly locked all the doors oneday, the duo was ready. “Jim and Ialready had a moral commitmentto each other that we were going todo this,” McCurdy said.

They secured the franchise forBandag, widely considered thepremier retread company in theindustry. Then they purchasedReilly’s assets out of bankruptcy,retained virtually all the previousproduction employees, and soonbrought back several of the salesstaff. McCurdy relocated to Ban-gor, and in the first year of opera-tion, the new Maine CommercialTire had $1 million in business,and increased it by $1 millionevery year thereafter.

Dark times came in the past feweconomically challenging years.With fewer trucks working onMaine roads and drastically cur-tailed construction jobs, there were

By Eloise Vitelli

Small businesses in Maine enjoymany champions – people andorganizations willing to advocatefor their chance to succeed – and

May was the month to celebratethese champions. National SmallBusiness week, May 15 – 21, sawceremonies in Washington, D.C.,to honor nine such champions.

Maine’s senior Sen. OlympiaSnowe was also honored in Wash-

ington on May 4, by the Associa-tion for Enterprise Opportunity(AEO), a national organizationdedicated to helping underservedentrepreneurs start and expandbusinesses. As ranking member ofthe Senate Committee on SmallBusiness and Entrepreneurship,Snowe has a long track record ofworking to ensure small businesseshave the tools, resources and regu-latory environment they need togrow and thrive.

On May 5 in Maine the SmallBusiness Administration held itsannual awards luncheon in Ban-gor. Among those recognized were:Small Business Persons of the YearJames R. McCurdy & James K.Lynch, owners of Maine Commer-cial Tire Inc.; Veteran BusinessChampion Kristine Schuman,manager of the Base Realignmentand Closure Transition Center inBrunswick; Maine SBDC 2010State Star Thomas Gallant; andWomen, Work, and Community’s

own Erica Quin-Easter, AroostookMicroenterprise coordinator, asthe Women in Business Championof the Year.

These advocates were rightlyapplauded for their role in empow-ering entrepreneurs. While compe-tition may be what motivates entre-preneurs – ‘I can build a bettermousetrap’ – these public cere-monies give testimony to theimportant role advocates, advisersand admirers play in helping to sus-tain and inspire businesses throughthe inevitable ups and downs.

For those moments when doubtcreeps in, exhaustion takes over,and questions outweigh answers,knowing there are champions outthere can be the elixir that keepsone going.

“I love being a business owner,”said Gail Baillargeon, CEO of Aca-dia Clinical Research, a Bangorbased medical research firm. Aftermore than 20 years in the medical

SBA 2011 Small Business Person of the Year Award:

Jim McCurdy & Jim Lynch, Maine Commercial Tire

Season of champions: saluting Maine’s small-business successes

See CHAMPIONS, Page 6

Continued on next page

This Salute to SmallBusiness special supplement was

produced and published by the

EEddiittoorr//LLaayyoouutt::David M. Fitzpatrick

WWrriitteerrss::David M. Fitzpatrick, Eloise Vicelli

PPhhoottooss::David M. Fitzpatrick, Terry Farren;

some submitted by others

CCoovveerr DDeessiiggnn::John Koladish

SSaalleess::Linda Hayes

To participate in next year’s Saluteto Small Business special supple-

ment, contact Linda Hayes at(207) 990-8136 or

[email protected].

To reach a wide audience with yourorganization’s message, consider

running your own special supplementlocally, regionally, or statewide.

For information, contact MikeKearney at (207) 990-8212

or [email protected].

BANGOR DAILY NEWS PHOTO BY TERRY FARREN

Jim McCurdy (left) and Jim Lynch, co-owners of Maine Commer-cial Tire and winners of the SBA Small Business Person of theYear award, pose with stacks of tires at their Bangor location.

BANGOR DAILY NEWS PHOTO BY DAVID M. FITZPATRICK

Maurice Dube, SBA District Director for Maine, addresses thecrowd at the SBA luncheon in May 2011.

SALUTE TO SMALL BUSINESS | Friday | June 24, 2011 | 3

fewer tires to be sold or retreaded.And McCurdy and Lynch weren’twilling to lay off the workers whohad built the business and giventheir loyalty to the company.

The pair went to Peoples UnitedBank and secured an SBA-guaran-teed loan to refinance the business.“They really saved our bacon,”McCurdy said. “If we hadn’t beenable to get that refinancing, I don’tlike to think about what wouldhave happened.”

They didn’t cut health insur-ance, although it would have savedthe company $250,000 a year. Theydidn’t cut pay. Instead, they askedeveryone to come up with anyideas to save money — any ways tocut $100,000 a month out of oper-ating expense. And everyone camethrough with common-sense ideasthe men wish they’d thought ofbefore — from as big as askingtheir vendors to cut them pricebreaks (which they did) to saving$600 a year by not tagging scrap

tires. Now, the company is leanerand tighter, with a new outlook oncost control.

But both men make it clear thatthe biggest single factor in thecompany’s success is its team ofdedicated employees. At the SBAawards luncheon in May, McCurdybroke down during his speechwhen he talked about his employ-ees. It’s a level of appreciation thathe and Lynch feel can’t be highenough for the people who maketheir company what it is.

“We won the Small Business ofthe Year Award for the state ofMaine because of them,” McCurdysaid. “We survived the recessionbecause of them. Our customerslove us because of them. When yousay ‘Maine Commercial Tire,’ youreally say ‘Steve Robertson andDana Pierce, Robbie Sicles, BlaineBlodgett, Tammy White, the guysin the retread shop, and all the oth-ers’ — that’s the company.”

The company has 58 employ-ees, who the owners can trust to do

their jobs with minimal oversightand who are empowered to makeon-the-job decisions that benefitthe customer, the employees, andthe company.

“We have a culture that we’vedeveloped — the way we want ourcustomers treated, the way wewant employees to treat eachother,” Lynch said. “There’s just alot of respect around here.”

The company has locations inBangor, Augusta, Lewiston, andScarborough; runs 14 servicetrucks; 8 route delivery trucksand retreads 35,000 truck tires ayear servicing businesses acrossthe entire state. McCurdy andLynch have a unique relation-ship that keeps their companysuccessful.

“We agree to disagree,”Lynch said.“At the end of the day, if the decisionis to be made, if we can’t agree,then… it’s not going to happen. Wehave to find a way to agree on it.”

McCurdy said “ Jim and I feelthat we earned this SBA Award by

surviving the last two years andthat was made possible by the

efforts of our employees, we thankthem sincerely.”

Continued from previous page

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McCurdy and Lynch at the SBA annual luncheon in May. Fromleft: Angela Butler of Peoples United Bank of Bangor, who nomi-

nated them for the award; John Butera, Senior Economic Advisorto Governor Paul LePage; McCurdy; Lynch; Jeanne Hulit, SBA

Regional Administrator for New England; and Maurice Dubé, SBADistrict Director for Maine


“Have You Ever Wanted to Start YourOwn Business?”

That’s what the flyer in the grocery storeasked, and Lindy Howe’s answer was “Yes.”For 17 years, she’d built experience as adogsled musher, mostly as a volunteer. “Itwas always a dream to do it as a business, butit didn’t seem like it could be something thatcould work,” she said.

She called anyway, and soon found herselftaking a three-part course through thePresque Isle office of Women, Work & Com-munity. Right out of the gate, her instructor,Erica Quin-Easter, made it all very easy.

“She was a wonderful teacher and reallypointed out the direction of how to startyour own business,” Howe said.

Howe then enrolled in the 12-week New

Ventures course, in which Quin-Easter cov-ered everything she needed to know, andplenty she didn’t suspect, about running abusiness. By the time she returned for a Jan-uary 2010 follow-up, she and her businesspartner had launched Heywood Kennels,taking people on wilderness dogsleddingadventures.

“I couldn’t believe that it could really hap-pen at first, but Erica was just right therethrough every step,” Howe said.

Howe never forgot Quin-Easter’s help. Sowhen she learned about SBA’s Women inBusiness Champion award, she nominatedher teacher. “Erica’s a wonderful person,”Howe said. “I know what she’s done for me,and I know what she’s done for hundreds ofother people just like me.”

The nomination paid off; Erica Quin-Easter is the 2011 Women in BusinessChampion. “I’m just thrilled,” Quin-Eastersaid of the award. “It’s particularly heart-

warming because one of our New Venturesgraduates locally nominated me for theaward … It’s been such a pleasure to see hergrowth.”

Quin-Easter worked for 10 years in thenon-profit sector as a fundraiser or directorfor organizations such as Maine Audubon,EqualityMaine, and the Center for CulturalExchange. A few years ago, she and her wife,Kate, took some time off to travel the coun-try, but planned to settle in AroostookCounty, where Kate had grown up. Theywere in Arizona when Quin-Easter saw thejob opening online, and she applied andsoon landed the job. It was a perfect fit for

her, geographically and philosophically.“I love doing public-sector work; I love

working with volunteers, working with indi-viduals who are trying to follow theirdreams,” she said, “It seemed like a reallyexciting and unique organization to workwith.”

Like Howe, many students have graduat-ed from the 12-week New Ventures andgone on to run successful businesses. Quin-Easter and WWC also run shorter coursesand workshops covering all manner of busi-ness-oriented topics that give students the


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go to key.com/sbacall Dave Kraft at 207-874-6965visit your local KeyBank branch CONGRATULATIONS!!

to Jim McCurdy, Jim Lynch and everyone at Maine Commercial Tire for being recognized for their company’s

excellence and leadership

The members and staff of the Maine Motor Transport Association would like

to offer our sincere

SBA 2011 Small Business Persons of the Year

SBA 2011 Women in Business Champion

Erica Quin-Easter, Women, Work & Community


Erica Quin-Easter at her office in Presque Isle. Her wall is adorned with clippingsfrom various stories about the programs at Women, Work & Community and the

students who have gone on to launch successful small businesses

See QUIN-EASTER, Page 11


In 2005, the Base Realignment and Clo-sure committee announced that Naval AirStation Brunswick would close in 2011.Plans began moving into place to offer reas-signments to the 7,000 people who wereeither active-duty personnel or families ofactive-duty personnel, but there were twoother major concerns in Brunswick.

First, Brunswick’s local economy wouldcertainly be affected by the loss of severalthousand people when the base closed. TheMidcoast Regional Redevelopment Authoritybegan plans to take control of the base, andhas been instrumental in its redevelopment,both in bringing new businesses in and inconverting the airfield into a private airport.

But what about the 700 civilian employ-ees who lived and worked on the base, morethan 400 of whom were veterans? Many hadties to Brunswick or Maine and didn’t wantto leave. But while MRRA’s efforts to bringnew jobs to the old base would create jobsfor some, the Brunswick area didn’t have theavailable jobs for the rest, and many of themneeded retraining in new fields.

Thanks to funding via a National Emer-gency Grant for a program ultimately oper-ated by Goodwill Industries, Kristine Schu-man was chosen to head the BRAC Transi-tion Center. And for her efforts leading hereight-person team in a five-year reemploy-ment and retraining push for those people,she’s earned the SBA’s 2011 Veteran SmallBusiness Champion award.

“I was pleasantly surprised,” Schumansaid of winning. “For me, it’s an honor, andI’m very happy to be recognized for thework that we do. I will take credit for leading

our team, keeping the Transition Centerrunning, and keeping the relationships upthat needed to be nurtured in order for us tostay being able to do what we do. But thework with the individual folks on the base— it’s a team effort.”

Schuman’s center set up on base in early2006. It isn’t typical to have a five-year leadtime for a base closure, and certainly nottypical to have a civilian group on a basethat early to begin the process of reemploy-ment and retraining of civilian personnel.Thanks to collaboration with many peopleand organizations at the federal, state, andlocal levels, including Maine’s congressionaldelegation, the combined effort paid off.

“Really great things happen when every-body works together,” Schuman said.“Maine has learned how to do that well, andit has led to good results.”

The primary goal was to retrain and reem-ploy people. The secondary goal was to keepthem in the area. “We always, of course, wantto keep people in Maine,” she said. “And forthe most part people want to stay in Maine— even if somebody is losing their job off thebase, they likely have a spouse or childrenwho they don’t want to relocate as well.”

Every case was different. Some peoplefound jobs in the area or elsewhere wherethey could continue their careers. Otherstook the opportunity to train for newcareers — often things they’d always wantedto do. Still others had ample skills but lackedthe proper certifications needed in the out-


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Kristine Schuman, BRAC Transition CenterBANGOR DAILY NEWS PHOTO

BY DAVID M. FITZPATRICK

Kristine Schuman departs the stagewith her award at the SBA luncheon in

Bangor in May.

See SCHUMAN, Page 11


By the SBA

The CDC/504 loan program is along-term financing tool, designedto encourage economic develop-ment within a community. The504 Program accomplishes this byproviding small businesses withlong-term, fixed-rate financing toacquire major fixed assets forexpansion or modernization.

A Certified Development Com-pany is a private, nonprofit corpo-ration which is set up to contributeto economic development withinits community. CDCs work withSBA and private sector lenders toprovide financing to small busi-nesses, which accomplishes thegoal of community economicdevelopment. Typically, aCDC/504 project includes:

• A loan secured from a privatesector lender with a senior liencovering up to 50 percent of theproject cost

• A loan secured from a CDC(backed by a 100 percent SBA-guaranteed debenture) with a jun-ior lien covering up to 40 percentof the project cost

• A contribution from the bor-rower of at least 10 percent of theproject cost (equity)

This type of setup means that100 percent of the project cost iscovered either by contribution ofequity by the borrower, or the sen-ior or junior lien.

HHooww 550044 FFuunnddss MMaayy BBee UUsseedd..Proceeds from 504 loans must beused for fixed asset projects, suchas:

• The purchase of land, includ-ing existing buildings

• The purchase of improve-ments, including grading, streetimprovements, utilities, parkinglots, and landscaping

• The construction of new facil-ities or modernizing, renovating,or converting existing facilities

• The purchase of long-termmachinery and equipment

The 504 Program cannot beused for working capital or inven-tory, consolidating or repayingdebt, or refinancing.

EElliiggiibbiilliittyy.. To be eligible for aCDC/504 loan, your business mustbe operated for profit and fallwithin the size standards set by theSBA. Under the 504 Program, abusiness qualifies as small if it doesnot have a tangible net worth inexcess of $7.5 million and does nothave an average net income inexcess of $2.5 million after taxesfor the preceding two years. Loanscannot be made to businessesengaged in speculation or invest-ment in rental real estate.

MMaaxxiimmuumm DDeebbeennttuurree.. The maxi-mum SBA debenture is $1.5 mil-lion when meeting the job creationcriteria or a community develop-ment goal. Generally, your busi-ness must create or retain one job

for every $65,000 provided by theSBA, except for small manufactur-ers which have a $100,000 job cre-ation or retention goal (see below).

The maximum SBA debentureis $2.0 million when meeting apublic policy goal. These include:

• Business district revitalization• Expansion of exports• Expansion of minority busi-

ness development• Rural development• Increasing productivity and

competitiveness• Restructuring because of fed-

erally mandated standards or poli-cies

• Changes necessitated by feder-al budget cutbacks

• Expansion of small businessconcerns owned and controlled byveterans (especially service-dis-abled veterans)

• Expansion of small businessconcerns owned and controlled bywomen

The maximum debenture forsmall manufacturers is $4 million.A small manufacturer is defined asa company that has its primarybusiness classified in sector 31, 32,or 33 of the North AmericanIndustrial Classification Systemand all of its production facilitieslocated in the United States. Toqualify for a $4 million 504 loan,your business must meet the defi-nition of a small manufacturer andaccomplish one of the following:

• Create or retain at least one jobper $100,000 guaranteed by the

SBA• Improve the economy of the

locality or achieve one or morepublic policy goals

CCoollllaatteerraall.. Generally, the projectassets being financed are used ascollateral. Personal guaranties ofthe principal owners are alsorequired.

IInntteerreesstt RRaatteess aanndd FFeeeess.. Interestrates on 504 loans are pegged to anincrement above the current mar-ket rate for 5-year and 10-year U.S.Treasury issues. Maturities of 10and 20 years are available. Feestotal approximately 3 percent ofthe debenture and may befinanced with the loan.

CCDDCC PPrroocceessssiinngg FFeeeess.. Consistentwith the Recovery Act’s temporaryelimination of CDC ProcessingFees, CDCs will no longer beallowed to collect deposits from

small busi-ness applicants that would

have gone towards payment ofthe CDC Processing Fee upon loanapproval. SBA will reimburse theCDCs for the waived CDC Pro-cessing Fees.

The SBA will pay CDCs two-thirds of the estimated CDC Pro-cessing Fee at the time of loanapproval or upon the issuance of aloan number for a loan approvedunder the Premier CertifiedLenders Program.

FFoorr MMoorree IInnffoorrmmaattiioonn.. There areabout 270 CDCs nationwide, eachcovering a specific geographicarea. If you are interested in apply-ing for a 504 loan, contact theCDC nearest you. You can get alisting from your local SBA Dis-trict Office.

The information presented here isin an abbreviated format due tospace considerations. Read moreabout this by visiting www.SBA.gov.

research industry as an employee,she likes being in control, havingthe flexibility, and the responsibili-ty to make her own decisions thatbeing a business owner affords her.

Baillargeon said it does get lone-ly sometimes, but “we have a richenvironment here in Bangor interms of people willing to help. Youcan get an ‘aha’ moment from oneconversation. Networking is impor-tant – a lot of people want you tosucceed and are willing to listen.”

Before launching Acadia Clini-

cal Research more than six yearsago, Baillargeon enrolled inWomen, Work, and Community’sNew Ventures class where for 10weeks she was guided in develop-ing a business plan. Part of theclass put Gail and other students intouch with an array of communityresources including accountants,lawyers and Maine Small BusinessDevelopment Center counselors.She continues to tap into many ofthese resources.

Cal Hancock, owner of awardwinning Hancock Gourmet Lob-ster Co., based in Cundy’s Harbor,also started her business as a sec-ond career.

“When you are doing what youreally want to do, something youchose, you become your ownchampion,” said Hancock.

And that makes it easier to turnaround and encourage others todo the same. “If I can do it, otherscan as well,” insisted Hancock, asentiment echoed by Baillargeon.

“I find common ground withothers in business – there’s a col-laborative, mutual support com-munity among other food produc-ers,” Hancock said.

A member of the Maine FoodProducers Alliance, Hancock hasfound both friendship and busi-ness support within the group. She

can pick up the phone and posequestions to problems she may befacing around packaging or otherday to day concerns.

For the thornier issues, Hancockrelies on her partner in crime: herhusband joined the company sev-eral years ago. “Having a partner isthe best thing that’s ever happened.You need someone you can besuper honest with, that you trust.”

Every day entrepreneurs arefinding ways to survive and thrive,often against the odds. LynnBromley, SBA Small BusinessAdvocate and former state senator,thinks women in particular areadept at fostering connections and

show courage and grit as entrepre-neurs and as innovators.

“It is a unique and profoundlyhumbling privilege to be in a posi-tion to support and advocate forthese small business owners,” saidBromley. “They are the job cre-ators and the real champions ofour economy.”

Eloise Vitelli is program director forWomen, Work, and Community, astatewide organization that hasprovided training and assistance tostartup entrepreneurs since 1984.She is the 2006 recipient of theMaine SBA McGillicuddy Entrepre-neurial Excellence Award.

ChampionsContinued from Page 2

Unlocking money you didn’t know you could getLaunching or expanding a business with an SBA-guaranteed CDC/504 loan


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Chris Kehl,Kennebunk SavingsRon and Andrew Siegel, When Pigs Fly Bakery


Ron Siegel had worked in, and owned,restaurants, but he had a dream to start abakery. He began by practicing breadmak-ing in his kitchen, but most people thoughthe’d get his bakery off the ground “whenpigs fly.” When he finally launched it in1993 in rented space in Wells, he knew thathad to be the name.

He baked 80 loavesthat first day, andbrought samples to localrestaurants and stores.The business quicklytook off, and caught theattention of Ron’s broth-er, Andrew, who visitedfrom California thatMay. Andrew, anaccountant with a degreefrom the University ofSouthern Maine, was soimpressed that he quitthat career to partner with his brother oneyear later.

“We wanted to grow the business,”Andrew said. “Our main goal was trying toget our bread out to as many people whowould enjoy it. If people wanted it, wewanted to bake it for them.”

Andrew had worked closely with smallbusinesses seeking to grow, so partneringwith Ron was a perfect fit. The brothersworked 20-hour days in the beginning, andthey did it all: making and baking, slicingand delivering.

Demand grew quickly, and withinmonths they hired their first employee.They moved to York they rented 2,000square feet. Six months later, they dou-bled their space. A year after that, they

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This time, with financing options beingslim, KSB helped them through the process

Winged pigs? Bread-making brothers enjoy15 years of success

PHOTO COURTESY OF WHEN PIGS FLY

Brothers Andrew (left) and Ron, owners of When Pigs Fly, pose in the bakery.

See PIGS, Page 11

“Our main goal wastrying to get ourbread out to as

many people whowould enjoy it. Ifpeople wanted it,

we wanted to bakeit for them.”

Andrew Siegel, co-ownerWhen Pigs Fly


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WWhhaatt’’ss tthhee sseeccrreettttoo aa ssmmaallll-bbuussiinneessssoowwnneerr sseeccuurriinnggffuunnddiinngg??

Chris Kehl, VP Commercial Lending, Ken-nebunk Savings Bank (Granite State Devel-opment Corporation’s Lender of the Yearfor SBA 504 loans in Maine)

Preparation and atten-tion to detail prior tomeeting with yourlender will make atremendous differencein a successful financ-ing request. The quali-ty of a business planand associated finan-cial statements are a

direct reflection of a business owner orpotential business owner. Your lender willneed to present your request to an under-writer or credit committee for approval; heor she will need a complete and accuratepackage to be successful. Anticipate poten-tial questions or concerns and address themwith supporting information and mitigatingfactors ahead of time. This is especially crit-ical for a new or start-up business with lim-ited historical background. Avoid presentinga “me too” business plan – show your lenderhow your business will stand out from the

competition. Most important is to find alender that you can build a relationshipwith. Knowledge and experience are critical,but your lender also must be willing to listento your needs, provide financial counsel andadvice when appropriate, and advocate onyour behalf.

WWhhaatt iiss tthhee ffiirrsstt tthhiinnggaa pprroossppeeccttiivvee ssmmaallll-bbuussiinneessss oowwnneerr sshhoouullddddoo ttoo bbeeggiinn tthhee pprroocceessss??

Ann McAlhanyCertified Business CounselorMaine SBDC

Get the family to buy-in. Owning a businessoften requires sacri-fices and carries itsown set of challenges.Conduct a SWOTanalysis and honestlyassess your strengths,weaknesses, opportu-nities and threats.

Yours personally, as well as the proposedbusiness. Do you bring passion and know-how? What makes your product or servicedifferent, better, faster, cleaner, etc., than thecompetition? Identify the down sides too.

What skills are you missing? How muchdemand do you need to make a living, paythe bills on one side, and keep inventorygoing on the other?

A good business plan answers these andmany more questions. Product feasibility isimportant, so is the ability to produce ordeliver the service at a value people will pay,that is, once they find you — which meansyou also need a marketing strategy. To keepthem coming back and recommend yourbusiness, a positive experience is critical sopeople skills are also important.

Although the product or service may betop rate, if the numbers don’t add up andskill sets to operate or run the business aremissing, instead of being a dream cometrue, the business can become a constantsource of frustration.

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Carla BoothLoan OfficerCEI Inc.

Small businesses are at most jeopardy whenthey underestimate the working capitalneeds of their business. Without sufficient

working capital, eventhe best-operatedbusiness can collapse.Particularly in a sloweconomy, every smallbusiness should pre-pare themselves shouldtheir cash flow canbecome stressed, andmaintain a good rela-tionship with their lenders and financialadvisors.

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Roxanne Jobe, Marie Hayden, KimberlyMoore, and Tracy Knights

Eastern Maine Development Corporation

There’s anold saying,“if you don’tknow whereyou’re going,how are yougoing to getthere?”

A business

By David M. Fitzpatrick, Bangor Daily News

Starting a new business can be a daunting process. And ifit seems easy, you’re probably not doing it right. It’s impera-

tive to have all your ducks in a row before you start yourbusiness, so you can better understand what you’re gettinginto.

And it’s vital to have things figured out when you go to seeyour potential lender. We’ve asked lenders throughout

Maine to give us some expert advice about working towardssecuring funding for a small business. Here’s a stack of fan-tastic inside tips on how to make sure you do it right —whether you’re just launching a small business or looking toexpand.


The secret to launching/expanding a small businessSmall-business lenders give their advice on preparing to secure funding


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888.725.2207 • norwaysavingsbank.com

Growand Prosper!We know what it takes to make Maine businessesgrow like crazy.

Member FDIC

plan is your road map. It brings your ideainto focus. It shows your knowledge of theindustry and supports the viability of youridea. Most financial institutions require aprospective borrower to provide a plan,your business has to make sense. Getting itall down on paper is one of the best waysto that. Connect with an organization inyour area that offers free business counsel-ing and help writing a business plan.Many do this for free. That’s a great firststep!

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Susan SnowdenDirector of Consumer BankingBangor Savings Bank

A business planshould not be consid-ered simply an exer-cise in order to getbank financing; butrather a tool to testyour business model,check your ability tomeet obligationsthrough cash flow,

and set other desired financial goals. It isbest to enter into any business venturewith a realistic vision of what resultsmight look like in year one, and even overthe first two to five years. That way, aprospective business owner can make aninformed decision regarding debt loadfor the business, and can better managepersonal expenses while the businessramps up.

There is plenty of great informationavailable on the Internet to help an entre-

preneur set realistic and inclusive projec-tions. We always recommend time with anadvisor — a counselor from the SmallBusiness Development Center is a greatplace to start. A second viewpoint is ahealthy test of assumptions and can catchoversights in a business plan; an SBDCcounselor can certainly help. And in trueMaine spirit, we always find owners ofexisting businesses very willing to assistnew start-ups by sharing business insightsand advice. Lastly, be sure to find an expe-rienced banker who will be thorough andcandid in their assessment of the plan; theiradvice can be invaluable in the early yearsof any business.

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Maureen VanudenSmall Business Market Manager, Northern

New England and Upstate New YorkTD Bank

A complete businessplan is key whenapplying for financ-ing. An effectivebusiness plan shouldinclude a resume andpersonal financialstatement for eachowner, a business bal-

ance sheet, income statement and cashflow projections. Information andassumptions on revenue and expenses,net worth, and descriptions of assets andliabilities. Most importantly, make sureyour business plan proves reasonableand positive cash flow. Specify what anew loan would be used for as well as adetailed repayment plan.



WWhhaatt aarree tthhee kkeeyy tthhiinnggsslleennddeerrss llooookk ffoorr wwhheennccoonnssiiddeerriinngg aa ccoommmmeerrcciiaallllooaann ffoorr aa ssmmaallll bbuussiinneessss??

Peter GodsoeRegional VP, Commercial LendingNorway Savings Bank

The key qualificationsthat lenders look forwhen considering acommercial loan are -sufficient historicalcash flow to comfort-ably afford repayingthe debt request, col-lateral as a secondarysource of repayment,

an equity contribution of cash in to therequest, a good credit history and industryspecific experience. An applicant can bestprepare to fulfill these qualifications by hav-ing an advance conversation with theirbanker and prepare a complete loan applica-tion that covers all these areas in detail. TheSmall Business Development Center and

SCORE are valuable resources for prepara-tion assistance.

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Steven ByrnesSenior VP for Business Banking in the

Maine DistrictKeyBank (the number-one lender in SBA

7(a) and 504 loans in 2010)

It helps to work with alender who will listenand ask questions. Themore we learn aboutyou and your business,the better we can pro-vide insights and tailorunique financingstrategies and plans tofit your business.

Lenders want to see a solid business plan,yet often people in the early stages of plan-ning are unsure. When clients need addi-tional help, we often recommend Maine’s

Small Business Development Centers andother business counseling organizations.They provide free expertise, guidance, andeducational workshops. They can also helpyou manage your cash flow, forecast cashneeds, and position your business for suc-cessful financing and future growth.

WWhhaatt aarree tthhee kkeeyy ffiinnaanncciiaallcchhaalllleennggeess ssmmaallll-bbuussiinneessss oowwnneerrss oovveerrllooookk oorr ddoonn’’tt ccoonnssiiddeerr ssttrroonnggllyy eennoouugghh??

Craig StaplesVice President and Commercial

Services OfficerKatahdin Trust

Many small businessowners are, by necessi-ty, focused on thedelivery of their prod-ucts or services. Whenthe owners have a loanneed, however, theyoften discover theyhave neglected cashflow and appropriatecollateral. We would be remiss to our cus-tomers if we failed to review cash flow inlight of projected payments: we will notknowingly place a loan customer in a situa-tion where cash flow isn’t sufficient. It is alsonecessary for business owners to offer collat-eral, available in many forms, to secure theirloan — whether it is a start-up, operating,expansion, real estate or equipment loan.

Under certain circumstances, the SBAwill provide partial guarantees to financialinstitutions on projects which meet theircriteria; guarantees which make the differ-ence in marginal loan approval. Conscien-tious financial institutions, however,should still ensure that collateral and cashflow are sufficient for the benefit of theborrower.

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Angela ButlerCommercial Loan Team LeaderPeople’s United Bank

When considering refi-nancing, the first thinga business should eval-uate is its ability to paythe debt — how longwill it take, and howwill the paymentsimpact the company’scash flow? The nextconsideration is howto secure the debt, and if there is a shortfallthe borrower can explore options to helpmitigate the lender’s risk; a good optionmight be an SBA, Rural Development, orFAME guaranty. Borrowers should alsochoose lenders who are comfortable work-ing with businesses and understands theborrower’s needs.


207-942-4800 | peoples.com

CongratulationsJim McCurdy & Jim Lynch

of Maine Commercial Tire!

Maine SBA’s 2011

Small Business Persons of the Year

©2011 People’s United Bank | Member FDIC | Equal Opportunity Lender

Business Plan Development, Marketing

and Financial Management Assistance

Congratulating

Tom Gallant2011 SBDC State Star

Director, Bangor Small Business Development Center

at Coastal Enterprises Inc.

Call about CEI�s SBA small business loan programs Flexible capital for equipment, working capital,

leasehold improvements, and inventory.

Wiscasset, Portland, Bangor and8 other statewide locations.

Call 207-882-7552 www.ceimaine.org


For the perfect starting point for beginningthe process of starting or expanding yoursmall business, visit the Small Business

Administration’s Web site at:www.SBA.gov

For Maine-specific information, visit:www.SBA.gov/me

side world.Those who had been on active duty and

were retiring often had never prepared a

resume or gone through a job interviewbefore, so Schuman set up everythingfrom classes to workshops to mock inter-views that were videotaped so the subjectscould learn how to improve their inter-view skills.

The process has meant a lot of on-the-jobeducation for theeight-person team.“We have worked tothink outside the boxand approach reem-ployment strategiesfrom differentangles,” she said.“We’ve had to stayflexible, and we’vehad to offer a varietyof services to meeteverybody’s needs.”

That’s no smallfeat when you’reeffectively trying torelocate and retrainan entire city. Thebase had physicians,nurses, dentists, HRpeople, hairdressers,

florists, aerobics instructors, maintenancecrews, public works, education assistants,and just about anything you’d find in a city.All told, the BTC helped over 1,000 people:including over 100 veterans, 260 civilianand contract workers, 200 military spouses,and others.

“It’s been a really fun, positive populationto work with,” she said. “And because they’reso diverse, we’ve been able to tap into a lot ofother opportunities — our veterans pro-grams, the military spouse programs. It has-n’t been the same thing every day.”

The grant runs through September, butshe hopes to get an extension through June2012. But she’s already moved her office offthe base, which officially closed May 31.

Up next for Schuman is likely more of thesame. She hopes to keep working withNational Emergency Grants that are award-ed for big layoffs under the WorkforceInvestment Act, as there will always be bigcompanies that turn over.

“I’ll continue doing what I’m doing fornow,” she said. “It’s been a very, very funride, and I’m honored to be a part of it.”


When Things Get Tough - Call the Authority!

The Finance Authority of Maine can help

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chance to decide if New Ventures soundsright for them.

Quin-Easter conducts workshops andclasses in Caribou, Houlton, Madawaska,Presque Isle, and elsewhere. The typical NewVentures class size tends to be 10-15 people;there’s a 15-person maximum, and there canbe as few as six or seven.

“We’ve had some really phenomenal busi-

ness plans come out of the course,” she said.“And phenomenal businesses followingthose plans.”

From the Fall 2009 course alone, in addi-tion to Howe’s dogsled business, start-upbusiness plans included a bed and breakfast,a campground, a retail store, a fabric shop, adog breeding kennel, a veterinarian, andnew technology for manufactured homes.She said it’s great to see people come in withthe big idea and the dream and help themfigure out whether their ideas are feasibleand how they can make them happen. “It’s

very exciting to take those bright ideas andput some backbone behind them so thatpeople can really start a successful business,”she said.

Everyone’s needs are different, from avail-able cash to the client’s desired outcome.And as important as all the businesses thatare born out of the program are those stu-dents who realize they’re not ready to gointo business at that point. There’s no easychecklist system that fits everyone, althoughthe process on Quin-Easter’s end of how togo forward is the same.

“Each participant, each entrepreneur,brings a lot of skills and experience andideas to the table that are more than the sumof the parts — or more than I can stand upas a talking head and bring,” Quin-Eastersaid.“That’s really the joy of it, too — I learnevery day from the people I work with.”

Quin-Easter is extremely avid about thejob she’s landed in. “It’s a gift,” she said. “Ifeel very lucky to be able to do this work,both with the entrepreneurs that I workwith and the organization that I work for.”

of attaining an SBA-guaranteed loan. Theybuilt with expansion in mind, and, sureenough, added another 15,000 square feet in2000.

Today, When Pigs Fly has locations inYork, Kittery, Freeport, Portsmouth, N.H.,Somerville, Mass., Brookline, Mass., andJamaica Plain in Boston. Its bread can befound at about 300 outlets in Maine, NewHampshire, Massachusetts, Rhode Island,Connecticut, New York, and New Jersey, oryou can buy it online. From one man with80 loaves in one day, the business hasgrown to as many as 12,000 loaves per daywith 60 employees working around theclock.

Fifteen years later, the bread is still madethe same, with natural grains and flours.

Everything is hand-prepared and freshlyproduced, and anything day-old is donatedto charities. June 23 marked the grandopening of the brothers’ first restaurant, awood-fired-pizza place with 20 local draftbeers and the first of its kind in Maine to dodraft wine. They’ll grow many of their ownherbs and use local resources for otherproducts, such as fresh cheese made daily inMassachusetts.

Andrew says he doesn’t know where theSiegel brothers will be in another 15 years,but he’s sure it will be something uniqueand different.

“Hopefully it will be really fun, really cre-ative, and there will be lots and lots and lotsof people enjoying whatever it is that wedo,” he said.

Quin-EasterContinued from Page 4

SchumanContinued from Page 5

When Pigs FlyContinued from Page 7


Kristine Schuman in Brunswick.


“We’re as focused on creating a great guest

experience as we are focused on the wine

itself. We didn’t start with Bangor Savings

Bank, but I got to know the people and how

the bank was run, and when they asked

me to bank with them, I said yes. They think

about holistic solutions and how to address

each individual client’s needs. In this day

and age of cookie-cutter financial services,

you don’t experience that with Bangor

Savings. Give them a call.” 1.877.Bangor1

(1.877.226.4671) www.bangor.com

Member FDIC

Bettina knows how committed we are to Maine business.

We are to hers.

Bettina DoultonOwner, Cellardoor Winery

“Bangor Savings Bank is uniquely good at thepeople side of the business. I’ve met manydifferent people, from branch employees to senior management. All the way through,you feel their sense of pride in what theyare doing. They’re all impressive.”

Becoming a business owner is agoal for many women. Starting abusiness is seldom easy, but theprocess can be streamlined when aperson knows the steps to take.

The Center for Women’s Busi-ness Research indicates that onaverage, women own over 10 mil-lion businesses in the United Statesand employ around 20 millionworkers. Female-owned businessesaccount for over $2 trillion insales. Female entrepreneurs arecollectively known as “Janes,” andthey are a big part of the country’sfinancial landscape.

For women who want tobecome Janes, there are certainsteps to take to develop and launcha business. There are manyresources that can help womenand men start a company. TheSmall Business Administration isone of them. Here is some of theirguidance in doing so.

FFiinndd aa mmeennttoorr.. There areorganizations like SCORE andWomen’s Business Centers thatprovide free resources online andlocally for the prospective smallbusiness owner. Individuals alsocan connect with current businessowners in the neighborhood andpick their brains about the bestway to begin.

WWrriittee aa bbuussiinneessss ppllaann.. This mayseem like an intimidating part ofstarting a business, but gettingthoughts written out in black andwhite can be a good organization-al step. However, there’s no specif-ic formula for a business plan.Listing the type of business, mar-keting ideas, competition, andfinancial data is a good place tostart. Also, having a business planin place may make it easier tosecure a loan.

SSeeccuurree ffuunnddiinngg.. Businessesrequire start-up capital. Some

small business owners have theirown savings they’ll be devoting tothe business, while others solicitinvestors. The majority of businessdevelopers apply for a businessloan. This is where a business plancan be an asset. Also, grants may bean option. According to the SBA,some business grants are availablethrough state and local programs,nonprofit organizations and other

groups. For example, some statesprovide grants for expanding childcare centers, creating energy effi-cient technology and developingmarketing campaigns for tourism.

SSeeccuurree lleeggaall rreepprreesseennttaattiioonn..There are certain business lawsand employee laws that an individ-ual will need to know to avoidfines and other legal recourse.Securing legal representation

ahead of time can help prospectivebusiness owners navigate the legalsystem.

BBuuddggeett aanndd ppllaann ffoorr mmaarrkkeettiinnggaanndd aaddvveerrttiissiinngg.. It’s important toget the word out about the newbusiness. While this can start withfamily and friends, eventually theefforts will have to go beyond.Think about community-basedactivities that can advertise thenew business. Work with schoolsand community organizations ifyours is a niche business for chil-dren or seniors. A Web site andnewspaper advertising, both inprint and online, can be a goodstarting point.

Keep in mind that it can be afew years before small businessowners start to realize a profit ontheir efforts. So don’t give up tooeasily and soon another success-ful “Jane” will be part of theeconomy.

Tips to make your start-up small business a success

salute to small business

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