ACCESSING CREDIT – BUSINESS LOANS

Presented by

FIRST AMERICAN CAPITAL CORP (FACC)FACC is an affiliate owned by the

American Indian Chamber of Commerce of Wisconsin (AICCW)

FOR MORE INFORMATION

Contact Info: Craig Anderson, President – AICCW10809 W Lincoln Ave Suite 102

West Allis, WI 53227(414) 604-2044 / craiga@aiccw.org

 Website: www.aiccw.org / www.faccloans.org

 Other Affiliate of AICCW:

AICTA - American Indian Construction and Trades Association

WHO: QUALIFYING AMERICAN INDIAN, MINORITY AND/OR WOMEN OWNED BUSINESSES

WHAT: PROVIDING SMALL LOANS TO HELP YOU START, OPERATE AND/OR EXPAND YOUR BUSINESS

WHERE: TARGETING AMERICAN INDIAN OWNED BUSINESSES OPERATING IN WISCONSIN – INCLUDING ON/NEAR RESERVATIONS AS WELL AS RURAL AND URBAN AREAS

WHY: ASSIST BUSINESS OWNERS THAT MAY BE UNDER-CAPITALIZED BUT HAVE THE ABILITY TO PERFORM THE WORK ASSOCIATED WITH THEIR BUSINESS

HOW: LOAN APPLICATION: • EXPLAIN YOUR NEEDS TO US

• EXPLAIN WHAT YOU DO

• EXPLAIN HOW YOU WILL PAY US BACK

FACC IS A CDFI

CDFI MEANS COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION

THE CONCEPT OF THE CDFI WAS DEVELOPED BY THE US TREASURY DEPT MANY YEARS AGO AS A WAY TO CHANNEL CAPITAL TO COMMUNITIES THAT ARE UNDERSERVED FOR WHATEVER REASON

FACC OPERATES A REVOLVING LOAN FUND TARGETED AT INDIAN-OWNED SMALL BUSINESSES LOANS ARE AVAILABLE FOR ALMOST ANY VALID BUSINESS PURPOSE; WORKING CAPITAL, EQUIPMENT PURCHASES, ETC.

FACC PROVIDES A VARIETY OF BUSINESS MANAGEMENT /TECHNICAL ASSISTANCE FOR PROSPECTIVE &EXISTING LOAN CUSTOMERS INCLUDING:

• One-to-One Counseling• Classroom Seminars• Peer & Business Sector Group Training (e.g. gathering together a number of businesses people who are addressing similar business development issues and/or in similar work types such as WisDOT DBE Contractors).

FACC: BACKGROUND INFORMATION

WE ARE AN SBA MICRO LENDER. “SBA” IS THE SMALL BUSINESS ADMINISTRATION.

• THE SBA MAKES A LOAN TO FACC• FACC THEN MAKES THE LOAN TO YOU – MAXIMUM SBA MICROLOAN IS $50,000

WE HAVE OTHER SOURCES OF MONEY TO LEND, FOR EXAMPLE: CDFI, WISCONSIN ECONOMIC DEVELOPMETN CORPORATION, USDA, FOREST COUNTY POTAWATOMI FOUNDATION, OWEESTA, ETC.

WE USE THESE FUNDS TO MAKE LOANS FOR:• WORKING CAPITAL• EQUIPMENT PURCHASES• REAL ESTATE PURCHASES/ IMPROVEMENTS• CONTRACT FINANCING • LOANS SIZES OF $10,000 TO $50,000 ARE TYPICAL. WE WILL CONSIDER SMALLER AND LARGER LOANS.

OTHER TYPES OF LOANS WE PROVIDE

A written summary of your business is a great way to start when you need your first business loan. But it’s not easy to put everything about you and the business down on paper. Keep in mind the Bank is often your largest investor. They don’t succeed unless you succeed. When you meet with a Banker, these are the kinds of things Bankers like to talk about:

  • Explain who owns the business

• Describe the work experience of the owner(s)

• Explain what you do and how you do it

• Explain who your customers are – how many customers do you have – how much business do you do with each one

• Do you sell your product/service one time – or do you have repetitive sales

• How do you sell your product – how do you find your customers

• What do you offer that your competitors do not

• Who are your competitors

• How do you price your service (CONTINUED ON NEXT PAGE)

TALKING WITH A BANKER

TALKING WITH A BANKER CONTINUED• What are your costs

• How many employees do you have – how many will you need

• Do you have subcontractors

• What type of equipment do you have – what type of equipment do you need

• Bankers always want financial information – Be prepared to explain how you keep your books and who your accountant is

• Tax Returns

• Financial Statements on the business

• List of Accounts Receivable

• List of Accounts Payables

• The larger the loan, the more information the Bank will want

• Providing ongoing information to the Bank is important

• Building a RELATIONSHIP between you and the Bank is important

TYPES OF BUSINESS LOANS

There is no way to describe all of the various loan options on this one page, but generally, business loans fit into these 3 broad categories. Line of Credit. Usually a one year contract with the Bank. After a year, it’s renewed for another year. Sometimes the balance is spun off and a term loan is set up to pay it back over 3 to 5 years. The amount of the Line of Credit will usually match up to your receivables and/or inventory. The monthly payment is interest only.

Term Loan. This is for equipment and long term working capital. A term loan is a 3 to a 5 year contract, just like a vehicle loan, it will have equal monthly payments until it’s paid in full.

Commercial Mortgage. Paid back over 20 years and secured by real estate.

SUMMARY

FACC IS A NON PROFIT CDFI RUN BY THE AMERICAN INDIAN CHAMBER OF COMMERCE OUR PURPOSE IS TO MAKE INVESTMENTS IN INDIAN-OWNED AND OTHER MINORITY OWNED BUSINESSES OUR JOB IS TO COMPLIMENT YOUR BANKING RELATIONSHIP, NOT REPLACE IT FOR ADDITIONAL INFORMATION, CONTACT:Craig AndersonExecutive Director – FACC414.604.2044craiga@aiccw.org