glennis mcclure, program manager – nebraska enterprise fund february 12, 2013

Glennis McClure, Program Manager –Nebraska Enterprise Fund

February 12, 2013

Expanding Your Business Finance Options

NEF - a Statewide Intermediary since 1994.

Certified by the US Treasury as a Community Development

Financial Institution (CDFI) in 1998.

Making sure that Nebraska micro and small businesses have access to capital, training and technical assistance. NEF’s Mission

NEF Program Partners have helped provide “Opportunity Financing” to various businesses and entrepreneurs, all across Nebraska.

NEF Program Partners•9 Programs Statewide •All provide business development services • 2304 participants last year•FY ending 6-31-12: 178 total loans for

$3.2M

Micro & Small Business Development Services

Business training & planning

▫ Business plans▫ Marketing plans▫ Accounting▫ Mentors & networking

May include one-on-one technical assistance or counseling

Financing Micro /small business loans Leverage private financing

Business Feasibility -

Do benefits of offering your product or service outweigh the costs?

Do the positives outweigh the negatives? SWOT

Is there sufficient demand for your product or service?

Can the product or service be provided profitably?

Debt or Equity FinancingDebt Financing

• Bank loans▫ Lines of credit▫ Term loans▫ Guarantees (SBA

/USDA)▫ NEF CD Guarantee

• Microenterprise Loans• Community

Development Financing• Home-equity loans• Credit Cards

Equity Financing

• Family and Friends• Personal Funds• Angel Investors• Venture Capitalists• Partnering

Loan or Investor Request•Amount needed•Uses of the fund$•Terms – Type of loan or request•Collateral•Financial performance measures•What are you contributing to the deal?

Understand lending /investor policies and requirements

The 6 C’s that Lenders /Investors Consider

Credit & Financial History Character Capacity – ability to repay Collateral Conditions - future economic

trends Capital – time & money

 Type of Loan

MaximumLoan

Amount

 Term + Fee

 Notes:

NEF CD Guarantee / Security Pledge

Up to $40,000 or 50% of bank loan, whichever is less.

Based on loan needs and bank’s request – prefer 3 years max.

A credit enhancement product.

Nebraska Enterprise Fund: Certificate of Deposit (CD) Guarantee for Bank Loans

 Type of

Loan

 Loan Limits

 Term

 Notes:

Micro Loans 

$5,000 - $50,000

No more than 6 years.

NEF micro loans are focused on areas where there may be current gaps in micro lending in Nebraska.  

Small Business Loans

Above $50,000 to $150,000

May go up to 15 years, based on security /collateral and loan purpose.

May be used for multiple purposes including real estate or building purchase uses. Generally, real estate collateral is required on larger loan levels.

Direct Loans for Micro /Small Businesses

NEF Direct Financing Assistance

www.nebbiz.org402.685.5500