by Judy Seil
Today I sat in a meeting in which three first generation Americans spoke about their ability to start a business in Monroe County, hire employees, invest in buildings and equipment and marvel at how fortunate they were to be in America.
What I marveled at was that the words "hard work" is what they attributed their success to. The three owners have diverse businesses, from wholesale to retail to service industries, in which they employ in total over 100 workers. They provide benefits to their employees. They feel fortunate to have attained the American Dream of owning a business. However, at the end of the day, they alone are responsible for payroll, overhead expenses, and debt repayment, as they have signed personally on the dotted to make sure the loans get paid back.
We live in a Country that still allows us the freedom to make choices. As a Director of Economic Development, I felt proud hearing these three individuals speak before our loan committee today telling their story of success and requesting assistance to take their businesses to the next level. The businesses were applying for loans through the US Small Business Administration SBA 504 program (Download SBA 504 Program)that assists small businesses purchasing equipment and/or buildings. The program allows for a 10% down payment and access to 40% fix rate financing. The remainder of the funding (50%) is financed through a bank. Credit worthiness and ability to repay debt are critical.
The three companies that spoke today certainly met the program criteria and additionally had great character, one of the 5 Cs of credit (capacity, collateral, capacity, conditions, CHARACTER.)
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