The Mission
The Acce$$ Loan Program’s mission is to provide easier access to the financing and helpful business advice that you need to start or grow your business. This program is committed to fostering economic growth and enhancing business opportunities for minorities, women, and small businesses. This innovative program has been responsible for nearly $9 million in financing for the start or expansion of area small businesses since its inception in 2001.
What is it?
Commerce Lexington and the area’s leading banks and financial institutions have teamed up in the Acce$$ Loan Program to improve your odds of getting approval for a loan that matches your business needs. There are no guarantees, but you will know what your chances are of securing the credit you desire. The Program will provide valuable feedback from experts in the lending community to assist you in putting together a
business plan and gathering information that is important to your success.
Qualifications
-
Your business must be in the Greater Lexington area.
-
Your business must be for profit.
-
Pursuing a loan for a business start-up, an expansion of your current business, the purchase of a franchise, or the purchase of an existing business.
-
There is a $5,000 loan minimum.
-
Use of funds must be for working capital, inventory, leasehold improvements, and equipment for commercial use only.
How To Apply
-
Loan packages available to be picked up and dropped off at the Commerce Lexington Inc. office at 330 East Main Street, Suite 205.
-
All information provided to the Acce$$ Committee and Commerce Lexington will be kept confidential.
-
Business planning assistance is available FREE of charge through the Lexington Area Small Business Business Development Center (SBDC). Call (859) 257-7666 or toll-free 1-888-475-SBDC to schedule an appointment.
Participating Entities:
American Founders Bank
Bank of the Bluegrass & Trust Co.
BB&T
Central Bank & Trust Company
Community Trust Bank
Fifth Third Bank
First State Financial
Integra Bank
JPMorgan Chase
Kentucky Bank
LFUCG Mayor’s Office of Economic Development
Paramount Bank
PNC
Republic Bank & Trust Co.
Small Business Development Center
Traditional Bank of Kentucky, Inc.
U.S. Small Business Administration
U.S. Bank
For More Information:
For more information about the Access Loan Program, contact Tyrone Tyra, Vice President of Community and Minority Business Development for Commerce Lexington Inc., at (859) 226-1625 or ttyra@CommerceLexington.com.
A SAMPLING OF OPPORTUNITIES AVAILABLE FOR FINANCING:
Just getting started in your idea or business?
Check out Commerce Lexington Inc.'s SMALL BUSINESS RESOURCE GUIDE for a step-by-step guide to getting started.
Banks make money by lending money. To be successful in obtaining a loan, you must be prepared and organized. You must know exactly how much money you need, why you need it and how you will pay it back. You must be able to convince your lender that you are a good credit risk.
A good loan proposal is essential and will contain the following key elements:
General Information
-
Business name, names of principals, Social Security number for each principal, and the business address.
-
Purpose of the loan-exactly what the loan will be used for and why it is needed.
-
Amount required-the exact amount you need to achieve your purpose.
Business Description
-
History and nature of the business-details of what kind of business it, its age, number of employees and current business assets.
-
Ownership structure-details on your company's legal structure.
Management Profile
-
Develop a short statement on each principal in your business; provide background, education, experience, skills and accomplishments.
Market Information
-
Clearly define your company's products as well as your markets.
-
Identify your competition and explain how your business competes in the marketplace.
-
Profile your customers and explain how your business can satisfy their needs.
Financial Information
-
Financial statements-balance sheets and income statements for the past three years. If you are starting out, provide a projected balance sheet and income statement.
-
Personal financial statements on yourself and other principal owners of the business.
-
Collateral you would pledge as security for the loan.
Small Business Administration Assistance
The SBA's loan guarantee programs provide a key source of financing for viable small businesses that have real potential, but cannot qualify for loans from traditional sources. Financing programs provided by SBA vary according to a borrower's financial need. SBA loans are made by private lenders and are guaranteed up to 85 percent. There are three principal players in an SBA-guaranteed loan-the small business borrower, the private lender and the SBA. First, the private lender determines whether a borrower's application
is acceptable. If it is, the lender forwards the application and its credit analysis to the SBA. After SBA review and approval, the lender makes the loan and disburses the funds to the borrower to make payments to the lender. The following outlines major programs offered by the SBA.
7(a) LOAN GUARANTY PROGRAM
The 7(a) Loan Guaranty Program is the SBA's primary loan program. The SBA reduces risk to lenders by guaranteeing major portions of loans made to small businesses. This enables the lenders to provide financing to small businesses when funding is otherwise unavailable on reasonable terms.
USE OF PROCEEDS
You can use a 7(a) loan to: expand or renovate facilities, purchase machinery, equipment, fixtures and leasehold improvements; finance receivables and augment working capital; refinance existing debt with compelling reason; finance seasonal lines of credit; construct commercial buildings; and/or purchase land or buildings. Many types of SBA loans are available.
PRE-QUALIFICATION LOAN PROGRAM
The SBA’s Pre-Qualification Loan (Pre-Qual) provides support to those segments of the small business community that may have been underserved by the lending community. To be eligible, a prospective business must be 51-percent or more owned by veterans, women and/or minorities. The maximum loan amount under this program is $250,000. The Pre-Qualification Loan Program is a 7(a) loan program.
LOW DOCUMENTATION LOAN
LowDoc is one of the SBA’s most popular programs, offering a simple, one-page SBA application form and rapid turnaround on approvals for loans up to $150,000. The SBA will guarantee up to 85-percent of the loan amount. Completed applications are processed quickly by the SBA, usually within 2-3 business days.
SBAEXPRESS
Available for loans up to $250,000. The SBA guarantees up to 50-percent of an SBAExpress loan. Loans under $25,000 do not require collateral.
CAPLINES
This specialized umbrella loan program is designed to help small businesses meet their short-term and cyclical working capital needs. CAPLines can be used to finance seasonal working capital needs; finance the direct costs of performing certain construction, service, and supply contracts; finance the direct cost associated with commercial and residential construction performed on a speculative basis; finance operating capital by obtaining advances against existing inventory and accounts receivable; and consolidate
short-term debt.
For more information on these and many other loan programs, contact:
U.S. Small Business Administration
600 Martin Luther King Jr. Place,
Federal Building, Room 188
Louisville, KY 40202
Phone: (502)-582-5973
www.sba.gov
SMALL BUSINESS DEVELOPMENT CENTERS (SBDC)
SBDC’s provide managerial and technical assistance to start-up and existing businesses. These strategically located campus-based centers bring together the resources of the university, the private sector and the government. These resources are utilized to counsel and train small businesses in resolving organizational, financial, marketing, technical and other problems they may encounter. For further information and/or assistance, contact: Bluegrass Small Business Development Center, 330 East Main Street, Suite 210, Lexington, KY 40507, (859) 257-7666, or visit www.ksbdc.org.