Commerce Lexington’s Access Loan Program, Regional Financial Partners Celebrate 25 Years of Helping Small Businesses Grow & Prosper

Whether just starting or looking to expand, small business owners need financing to make their dreams become reality. An outgrowth of Commerce Lexington’s intercity visit to Nashville in mid-2000, the organization teamed up with the area’s leading banks and financial institutions to create the Access Loan Program to help facilitate financing for small, minority-owned, and women-owned businesses. Twenty-five years ago, the first Access Loan recipient was Mulberry & Lime, a retail home furnishings and gifts shop, which is still located at 216 North Limestone.
 
Through the support of Commerce Lexington staff, the Kentucky Small Business Development Center, and many financial partners, the program improves the odds of small business owners getting approval for a loan that matches their needs.  With a first-year goal to approve $225,000 in loans back in 2001, the Access Loan Program far exceeded early expectations with $1.4 million in approved loans during its first nine months. Since its inception, the program has facilitated $27.1 million in loans for 136 small businesses across the region and grown to include 26 participating entities. 

Mary Ginocchio, Mulberry & Lime

​​Mary Ginocchio, who owns Mulberry & Lime, had experience working for several local and national retailers in Lexington and the Ohio Valley Region, but it was her time with the store Laura Ashley that gave her the bug to open her home furnishings store. According to Ginocchio, the SBDC helped guide her through the business planning process and introduced her to a new program called the Access Loan Program that was starting up. 
 
Once she completed her business plan, Mary filled out an application and was then scheduled to present to representatives from several banks. She said, “I was so nervous. I decided to ‘stage’ a client phone call in the middle of my presentation. When my cell phone rang, the room was still as they watched me answer the phone and start a conversation with ‘Ms. Smith.’ After a short discussion selecting new linens for her room, I ended the call and told the audience that my business will rely heavily on providing a high level of customer service.”
 
Following her presentation, she met with several banks regarding loan packages and landed with Fifth Third. She added, “I found the process to be very easy. Everyone that I encountered was helpful and encouraging, and I am thankful that the SBDC and the Access Loan Program were there for me. These programs encourage individuals to invest in the community and help Lexington grow to be a better place for all.”

Commerce Lexington’s senior vice president of Community and Minority Business Development, Tyrone Tyra, said, “One of the most difficult things as an entrepreneur or small business owner is access to financing, especially if they don’t have strong banking relationships. The Access Loan Program streamlines the financing process.  Instead of having to approach financial institutions one by one, those with a viable business plan can present to representatives of multiple banks at the same time.”

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​Lesme Romero, owner of Lexington Pasta and Pasta Garage Italian Café and past client of the Access Loan Program, cited the SBDC and Commerce Lexington as instrumental to his success. He said, “Fausto Sarmiento at the SBDC really helped us put that vision and model for our business plan together. Then, I presented it to the Access Loan committee, and if we hadn’t put ourselves in that position, we wouldn’t be where we are today. We heard a lot of people telling us ‘no’ but we kept reaching out to the community, our customer base, and our network. Commerce Lexington’s Tyrone Tyra, the SBDC, and many others believed in us.” 

Lesme Romero, Lexington Pasta

DeShay Kabeya, The Young'uns Playhouse

​When DeShay Kabeya, owner of The Young’uns Playhouse, wanted to expand her licensed in-home daycare to a Title 1 daycare, she needed the financing to buy not only the existing business, but also the facility in which the daycare resided. She learned about the Access Loan Program from Tonya Parsons who works for the Kentucky SBDC in Lexington. She said, “Tonya worked with me to ensure that I was prepared and equipped to set myself up for success when going through the program with Commerce Lexington.”

“Starting out as a new business owner and being very small, I found it to be much easier and less intimidating than going through the traditional financial route to secure funding for my daycare,” added Kabeya.  “I had a wonderful experience, because I had people who were with me every step of the way – from the beginning to my presentation to the bankers. They looked over my business plan and also ensured that my ROI was good for obtaining the existing business.”
 
Kabeya is a big proponent of the Access Loan Program. “I tell every business owner I know about the program and truly believe it can impact other business owners' lives just like it did mine,” she said. “Plus, you never know who you will meet along the way. I would not have had the pleasure of working with WesBanco, where I secured my loan, if not for going through the program. I adore my partnership with them and have nothing but positive praise for how amazing they have been to me.”

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​Dave Sevigny, former owner and founder of DMD Data Systems which later became Volta, Inc., knew about the Access Loan Program through his involvement in the Chamber, but was unsure whether it would be appropriate for his business.  DMD was growing fast, and Dave said a line of credit was needed to support some revenue/profit seasonality in the business.  After renting space for a while, he was also getting ready to purchase office space and needed to qualify for a commercial building mortgage.
 
Sevigny said, “The Access Loan Program turned out to be the perfect opportunity for my business at the time, because it created a pathway for quicker success. The best part is that I had to put together just one package, which was traditionally what you would have to do for each bank you applied to. Once the package was created, we were invited to present our request to about 10 banks in the room at one time, and to our surprise they were all interested.  Each bank knew they were competing for our business, and it allowed us to leverage that by getting the best terms possible.  That was much better than if we just dealt with one bank.” 

Dave Sevigny

Businesses must meet certain criteria to submit a loan application, including:

• Businesses must be in the Greater Lexington area and be for profit.
• Must be 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.

 
For those who may be interested in the Access Loan financing opportunity, Sevigny added, “The banks involved love small business and they get it.  However, you still need to put together a good clean package and story if you expect people who don't know you well to invest in you. There is no easier way to get strong competitive offers for your financial needs, and you'll make good relationships that you can leverage as the business matures and your needs change.”
 
For more information about the Access Loan Program, visit www.locateinlexington.com or contact Tyrone Tyra at (859) 226-1625