Grants:
+ Funds given to tax-exempt non-profit organizations or local governments
+ Source is most typically from the federal government, but also from foundations, corporations and small businesses
+ The SBA does NOT offer grants

Other grants:
+ Called categorical or block grants – for “the greater good”
+ Example: may be granted to retail companies who have suffered economic hardships, where workers have been displaced or relocated, and now training and retraining is critical
+ Day Cares: these are often for the greater good, permitting parents to work while their children are cared for.

Other Funding Sources:
+ Self-funding – Holly recommends getting a loan and using your own funds as collateral
+ Banks – standard commercial or SBA loans
+ Home equity
+ Family and Friends
+ Angel financing – Angels are organizations willing to fund businesses that are beyond the bank tolerances. They are looking for a major buyout as the exit strategy
+ Venture capitalists – these organizations are looking for payback – they will be very demanding and will want a significant share of the business

Starting, June 18th, Holly will become the Director of Economic and Business Outreach where the SBDC, PTAC (Procurement Technical Assistance Center) and Entrepreneur Center will be part of her responsibilities. She will also be responsible for the Business and Professional Institutes (custom training) and the CDL Truck Driving School.

Current Prime Rate:
+ 8.25%, almost double since 2002, but still considered low. Expected to stay at this level for a while.

SBA Loans:
+ The current rate is 1.5% to 2.75% over prime.
+ The final rate for a specific SBA loan is based on risk and credit worthiness of the applicant and the business.
+ Borrowers should expect to provide 15% of loan amount for start-ups.
+ The SBA does expect to use as collateral whatever is available.

Standard Commercial Loans:
+ Borrower should expect to provide 20% of loan amount for start-ups.

Preferred Lender Status:
+ First Choice Bank now has this rating, which means they can act on behalf of the SBA and process loans on their behalf. This saves lots of time.

Mobile Pet Grooming Service:
+ No real estate
+ Lots of repeat business
+ Scalable
+ Custom-fitted Mercedes Sprinter Van is vehicle used

They have “first market” advantage - Only real competition is local mom- and-pop businesses. They bring consistency and standardization to a business that had been highly fragmented

Plenty of territory available across the US

Looking for individuals who want to own multiple units and oversee/manage the operation, though there are some owner operators

A real convenience for busy families