Small Business Development Centers, or SBDCs, are local and regional organizations funded by the U.S. Small Business Administration (SBA) to help entrepreneurs. For those in the pre-launch and early years, SBDCs provide essential help with creating business plans and financial projections, connecting resources, and assessing market opportunities.
SBDCs are also an excellent resource for identifying financing opportunities and can even help small business owners prepare for loan applications. For new and early-stage small businesses based in New York State, this includes a special opportunity – the Main Street Capital Loan Fund.
Here’s how this program, available only through Pursuit, is making a difference.
Startup financing: The hardest financing to secure, until now
Marilyn Roach is Senior Business Advisor and Financial Specialist of the Buffalo State University SBDC (BSU SBDC), serving small businesses throughout the Buffalo Niagara region of Western New York.
“We help people in all stages of the entrepreneurial journey,” Marilyn says. “They may simply want to talk through an idea or get help developing business plans and financial projections. We’re also there for them through launch and growth, including scaling their businesses to expand locations and markets.”
She adds, “We can also help them identify viable financing opportunities. The startups that we work with typically want to scale slowly and need smaller loans to help them get off the ground.”
The challenge they see at the SBDC, though, is that many loans require at least two years of operations. For those that haven’t launched yet or that are still in the first years of operations, securing financing can be particularly difficult.
That’s why Empire State Development – New York State’s primary economic-development agency – created the Main Street Capital Loan Fund.
How the Main Street Capital Loan Fund helps
The Main Street Capital Loan Fund offers loans for small businesses that need financing to launch and to support them in their first critical years of operation.
Andrea Lizak, Associate Director and Business Advisor at the BSU SBDC, says, “The Main Street Capital Loan Fund offers financing for new entrepreneurs and that truly sets it apart – it opens the door for people who want to start a business.”
She adds, “It’s a significant opportunity because it’s developed to help people launch – and that makes it available to more entrepreneurs than other loan programs that are designed for businesses already underway.”
Financing up to $100,000 and interest-only payments for the first year
Through the Main Street Capital Loan Fund, New York State has committed $10 million for new and early-stage small businesses. If you meet the loan’s eligibility criteria, you can apply for financing up to $100,000. In addition, borrowers only make interest payments for the first year of financing, instead of principal and interest payments. As a result, small business owners have more money on-hand to reinvest into their businesses as they launch and grow.
“The opportunity for interest-only payments is imperative for small businesses, especially those that are just launching or in the earliest phase. It enables them to stay on their feet and focus on strengthening and growing their businesses,” Andrea explains. “And, in addition to the interest-only period, the loans through the Fund also have more favorable rates than many other business loans.”
SBDCs are a free and valuable resource partner for business owners
Whether you have an idea for a business that you’d like to discuss or you’re ready to launch and grow, SBDCs can help. They’re also there for you when you’re ready to expand into new markets, or when you want to retire and need to talk through potential exit strategies, or wherever you are in your entrepreneurial journey.
To learn more, contact the SBDC near you. You can find them using the SBA’s SBDC locator, then make an appointment to discuss your ideas and plans.
Pursuit is a trusted lending partner
Pursuit is a leading non-profit small business lender, and we’d love to help your client achieve their entrepreneurial dreams. When you refer your client to Pursuit, they’re getting more than just funding, they’re gaining access to a team of experts dedicated to their long-term success.
If you have a deal to discuss, get in touch with us today.
