After emigrating to the U.S. from their native country of Georgia and coming to Buffalo, Lasha Takalandze and Megi Endeladze dreamt of opening a café. Today, as the co-owners of Penny’s Coffee Shop in Buffalo, NY, they serve fresh coffee, tea, baked goods, craft beverages, and more.
Here’s how they secured a startup loan through the Main Street Capital Loan Fund and Pursuit, with support from the Buffalo State University Small Business Development Center (BSU SBDC).
Main Street Capital Loan Fund provides essential early-stage financing
As they developed their café concept, Lasha and Megi worked with the team at the BSU SBDC to create a business plan and financial projections to guide their work. They found their ideal café location in Buffalo’s Medical Corridor area, which is home to many hospitals, the University at Buffalo Medical School, and various other organizations and businesses. However, because their business was new, they found it hard to get financing.
“The startups that we work with typically want to scale slowly and need smaller loans to help them get off the ground,” says Marilyn Roach, Senior Business Advisor and Financial Specialist at the BSU SBDC. “The guidance we provide will, hopefully, result in funding for the businesses.”
“We applied for other small business loans,” Lasha explains, “but because Penny’s was a startup, we didn’t meet all of the financing criteria.”
Financing for startups and early-stage businesses in New York State
Main Street Capital Loan Fund is a special financing program targeted to small businesses in the startup and early stages, including those in communities that have historically faced challenges in obtaining financing or favorable terms. The $10-million loan program was developed by Empire State Development and offered through Pursuit to fill the funding void for new small businesses in New York State.
The loans can be used for working capital, acquiring equipment and other essential assets, staffing, and more. Another tremendous benefit is that the loans include a fixed interest rate and borrowers only have to pay interest for the first year of the loan. The Main Street Capital Loan Fund features less-than interest only payments in the first 12-months of the loan. This frees up more money each month to reinvest in their businesses.
“The opportunity for interest-only payments is imperative for small businesses, especially those that are just launching or in the earliest phase,” says Andrea Lizak, BSU SBDC Associate Director and Business Advisor. “It enables them to stay on their feet and focus on strengthening and growing their businesses. The program offers this for entrepreneurs and that truly sets it apart – it opens the door for people who want to start a business.”
“We saw a brochure about this loan program,” Megi explains. “It seemed like everything we needed, because it could work for new businesses like ours.” Their BSU SBDC team encouraged them to apply and representatives at the University at Buffalo’s Center for Entrepreneurial Leadership also recommended Pursuit as a small business lender.
The right combination of financing and guidance from Pursuit
Pursuit Assistant Vice President Crystal Morgan contacted Megi and Lasha after a pre-application questionnaire showed their business met the Main Street Capital Loan Fund program criteria.
“Until we found out about this loan program, we had to use all of our savings to move forward,” Lasha says. “And we were at a point where we had expenses coming in and needed funds. We got the loan right when we needed it. It was so helpful.”
“We’ve used the financing to help launch our coffee shop, including things like branded mugs and other goods,” Megi says, adding, “The interest-only payment is a huge help.”
Main Street Capital Loan Fund and Pursuit help pave the way for success
Megi says, “This loan came through quickly and we’re so happy that it worked out.”
If you need funds to launch, want to strengthen your early-stage business, or have an existing business that’s outside of the Main Street Capital Loan Fund criteria but you need financing, Pursuit can help.
With loans from $10,000 to $5.5 million, we can help you secure financing for working capital, equipment, the purchase or construction of commercial real estate, to refinance business debt and more for businesses in New York, New Jersey, Pennsylvania, Connecticut, Nevada, Illinois, and Washington.
Contact us to learn more.
