Growing Your Small Business

Financing and Refinancing

Regardless of where you go to apply for capital, your business documents should be in order and easily accessible. Everything from your business history to statement of debt should be clear, concise and accurate. Keep in mind that a lender will give more credibility to a presentation that has been reviewed by an accountant, lawyer or other professional.

Here is a list of materials you will need to supplement your basic business loan application:

• Business plan: Most of the following items should already be in your business plan. If not, consider adding them.
  
  
  • Business history: Give a brief description and history of the business, when it started, ownership, number of persons employed and products.
    
    
  • Personal history: Describe yourself, emphasizing your work experience and reasons why you feel qualified to operate and run your business.
    
    
  • Management resumes: Describe the education, technical training, employment and business experience of each of your managerial employees.
    
    
  • Financial statements: Provide balance sheets, including current balance sheet, for the past three fiscal years. Also include a revenue and expense statement for the past three fiscal years, including a statement for the current period.
    
    
  • Personal financial statement: Supply a personal financial statement for each officer, principal or stockholder with 20 percent or more ownership, showing their net worth outside of the business.
    
    
  • Debt: List installment debts, contracts, notes and mortgages payable, showing to whom payable, original amount, original date, present balance, interest rate, maturity date, monthly payment, security and whether current or delinquent.
    
    
  • Income tax returns: Provide copies of federal income tax returns for past three years.
    
    
  • Accounts receivable: Show amounts due you, from whom and original date.
    
    
  • Loan proceeds: State amount of loan requested and explain exact purposes for which it will be used.
    
    
  • Collateral: List collateral to be offered as security for the loan, with your estimate of the current market value of each item.
    Earnings projection: Prepare a detailed projection of earnings.

There are many different types of financing programs. Below is a partial list of organizations that have financing and refinancing programs

• NEW For information on public and nonprofit small business financing programs in your area, see the New York State Directory of Alternative Small Business Lending Programs.
   
• Empire State Development (ESD) has many business services. For further information on them, call 1-800-STATE NY (1-800-782-8369) or contact your nearest ESD Regional Office.
  
  
• The U. S. Small Business Administration America's small business resource offers a variety of financial programs designed to assist small businesses.
  
  
• The New York Business Development Corporation is a privately owned company in which New York financial institutions pool their resources and share risks to help diverse small businesses obtain financing to expand in New York State.
  
  
• The Community Development Financial Institutions Fund was created to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities

 
• The Community Development Financial Institutions Assistance Program in New York state provides micro-loans to businesses who often do not qualify for bank loans as well as one-on-one counseling and business development assistance to facilitate credit-readiness.
  
  
• The New York City Financial Network Action Consortium (NYCfNAC) was established to provide banking services to businesses in New York City's low-income communities.