Business Incubator
 

SBA 7a Loan
Prequalification Intermediary

Proud Member

BUSINESS FINANCE

Three Stages of Business Financing¹

1. Seed Capital

   1. Prototypes

   2. Research

   3. Test Marketing

   4. Usual Source: Personal Funds

    

2. Start-up Financing

   1. Equipment

   2. Supplies

   3. Inventory

   4. Deposits

   5. Operating Shortfalls

   6. Usual Source: Banks, SBA, Investors

    

3. Growth Capital

   1. Add Products or Markets

   2. Add Personnel Expansion, Space and Equipment

   3. Usual Source: Investors, Banks and Venture Capitalist

Sources of Funding

In addition to the other sources of funds, companies in the business incubator may have access to:

• BCEDA Micro Loans
  ($500 to $20,000, 3 years max)
   

• BCEDA Revolving Loan Fund
  ($20,000 - $200,000, 10 years max)
   

• BCEDA Seed and Investment Capital
   

• BCEDA can help you pre-qualify for SBA 7a loan guarantees

Business Loan Programs in Baldwin County

Banks

There are over 20 banks and credit unions in Baldwin County. Each has its own set of guidelines for the types of loans they will make and the collateral required.

South Alabama Regional Planning Commission www.sarpc.org

Gap financing up to $125,000 based on the number of jobs created. The objective is to fill the gap between the business’s need for capital and what the bank is willing to lend. A bank must provide at least two-thirds of the loan.

Revolving Loan Programs

Several revolving loan programs and micro-loan programs exist in the area, each with its own specific objectives and guidelines:

• Community Enterprise Investments, Inc. www.ceii-cdc.org

• Baldwin County Economic Development Alliance www.baldwineda.com

• Baldwin EMC www.baldwinemc.com

Community Express Loan Program
www.borregospringsbank.com

• Working capital $5,000 - $50,000

• Credit score based; no collateral required

Accounts Receivable Financing

Factoring companies specialize in financing receivables.

• Presidential Finance www.presfin.com

• Stearns Financial Services – Nick Holmes 251-599-0098

• Some banks in the area also provide this service

Business Loan Packagers

These are the only companies in the area that can do SBA 504 loan packaging.

• Southern Development Council www.sdcinc.org

• Alacom www.alacom.com

• Greater Mobile Development Corporation (251) 208-7591

• Alabama Small Business Capital www.fbdc.net

Other businesses that would benefit from your business succeeding

Sometimes a good customer or supplier can be both a source of capital and business leads, either as a partner, an investor, or as a lender.

Seed/angel/venture capital/CAPCO’s

The Baldwin County Economic Development Alliance hosts an active equity capital group of investors for the Baldwin-Mobile area. Contact Bob Higgins (251) 947-2445

This page updated 2/24/2009