Baldwin County Economic Development Alliance Home Page
 Business Incubator
 
Home
What's an incubator?
Why "virtual"?
Services
Incubation activities
Applications
Selection Criteria
Business Plan Software
Financing
Advisory Comittee
Resources and Links
Contact Us
 
 

SBA 7a Loan
Prequalification Intermediary

Proud Member
National Business Incubator Association

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:

1 Courtesy of the Center for Entrepreneurial Excellence, Mobile

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 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.

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