Albany Community Together, Inc.

1. Albany Community Together, Inc. We are here to help

2. Albany Community Together, Inc. Helping businesses in southwest Georgia by providing access to capital, technical assistance, business development services and financial literacy. Helping bridge the gap for business owners and other lending institutions to achieve overall success for the business and community abroad.

3. How to Start a Business • Where do you start? • Who is there to help? • How much do I need to start? Luckily there are a lot of resources out there to help you starting a business. Whether it is figuring out your business structure or entity or getting a license you are not alone. SBA, SBDC, Local Occupational Tax License Office, GTPAC, WOBC, VOBC, etc..

4. Small Business Administration The Small Business Administration is the official government agency for small businesses. www.sba.gov SBA can help from starting to growing your business. With topics from writing a business plan to funding your business the bases are covered.

5. UGASmall Business Development Center https://www.georgiasbdc.org The UGA Small Business Development Center helps business owners all over the state of Georgia. With 17 locations they provide market research analysis, loan proposal preparation and business plan assistance to startups. They assist existing businesses with business valuation, accounting and financial management, and website design & improvement.

6. Reasons Businesses Fail • Poor Management • Marketing • Can’t compete • Money To name a few…

7. Poor Management • No vision/plan • Lack of knowledge/skills • Poor leadership

8. Marketing • Don’t know the customer and what they want • Don’t know how to reach the customer • Don’t have a strategy

9. Competition • Didn’t research the competition • No value proposition (written or verbal) • Can’t compete in the market with 4 P’s: Product, Place, Promotion & Price

10. Money • Lack of capital • Lack of financial planning • Poor capital management

11. Access to Capital Traditional Banks can be a “God send” to businesses that need the money Working Capital Acquisition/Expansion/Renovations Equipment

12. Kryptonite There are some businesses that aren’t able to get traditional financing Credit issues Cash flow not sufficient Collateral strength Age of business Industry type

13. Community Development Financial Institutions CDFIs are private financial institutions 100% dedicated to delivering affordable lending to help low-income and other disadvantaged people in their communities join the economic mainstream. They put community first.

14. Types of CDFIs • Community Development Banks • Community Development Credit Unions • Community Development Loan Funds • Community Development Venture Capital Funds

15. Albany Community Together, Inc. This is where Albany Community Together, a certified CDFI, comes in… We finance community small businesses including microenterprises, nonprofit organizations and commercial real estate. CDFIs spark job growth and retention in hard-to serve markets across the nation. We work with some credit issues Cash flow flexibility Collateral flexibility New businesses (less than 2 years)

16. Albany Community Together, Inc. • ACT! measures the number of loans made, private leveraging, and the number of jobs created. • Since being awarded the funds under the Jobs ACT! of 2010, ACT! has provided access to $21.3 million in capital, and helped to create and/or retain 481 jobs.

17. Albany Community Together, Inc. Covers 38 Counties 1)Baker 2)Bibb 3)Calhoun 4)Chattahoochee 5)Clay 6)Colquitt 7)Crawford 8)Crisp 9)Decatur 10)Dooly 11)Dougherty 12)Early 13)Grady 14)Harris 15)Houston

18. Ineligible Businesses Gambling Adult Entertainment XXX Investment Companies Pyramid or Multi Level Marketing Businesses

19. How this works…

20. ACT! Inc. • Small Business Revolving Loans (gap financing, sole source financing) • Working Capital Loans • Contractor Working Capital Loan • Micro Business Accelerated Loan Program

21. Small Business Revolving Loans (gap financing, sole source financing) • Funds can be used to purchase furnishings and equipment, real estate, and renovations. • Loans up to $50,000. • Where primary lender is involved, written commitment required. • For sole source financing, must provide bank rejection letter or other documentation to show inability to secure bank funding. • Loan Terms – Maximum terms are 10 years for fixed assets; 5 years for working capital; 20 years for real estate. • Interest rate - Prime plus up to 4 points above prime depending on the risk associated with the project. • Collateral - Must be fully collateralized.

22. Working Capital Loans • Funds may be used to finance short-term operational needs, such as accounts payable, payroll, inventory, repairs and other more immediate needs. • Loans up to $50,000. • May be fixed payment loan with a term up to five years. • May be line of credit renewable annually (renewable for up to 3 years). • Interest rate – Range from 5.5% - 10% depending on the risk and the prime rate. • Collateral – May be secured or unsecured depending on the risk and credit worthiness of applicant(s)

23. Contractor Working Capital Loan • Funds used to finance construction or other type contracts. • Loans up to $20,000 (or no more than 20% of the contract). • Short term financing expected to be repaid by completion of the project • Term – Up to twelve months. • Interest rate – Range from 5.5% - 10% depending on the risk associated with the project. • Collateral – Assignment of contract (a must), personal guaranty, other collateral may be required.

24. Micro Business Accelerated Loan Program • Loans intended to facilitate the expansion of existing small and micro businesses and creation of new ones. Provides access to credit for businesses that are unable to secure credit from banks and other traditional lending sources. Applicants may be initially approved for either of the steps based on underwriting review. • Loans up to $10,000 based on accelerated steps: • Step One – May receive up to $2,000 for maximum of one year • Step Two – After repayment of initial loan, may receive an additional loan up to $3,000 repayable in one year. • Step Three – Upon satisfactory repayment of the second loan, may qualify for up to $5,000 repayable in 24 months. • Step Four – Based on satisfactory repayment of third loan, may have access for up to $10,000 repayable in 36 months. • Borrowers may exit the MBALP at any time he/she has credit needs greater than the program maximum and qualifies for the increased funding. • Interest rates – Range from 5.5% - 10% depending on the risk associated with the project. • Collateral – Will generally be secured, but may be unsecured depending on risk and credit worthiness of applicant(s).

25. Basic Application Requirements • Business Plan or business narrative • Ensure there is sufficient collateral value to cover amount of loan request • Must be able to document financial performance of existing businesses that shows the business is able to generate sufficient cash flow to qualify for a loan • Start-ups must provide a rational narrative to document projections made in business plan • Applicant(s) must be credit worthy. • All applicants must meet SBA definition of small business (500 or fewer employees; $7.5 million in annual gross receipts) • Other requirements as deemed appropriate

26. What We Expect From Our Borrowers… • Make sure payments are available monthly through electronic funds transfer • Provide annual financial statements • Communicate with ACT! • Keep us informed ahead of time of any issues • Personal commitment to repay your loan • Be committed to your business endeavor

27. 229-420-4600