A Micro-enterprise is defined as: a business venture having less than 5 employees, including those businesses that operate from home, garage, or other non-traditional location.
People who have business loan needs outside the scope of this fund are encouraged to contact the credit and finance department for assistance in locating other funding sources.
If you have any questions or require further information, please contact our staff at (918) 456-0671, extension 2880 or (800) 256-0671, extension 2880.
To state equity as a percentage you divide the amount of equity by the value of the asset:
Example: $250 divided by $1,000 = .25 or 25%
Our Business loans require that you have 25% equity in your business. The four steps below will help you determine how much equity you have in your business.
| #1. Add up the value of all your business assets: |
|
| Cash from your personal savings: |
____________________ |
| Vehicles: |
____________________ |
| Machinery and Equipment: |
____________________ |
| Total Assets |
____________________ |
|
| #2. Add up how much you owe on your assets: |
|
| Loan amount you are requesting from us: |
____________________ |
| Any other loans on the assets: |
____________________ |
| Total Liabilities |
____________________ |
|
| #3. Subtract the liabilities (#2) from the assets (#1): |
|
| assets (#1): |
____________________ |
| liabilities (#2): |
-___________________ |
| Total equity |
____________________ |
|
| #4. Divide the Total Equity (#3) by the Total Assets (#1): |
|
| Total Equity (#3): |
____________________ |
| Divide by Total Assets (#1): |
÷___________________ |
| Equity position |
____________________ |
| *If this is less than 25%, you do not have enough equity to qualify for this program. You need to increase the amount of assets that you put into the business. |
|
Collateral
Collateral is something you pledge to secure the loan. All lenders require collateral on business loans. If you do not pay back your loan for any reason, the lender will take the collateral and liquidate (sell) it to reduce your loan.
Our business loans must be 100% collateralized. This means you must be able to offer us collateral that has a liquidation value equal to the loan amount. Not all things have a collateral value and not all assets have a collateral value equal to their cost. Generally, the collateral value of an item is based on the market value (the amount of cash received if the collateral is sold). Please contact our staff at (918) 456-0671, extension 2536 or 2533 or (800) 256-0671, extension 2536 or 2533 for assistance in determining collateral value of assets.
Top 10 Internet Sites for Planning, Developing, Operating, and Funding A Small Business
1. http://home3.americanexpress.com/smallbusiness :
This site offers excellent tools for developing your business plans and financial statements, as well as, offering advice and answering many questions and problems that may arise before the business is actually established or funding is secured.
2. http://wwwmsnbc.com/news/280213.asp :
Online resources for small businesses
This site gives a listing for many useful Internet sites regarding the inception and operating of a small business.
3. http://www.bizbuyer.com :
Provides information on every facet of operating a business from marketing to hiring.
4. http://www.gesmallbusiness.com :
Financial Leverage Business Smarts
A great site that tells you how to get the most out of your small business dollar by utilizing financial leverage.
5. http://www.lycos.com/business/tools_startbiz.html :
The Lycos Small Business Web Browser
This browser gives access to information regarding small business. The Tools links and the Business Plan link give very helpful information regarding the initial formation of the business. This site also has information regarding the financing of your small business along with plenty of other helpful information.
6. http://www.businessfinance.com/csintro.asp :
This site links those searching for funding for small businesses to those seeking to invest in small business. Many links to sources of funds, whether from individual investors or government agencies.
7. http://www.makingittv.com :
This site is dedicated to minorities who have become successful in a small business. The HotList link offers the telephone numbers to many private agencies that offer funding, as well as the numbers to agencies offering free advice, workshops, etc. Plus it offers some encouragement in opening your small business by reading the success others have experienced in realizing their goal.
8. http://smallbiz.findlaw.com/ :
FindLaw Small Business Center
Click on the funding link, a list of articles explaining the process of business loans in detail, as well as other ways to fund your business. The benefits and drawbacks of each are described. In addition, it explains what exactly investors are looking for in a small business.
9. http://www.webcom/seaquest/sbrc/reports.html :
The Internet Marketing Center: Free Business Reports
This page offers reports for two different categories. The first is "Finding and Starting a Business" and the second is "How to run your business more successfully". The first category offers 23 reports with information on everything from how to write an effective business plan to how to raise the money for your business. It also offers reports on specific types of businesses as well as the legal and tax issues involved if your business is going to be home based. The second category has 6 reports on everything from how to value your business to how to get free advertising.
10. http://ireland.iol.ie/resource/planware/strategy.htm :
White Paper: Developing A Business Strategy
This is an excellent site. It takes you through the step by step process of developing and planning a small business. Free software and shareware is available on this site, as well as templates, to guide you in the process of writing your business plan. There are also template guides that can be downloaded to help in making the financial statement forecasts.