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MINORITIES SUCCEEDING IN THE BEAUTIFUL SOUTHMinority and women owned small businesses are finding the funding needed through SBA loans and programs
COSTA MESA, CALIF. (April. 27 2007) - www.iBank.com, Lounging on the beach in Hilton Head is a dream come true to most people, but not to small business owners of South Carolina. Their dreams come true by using SBA loans. South Carolina is known for its beaches, tree house camping, the Riverbanks Zoo, riding the rollercoaster’s at Paramount Carowinds or just exploring the many different cultures; but to small business owners throughout the state, dreams come in the form of beauty shops, day spa’s, flower shops, auto shops and insurance agencies. These dreams were made possible through the governments SBA loans for minority owners in South Carolina.
Dreams come in all shapes and sizes which is fine with the good people associated with SBA funding. There are many certified/preferred lenders in South Carolina, such as First National Business Capital and the Appalachian Development Corporation CDC, both located in Greenville, along with Business Carolina, Inc., the Business Development Corporation of South Carolina and Regions Bank all located in Columbia, South Carolina. All of these institutions, along with many others are listed with the Small Business Administration District Office in Columbia.
“In conjunction with participating SBA lenders, we hold workshops throughout the state to promote small loans to new and existing businesses,” said Elliott Cooper, District Director for the South Carolina SBA office in Columbia. “The workshop format has increased our overall lending to minorities and women. Workshop participants not only learn about the SBA loan programs, but they can even apply for the loan at the workshop.”
The SBA office is dedicated to helping minority and women owned small businesses succeed in today’s competitive marketplace. The owner receives the funds needed to begin or grow their business into successful income generating ventures. The SBA guarantees these specific loans made by South Carolina lenders which in turn helps small business owners that don’t qualify for the typical bank loans. The SBA offers five loan programs that are specific to individual needs of the small business owner. One program is the 7(a) loan guaranty which is best for basic general business purposes; the 504 program which fills the gap in long term financing for such purchases as real estate and heavy equipment; the Micro loan program for small loans up to $35,000; the Small Business Investment company to help businesses find venture capital and the International Trade program to help small businesses enter and survive the international market.
Small businesses throughout South Carolina struggle to compete with larger organizations and corporations, especially minority and women owned businesses. To help support these owners facing special competitive opportunity gaps, the SBA in 2006 helped fund 66,300 loans through its 7(a) program and 6,812 loans through the 504 program, according to the Small Business Association website, www.sba.gov.
The local SBA office, located in Columbia, supports local business owners by offering various services and programs. The office has training seminars, educational sessions, start up help, local resources and financing. Each state office is dedicated to helping small businesses succeed in their state, which will in turn provide revenue for the small business and the state. Realizing that is the fastest growing segment of small business, the SBA is especially focused on helping minority and women owned business owners. Cooper says there are 37,501 minority owned businesses in the state as of 2006. Of these, 398 businesses have been funded through SBA loans, with Bank of America and Innovative Bank 99 funding the most loans. Cooper also estimates that most of these minority businesses are in the Coastal Area’s because of the tourism industries. Offering various programs and seminars to owners help them stay competitive.
“In this way, we bring the lenders to the people, and the participating lenders bring a simplified application process,” says Cooper. “These lenders then often follow up with each small business that receives a loan by providing free technical assistance.”
Another agency that helps minority owned small businesses is the Minority Business Development Agency, MBDA. Their mission is to enhance the growth and expansion of minority business entrepreneurs nationally. According to the U.S. Census Bureaus 2002 Survey of Business Owners, nationwide from 1997 through 2002, minority owned firms outpaced the national rate by 25%. The gross receipts for minority firms grew by 13% which surpasses the growth rate for all classifiable firms. Fourteen percent of all minority owned firms are in Health Care and Social Assistance which is the largest single industry sector for minority firms. With this substantial growth comes the responsibility to fund and invest in the entrepreneurs of tomorrow. With this in mind, the MBDA serves entrepreneurs in various ways with many different programs.
“The vision of MBDA is to serve as an entrepreneurial organization serving entrepreneurs,” said Ronald Langston, National Director Minority Business Development Agency, at the NEXT Regional Conference in April 2007. “At MBDA, we are committed to a long-term policy of strategic growth among the Nation’s minority business entrepreneurs which we hope will result in entrepreneurial parity. In order to achieve this long-term policy strategy we believe minority business enterprise should be a national priority.”
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Based in Costa Mesa, Calif., www.iBank.com, is America’s largest online small business Finance network. The network helps small businesses collect and store all business information inside a secure online VAULT; it helps create a digital loan package, and also insurance and investor application packages. Formed in 1999, www.iBank.com utilizes advanced search engine technology, and numerous other online tools for communication and connecting in real time with a nationwide network of loans, insurance and capital sources for a faster, easier, and lower cost experience.
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