Business Loans
How often have you heard … if you need production funding, go to a bank? Well, banks and entrepreneurs just don’t work. Banks look for steady growth, and entrepreneurs by definition either grow explosively or die, but steady growth isn’t entrepreneurial. So, where does an entrepreneurial high tech engineering/manufacturer go for funding? Pretty much limited to venture capital. And where do you think venture capitalists go when the economy isn’t good? If you can tell me where they hide, let me know!
One of the most basic obstacles facing high tech engineering/manufacturing US-based companies is lack of capital. I think the feds know that, however their answer shows just how little they know about this business sector. Our government set up an agency called the Small Business Administration (SBA). And guess how this agency doles out money? Through Banks! The SBA claims they are understaffed and as a result depends on the qualification and eligibility programs instituted by local banks to qualify an entrepreneurial company for an SBA loan. Another government system that is broke!
It would be great if our government can figure out a way to directly fund small entrepreneurial high tech engineering/manufacturing companies without depending on banks. Interesting note, one Florida based bank requires a minimum of 3 years exponential growth before even considering a loan application, and by the way, that loan would be with a personal guarantee by the owner or owners of the company. According to the banker, the only companies they have even considered were legal/attorney firms. There’s an example of a service sector business that does well regardless of the economy!
“Thanks for your message. As a 58 year old wood manufacture with 35 years of industry experience, watching over 50% loss in domestic manufacturing capacity and a significant shift of our precious timber resource to export especially to China and Viet Nam, with the related job loss, it is easy to see I am disappointed and frustrated in our leadership, both political and the banker/investors.
I have a need for capital. $100,000.00 No one is lending. I have to generate four inches of documentation and hours of projections and plans for a presentation for the SBA. In the mean time Mitt Romney can have one dinner in California and raise $10 million dollars…..what is that all about?
I employ 11 rural folks making wood mouldings and we do a very good job. Customers repeat orders and want a Made in USA component. My employees mostly did not graduate from high school. Our population in the United States has a lot of adults in this category. They are good, mostly honest and hardworking family people and God Fearing….They can learn a trade. They want to have a steady job and dignity. Our government encourages them to not work by the welfare system. Where are these people going to find
jobs? Our country does not value them and the more successful city folks look down their nose at blue collar workers. They have been trained from early life to think working with your hands and “getting dirty” work is
demeaning and lowly. Unfortunately, we know this is the attitude. It affects working class and the attitude they have. We must change this mentality raising up the value for their work.
I just heard the fellow who hosts Dirty Jobs on Television/Cable and he nailed it. He introduces the public to those awful and boring daily jobs in his show and does it himself. He knows we must have these simpler, but
steady jobs for the continual supply of citizens and immigrants that are not taking advantage of their free education and still have a family to feed and house. These people reproduce faster than the more educated (I believe it is three generations in 40 to 45 years compared to 55-60 years among the better educated families.) In most cases with the next generation following the a similar path of their parents. Some find paths to higher roles in the job world, but vast majority do not.
This is the real problem. How much does it cost to pay the welfare and related support like medical and food to the unemployed? It is huge compared to helping small business keep them working even if we have to fund the money through the business. Most small businesses are struggling and just hanging on. Owners have lost their savings and many their retirement trying to keep the factory open.
Meanwhile the consumer does not think about the problems and if they buy imported goods versus Made In USA the real cost for that cheaper initial expenditure. How sad and very little is said. I think the short segment on ABC nightly news about two months ago with Diane Sawyer was on the right track. We need mass communication about this issue today. The longer we delay the deeper the problems. I can go on and on…… ” … Robert Kincaid, President, Accurate Millworks, Inc., Princeton, West Virginia
“Excellent writing! Thank you for this wonderful source of information.” … Laurie Keding, Orbit Business Loans, Clifton, New Jersey