CHAMBER BEST PRACTICES: Access to Capital and Microloan Programs Georgette “Gigi” Dixon, Wells Fargo SVP/Director of Strategic Partnerships

Luis O DeLaHoz, Statewide Hispanic Chamber of Commerce of New Jersey

Larry Holman, Beaufort County Black Chamber of Commerce (BCBCC)

Natalie Rojas – National Gay & Lesbian Chamber of Commerce (NGLCC)

© 2015 Wells Fargo Bank, N.A. All rights reserved.

Panel Overview/Introductions

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Credit Builder ProgramLuis O DeLaHoz

Statewide Hispanic Chamber of Commerce of New Jersey

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The Power behind theCredit Builder Program

Good VS Bad.

Car Payment: $230.00 $320.00

Car Insurance: $150.00 $200.00

Cellphone line: $0.00 $2000.00 = $166.67/mo. Apartment: Gets Apartment Doesn’t

Job Position: Gets hired Doesn’t

Ralph “Good Credit” Winter Bad Credit Alejandrrrra

Total Payments: $380.00 $686.67

Difference in Payments: - $306.76/mo = $3680.04/year

vs

Fundamentals for Good Credit.

• Pay on time.

• 2-3 trade-lines.

• Don’t spend more than 30% of spending limit.

…… $250,000.00

What is the Problem?

People with good credit:

-Best loan terms -Best interest rates -Best offers

People with bad credit:

-Bad loan terms/get declined - Higher interest rates - Worst offers/no offers- Hidden fees

What is the Problem?

Credit Builder!

Trade-lines

-Personal loan $200.00 -Line of Credit $200.00

- Secured CC $200.00

Month 1

Month2

Month3

Month4

Month5

Month…

Month12

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓

Spending Limit $ 2000.00

Access$ 600.00

Who is a Great Referral?

• No Credit• Bankruptcy• Small Tax Liens• Small Judgments• Biz Owners• Homebuyer• Credit Repair• 1 existing trade-

line

Have a client in mind?

Alejandra GirónLoan Officer

THE INTERSECT FUND59 Lincoln Park, Newark, NJ 07102

Ph: 201.245.0950E-mail: alejandra.giron@intersectfund.org

Hablo Español

Micro-Loan ProgramLarry Holman,

Beaufort County Black Chamber of Commerce (BCBCC)

LOAN APPLICATION GUIDELINES

LOAN APPLICATION

BUSINESS PLAN – less than 3 years of operations and financials

SUMMARY OF OPERATIONS AND EXPANSION PLAN – businesses with 3 years of operations with positive cash flow

MICRO LOAN PROCESS Submit completed application and supporting documents along with $500

non-refundable application/origination fee.

Attend an 8 week loan orientation, includes companies with negative cash flow.

Review process conducted by loan officer/underwriter; review of application and credit worthiness, verification of references and collateral, and site visit.

Loan package is sent to Loan Review Committee for review and decision; BCBCC President/CEO has final decision.

If loan is approved, the loan package and amortization schedule is sent to closing attorney’s office. The borrower is responsible for all closing costs.

LOAN TERMS Loan amounts are $5,000 to

$100,000

Loans must be secured – guarantees and/or co-signer

Up to 10 years to repay loan

$500 non-refundable fee

7 ¾ to 9 ¾ Interest Rate –

(dependent on credit score)

Monthly payment schedule

Default or collection fees will

be paid by the borrower

LOAN REQUIREMENTS

Must be a business located in Beaufort or surrounding counties

Must submit quarterly and annual financial statements

Must provide federal income tax filings for each year the account is open

REQUIRED DOCUMENTS

Completed Loan Application

Non-refundable fee $500

Business Plan

2 yrs. Personal Tax Returns (W-2, 1099, etc.)

Interim Financial Statements (less than 90 days old)

2 yrs. Financial Projections

Personal Resume

Certificate of Insurance or quote

Lease Agreement (does not have to be signed

Detailed use of loan proceeds

DBA, Articles of Incorporation and/or partnership agreement, LLC, Bylaws, operating agreement

Description of present or pending lawsuit(s) or bankruptcy

Franchise Agreement Additional information that

will enhance loan proposal

ADDITIONAL DOCUMENTION

NEEDED 2 Most recent consecutive paystubs

Business Expansion Plan

2 yrs. Business Tax Returns

Property tax bill or printout from the county

Description of present or pending lawsuit(s) or bankruptcy

2 most recent bank statements for all accounts

Micro Loan Summary

Loan amounts from $5,000 to $100,000

Security is determined on a case by case basis

From 3 to 10 years repayment terms

Loan payments will be made monthly via debit transaction

Must complete loan orientation program

Must have approved business plan

Must live in Beaufort or surrounding counties

Must provide financial information from previous 2 yrs.

For further information, please contact:

The Beaufort County Black Chamber of Commerce funds 75% of a given project.

843-986-1102

Best PracticesNatalie Rojas – National Gay & Lesbian Chamber of Commerce (NGLCC)

Access to Capital:Best Practices and Challenges

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• 56 local and regional LGBT chamber affiliates in the U.S. and internationally

UNDERSTANDING COMMUNITY

NGLCCNY•250+ members•25+ corporate partners•Half of them fortune 500•Median 5-10 employees

Indy Rainbow•6 years old•Less than 50 members•Local corporate partners•Small and start-up businesses

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BEST PRACTICES

• How can chambers best educate stakeholders on what it means to be bank ready?

• Utilizing corporate partners as subject matter experts• Sourcing financial services as corporate partners for

education• SBA preferred lenders with expertise on navigating federal

lending products• Exploring 504 and 7A to help business owners build assets

and grow sustainably

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AGLCC UNIVERSITY

Presented by top-level executives from AGLCC corporate partners and industry subject matter experts, AGLCC University gives business owners first-hand knowledge of the skills that Atlanta’s employers are looking for in their employees, vendors, and community partners.

Practical Contracts 101•Frequently used contracts in small and medium sized businesses•Identifying terms that are most critical•Risky terms contained in commercial contracts•Terms that can protect or undervalue your core assets

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CHALLENGES

Our national base of LGBT Business Enterprises have significant growth needs to compete with national corporate partners

We rely on our local chambers with their unique knowledge to educate business owners and offer those doors to growth strategies and taking the next step

Many local corporate partners are spread thin in resources to give to local chambers•Utilizing their knowledge is an undervalued resource

Success Story: Miami LGBTBELGBT Business Builder

Moderator Questions/Audience Q/A

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Closing Comments

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THANK YOU!Have a safe trip home!

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