By ANDRIANNA MARSTON

alm045@latech.edu

 

The Small Business Development Center hosted a free workshop titled “Learning about Lending” in the Institute for Micromanufacturing March 30.

Lee Ann Holley, a research associate for the SBDC, said the workshop was designed for aspiring entrepreneurs, economic developers and other individuals interested in small business development and growth.

“The workshop provided information about lending, basic banking products and special programs that help run businesses efficiently,” Holley said.

Holley said requesting a business loan can be confusing for individuals who are new to the loan application process, but the workshop helped ease this financial tension.

“If businesses understand and comply with lenders’ expectations, the business will be in a better position to receive financing for their new venture or business expansion,” Holley said.

The seminar was also sponsored by the Federal Home Loan Bank of Dallas.

Sheyi Ipaye, a certified public manager and community development officer for the home loan bank, gave further clarification about small business development.

“I’m responsible for managing community investments and economic development for the bank, which serves over 893 financial institutions in the five states of Arkansas, Louisiana, Mississippi, New Mexico and Texas,” Ipaye said.

The FHLB-Dallas is a congressionally chartered and co-operatively owned wholesale bank which supports housing and economic development by providing access to low-cost funds for its members, Ipaye said.

Ipaye said many of his goals are to provide working capital to small businesses in under-served areas.

“Often times people want to promote economic development and create or retain jobs in communities that are not financially stable to build the area up,” Ipaye said.

However, sometimes financing the development can become more than overwhelming, Ipaye said.

“But with the help of the Small Business Capital Grant Program, finances can be provided to those interested people.”

Ipaye said up to $25,000 can be disbursed to the potential business if it meets the eligibility status.

“The grant can not constitute any more than 15 percent or $25,000, whichever is less, of the total financing,” Ipaye said. “So the recipient must contribute at least 15 percent equity toward the total financing package.”

Ipaye said applicants should remember the business has other criteria to meet as well.

“It is important the people remember the business must be defined as a small business, and the funds must be used for business start-up, expansion or acquisition,” Ipaye said.

Some business students were pleased that the program was offered.

Erica Evans, a junior business management major, said knowing what it takes to run a business is a necessity.

“It takes money to run a business,” Evans said. “This was a great program to inform students of where to look for finances when ready to start businesses of their own.”

Evans said the program answered many questions she had about starting a business in the future.

Evans said, “Financing for small business development is available for use; it is just [about] taking the opportunity to apply.”