Liz Russell alt.consulting Presentation at Lenders Meeting
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Jonesboro Lenders’ Meeting ASU Delta Center for Economic Development May 20, 2014
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Liz Russell's presentation from alt.consulting at 2014 Lender's Meeting at Arkansas State University in Jonesboro, Arkansas.
Transcript of Liz Russell alt.consulting Presentation at Lenders Meeting
Jonesboro Lenders’ MeetingASU Delta Center for Economic DevelopmentMay 20, 2014
Background
1998: Launched to provide intensive managerial assistance to small businesses in rural and minority communities
2010: Began making small business loans 2011: Certified as CDFI by U.S. Treasury 2014: Twelve full-time professional employees in four offices
We are a catalyst for community and economic growth. We work with businesses, nonprofits, government and other partners to help entrepreneurs and small businesses achieve their dreams.
alt.Consulting Four offices
o Memphiso Jonesboro o Pine Bluffo North Little Rock
The Numbers 42 loans Total loaned $594,156.30 Average loan size of $14,147 Size range $500 to $50,000 One loss to date ($5,000) Average credit score: 624 67% to rural businesses
o 20 loans to startupso 18 loans to growth businesseso 4 loans to turnaround businesses
Free Initial Assessment o We go to the business and meet the owners where they are
Scope of Services o Clearly outline engagement, deliverables, hours and costo Engagements range from 10 to 100 hours!
Connections to Other Resourceso Credit counselingo Banks and credit unionso Veterans programso Training and procurement programso State and regional programs
Consulting
More than 40 tools designed for small businesses. The tools most used with our clients are:o Accounting Systems: Identify and implement the right accounting
systemo Financial Projections: Forecast business performance, expansion,
planned changes, etc.o Marketing Plans: Identify and access market opportunitieso Strategic Plans: Three-year plan with clear action stepso Business Plans: Detailed business analysiso Feasibility Analysis: Determine feasibility before investing o Loan Packaging: Presentation to lenders
Consulting Services
Loan Funds Loans - $500 to $50,000
SBA Microloan Program
USDA Intermediary Relending Program (IRP)
USDA Rural MicroEntrepreneur Assistance Programs (RMAP)
Iberia Bank Loan Fund
Special Loan Funds
Business Loan
MicroloanCredit Builder Accounts
Capacity Building & Problem Solving
Working with Community Banks
Utilize pre-loan technical assistance to identify and address business risk:o Work one-on-one with client to develop business modelo Develop integrated financial model o Average engagement is 40 hours
Address the personal risks:o Credit builder accounts with banks and credit unionso Credit counseling and monitoringo “How to get a Loan” workshops and trainingo Feasibility training for startupo IDAs where available
Managing Risk (Pre-Loan)
Managing Risk
Loan amounts based on financial model
Risk Mitigation – ADFA CAP, AEDC Guaranty, DHS Guaranty
Monitoring agreement is signed at loan closing
All payments automatically drafted
New engagements as needed
SkatelandPine Bluff
Business Acquisition• Purchased with owner financing
and working capital loan• Market study overcame resistance
to industry• Opportunity to provided needed
service in hometown• After three years obtained
financing to pay off owner’s note• 7 employees• Planning expansion
Meineke Car Care CenterPine Bluff
Business Acquisition• Owner was selling business to
move to another state• Buyer had worked as shop manager• Owner provide a portion of the
financing• alt.Consulting provided a bridge
loan for the franchise training first and then the additional financing needed to complete the business transition
• Saved 5 local jobs in Pine Bluff and continues to provide tax revenue for city
Partnership Opportunities Turndowns Problem Loans: cannot make payments, cash flow problems Clients who are ready to retire
Refer to alt.Consulting Contact us first when possible Let customer know they will be hearing from us
www.altconsulting.org
Thank You!
Pine Bluff, AR211 West 3rd Ave.Suite 245P.O. Box 9858Pine Bluff, AR 71611870.535.0011
Memphis, TN516 Tennessee StreetSuite 234P.O. Box 40210Memphis, TN 38104901. 312.9797
Jonesboro, AR319 University Loop WestSuite 220P.O. Box 16264Jonesboro, AR 72403870.680.8285
North Little Rock, AR516 Pershing BlvdNorth Little Rock, AR 72114Phone: 501-352-3400
Presented by:Liz Russell, Loan Specialist
