Episode 133
Funding Your Small Business with Matt Olsen, Vice President of Nano Banc
Are you looking to start a small business, but you don’t have the funding readily available in your bank? If so, you don’t want to miss this episode where we spoke with Matt Olsen, the Vice President of Nano Banc. Matt provides so many valuable resources regarding the various types of funding available to small business owners, what you need to have in hand when setting up a business account, and the pros and cons of utilizing a traditional vs nontraditional bank. With over 20 years of experience working in the financial field, the information Matt provides throughout this episode is top notch. Tune in to learn more about small business loan options so you can be prepared when you start reaching out to banks for funding!
IN THIS EPISODE:
- [9:27] Matt introduces himself and discusses his experience in the business world.
- [10:40] How can you get a start-up loan without any revenue?
- [12:30] What is a micro loan?
- [15:36] What are private micro loans?
- [16:53] Are there industry micro loans?
- [17:19] What are the challenges with the 7A or 504 programs?
- [20:22] How do you determine an accurate projection for the 7A loan?
- [22:20] What you need when you go to a bank to open up a business bank account.
- [27:44] What are the pros and cons of banking with traditional vs nontraditional banks?
- [30:07] Does every single bank operating the services have to be part of the FDIC?
- [34:34] Why do businesses need a line of credit before they may even need the funding?
- [37:49] What is the standard to determine what the credit line will be?
KEY TAKEAWAYS:
- [11:11] The most basic loan program for a small business that doesn’t have revenue is through the Small Business Administration, SBA, 7A program. Their loans are typically based on the income that you’re projecting when you’re a start up.
- [18:30] There are two types of loans for a small business, a 504 and a 7A. A 504 is specifically for commercial real estate and it has to occupy 51 percent or more of the available rentals or available space. The 504 consists of two loans, the first is through the bank and the second is called a debenture that a community development (a private organization) supplies – called a CDC loan. The 7A program can be used for real estate or for businesses that want capital, want to buy equipment, or need to do expansion buyouts. This is where you can use the projections for your financing requisitions.
- [29:04] When choosing a bank make sure that their services fit your needs. For example, do you need a bank that you can go into and talk with someone, is there a personal touch? If you don’t foresee yourself needing to be in direct contact with a teller/banker/etc. then an untraditional bank might work for you, but if you want those specific services then check out traditional banks.
LINKS MENTIONED:
Matt’s Contact Email: molsen@nanobanc.com
