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 THE U.S. SMALL BUSINESS ADMINISTRATION'S OFFICE OF WOMEN'S BUSINESS OWNERSHIP (OWBO) 409 THIRD STREET S.W., 6TH FLOOR WASHINGTON, DC 20416 202/205-6673 ALTERNATIVE FINANCING Listed below are alternative methods for financing a business. This list is just beginning--please send OWBO additional sources as you find them. We hope this will be of great assistance to women business owners. Please note that this does not constitute an express or implied endorsement by the U.S. Small Business Administration of any of the opinions, products or services of the companies listed below. One of the most helpful tools is the 1989 Edition, The States and Small Business produced by the Office of Advocacy and available through the Government Printing Office. Another helpful source is a booklet developed through a joint project with the American Bankers Association and the National Federation of Independent Business, Steps to Small Business Financing. For a copy of this booklet contact Mr. Provosty, the American Bankers Association, 1120 Connecticut Avenue, N.W., Washington, DC 20036, (202) 663-5456. LOAN PROGRAMS AVAILABLE THROUGHOUT THE UNITED STATES: SOURCES OF FEDERAL SMALL BUSINESS FUNDING: DEPARTMENT OF AGRICULTURE Rural Business Enterprise Grant Program This program was formerly called the Industrial Development Grants program. It provides grants to public or nonprofit agenices to provide loans and/or technical assistance to for- profit enterprises, with the intent of creating jobs for rural residents. For more information contact Bonnie S. Justice, at 202/720-1490. Intermediary Relending Program (IRP) Rural Development Administration (RDA) provides loans to public or private non-profit organizations, referred to as intermediaries, which in turn lend the money to rural businesses. The interest rate to the intermediaries is one percent, with repayment terms of up to 30 years. The IRP program is intended to create employment for rural residents. For more information contact Dwight Carmon, at 202/690-4100. Appalachian Regional Commission (ARC) The program assists multicounty development districts in Appalachia; one primary function is to encourage the creation, retention or expansion of commercial, industrial, agricultural, forestry and service enterprises. For further information contact Richard Dorwaldt, at 202/673-7825. DEPARTMENT OF COMMERCE Economic Adjustment Division The program is designed to help areas overcome specific capital market gaps and to encourage greater private sector participation in economic development activities. For more information contact David Witschi, at 202/482-2659. SMALL BUSINESS ADMINISTRATION Section 7(a) Program The 7(a) program guarantees up to 90 percent of loans made by private financial institutions; SBA's share generally may not exceed $750,000. These loans may extend for up to 25 years. For more information contact your District SBA Office. Certified Development Company (CDC) Program Certified Development Companies makes loans available for acquiring land, buildings, machinery and equipment and for building, modernizing, renovating or restoring existing facilities and sites. For more information contact for District SBA Office. ORGANIZATIONS ACTIVE IN DEVELOPMENT FINANCE NATIONAL ASSOCIATION OF DEVELOPMENT OFRGANIZATIONS (NADO) NADO sponsors conferences, publishes a weekly newsletter, and provides a network for professionals and local elected officials to share information about innovative, practical approaches to rural development. For more information call NADO at 202/624- 7806. FIRST NATIONS DEVELOPMENT INSTITUTE (FNDI) The FNDI is a not-for-profit, Native American organization established in 1981 which assists tribes achieve financial self- sufficiency through culturally appropriate economic development programs. For more information call FNDI at 703/371-5615. NATIONAL ASSOCIATION OF COMMUNITY DEVELOPMENT LOAN FUNDS (NACDLF) This is a national community development financial intermediary whose member funds provide capital for community- based development in urban and rural communities throughout the United States. For more information call NACDLF at 215/923-4754. COMMUNITY REINVESTMENT FUND (CRF) The CRF is a nonprofit organization that purchases development loans from community-based development organizations and government agencies, pools them together and issues bond packages to private investors interested in social investment. For more information contact CRF at 800/475-3050. NATIONAL ASSOCIATION OF DEVELOPMENT COMPANIES (NADCO) This is the trade association for Certified Development Companies (504 CDCs). This type of CDC is a community based, nonprofit organization that promotes small business expansion and job creation through the SBA 504 loan program. 504 CDCs are located in every state. For more information call NADCO at 703/812-9000. NATIONAL CONGRESS FOR COMMUNITY ECONOMIC DEVELOPMENT (NCCED) This is a national nonprofit association of organizations engaged in economic revitalization of distressed communities. NCCED helps to increase financial and technical resources available for community economic development, through technical assistance and conferences. For more information call NCCED at 202/234-5009. NATIONAL ASSOCIATION OF GOVERNMENT GUARANTEED LENDERS (NAGGL) This association represents financial institutions and small business lenders who participate in SBA guaranteed lending and secondary market programs. For more information contact NAGGL at 405/377-4022. AMERICAN ECONOMIC DEVELOPMENT COUNCIL (AEDC) This is an international society dedicated to the advancement of economic development. AEDC runs a number of educational and certification programs for economic development professionals. For more information call AEDC at 708/692-9944. NATIONAL COUNCIL FOR URBAN ECONOMIC DEVELOPMENT (CUED) This is an economic development organization committed to the use of public resources to leverage private reinvestment in urban areas. For more information call CUED at 202/223-4735. COUNCIL OF DEVELOPMENT FINANCE AGENCIES (CDFA) They seek to strengthen the efforts of state and local development finance agencies involved in promoting job creation and economic growth. CDFA promotes the small-issue industrial bond program, innovative credit enhancement programs, economic development revolving loan funds and community development banks. For more information call CDFA at 202/682-3764. NATIONAL RURAL DEVELOPMENT AND FINANCE CORPORATION (NRD&FC) The NFD&FC is a private, nonprofit economic development loan fund. NRD&CF assembles capital from public and private investors and relends it to rural businesses and community development projects at below-market rates. For more information call NRD&FC at 202/429-9017. CORPORATION FOR ENTERPRISE DEVELOPMENT (CFED) The CFED is a private, nonprofit organization that analyzes, designs, demonstrates, evaluates, and communicates policy and practice in the areas of economic development, human investment, and governance. CFED specializes in development finance, environmentally sensitive economic development, and microenterprise, as well as a number of other economic, human resource, and governance issues. For more information call CFED at 202/408-9788. National Federation of Business and Professional Women's Clubs, Inc. (BPW) 2012 Massachusetts Avenue, N.W. Washington, DC 20036 Contact person: Christina Antonelos 1/800/245-4486 1/800/472-2740 They offer an unsecured personal loan of up to $7,500 payable over 6 years or a home-equity loan of up to $100,000. Nearly $10 million has been loaned to almost 2,500 BPW members since June 1984. Small Business Investment Companies 409 Third Street, N.W. Washington, DC 20416 202/205-6512 Contact person: Joseph Newell The Small Business Investment Companies (SBIC) created by Congress in 1958, are licensed by SBA. They are privately organized and privately managed investment firms, yet they are participants in a vital partnership between government and the private sector economy. With their own capital and with funds borrowed at favorable rates from the Federal government, SBICs provide venture capital to small independent businesses, both new and already established. Today there are two types of SBICs--the original, or regular SBICs and MESBICs (Minority Enterprise Small Business Investment Companies). MESBICs are Small Business Investment Companies specifically targeted toward the needs of entrepreneurs who have been denied the opportunity to own and operate a business because of social or economic disadvantage. As of June 1989, there are 275 SBICs throughout the country. National Association for Female Executives, Inc. (NAFE) 127 West 24th Street New York, NY 10011 212/645-0770 Contact person: Bridget L. Keating, Controller As a NAFE member, an individual can qualify for Loans-by-Mail, up to $35,000. When an individual qualifies, a signature is all that is needed. This is an immediate credit line. Last year, Loans-by-Mail provided NAFE members with over $21 million. NAFE's Venture Capital Fund will provide from $5,000 to $50,000 in funding to NAFE members. Members must submit a business plan in writing to the review board and they make the selections. National Federation of Community Development Credit Unions 59 John Street, 8th Floor New York, NY 10038 1/800/437-8711 Contact person: Cliff Rosenthal, Director This organization helps charter credit unions, helps existing credit unions, offers technical assistance and maintains a capitalization program for credit unions. Community Development Credit Unions (CDCUs) work to improve the economic environment of low-income neighborhoods, providing credit and financial services to community based businesses. All loan applicants must become members of the Credit Union in order to qualify for a loan. Memberships may be restricted by geographical area, organization or group affiliation. Loans are available in amounts as small as dependent upon the availability of public subsidies for qualified borrowers. Within New York State several CDCUs participate in a "linked deposit" program through the Urban Development Corporation Minority Revolving Loan Fund. The Credit Union Board of Directors and Credit Committee base their evaluation of all loan decisions on the credit worthiness of the applicant, as well as the financial stability of the business. New York Venture Group 605 Madison Avenue, Suite 300 New York, NY 10022-1901 212/832-6984 Contact persons: Donna Merer or Burt Alimansky The New Venture Workshop is a monthly pro-bono activity of the New Venture Programs Committee of the Harvard Business School Club of Greater New York. It was created in order to stimulate interaction among business founders and managers, equity investors and lenders, executives seeking new positions, professionals whose services are helpful to business founders and managers, and representatives of major corporations. There is a $10 charge at the door. At each meeting, a selected entrepreneur who is wrestling with building a company makes a presentation to a panel of four industry experts who critique the business's strengths and weaknesses and offer recommendations for presenters for future Workshops. This is a networking club; no money is given for start-up or expansion of a business. North American Securities Administrators Association 555 New Jersey Ave. N.W. Suite 750 Washington, DC 20001 Contact person: Karen O'Brien Small Corporate Offering Registration, lets companies raise up to $1 milion a year by selling shares for a minimum price of $5 each. Notice of the offering must be filed with the Federal Securities and Exchange Commission. Beyond that, the federal government is not involved in the review or registration process. To qualify for the program, companies must have fewer than 500 individual stockholders and assets or less than $3 million. Although an offering can be registered in several states, shares may only be purchased by investors living in states where the offering is registered. Other states that have adopted this program include Arizona, Arkansas, Idaho, Indiana, Maryland, Maine, Mississippi, Montana, North Dakota, Texas, South Dakota, Washington and Wisconsin. Alimansky Capital Group, Inc. 605 Madison Avenue, Suite 300 New York, NY 10022-1901 212/832-7300 Contact person: Burt Alimansky Has counselled scores of smaller companies about sales, mergers, and complex equity and debt financing for leveraged buyouts, expansions, strategic buyins, acquisitions recapitalization, and startups. Women's World Banking 104 East 40th Street New York, NY 10016 212/768-8513 Contact person: Chris Weiss Women's World Banking is in the process of setting up centers in other states throughout the country to assist women seeking financial and technical assistance. Commerce Funding Corporation 1945 Old Gallows Road Vienna, Va 22182-3931 703/893-2150 Contact person: Michael A. Ortlieb Commerce Funding Corporation (CFC) has gained recognition as a major Government contract funding source not only in the Eastern Region but throughout the United States with growth and expanded services in the Receivables Financing, Software Financing and Municipal Lease Financing. CFC has expanded its financial services to include many new products. With its focus on the Government business sector, CFC offers a great deal of experience in Government Contract Financing not otherwise available in the marketplace. Riviera Finance 1171 Homestead Road, Suite 250 Santa Clara, CA 95050 408/248-8828 Contact person: Lynne Narez, Business Development Manager As a well established, leading financial services company, Riviera Finance provides the cash flow funding which bankers, CPA's and other financial professionals recommend to their clients and prospects alike. Typical Riviera clients are: Start-up or emerging companies with limited track records, Companies with small to medium size credit needs, Companies whose profit and loss or balance sheets may not be acceptable to banks, and Companies whose credit needs are such that other financial firms find them too burdensome. Client services include: Free credit investigation, Computerized reporting, Non-recourse & recourse financing, No long term contracts to sign, Funding based on sales, not simply balance sheet considerations; and Responsive Equipment Leasing programs. Oweesta Fund First Nations Financial Project 69 Kelley Road Falmouth, VA 22405 703/371-5615 Contact person: Bruce King Capital from the Oweesta Fund is used to relend to small businesses on Indian reservations. Individual loans made by an Indian reservation loand fund and supported by the Oweesta Fund will be limited to no more than $10,000.00. Federal Contractors Lending Services, Inc. (FCLS) 24 Montgomery Street Concord, NH 03301 603/224-4313 Contact person: Kathy Timbas or Washington, DC Regional Office 1825 "I" Street, N.W. Washington, DC 20006 202/429-2712 FCLS's Government Assured Debt (GAD) program is a unique form of receivables financing whereby a contractor providing materials and/or services to a federal agency pledges or assigns its anticipated proceeds from a contract(s) or approved invoice(s) to a lender as collateral for an immediate short-term loan. North American Securities Administrators Association 555 New Jersey Avenue, N.W., Suite 750 Washington, DC 20001 202/737-0900 Contact person: Karen O'Brien This is a state-approved public stock sale called the Small Corporate Offering Registration which lets companies raise up to $1 million a year by selling shares for a minimum price of $5 each. Notice of the offering must be filed with the Federal Securities and Exchange Commission. Beyond that, the federal government is not involved in the review or registration process. Instead, the 18 states that have approved the program handle the regulatory aspects. The states include: Washington, Illinois, Missouri, Massachusetts, Indiana, Maryland, Maine, Mississippi, Montana, North Dakota, Texas, South Dakota and Wisconsin, Arizona, Arkansas, Idaho.

Alternative Financing for Women Overview -- State Information