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Michael Kinard
Michael Kinard a native of Wichita, earned a Bachelor of Science in Business Administration from Friends University. Kinard has been the Executive Director of the Kansas Minority Business Development Council (KMBDC) since May 1999. As director of the KMBDC, Kinard counsels and encourages many minority businesses in Wichita. Kinard is a member of the Wichita School Board, an active member for the Downtown Rotary Club, serves on the Communities United Credit Union Board, a board member for the north branch YMCA, Chairperson of Sedgwick County Micro-loan Credit Committee, a mediator for the Community Mediation Services, serves as co-chair on the education committee for the NCCJ and is a member of the NAACP. You can contact Michael at 350 W. Douglas, P.O. Box 1241, Wichita, KS 67201-1241, by phone at (316) 268-1154, or by e-mail at michael@wacc.org
Business
2002-11-01 16:36:00
SBA loans
:  What is the process for a SBA loan?  How long does it take?  Can you normally get all of the funding you need with the loan?  Do you have to have any money to put down?
ANSWER:  The following information was provided by Elizabeth Auer, District Director for the Wichita District Office of the SBA.  The key to any business is adequate funding, this is especially true for start-up businesses but raising capital is not an easy task which many new entrepreneurs quickly discover.  Many people turn to the SBA for financing; however, the SBA does not have any direct lending authority but does have programs wherein they act as guarantors for the loan. Financing programs vary according to the borrower's financial need. SBA loan guarantees are made through both bank and non-bank financial institutions and can be guaranteed up to 85 percent.  There are basically three parties involved with a SBA loan: the lender, borrower and SBA. The process is very straight forward; first the lender determines whether a borrower's application is acceptable. If approved the lender may forward the application and its credit analysis to the SBA. Once SBA reviews and approves the application it is returned to the lender who disburses the loan funds to the borrower.The borrower must pledge sufficient assets (collateral) to secure the loan, with personal guaranties from all the principal owners of the business. Note that insufficient collateral will not automatically decline the loan but could be an unfavorable factor depending on other variables. Other considerations to keep in mind are that the business must be a for profit entity and fall within SBA size standards (call SBA for standards).A personal credit review is a good starting point if you are unaware of your personal credit status.  Another important document is your business plan which is the key element to obtaining financing because it details many questions lenders will ask, i.e.,  the purpose of the loan, business form, accounting/bookkeeping procedures, labor complement,  marketing plan, financial projections, and an equity investment in the business which is different than collateral. Lenders will not finance 100% of the project and you, as the business owner, will need an equity injection of between 20-30% of the loan amount requested for the business venture.Contact your local SBA office at 269-6273 or 269-6616 for detailed information about the various loan programs available.
 
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