Terri Banaszewski,
Park Midway Bank:
651.523.7835
terrib@parkmidway.com
www.parkmidwaybank.com
Bankers connect owners
with much more than money
by Terri Banaszewski
WHEN PEOPLE CONSIDER their bank, they might think about either a source for money or a place to deposit it. Many times, however, the business customer is in need of much more.
A good banking relationship should provide you with other resources. Business owners have needs for both a good accountant and lawyer, assistance making the decision to start or expand, maybe even some help locating space to lease or buy. Where is a person to offer this kind of help?
Good bankers should be a wealth of information to help answer many business questions. They should be involved in the community, which translates into critical local information, contacts and connections. Because of the vast number of available resources such as special city or government loan programs, technical assistance providers and specific contacts for various services, a business owner can’t know it all. Rely on your banker for this type of reference.
Resource centers
Of course, a banker should be qualified enough to answer standard questions regarding bank products, loan requirements and structure, and financial ratios. A banker should be plugged into partnerships or programs that could offer alternatives beyond a traditional bank product, since many times the business may need more than what is available conventionally.
Local organizations that assist business owners in search of funding include the Minneapolis Community Development Agency (MCDA), the St. Paul Department of Planning and Economic Development (PED), and the St. Paul Port Authority. Both cities also provide business resource centers that can direct business calls on regulatory questions, space availability and city processes for various industries.
Within each city, smaller neighborhood nonprofit community developers offer assistance to startup and existing small businesses. This can include help with developing a business plan and forecasting financials, or reviewing lease terms and obtaining a loan.
Individuals within these CDCs are acquainted with the city they represent and are familiar with their loan programs and requirements. A few of these organizations include Seward Redesign, Whittier CDC, Hamline Midway Coalition, and East Side NDC. Both cities have begun new Small Business Expansion Programs that are available to fund equipment and real estate purchases. The programs also are open to both for-profit and nonprofit businesses and use your bank as well as the city.
Three other training and business service providers include WomenVenture and Neighborhood Development Center, both located on University Avenue in St. Paul, and Community Loan Technologies (specifically for nonprofit organizations). Each of these groups provides hands-on training programs that run up to 18 months, assisting with the development of a business plan and education related to owning your business.
Upon completion, candidates are often eligible for a loan provided through the organization. Instructors will also help provide contacts for needs such as deposit accounts and cash management services, payroll and merchant card processing.
Broader scale
Available ona broader scale is the Small Business Administration (SBA), which isconsiderably easier to work with than as recently as five years ago.Many banks provide SBA-guaranteed loans, which offer longer repaymentterms or allow a business to borrow with a shortfall of collateral. TheSBA provides a guarantee to the participating bank to mitigate risk.Your banker should be able to answer questions on its SBA programs orrefer you to the program specialist for its institution.
If the business owner comes to the bank prepared with all necessaryinformation on the front end (including company financials,projections, business plan and personal financial information on thecompany owners), the banker can move this process along fairly quickly.
The SBA has a number of loan programs with the most popular being the7A, the Express line and the 504. Each of these programs are used forvaried purposes and can provide opportunities for financing of abusiness in need of longer terms, lower down payments or havingcollateral and cash flow shortfalls.
All of these entities offer lending programs directly or in partnershipwith your bank. In addition to lending programs, business owners havetechnical assistance needs that also can be addressed through thesegroups. The city programs usually provide a connection to a local CDCfor ongoing help with financial reporting, taxes and employment issues.
WomenVenture and NDC offer ongoing assistance with financials andbusiness issues as part of their loan programs. The SBA has a separateoffice located in St. Paul called the Business Information Center (orBIC). The Business Information Center is a wonderful resource withcomputer services, business plan writing programs and plenty of printedindustry research materials. They also have staff from SCORE (ServiceCorps of Retired Executives) on-site who can mentor as entrepreneursmake business decisions.
Bankers have numerous opportunities to network and form partnershipswith all types of suppliers of business resources. Chamber of commercegroups such as the St. Paul Area Chamber of Commerce, Midway Chamber ofCommerce, Minneapolis Regional Chamber of Commerce, Hispanic Chamber ofCommerce and Hmong Chamber of Commerce all provide ample networkingevents.
And you thought your bank was a place to just deposit and borrow money!It shouldn’t be anymore. When looking to build your relationship with abank, make sure to utilize your banker as a true resource. Think of itas a one-stop shop for business information and services that can makethe demands of operating your business a little simpler.
