The Reality of Lending

This post by Bill Sims

Posted in Business Conditions, Financing, Raising Capital


The Reality of Lending – “The New Norm”

A feature article re-posted from the online edition of  Nevada Business – The Decision Makers Magazine.

A Nevadan needs $120,000 to open a used sporting goods store but can’t get a loan from a bank. Either he gives up the idea or resorts to creative financing, if possible. In the end, he puts up $40,000 of his own money, gets his landlord to cover $15,000 of tenant improvements, and obtains a $40,000 loan from the state’s micro-loan lender and a $25,000 loan from a Florida bank.

“In that situation, we’re looking at four sources. That’s what we have to do,” said Rod Jorgensen, who is director of counseling for the Nevada Small Business Development Center (NSBDC) and helps small businesses find and obtain funding.

Lending to start-up, early-development and existing businesses is happening in the Silver State but far from the level it was at three years ago….



2 Responses to “The Reality of Lending”

  1. On January 4th, 2011 at 8:30 pm CD. CLARKSON Said:

    Has anyone ever given thought to letting other small business become investors in emerging small business by creating a micro capital venture coalition. This way the business community has an incentive to work with state and local government to become stakeholders and even mentors. With support from the local business community ( your board of directors) you get access to a broad range of resources with the same commitment…anchoring successful ventures in the local market place.

  2. On January 5th, 2011 at 10:08 am Rod Jorgensen Said:

    This is a very interesting comment. In many 3rd world countries such programs do exist, and they also have gained some traction in the US, called peer to peer lending. I believe it is something we will take a look at.

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