Access to Money Made Easier.
For Starting a Business? Working Capital? Purchasing Property, Equipment, Fixtures, Inventory? Learn how to find sources in three easy steps.
SCORE is excited to join the Small Business Administration in announcing LINC, an Internet-based referral tool designed to connect you with participating SBA Approved Lenders in our area.
Using the tool you can quickly and easily find lenders who provide loans of up to $5 million with favorable rates and payment terms as long as 25 years.
All you have to do is complete a short online questionnaire. The responses to that questionnaire are forwarded to participating SBA Lenders that operate within our county. If lenders are interested in the referral you will hear from them within 48 hours and contact information will be exchanged.
The questionnaire is not a loan application and completing it takes only a few minutes. SCORE mentors are available free of charge to assist you, answer your questions and guide you through the process of handling the responses and going to the next step of dealing with the prospective lenders.
There is no cost or obligation to using LINC and it can be done repeatedly. In addition to finding the lenders, the process helps you to learn what you need to know and do to give yourself the best chance of getting the money you need.
For additional information contact SCORE in Santa Barbara by going to www.sbscore.org, or go directly to SBA at https://www.sba.gov/tools/linc.
which supports small businesses and entrepreneurs, provided backing for more than 69,000 loans to small businesses totaling nearly $28 billion in the last fiscal year.
Maria Contreras-Sweet, head of the Small Business Administration ENLARGE
Maria Contreras-Sweet, head of the Small Business Administration Photo: Jordan Strauss/Associated Press
Ms. Contreras-Sweet, who previously served as executive chairwoman of a Los Angeles-based community bank for seven years, sat down with The Wall Street Journal to discuss access to capital and other challenges for small-business owners. Edited excerpts:
WSJ: When you took office, you promised to modernize the SBA. What would you say are some of your major accomplishments?
Ms. Contreras-Sweet: We were able to create SBA One, a new process for making loans that will become mandatory on Oct. 1 for all loans where the SBA makes the credit decision. The system has the potential to be transformational. Everything is online. The goal is they should be able to process these loans in a matter of a couple of weeks. That’s a really big deal.
Last year, we launched SBA LINC, which is the Match.com version of SBA. You answer about 20 questions. Instead of going to bank after bank with a really slow “maybe,” you might now get five or six, or maybe one or no, bank that comes back and says we are interested in your loan or we are not interested.
We are now testing ways to take the SBA One concept to contracting. It can take six to eight months to get approved for SBA certification as a contractor. How do we streamline that process?
WSJ: M&T Bancorp Chairman Robert Wilmers recently said that too much of the SBA’s lending authority goes to support larger loans. Is the SBA reaching the kinds of customers you want to be serving?
Ms. Contreras-Sweet: I absolutely disagree. We wanted to make sure that people who had been disenfranchised and had not had access to the SBA now could. It is showing up. Community Advantage loans under $150,000 are up.
WSJ: Microloans backed by the SBA fell in the last fiscal year by 7%. Is getting a loan still a challenge for small businesses?
Ms. Contreras-Sweet: Access to capital is a challenge all around. It is equally important to make certain that small businesses are getting counseling because, even when we get them capital, sometimes they don’t deploy it correctly.
I ask for more money every year [for microloans] from Congress and it has not been easy to get that number up. Microloans are a priority for us.
WSJ: What about the high rates charged by some online small-business lenders?
Ms. Contreras-Sweet: Online lenders are creating dynamic activity that is causing the conventional lenders to be a little more creative and a little more aggressive. You see new partnerships taking place that we might not have seen heretofore, for example, On Deck Capital with J.P. Morgan Chase. I think that holds promise.
We are also seeing more entrants in the space. For me, the question is: What is the SBA’s proper role in that activity? We are not a direct regulator, but how do we protect consumers?
If you look at the way we operate with LINC, we don’t say that we think you should go to this bank, but instead here are your options. We might be able to do something like that with alternative lenders. We have also been working with [SEC Chairman] Mary Jo White because she is starting to put some boundaries around this space.
I believe in transparency and that by providing information to the consumer, you can drive behavior.
WSJ: What do you think will be the key challenges for your successor?
Ms. Contreras-Sweet: The future of financing will take hold in so many different shapes. It is a major responsibility of the SBA to make certain we are helping our nascent and mature businesses navigate through this development.
The second challenge is that entrepreneurs are going to be global in nature. We need to follow the trade agreements where they set the rules of engagement. Our loans on exports are 90% guaranteed. How do we help people partake of those?
We need to have a strong partnership with cities. When I was with Westinghouse and we wanted to locate a facility, municipalities would say that we can give you market credits, tax credits, accelerated permitting. You have got to do that for the small business community.
Write to Ruth Simon at [email protected]
Locks, alarms, and cameras can help safeguard your facilities and equipment. But what about your computer databases—the places where valuable, sensitive, and potentially irreplaceable assets of your small business are stored?
It may be easy to assume that Internet firewalls and PC passwords are enough to prevent unauthorized access. But according to Fredric Paul, publisher and editor-in-chief of bMighty.com, an online resource that specializes in the IT needs of small and medium-sized businesses, database breaches from both external and internal sources are increasing at an alarming rate.
“Small businesses face a higher risk because they usually lack the IT security infrastructure and expertise of larger, but no less vulnerable, corporations,” Paul explains. “Because small businesses also lack the resources and expertise to detect and respond quickly to a breach, the consequences of unauthorized access are greater as well.”
Here are some steps for keeping your small business database as safe as possible:
Enable security capabilities. Many off-the-shelf databases have only limited default security controls. Make sure that all authentication controls are enabled, and avoid using common passwords for user and administrator accounts.
Give the database a security check-up. Before entering any data, make no unwanted or unnecessary sharing features are activated by default. Check the software developer’s website every few months to ensure that your version is up-to-date with all the latest security patches.
Restrict database access. Even if you have a small, trusted staff, access to the database should be limited to a need-to-know basis. This will prevent passwords and other important information from being misused or unintentionally shared. It also provides an extra measure of safety in the event today’s colleague becomes tomorrow’s competitor.
Make regular backups. Depending on the size and extent of your small business databases, back-ups should be made on a monthly, weekly, or even daily basis. The data should be stored in encrypted format to further minimize its value to a data thief. Back-ups should also be kept at a secure, off-site location in the event your normal place of business become inaccessible due to weather, fire, or natural disaster.
Keep track of trends. Even if you don’t consider yourself a computer whiz, safeguarding IT resources is easier when you take a proactive approach. Resources such as bMighty.com can provide valuable information and tips for ensuring your system stays in step with your small business’s needs.
To learn more about safeguarding your small business’s physical and electronic assets, contact SCORE “Counselors to America's Small Business.” SCORE is a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential business counseling and training workshops to small business owners. Call 1-805-563-0084, the SCORE chapter nearest you, or find a counselor online at www.sbscore.org.
SCORE helps small business in every stage of development. Potential Entrepreneurs, Start-Ups, and Smaller Firms. In other words, SCORE Counseling is for you, whether you are starting out or already up and running and wanting to grow.
If you are starting or planning a business venture and would like some guidance, contact SCORE today.
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