June 2015 Newsletter - CCD Business Development

Quarterly Newsletter, Issue 9, June 2015
An SBA 504 loan is a partnership
between a Certified Development
Company (CDC), the Small Business Administration and a lender. CDCs are economic development organizations that have
been certified by the SBA to
make loans under the Certified
Development Company Economic Development Loan Program
through an SBA 504 loan.
Working with a lender, the CDC
provides up to 40% of the financing for commercial real estate
purchase and new construction
with an SBA 504 loan. A lender
must partner with the CDC and
typically provides 50% of the
financing, while the entrepreneur
ends up paying as little as 10%
down.
The CDC works closely with the
small business borrower to process, approve, close and service
the SBA 504 loan. Funding is
provided by the CDC issuing a 10
or 20 year debenture bond that
is sold to investors on Wall Street
giving entrepreneurs access to
capital at low, fixed interest
rates.
May 2015 Rate 4.85%
Effective rate includes principal
& interest, program fees, and
loan loss subsidy.
THE SBA 504 LOAN
Quarterly
The SBA 504 loan program provides an outstanding
opportunity for the
healthy,
Newsletter,
Issue
9, small
Junebusiness
2015which is ready to
expand and grow. With this loan, everybody involved wins.

The Small Business
The low down payment and low interest rates allow the
small business borrower to retain more cash for expansion.
When the borrower becomes the owner of real property, rent
costs, in effect, are frozen. There is also the potential for
added tax benefits.
 The Community
By encouraging business expansion, the Certified Development Company offers a
vehicle through which employment is generated. The resulting increased business
volume, with its related employment needs, means greater stimulation for the local
economy.

The Lending Institution
This loan provides another alternative through which lenders can serve their small
business customers. The SBA 504 program makes it easier for a financial institution
to lend a substantial amount as part of an attractive, well-secured, financial package
with benefits to both borrowers and lenders. Additionally, SBA 504 participation
provides an opportunity to increase involvement in community reinvestment
programs.

The Real Estate Market
The 504 loan is a boost for the industrial and commercial real estate market because
it provides more attractive financing for buyers who might not otherwise qualify.
Serving Small Businesses Since 1971
CCD Business Development
Corporation would like you to
choose us as your Certified Development Company!
Certified Development Companies:
Growing Small Businesses,
Jobs, Communities
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We’re confident that our experience level will serve our clients well. As a trusted SBA 504
loan provider, our clients consistently express how we offer the utmost in professionalism and
attention to details of each commercial and industrial real estate transaction we close.
At CCD, we work with attention to detail to quickly secure your 504 loan approvals. Hundreds
of small businesses have put their trust in CCD. We make things easy for our customers so that
they can focus on their businesses.
If you are a borrower, please contact us today for further information!
Quarterly Newsletter, Issue 9, June 2015
Board of Director Spotlight
Louis (Louie) Liberante, Senior Vice-President, Finance
Cardinal Services, Inc. offers workplace solutions to employers. They have divisions
that can assist employers with Staffing, Co—Employment, Payroll Services and Human Resource Consulting. Their Staffing
Division can assist employers on finding and recruiting employees for their peak needs and for regular positions, whereby the
employees the client hires through Cardinal remains on Cardinal’s payroll for 520 hours while the client evaluates their performance and skills, then they have the option of converting them to their in house payroll at no additional charge. With their Co
-Employment Division, Cardinal takes on the clients entire workforce and provides worker’s compensation coverage (under
Cardinal’s FEIN) and can offer their benefit package depending upon the level of service the client needs or desires. Cardinal’s Payroll Division handles payroll processing only under the clients FEIN. Finally, their Human Resource Division is
available to assist clients with Employee Handbooks, discipline and any other HR related matter, including Wage and Hour.
Louie has been a CCD Board of Director for over 10 years. He feels it’s important to have private businesses on the Board to
offer a different perspective to CCD and it’s goals and objectives. He enjoys the quarterly meetings and the updates from other members on the activities in their communities and to see the work that CCD accomplishes to assist businesses.
Contact Information:
Louis Liberante,
Senior Vice President of Finance
110 Ackerman
Coos Bay, OR 97420
(541) 888-9799 x2133
Email: [email protected]
Website: www.cardinal-services.com
CCD’s Service Area Per Loan Program
Our service area currently consists of all counties in Oregon for the SBA 504 Loan Program.
Our service area for our in-house Revolving Loan Funds are the following Oregon counties: Coos, Curry, Douglas,
Jackson & Josephine.
Featured CCD RLF Loan Project
Randle Developing, LLC
Raevin Inc. dba The Human Bean
1509 Virginia Ave., North Bend, OR 97459 (541) 756-7984
62993 Hwy 101, Coos Bay, OR 97420 (541) 267-6724
Hours: 5 am to 8:30 pm
www.thehumanbean.com
The North Bend and Coos Bay Human Bean are all about excellent customer service,
Great coffee+ fun atmosphere. Go by and meet their incredible staff.
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Quarterly Newsletter, Issue 9, June 2015
Find the Right Salesperson for Your Business
Every small business owner reaches the point where it’s detrimental to the business to do everything by yourself. One of the
primary areas where most entrepreneurs need help is in the sales department.
The key is finding the right person for your business. Here are six things to look for when hiring a salesperson:
1.
Good listener. Great salespeople are great listeners and sell more by talking less. In the interview, is the candidate listening
to what you have to say?
2.
Real deal. Thinking on your feet is a useful trait but not if it means faking it. Customers value authenticity and honesty, so
look for a salesperson who’s genuine and would rather admit they don’t know something than make something up.
3.
Research skills. Provide candidates with a few facts on who they are selling to and see how much they can find out about the
company they’re calling on. Make a small project part of the final interview process.
4.
Knows the competition. A good candidate will come to the interview knowledgeable about your business and your
competition. You want a person working for you to know what they are up against at all times.
5.
Street smart and book smart. You want a salesperson who can talk on any topic and is well-read about current events and
especially about your industry.
6.
Trustworthy. After the interview, jot down your immediate perception of the candidate. A great salesperson doesn’t have to
oversell, badger or exaggerate. Use your gut instinct to select someone trustworthy and honest.
Source: SCORE
Featured SBA 504 Loan Project
Bevill R.E., LLC
Smith & Bevill Jewelers, Inc.
9875 SW Beaverton Hillsdale Hwy.
Beaverton, OR 97005
(503) 644-1333
Hours: Monday—Saturday 10 am to 6 pm
[email protected]
www.smithandbevill.com
In 1957, a man named Laurence Smith who served as truck driver and
battalion watchmaker with General George Patton in Europe, built his
business in downtown Beaverton. In 1974 Mr. Smith hired a veteran
fresh from service in the Navy named Bill Bevill. Bill was trained as a
master watchmaker and gemologist. The two became partners and
Smith & Bevill was born.
The business has grown to it’s current 7000 square foot showroom and
state of the art manufacturing facility.
Bill & Kathleen are joined in the store by their daughters Angela &
Gina. Even the family dog Dolce works as official greeter.
FOR LENDERS:
Choose a loan for both Borrowers and Lenders
The SBA 504 loan offers benefits to both borrowers and lenders. The loan’s shared financing structure reduces risk for lenders, and its low
down payment and long-term, low fixed interest rate puts financing within reach for businesses that may not qualify for conventional
loans.
Benefits to lenders
 Low loan-to-value, typically 50 percent
 Lower reserve requirement
 Reduced credit risk through partnership funding
 CCD prepares the SBA paperwork
Together We’re Building The Future Through Responsible
Economic Development
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Quarterly Newsletter, Issue 9, June 2015
CCD Business Development Corporation Economic Development Department News:
Below is a news release by USDA.
CCD is involved in the project, performing project administration with the City and USDA.
City of Myrtle Point Celebrates Earth Day with Announcement of Funding for Wastewater Treatment Plant— (Myrtle
Point, Oregon, April 21, 2015)
Today, the City of Myrtle Point in rural southwestern Oregon celebrated Earth Day with city officials and partners as the U.S. Department of
Agriculture (USDA) Rural Development announced the award of over $3.9 million to help the city protect and preserve water quality for future
generations.
The celebration featured a groundbreaking ceremony for the new Myrtle Point wastewater treatment plant and the announcement of significant
USDA funding to complete construction. This project will improve water quality in the South Fork Coquille River and for the local community
while also allowing the city to meet its growing needs.
“This event was a chance to celebrate environmentally friendly growth and development in rural areas,” said USDA Rural Development State
Director Vicki Walker. “Every day, small communities face the challenges of maintaining and upgrading their infrastructure. Ensuring adequate
utilities and other services is absolutely critical for a town to be able to grow, keep its residents safe and healthy, add new businesses, and develop
its economy. A project like this can help a small, rural community thrive into the future.”
The Myrtle Point wastewater treatment plant was constructed in 1953, and it is still in use today. However, it can no longer meet the demands of
this rural community’s growing population, nor sustain the area’s water quality. In 2011, through its Water and Waste Disposal Loan and Grant
Program, the U.S. Department of Agriculture (USDA) Rural Development provided the City of Myrtle Point with a loan of $7.8 million and a
grant of $1.8 million for the construction of new headworks with screening and bypass channels and a new wastewater treatment facility consisting of an activated sludge treatment plant, ultraviolet disinfection system, new control building, and new river outfall and diffuser. To date, the
city has removed wood debris from the project site, imported structural fill, constructed a new sewer interceptor consisting of a 1,300-foot, 24inch diameter gravity sewer pipe, and constructed a new river outfall diffuser pipe. Today, USDA announced additional funding through a $2.8
million loan and a $1.1 million grant to supplement the funds remaining under the initial award and ensure the successful completion of this vital
project.
USDA Rural Development delivers more than 40 programs that help rural communities, businesses, and residents develop infrastructure, improve
housing availability, expand renewable energy and local foods, and create jobs through a variety of economic development activities.
President Obama’s historic investments in rural America have made our rural communities stronger. Under his leadership, these investments in
housing, community facilities, businesses, and infrastructure have empowered rural America to continue leading the way-strengthening America’s economy, small towns, and rural communities.
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Quarterly Newsletter, Issue 9, June 2015
Borrowing has pros and cons
Should I borrow money to help my small business grow?
The decision to borrow money to grow a business has several considerations. First, is the anticipated
growth sustainable and profitable ever with the cost of debt service? Second, does the company have
sufficient assets to collateralize the debt and cash flow to repay the debt? Finally, does the growth fit
the long term strategies of the business given the economic outlook both locally and nationally based on
industry trends? According to the U.S. Small Business Administration (SBA), growth can be a cause of
business failure.
Taking on debt to fuel growth will add cost (interest expense) and impact business cash flow (principle repayments). Market
research will help establish the potential sales increases that can be achieved by growing a business. Will the business need to
purchase new equipment or move to a larger facility? Will additional staff be needed to support the increased sales? If so, will
the increases in revenue be enough to cover the new costs plus provide cash flow to cover debt repayment and interest?
Lenders will need proof of sufficient cash flow, collateral and borrowing ability to approve a loan. A written business plan will
help document assumptions made about the future sales if the company chooses to move forward as well as the increased costs.
The business plan should include a list of tangible assets that will be used as collateral for the loan. If the business does not have
sufficient collateral, what personal assets are available? Is the growth the result of a new contract? If so, some lenders may agree
to use the signed contract as proof of repayment ability.
The business plan should include an environmental scan. What is the market outlook in the industry over the next year, three
years and five years? Is the industry growing, stable or in decline? Are industry regulations changing or are new competitors
entering the market? If so, what plans are in place to overcome any regulatory changes or threats from new competition?
The next step is to find a lender willing to make a loan to the business. A good starting place is the financial institution currently
providing banking services. If that is not an option because the loan is not a good fit for their institution, research is needed to
find a lender who understands the industry and has capacity to make the loan sought. The Small Business Development Center
can assist with this research through the Capital Access Team http://www.biz-center.org/business-advice-courses/capital-accessteam.
Borrowing money, adding capacity and adding employees is assuming risk but it makes sense if the market potential is there to
be successful. Careful analysis of the data collected during the research and business planning phase can reduce that risk and
lead to greater financial success in the future.
Contributor:
Arlene M. Soto, Director
Southwestern Small Business Development Center
2455 Maple Leaf
North Bend, OR 97459
(541) 756-6445
[email protected]
www.bizcenter.org
Staff Member Spotlight—Kathy Strickler, Loan Assistant/Loan Servicing Specialist
I grew up in Coos County, Oregon. I am the youngest child with two older brothers. We were raised in the
country on a 33 acre farm. I guess I can be classified as a “farm girl” as I spent many years in 4-H with the
Sumner Big Beefers.
After graduating from Marshfield High School (MHS), I was fortunate enough to travel Europe for six weeks
with the MHS Concert Choir. I took several classes at Southwestern Oregon Community College and began
working. I have worked at a local drive-in during high school, for five doctors, for a lumber company, a
trucking company and architects.
I came to CCD in April 2002, working in the Community Development Department as a Project Coordinator.
In March 2004, I moved to the Loan Department as a Loan Servicing Specialist. I worked directly with our
clients from the first contact made through the life of the loan. It is exciting to see the businesses we have helped start-up and
expand. I take pride in what we do for our communities with our in-house funds and throughout the state with our SBA 504 loan
program.
After three months of courtship, my husband and I were married and will celebrate our 41st anniversary this year. We reside on
the property I was raised on and we raised three girls. Although, I do not have a very green thumb, I enjoy flowers and growing
my own vegetables. We enjoy hunting, fishing, camping and spending time with our granddaughter (Grandpa is the “soccer
mom”). We love traveling back in time while driving our 1954 Chevy pickup we restored. It is definitely a sweet ride!
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CCD Business Development Corporation
CCD is a private / non-profit corporation formed in 1971.
Roseburg Office:
522 SE Washington Ave., Ste. 111A
Roseburg, OR 97470
(541) 672-6728 or (800) 452-6010
www.ccdbusiness.org
CCD was designed by the 3 counties (Coos, Curry & Douglas) not as a replacement for the individual county development efforts but as a focal point for
economic development throughout the 3 county areas. CCD is recognized as
an Economic Development District.
North Bend Office:
2455 Maple Leaf
PO Box 444
North Bend, OR 97459
(541) 756-4101 or (866) 202-5903
www.ccdbusiness.org
In 1981, CCD expanded its financial services. The US Small Business Administration designated CCD as a “Certified Development Company”, which enabled CCD to begin helping businesses with SBA financing programs.
Equal Credit Opportunity Lender
Certified Development Companies:
Growing Small Businesses, Jobs, Communities
What is a Certified Development Company?
A CDC is a nonprofit organization certified by the SBA to provide 504 loans to small businesses. Nationwide, there are about 270 of these
organizations. Some make only 504 loans; others offer a range of programs to help small businesses. A CDC receives certification to
operate statewide and, with approval from SBA, could be given certification to serve multiple, contiguous states. A CDC operates under
the leadership of a board of directors, who are drawn from the service area.
Visit Our Website: www.ccdbusiness.org
CCD Business Development Corporation (CCD) is dedicated to helping small business owners get the financing
they need to start or expand their business.
Our CDC has a 24-member Board of Directors, comprised of volunteers who care about the economic development role played by small business owners. Our Board includes representatives from banks, small businesses,
government and community groups.
To Get Started Contact: CCD’s Lending Team
Theresa Haga
Business Finance Manager
541-756-4101
[email protected]
Louie Robida
Loan Officer / Marketing
503-789-8191
[email protected]
WE WANT YOUR BUSINESS!
Our Lending Staff:
Our lending staff are experts in government loan programs, providing excellent advice and counsel to the small business
owners and private commercial lenders.
Federal Notice: To help the government fight the funding of terrorism and money laundering activities. Federal Law requires all Certified Development Companies to obtain, verify and record information that identifies each person who applies for a loan.
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