That point was driven home by
Monetenegro said banks are less rigid on loan approvals than during the years of the Great Recession if applicants are in adequate financial standing and present a convincingly business plan, which she said is essential, along with a three-year business projection. Most of all, they must follow all of the steps involved in the complicated process of getting their business going.
"We're seeing an uptick in financing, even credit unions are entering the business loan arena," said Montenegro, who also is an adjunct faculty member in marketing and with an MBA online program at the
She said that the
Along with the
Both are slanted toward manufacturing and industrial businesses and the financing goes for machinery equipment and working capital toward construction and renovation. There is a requirement for job creation, with numbers that vary among the financial programs.
"It's definitely positive and we have good interest," Bisbing said of the new program. "There's some opportunity out there (with programs). We just got word that the
The PMEDC is certified by the
Montenegro said all applicants for financing from a one-person company to a corporation need a minimum credit score of 640 and must be able to pay 20 percent toward the money that they need, with the bank paying the remaining 80 percent. They can check with consumer credit consultant agencies on how to raise their credit score.
New businesses must have enough a startup equity to cover six months while customer recognition and business traffic grows.
If an applicant narrowly misses a bank's approval for financing, the
The next option would be the state's
Startup businesses using the latest technology can consult with the
As for the marketing aspect, Montenegro said with the growing popularity of social media, newer businesses are turning away from using web pages and relying more on Facebook, which is less costly.
She also gave some tips to those still learning the ropes. She said new business owners must be willing to work 50 hours or more a week and take financial and career risks when necessary. Pride in the work being done is a given as are tough decisions at times.
But they must be willing to set aside 39 percent of revenue for taxes. A one-person, self-employed business owner does not need an employer identification number for taxes but it could be good to use to avoid exposing social security number to the risk of identity theft.
If you're a sole proprietor of a business or even a business partner, you need file only for personal income tax. Once you go to
A growing trend for corporation owners is to file under an LLC -- limited liability company -- but if not structured properly, it is taxed like a
And those neophytes must remember that if they are opening a business whose name carries either the first or last name only, it is regarded as a fictitious name and must be filed in two publications -- the local newspaper and the local legal publication, which is the
The main thing, said Montenegro, is to take the time to know ahead of time the ins and outs of the process.
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