Did you know that you can use a MetroAction loan to fund your marketing plan? Whether you need a new website or are embarking on a traditional marketing campaign, MetroAction funding can help you grow your business!

MetroAction serves nine counties in northeastern Pennsylvania including Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill, Susquehanna, Wayne, and Wyoming.  Some of our programs can fund businesses in any Pennsylvania county.  Why wait?  Apply for a marketing loan today!

Whether you’re launching a new business or rethinking an existing one, MetroAction has the resources available to get your business moving in the right direction during 2011.  We provide loans to help businesses start and grown and we provide seminars and webinars to help you make the right choices in your business.

Visit our website to learn about all of our products and services!

MetroAction’s Step Loan Program helps low income people improve their lives by providing access to small business loans and counseling. And, MetroAcion is  an area loan organization for the Small Business First Loan Program — a state program designed to stimulate the expansion and assist in the retention of small business for the purpose of creating new jobs and retaining existing jobs in Pennsylvania.

Learn more about these, and our other loan programs, at www.MetroAction.org.  You can even make a referral right from our website!

A working capital loan provides access to funds to pay for the expenses associated with doing day-to-day business such as rent or mortgage payments, utilities, inventory or employees.

Or perhaps you want to take advantage of a business opportunity that is too good to pass up but cannot borrow from a bank due to lack of business experience, credit history or collateral.  Again MetroAction is here to offer you the assistance you need to succeed.

We serve nine counties in northeastern Pennsylvania including Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill, Susquehanna, Wayne, and Wyoming.  And some of our programs can fund businesses in any Pennsylvania County.  Don’t delay.  Apply for your loan today!

Paying for an energy-efficiency upgrade doesn’t have to be an issue. While some upgrades require little or no funding, some do require a financial investment.  Why should you invest in making upgrades?  The savings from a well-planned efficiency upgrade can have a positive impact on your business’ cash flow and, even, pay for itself in the long run.

For smaller, inexpensive upgrade, such as upgrading your lighbulbs or replacing smaller applicances and equipment with energy efficient models, you may want to use your own funding to pay for the upgrade to keep your return on investment high.

For larger jobs, such as upgrading your HVAC or changing your electric meter, financing might be the only way to pay for the upgrade. And, that’s how MetroAction can help!  MetroAction’s small business loan programs can provide up to $35,000 to help small businesses finance energy efficiency upgrades.  In today’s economy, when bank financing is harder to come by, MetroAction has proven to be a valuable resource for helping start-up and growing small businesses obtain the financing they need to be competitive.

Pennsylvania’s Department of Environmental Protection also offers a number of grant and incentive programs for businesses that commit to improving energy efficiency.

While you can’t control the rate increases, you can control your business’ energy consumption and you can be strategic in planning your energy efficiency investments.

SBA

Did you know that the SBA is launching a new program to help existing small businesses through this difficult economic time?  In a few weeks, eligible businesses will be able to apply for deferred-payment loans up to $35,000 through the America’s Recovery Capital (ARC) program.  Read more about the program and eligibilty below.

Release Date: May 18, 2009 Contact: David J. Hall (202) 205-6697 Release Number: 09-30 Internet Address: http://www.sba.gov/news

SBA Launches New 100-Percent Guarantee ARC Loan Program To Help Struggling Businesses

WASHINGTON — Small businesses suffering financial hardship as a result of the slow economy may be eligible to receive temporary relief to keep their doors open and get their cash flow back on track through to a new loan program announced today by SBA Administrator Karen G. Mills.

Beginning on June 15, SBA will start guaranteeing America’s Recovery Capital (ARC) loans. ARC loans are deferred-payment loans of up to $35,000 available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualifying debt. ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.

“These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times,” said Administrator Mills. “Together with other provisions of the Recovery Act, ARC loans will free up capital and put more money in the hands of small business owners when they need it the most. This will help viable small businesses continue to grow and thrive and create new jobs in communities across the country.”

As part of the Recovery Act, the ARC program was created as a no-interest, deferred payment loan to help small businesses that have a history of good performance, but as a result of the tough economy, are struggling to make debt payments.

ARC loans will be disbursed within a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities. Repayment will not begin until 12 months after the final disbursement. Borrowers don’t have to pay interest on ARC loans. After the 12-moth deferral period, borrowers will pay back the loan principal over a period of five years.

ARC loans will be made by commercial lenders, not SBA directly. For more information on ARC loans, visit www.sba.gov

You can receive all of the SBA’s News Releases via email. To subscribe, visit http://web.sba.gov/list and select “Press Office.

About the  ARC Loan Program

ARC loans can be used to make payments of principal and interest, in full or in part, on one or more existing, qualifying small business loans for up to six months. ARC loans provide an immediate infusion of capital to small businesses to assist with making payments of principal and interest on existing debt.  These loans allow borrowers to redirect cash flow from making loan payments to investing in their businesses, to help sustain the business and retain jobs.  For example, making loan payments on existing loans with proceeds from an ARC loan can allow a business to focus more funds on core operations, such as buying inventory or making payroll.

ARC loans do not require collateral, are interest-free to the borrower, carry a 100 percent guaranty from the SBA to the lender, and require no fees paid to SBA.  Loan proceeds are provided over a six-month period and repayment of the ARC loan principal is deferred for 12 months after the last disbursement of the proceeds.  Repayment can extend up to five years.

The best candidates for ARC loans are small businesses that are struggling, yet have been making loan payments, or those just beginning to miss loan payments due to financial hardship. 

ARC loans are made by commercial lenders who are SBA participants.  Non-SBA lenders can easily become SBA participants by working with their nearest SBA district office. Businesses interested in applying for an ARC loan should first contact their current lender. 

ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first. 
ARC Loan Eligibility

ARC loans are available to viable, for-profit small businesses in the U.S. that have qualifying small business loans and are experiencing immediate financial hardship.  

Your small business must be an established business, have financial statements demonstrating it was profitable in one of the past three years, and be able to project sufficient cash flow to meet current and future loan payments over a two-year period from loan approval.  If your business does not meet these criteria, you can discuss your eligibility with your lender.  ARC loans are not designed for start-up businesses.  

Examples of qualifying loans may include credit card obligations for your business, capital leases, notes payable to vendors/suppliers, Development Company Loan Program (504) first lien loans, other loans to small businesses made without an SBA guaranty, and loans made by or with an SBA guaranty on or after Feb. 17, 2009.

ARC loans are designed to help businesses experiencing immediate financial hardship for reasons such as:

·       Loss/reduction of customer base

·       Increase in cost of doing business

·       Loss/reduction of working capital and/or loss/reduction of short term credit  facilities

·       Inability to restructure existing debts due to credit restrictions

·       Loss/reduction of employees (intellectual capital)

·       Loss/reduction of major suppliers (major suppliers out of business)
Borrowers whose loans are already severely delinquent or whose past performance or future cash flow indicates that the business is not viable are not good candidates for an ARC loan..
Applying for an ARC Loan

ARC Loans are provided by commercial lenders and guaranteed by the SBA.  Your next step is to contact your lender who will help you determine if you are a candidate for an ARC Loan.  Questions they may ask include the following:

·       Does your small business have an established banking relationship?

·       Has your small business been in operation for a minimum of two years?

·       Do you have financial statements (balance sheet, income statement, and cash flow statement) which demonstrate your business had a positive cash flow in one of the past three years (or as long as your business has been operating, if less than three years)? 

·       Does your cash flow projection for the next two years indicate sufficient cash flow to meet your current and future loan payments?

·       Regarding your debts, is your business no more than 60 days past due on any loan (you can be current on all your debt obligations and still qualify for an ARC Loan)?

·       Is your business suffering an immediate financial hardship?  For example:

·       Declining sales and revenues;

·       Difficulty in making loan payments on existing debt;

·       Difficulty in paying employees;

·       Difficulty in purchasing materials, supplies, or inventory; and/or

·       Difficulty in paying rent and/or other operating expenses.

Before fabricating or adopting a growth strategy, there are a few steps that should be taken that will yield valuable insights about you and the future of your business: where you are and where you want to go.

The I.D.E.A. (identify, develop, evaluate, and act) method is a great way to help you plan the growth of your business. With the completion of each step a clearer picture will begin to form that will help you create and execute a plan of attack.

Identify – Before anything else, you must identify exactly what type of business growth you wish to achieve. This could be anything: the desire for more clients, higher sales, expansion projects, a more diverse product line etc. The sky is the limit. Write down what type of growth you want to obtain.

Develop – In order to arrive at the desired destination there must be signs along the way that will continually point you in the right direction. This is the development stage: constructing milestones or a series of objectives that will help you reach your ultimate goal. These objectives must be specific and they must all successively lead to a higher level of achievement until you reach your final terminus.

Evaluate – In order to stay on the right path you must evaluate your every move. This will help ensure that you are where you need to be and that you are going where you need to go. Without employing this step it is very easy to veer off the correct path. However, the proper use of this step will help you understand exactly what needs to be done and what adjustments need to be made in order to keep your plans on target.

Act – This final step is simply making the necessary adjustments that the 3 previous steps have directed you to make. But keep in mind that you should not become over zealous when it comes to adjusting your plans. Make sure that you leave enough time between the adjustments to see the results. This will help you determine what is and isn’t working.

This exercise is a great starting point for any entrepreneur who is looking to grow their business. Hopefully these steps will help you come up with a plan to get your business where you want it to be.

If this is you, then now is probably the time to begin thinking seriously about a marketing strategy. To some this may be an intimidating thought. After all, there are many different types of marketing and finding a mix that fits your business may seem like a daunting task. Fortunately, marketing is not as hard as it sometimes appears and there are many different avenues that can be taken in order to achieve marketing success.

So what is marketing? Even if you don’t know the dictionary’s definition you probably have an idea of what it is and if you have been in business for any amount of time you’re probably already engaged in some form of marketing, whether you realize it or not.

Many business owners (novice and veteran alike) think that marketing is an extravagant and expensive campaign that is comprised of billboards, television spots, mass emails, and countless phone calls (to name a few). It is true that marketing involves these things, but it is so much more than that. Simply put, marketing is everything that goes into selling a product or service. Everything in between the transfer of a good or service from the seller to the buyer is marketing.

What makes a marketing project work is how a business arranges all of the different types of marketing to form a unique message that captures the attention of the consumer.
In order to do this, there are a few things to keep in mind.

Simplicity is the key to a good marketing strategy – Everything, from a slogan to a logo, should be kept simple. The simpler it is the more likely people are to remember it.

Don’t think that one form of marketing is enough – Do everything you are capable of doing to get the word out about your business. This means go beyond stuffing mail boxes with brochures and start incorporating some different things. Build relationships with people, set up a website, advertise etc.

Don’t think that marketing is a quick fix – Creating and implementing a good marketing strategy is one of the best things you can do for your business. But it will not solve all of your problems. Just keep in mind that marketing is not an end, but a means to an end.

Don’t wait – The sooner you begin marketing your business the sooner you will be established in the minds of your target market as someone who provides what they want.

There you have it: a few basic steps to better your business and improve your chances of success.

So why is it that some businesses succeed while others fail? It would be fair to say that this question does not have multiple answers, but one answer which is made up of multiple components, all of which are vital to the success of any business. Keep in mind, however, that some of these components are more sensitive than others (i.e. there is a big difference between a good business idea and having readily available business capital).

So here it is, a few highlighted components that, when fused, make for a great business foundation:

• A Good Business Idea – Every business begins with an idea for a product or service. But every good business begins with an idea for a product or service that satisfies a specific need or want for consumers.
• A Business Plan – Once an idea is recognized, a plan for action is the next step. This plan should include a concise summary of the business, timelines, marketing plans, a general business operations breakdown, and financial information. Use MetroAction’s Business Plan Outline as guide when developing your business plan.
• A Business Structure – Businesses can take many forms: sole proprietorship, partnerships, corporations, and limited liability companies. It is important to choose the right one for your business.
• Funding! – All of the previous components are basic preliminary steps for starting a business. But until the necessary funds are obtained the business will remain just an idea.  MetroAction provides up to $50,000 in small business funding to both start-up and existing businesses.

That’s it. Those are the basic components that answer the question “what is the key to a successful business”. Of course, there is more to it than that, but these steps will help build a solid core for a winning business.

To be eligible, at least 51% of the business must be owned by a member of the military community, including veterans, service-disabled veterans, active-duty service members eligible for the military’s Transition Assistance Program, reservists and National Guard members.  Spouses of service members and widows of service members or veterans who died during service or of a service-connected disability are also eligible to apply under this program. 

If you are interested in applying for this program, you can submit your pre-qualification application online or download a paper copy.